Intact Epithermal System At Si2 Project Defined

VANCOUVER - K2 Gold Corporation reported on the exploration program at the Si2 Project. The Company has completed approximately 1,700m of diamond drilling over 4 drill holes within the southern target area, one of 10 target areas at the project identified through geological mapping, surficial geochemistry, and geophysical surveys. Drilling is ongoing at hole SD-23-004, which has been extended beyond the planned depth to test the limits of the alteration system.

Highlights: 1) The first 3 holes spaced more than 170m apart have successfully defined a preserved epithermal system with significant scale potential. 2) Broad intervals exhibiting multiple styles of veining and brecciation, with associated sulphides were intersected at all 4 drill holes. These intervals are also associated with elevated arsenic and antimony in spot XRF analysis. 3) A new style of hydrothermal brecciation was intersected at >475m below surface at hole SD-23-003. The system is open along interpreted strike and at depth. 4) Hole SD-23-004 (ongoing) has been extended to test the deep hydrothermal breccia intercepted in hole SD-23-003, which intersected approximately 25m of breccia with a silicified matrix composed of up to 10% sulphide, at 100m below surface. 5) Assay results from the completed drill holes are expected soon.

"K2 has confirmed the presence of a strong epithermal alteration system at Si2. We have successfully sampled broad intervals hosting multiple styles of strong sulphide mineralization, which could potentially host gold. This suggests that several faults within the southern target area have acted as 'hydrothermal superhighways', leading to intense alteration and sulphidation of the host rock. Essentially, we have drilled multiple phases of a new system, we have found the rocks we were hoping to find, and we are now waiting for assay results," stated Anthony Margarit, CEO.

Drilling at the southern target area has encountered a blanket of near-surface steam-heated alteration which is intersected in all holes to a depth of 150-200m. Beneath this blanket, alteration transitions to a variety of rock textures including locally strong silicification with associated disseminated pyrite, quartz-pyrite veinlets, and local intervals of hydrothermal breccia with black quartz-pyrite matrices. The extent of the steam-heated alteration and styles of sulphide mineralization observed to date are similar to AngloGold Ashanti's Silicon project.

Since the previous update, two new styles of alteration and sulphide mineralization have been drilled at Si2: 1) An interval of flow banded rhyolite which has preferentially focused fluid flow, hydrothermal brecciation, and sulphide mineralization in hole SD-23-003 at depth. 2) Silicified volcanic breccia with a black quartz-pyrite matrix was drilled in hole SD-23-004 at a depth of ~100m below surface.

Both styles of brecciation occur within, or act as permeable corridors, focusing hydrothermal fluids and concentrating sulphide mineralization. The intervals are also anomalous in arsenic and antimony when analyzed by a handheld XRF unit. The XRF unit does not detect mineralization and is utilized as a spot analysis tool for potential pathfinder elements. The characteristics noted above are evidence of a large, robust, epithermal system that experienced a significant volume of hydrothermal fluid flow.