Canagold Optionee Getchell Gold Extends Gold Mineralization Zones at Fondaway Canyon Project, Nevada

Getchell has an option to acquire 100% interest in Fondaway Canyon from Canagold by paying US$4 million in cash payments and share issuances and incurring annual exploration expenditures on the property (See news release of January 7, 2020). Upon exercise of the option Canagold will retain a 2% NSR on the Project.

Key Highlights

• Assay results have been returned for the last three holes from the 2020 drill program at Fondaway (See Table 1 Fondaway 2020 Drill Interval Highlights);
• These final three holes all intersected broad zones of gold mineralization and have significantly extended the previously defined gold domains;
• Holes FCG20-05 and FCG20-06 successfully extended the mineralized Colorado structural zone, initially intersected by holes FCG20-02 and FCG20-03, 150 metres down dip towards the southwest (See Figure 2 – Colorado-Pack Rat Long Section);
• 8 g/t Au over 90.0m including 4.4 g/t Au over 11.1m was returned from the Colorado SW Extension in FCG20-05;
• 5 g/t Au over 37.7m and 1.1 g/t Au over 38.3m were returned from the Colorado SW Extension in FCG20-06; and
• 6 g/t Au over 9.8m high grade gold intercept and 2.5 g/t Au over 58.0m including 10.3 g/t Au over 5.2m, was intersected by FCG20-04 within the newly identified North Fork Gold Zone that extended known gold mineralization 200 metres (See Figure 3 – North Fork Zone Long Section);
• Highlighted gold zones remain open laterally and down-dip. There is currently insufficient information available to determine the true widths of the mineralized intervals.

Sampling and Assay Methods

The 2020 drill core was cut at Bureau Veritas Laboratories’ (“BVL”) facilities in Sparks, Nevada, with the samples analyzed for gold and multi-element analysis in BVL’s Sparks, Nevada and Vancouver, BC laboratories respectively.  Gold values were produced by fire assay with an Atomic Adsorption finish on a 30-gram sample (BV code FA430) with over limits re-analyzed using method FA530 (30g Fire Assay with gravimetric finish).  The multi-element analysis was performed by ICP-MS following aqua regia digestion on a 30g sample (BV code AQ250).  Quality control measures in the field included the systematic insertion of standards and blanks.

USA Gold Land Package

Fondaway Canyon is one of 11 gold-silver properties in the USA acquired by Canagold in 2017.  Four of these properties are currently optioned out to third parties. Canagold continues to receive expressions of interest in the remaining 7 properties in Nevada, including the Corral Canyon project.

Canagold is focused on creating shareholder value by advancing its flagship New Polaris Gold Project and acquiring new gold properties with compelling discovery potential.

Qualified Person

Garry Biles, P.Eng, President & COO for Canagold Resources Ltd, is the Qualified Person who reviewed and approved the contents of this news release.

"Scott Eldridge” 

Scott Eldridge, Chief Executive Officer

CANAGOLD RESOURCES LTD.

About Canagold – Canagold Resources Ltd. is a growth-oriented gold exploration company focused on generating superior shareholder returns by discovering, exploring and developing strategic gold deposits in North America. Canagold shares trade on the TSX: CCM and the OTCQX: CRCUF.

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This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Statements contained in this news release that are not historical facts are forward-looking information that involves known and unknown risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements with respect to the future performance of Canagold, and the Company’s plans and exploration programs for its mineral properties, including the timing of such plans and programs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "has proven", "expects" or "does not expect", "is expected", "potential", "appears", "budget", "scheduled", "estimates", "forecasts", "at least", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved".

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