AUGUSTA GOLD ACQUIRES FULLY PERMITTED LOW-COST HEAP LEACH GOLD PROJECT SEVEN MILES FROM ITS BULLFROG PROJECT IN NEVADA – QNT Press Release

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VANCOUVER, BC, April 21, 2022 /PRNewswire/ – Augusta Gold Corp. (TSX:G) (OTCQB:AUGG) (FSE: 11B) (“Augusta Gold” or the “Company”) is pleased to announce that it has entered into an agreement to acquire the Reward Project, located just seven miles from the Company’s Bullfrog Project in Nevada (the “Transaction”).

Reward Project Highlights

• Historical estimate¹ of measured and indicated mineral resources of 416,800² ounces (oz) of oxide gold grading 0.022 oz/t (0.75 g/t) gold
• Historical estimate of proven and probable reserves of 377,000³ oz of gold grading 0.024 oz/t (0.82 g/t) gold
• Historical estimate test work projected gold recoveries of 81%
• Project has all required permits in place for construction
• Augusta Gold anticipates developing the Reward Project as soon as historical estimates are updated

The Reward Project has a historical measured and indicated mineral resource estimate of 416,800 ounces (oz) of oxide gold grading 0.022 oz/t (0.75 g/t) gold, a historical proven and probable mineral reserve estimate of 377,000 oz of gold grading 0.024 oz /t (0.82 g/t) gold, and has received the necessary permits to proceed to construction of the project. Test work developed for the historical estimate projected gold recoveries of 81%. The Company plans to immediately undertake work to update the historical estimates with development of the Reward Project anticipated to follow shortly thereafter. The Reward Project fits well with the Company’s Bullfrog Project (seven miles to the northwest – see Figure 1), which contains measured and indicated mineral resources of 1,209,000⁴ ounces of gold at a grade of 0.53 g/t gold, and inferred mineral resources of 258,000 ounces of gold at a grade of 0.48 g/t gold. It is anticipated that significant synergies can be realized between the projects.

Don TaylorPresident and CEO commented: “We are pleased to bring the Reward Project into our ongoing operations being advanced at the Bullfrog Project. Once we have updated past studies, we anticipate that the Reward Project will be a shovel ready, low-risk oxide gold project in close proximity to our Bullfrog Project that will enable the Company to be a near-term producer while we complete the permitting process at Bullfrog.”

Reward Project Acquisition

Augusta Gold will purchase the Reward Project from Waterton Nevada Splitter LLC (“Waterton”) for the following consideration:

• US$12.5M cash paid on closing of the Transaction (“Closing”) with cash on hand;
• US$15.0M comprised of 7,800,000 Augusta Gold shares paid on Closing with the remaining payable at the time of Augusta Gold’s next equity financing, in cash or Augusta Gold shares, provided the additional amount of shares does not result in Waterton owning more than 9.99% of Augusta Gold’s issued and outstanding shares; and
• US$17.5M cash paid within 90 days of Closing (the “Deferred Payment”), which is backstopped by the Company’s Executive Chairman and significant shareholder, Mr. Richard Warke.

Closing of the Transaction is subject to several conditions, including receipt of all required regulatory approvals.

Reward Project Historical Estimate

The historical mineral resource and reserve estimates are based upon a technical report titled, “Reward Project Feasibility Study NI 43-101 Technical Report Nevada, USA” with an effective date of September 6, 2019 that was not filed on SEDAR. The historical estimates are considered to be relevant and reliable for the purposes of the Company proceeding with the Transaction as it provides an indication of the potential of the Reward Project. Furthermore, the historical estimates do use categories of mineral reserves and resources as provided for in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and comprise the most recent report available to the Company. The historical estimates need to be updated to include work done since the date of the estimates and to use assumptions and qualifications that are more reflective of today’s environment. For instance, the gold price is no longer current, and inflation will have affected other cost estimates.

A qualified person has not done sufficient work to classify the historical estimates as current mineral resources and reserves and the Company is not treating the historical estimates as current mineral resources and reserves.

Below are excerpts of the historical estimates from the technical report.

Historical Mineral Resource Statement

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