Canagold Optionee Getchell Gold Corp. Reports Broad High-Grade Gold Drill Intercepts at Fondaway Canyon, Nevada

Getchell can acquire a 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 first three holes from the 2020 drill program at Fondaway (See Table 1 Fondaway 2020 Drill Interval Highlights)
• Holes FCG20-02 and 03 were drilled in the Central Area to test the down-dip extension of the Colorado Zone mineralization (See Figure 2 – Colorado-Pack Rat Long Section)
• Multiple gold zones were intersected in hole FCG20-02 including a new high-grade gold zone above the modelled Colorado Zone mineralization and closer to surface;
• The new high grade gold zone assayed 6.2 grams per tonne (g/t) gold (Au) over 21.9 meters (m) including 6 g/t Au over 12.0m, and 20.4 g/t Au over 3.2m;
• In addition, holes FCG20-02 and 03 both intersected broad intervals of mineralization down-dip of the Colorado Zone with higher than anticipated gold grades
• Hole FCG20-02 intersected 9 g/t Au over 43.5m and 4.2 g/t Au over 14.9m
• Hole FCG20-03 intersected 3 g/t Au over 21.1m including 8.7 g/t Au over 9.4m and 2.0 g/t Au over 49.0m
• Hole FCG20-01 drilled 2.3km to the west at the Pediment Target Area was lost within a fault zone prior to reaching the target depth. Additional drilling is planned for this prospective target; and
• Assays are still pending for holes FCG20-04 to FCG20-06 drilled in the Central Area.
• Hole 4 targeted the Halfmoon zone, assays pending
• Holes 5 and 6 targeted the Colorado zone down dip of holes 2 and 3, assays pending

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.

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 OTCQB: CRCUF.

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