Vancouver, British Columbia – TheNewswire - June 1, 2022 – Au Gold Corp (TSXV:AUGC) (“AUGC” or the “Company”) is pleased to provide an update on its diamond drilling at its road accessible Ponderosa epithermal gold project, 16 km southwest of Merritt BC.  

Due to a combination of geological interpretation, timing and cost savings realized, the Company has increased the drill program to 20 holes and approximately 2,200m (originally 10 – 14 holes and 1,500m).  Despite difficult weather conditions and late arrival of spring, the program is anticipated to be completed shortly.

Drilling has focused primarily on the Tomahawk Zone with a small number of holes targeting the Flat Iron Zone.  These are just two of four zones AUGC has identified on the property with high potential to host gold bearing mineralization.

AUGC is also pleased to advise that it has met the ‘earn in’ terms of its option agreement to earn a 60% interest in the central claim at Ponderosa from Almadex Minerals Ltd. (“Almadex”).  The option agreement anticipates formation of a joint venture with proportionate funding or dilution  and the Company has advised Almadex.

Qualified Person

All scientific and technical information in this press release has been prepared by William Wengzynowski, P. Eng., a qualified person as defined by NI 43-101. Mr. Wengzynowski is the Exploration Manager for Au Gold Corp.

Ponderosa Gold Property

The Ponderosa Gold Property is located 16 km southwest of Merritt, BC, within the Spences Bridge Gold Belt which forms a northwest trending belt roughly 180 km long and up to 24 km wide.

Exploration by AUGC and others, notably Westhaven Gold Corp., has identified the potential for gold associated with low-sulphidation epithermal mineralization (quartz-adularia).  Examples of this style of mineralization include Kupol (Kinross Gold Corp.), Hishikari (Sumitomo Metal Mining) and Fruta Del Norte (Lundin Gold).

Rocks of immediate interest in the belt and underlying much of the Property comprise successions of Cretaceous subaerial and pyroclastic volcanic flows which host significant gold mineralization at Westhaven Gold Corp.’s Shovelnose project approximately 20 km southeast of the Ponderosa Gold Property.  Geology across the Ponderosa Gold Property claim group is broadly divided into two Cretaceous age volcanic sequences comprising subaerial and pyroclastic volcanic flows of the Pimainus and Spius Formations.

Work conducted between 2019 and 2021 by AUGC significantly upgraded three historic showings and identified an entirely new showing. These showings in order of priority are referred to as the Tomahawk, Flat Iron, T-Bone and Rib Eye zones. The Tomahawk Zone is the most advanced and highest priority showing on the Property.

The Ponderosa Gold Property is located within the unceded traditional territory of the Nlaka’pamux People.

Further information on the Property can be found on the Company’s website: https://www.augoldcorp.com/ponderosa-property/.

Cautionary Note

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Au Gold Corp

Marc G. Blythe, MBA, P.Eng., President & Chief Executive Officer

Sandrine Lam, Investor Relations Phone: 1-604-687-3520 Ext. 250

Email: info@augoldcorp.com

To learn more visit: https://www.augoldcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.