GFG Resources Outlines Aggressive Exploration Program for Rattlesnake Hills Gold Project, Wyoming

SASKATOON, SK--(Marketwired - June 27, 2017) - GFG Resources Inc. (TSX VENTURE: GFG) (OTCQB: GFGSF) ("GFG" or the "Company") outlines an aggressive 2017 exploration program at its 100% controlled, 33,500-acre Rattlesnake Hills Gold Project in central Wyoming, United States. The fully funded, U.S.$4.0 million exploration program will consist of approximately 50 holes or 15,000 metres of drilling focused on four brownfield targets and six greenfield targets, additional soil and rock sampling and metallurgical testwork. Drilling is scheduled to begin in early July and will run through November 2017.

With the recent land consolidation of the Rattlesnake Hills District, the Company is taking a district approach to its 2017 exploration program which is designed to meet the following objectives:

1. Expand the strike and explore for off-set extensions of the known mineralized trends at North Stock and Antelope Basin which includes further testing the linkage between the two deposits;
2. Follow-up on and test the strike and depth continuity of the 2016 discovery at the Cowboy target (Hole RSC-185: 0.84 grams of gold per tonne (g/t Au) over 38.1 metres);
3. Further test a large (400 metre by 750 metre) gold, silver and arsenic ("Au-Ag-As") soil anomaly at Blackjack and test the strike extension of Hole NVJ-001: 1.33 g/t Au over 33.5 metres;
4. Test six high priority, kilometre-scale greenfield targets to discover new zones of gold mineralization; and
5. Complete further soil and rock geochemistry and metallurgical testwork to develop a maiden resource in H1 of 2018.

Brian Skanderbeg, President and CEO commented, "We are excited to take an aggressive exploration approach to a district that we believe is highly prospective and regionally untested. The 2017 program will include both brownfield and greenfield exploration with the objective to expand the areas of known mineralization and to discover new zones of gold mineralization within our 135 km² property. Our technical team has significant alkaline gold deposit experience and is applying similar strategies that successfully added over six million ounces in resources in the Cripple Creek Mining District. Following this year's program, we will have nearly 100,000 metres of drilling in the district and will work to develop the first ever mineral resource in the Rattlesnake Hills District. Timing of a maiden resource is expected to be completed in the first half of 2018."

2017 Drill Program Outline

Brownfield Exploration

The majority of the 2017 exploration program (approximately 35 holes, 10,000 metres) will focus on brownfield targets proximal to the North Stock and Antelope Basin deposits and at the Blackjack target.

Figure 1. GFG Resources 2017 Exploration Program: Brownfield Targets

North Stock and Antelope Basin

Drilling around the North Stock and Antelope Basin deposits is designed to test extensions of the known mineralization, including the area in between the two deposits where previous intercepts demonstrate the potential to link North Stock and Antelope Basin. Drilling will also test the western extension of the North Stock deposit across a modelled northwest-oriented fault system as well as the eastern extension where historic drilling in 2009 intercepted heterolithic breccia hosting up to 21.3 metres at 2.60 g/t Au. As demonstrated in Table 1, historic drilling was successful at identifying broad zones of gold mineralization and narrow zones of high-grade gold mineralization at North Stock and Antelope Basin.

The drilling at North Stock and Antelope Basin will be integrated with the historic results and is expected to be included in the Company's maiden National Instrument 43-101 ("NI 43-101") resource estimate in 2018.

In addition, the Company will follow up on its 2016 step-out hole, RSC-185, that discovered a new zone of mineralization at the Cowboy target. The discovery hole located 240 metres northeast of Antelope Basin and 350 metres southeast of North Stock, returned 0.84 g/t Au over 38.1 metres. Drilling in this area will focus on a 500-metre-long gold-in-soil and rock geochemistry anomaly that links to the north contact of South Stock. The Cowboy target area hosts northeast-trending monzodiorite dykes and intersecting east-west and northeast structural corridors similar to those observed at Antelope Basin.

South Stock

GFG will test several targets in the South Stock target area. The area has seen limited historic drilling and returned intercepts of up to 9.31 g/t Au over 3.1 metres in hole RSC-180 in 2011. A strong soil anomaly along the northern margin of South Stock remains untested and is associated with a cluster of rock grab samples in excess of 1 g/t Au. The geologic setting at South Stock is similar to that at North Stock and links to the Cowboy target area. The Company will also test a soil geochemical anomaly associated with the southern contact of South Stock.

Blackjack

Drilling at Blackjack is designed to test the large 400 metre by 750 metre Au-Ag-As soil anomaly and follow-up on historic drilling. Historic drilling tested only a small portion of the targeted area and highlights include 1.33 g/t Au over 33.5 metres from surface (Hole NVJ-001) and 0.74 g/t Au over 13.7 metres (Hole NVJ-008). Gold mineralization at Blackjack is associated with the North Granite Mountain Fault and hosted within rhyolite breccia and Precambrian granite. Mineralization at Blackjack remains open at depth, down-dip and along strike and the drill program is also designed to test the extensions of this mineralization.

Greenfield Exploration

The Company has outlined over 30 greenfield targets and in 2017 prioritized six of these to drill test. These targets were generated from historic and recent geophysical and geochemical programs. Results from the 2016 VTEM survey highlighted several anomalies that are interpreted to be structures, several of which were previously unknown. This type of geophysical survey and interpretation was successfully applied in the Cripple Creek Mining District. The greenfield program will consist of approximately 20 holes or 5,000 metres, testing multiple targets that are located west of North Stock (MGT and Pronghorn), northwest of North Stock (STP, 44 and West Baldy) and southwest and southeast of the Blackjack area. These target areas are considered greenfield and have no historic drilling.

Figure 2. GFG Resources 2017 Exploration Program: Greenfield Targets

MGT

The MGT target is located approximately 1.2 kilometres southeast of North Stock. This target was derived from a 150 metre by 250 metre gold-arsenic-copper ("Au-As-Cu") soil anomaly that is associated with the contact of a trachytic intrusive. The area also hosts banded iron formation and the intersection of northeast and northwest-oriented structures.

Pronghorn

The Pronghorn target lies 300 to 600 metres west of North Stock. A number of small phonolite plugs are present and have associated anomalous gold soil and rock geochemistry and mapped heterolithic breccias. The target is also characterized by a gravity low and gravity gradient signature consistent with that of North Stock.

West Baldy

The West Baldy target is associated with soil geochemistry that is similar to the Baldy target that was tested in 2014 by NV Gold. The Baldy target is underlain by a phonolite dyke that intruded copper-stained, Cambrian quartzites. The West Baldy target is a blind target that is characterized by a large, circular (nearly 400 metres in diameter) copper-vanadium ("Cu-V") soil anomaly. Historic rock samples from the Baldy area contained the highest gold values collected on the project with values of up to 35.4 g/t Au.

STP

The STP target shows strong similarities with and is located 3.5 kilometres northwest of North Stock. The area hosts several phonolite intrusions that are surrounded by monolithic and heterolithic volcanic breccias which have been potassically (adularia) altered. These are key geological markers for gold mineralization in the Rattlesnake Hills and Cripple Creek Districts. The STP target also hosts anomalous rock and soil geochemistry, strong northeast-oriented structures and a favorable gravity signature.

44

The 44 target is located two kilometres west of North Stock and is associated with one of the largest intrusions in the district, Goat Mountain. The area hosts several Au-As +/- Cu-V soil anomalies and occurs in a geologic environment that is similar to North Stock. Gravity and gravity gradient signature as well as the structural setting are favorable to host gold mineralization.

Blackjack Region

The greenfield drill program in the Blackjack area is designed to test several geophysical (VTEM) and geochemical anomalies that were generated from the 2016 program and are outside the main 400 metre by 750 metre soil anomaly. The Company will also test proximal to the North Granite Mountain Fault, as the structural setting is conducive to host gold mineralization.

In addition to the drill program, further geochemical and metallurgical testwork will be completed. Approximately 800 soil samples will be collected to infill areas where soil geochemistry was never completed.

To support the Company's plan to provide a NI 43-101 resource estimate, further metallurgical studies will be completed which include historic pulps from previous drill campaigns available at the Company's facility in Casper, Wyoming. The Company plans to provide a NI 43-101 compliant resource in the first half of 2018.

Brian Skanderbeg, P.Geo. and M.Sc., President and CEO, is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.

GFG Resources Inc. is a publicly traded precious metals exploration company headquartered in Saskatoon, Saskatchewan, Canada, whose shares trade on the TSX Venture Exchange (GFG) and on the OTCQB (GFGSF). The Company controls 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyoming, U.S. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold.