Updated Mineral Resource Estimate For Candelones Oxide Project

TORONTO - Joe Hamilton, Chairman and CEO of Unigold Inc., said, “One of the key objectives for our initial 2020 exploration program was to upgrade a significant portion of the inferred oxide resource to the measured and indicated classification in preparation for completing economic studies. The work we completed over the past year has successfully converted over 80% of the historic oxide resource to the measured and indicated classification in addition to adding almost 10% more ounces to the global oxide resource.

Over the rest of 2020 we plan to advance towards a pre-feasibility study that will evaluate the economics of the oxide resource. When considered in conjunction with the efficient metallurgical recoveries suggested by the test work to date we believe that there is a justifiable economic opportunity for a low cost starter pit. Our intent is to continue working towards de-risking the oxide resource through additional metallurgical testing and preliminary engineering studies with the objective of establishing a maiden reserve estimate for the oxide mineralization in 2021.

It is important to note that the sulphide resource is based on drilling up to 2015. The sulphide resource estimate does not include any of the recent, high grade, drill results collected from interpreted epithermal feeder systems that have been a focal point of our exploration programs since late 2015. We plan to update the sulphide resource on completion of our recently announced follow up drill program scheduled to commence by the end of August. Our initial drill holes will focus on increasing the geological confidence of the high grade epithermal systems through infill drilling before transitioning to expanding the limits of these same systems along strike and down dip. Our objective is to increase the geological confidence of the inferred sulphide resource in a similar fashion to what we accomplished for the oxide component of the resource, converting a significant portion of the inferred mineral resource to a measured and/or indicated classification.

I am very pleased to announce that we have completed refurbishing both our diamond drills currently in-country and mobilized these into the field. We have also commenced refurbishing two additional drills recently purchased in Canada and we are targeting to have those drills operational in early Q4, 2020, allowing us to target the epithermal feeder systems at depth.”

The following table summarizes the updated mineral resource estimate for the Candelones Project. A NI43-101 compliant report will be filed within 45 days.  The Company expects to update the sulphide resource estimate, utilizing high-grade intercepts from 2015 to 2020 and assuming underground mining techniques, after the current 15,000 meter drill program is complete.