Kinross Gold Exploration Update on Riley Gold's PWC Gold Project Including 2025 Drill Planning Underway (Cortez District - Nevada)

Rhea-AI Summary

Riley Gold Corp. (RLYGF) provides an update on exploration activities at its Pipeline West/Clipper Gold Project (PWC) in Nevada's Cortez mining district. Kinross Gold, operating under a March 2024 earn-in agreement to acquire up to 75% of PWC for USD$20 million, completed its first framework drill hole PW24-01 in July 2024.

The drill hole, reaching 3,597 feet depth, successfully intercepted a 1,251-foot thick section of lower plate carbonates, including 1,193 feet of Wenban Formation. Assays confirmed the presence of Carlin-type geochemistry with gold values up to 0.29 ppm over a 5-foot section, along with elevated pathfinder elements including arsenic, antimony, mercury, and thallium.

Kinross plans additional drilling for Q2 2025, targeting areas 1.5-2 km northwest of the first drill hole, focusing on high-grade surface geochemical gold anomalies near major structural intersections. The primary target is a large, disseminated gold deposit near the Gold Acres stock.

Positive

• Successful identification of favorable Carlin-type host rocks at explorable depths
• Confirmation of gold presence (up to 0.29 ppm) and favorable pathfinder elements
• USD$20 million exploration funding from Kinross Gold
• Strategic 9.9% equity investment by Kinross in Riley Gold

Negative

• Initial gold values are relatively low (0.29 ppm maximum)
• Additional drilling results not expected until Q2 2025

Vancouver, British Columbia--(Newsfile Corp. - January 20, 2025) - Riley Gold Corp. (TSXV: RLYG) (OTCQB: RLYGF) ("Riley Gold" or the "Company") provides an exploration update for the Company's Pipeline West/Clipper Gold Project ("PWC") located in the Cortez mining district of the Battle Mountain - Eureka Trend. PWC is operated by Kinross Gold U.S.A., Inc. ("Kinross"), a wholly-owned subsidiary of Kinross Gold Corporation (TSX: K) (NYSE: KGC), under an exploration earn-in agreement executed in March 2024 whereby Kinross has the right to earn up to 75% of PWC by spending USD$20,000,000 (for full details of the Kinross agreement please see the March 14, 2024 news release).

Kinross initiated its first PWC framework drill hole (PW24-01) in July 2024 to test for favourable lower plate carbonate Carlin type host rocks. The inaugural core hole was spotted using geologic and geophysical interpretations and was drilled to 3,597 feet (1,096 m). The drill hole was designed to identify local stratigraphy in a large area within the 25 km² PWC land package with no previous deep drilling. PW24-01 successfully intercepted a 1,251 foot (380 m) thick structurally complex section of lower plate carbonates starting at a depth of 2,346 feet (715 m) including 1,193 feet (364 m) of structurally thickened Devonian Wenban Formation. PW24-01 demonstrates that known Cortez District host lithologies exist at explorable drill depths over a contiguously large, untested area proximal to the Pipeline complex area.

"Finding meaningful gold discoveries in Nevada are time, capital and knowledge intensive; as a result, having experienced partners and operators like Kinross combined with strong technical expertise (Mr. Paul Dobak - Riley Gold) is critical for success. Kinross has successfully identified stratigraphy and lithology at explorable depths similar to that of local large gold deposits like the Fourmile discovery and the Cortez Complex owned and operated by Nevada Gold Mines LLC ("NGM"). The technical committee, lead by Kinross, is happy with the information derived from the first hole under the program and we look forward to continued drilling in 2025", commented Todd Hilditch, CEO of Riley Gold.

Assays from ALS Labs (Reno, NV) confirm mafic and felsic dikes, and narrow zones of alteration in silicified structures, that encountered Carlin-type geochemistry (As-Hg-Tl) and low-level gold. PW24-01 returned gold in dikes in the upper plate up to 0.29 parts per million ("ppm") over a 5-foot (1.5 m) section from 1587 feet (483 m) and elevated trace element geochemistry including arsenic up to 438 ppm antimony up to 17.2 ppm and thallium up to 2.6 ppm. In the lower plate Wenban Formation over a 15-foot (4.6 m) section starting at 3467 feet (1057 m), samples returned elevated pathfinder elements including mercury up to 8.24 ppm, arsenic up to 287 ppm, antimony up to 41.9 ppm and thallium up to 2.12 ppm. The elevated pathfinder elements give indication of Carlin-type fluids circulating within structural zones. These results and interpretations have provided Kinross with a better understanding of the property and have aided in decision making for the next round of planned drilling.

2025 Kinross Drill Planning & Map (Figure 1)

Additional drilling is expected to begin in Q2 2025 and will be in part based on gold and pathfinder surface geochemistry results from a successful soil survey as well as further interpretation of the stratigraphy and geochemistry learned from PWC 01-24. A comprehensive geologic model is being built for comparison with the many Cortez Districts >5.0-million-ounce gold discoveries. The new step-out wide spaced framework drill holes are being spotted approximately 1.5 km to 2 km (up to 6,500 feet) northwest of the first Kinross drill hole (see Figure 1 below) and will include northwest vectoring to the highest-grade surface geochemical gold anomalies from the soil survey near the intersection of two major structures. The primary target is a large, disseminated gold deposit peripheral to the Gold Acres stock, which is the geologic setting for NGM's Pipeline gold deposit.

Figure 1 - 2025 Drill Target Area

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Kinross Agreement Overview

Riley Gold entered into an exploration and venture option agreement (the "Agreement") with Kinross on March 13, 2024. The Agreement grants Kinross the right to earn up to a 75% interest in Riley Gold's PWC by spending a minimum of US$20 million (see news release dated March 14, 2024 for details). PWC is located in Lander County, Nevada and consists of approximately 24.7 km² in the heart of the significant gold producing Cortez District (Battle Mountain - Eureka Trend). Kinross is funding and operating PWC and has a strategic 9.9% (on a partially diluted basis) equity interest in the Company acquired through a private placement.

About PWC:

PWC constitutes a very prospective exploration property for Carlin-type, disseminated and replacement gold deposits. PWC consists of a land package totaling approximately 24.7 km² of unpatented mining claims and patented fee lands adjoining NGM. PWC is situated along the Cortez Structural Zone of the exceptionally productive Cortez Trend within the Battle Mountain - Eureka Trend in north central Nevada (Figure 2). The Cortez and Pipeline complexes (adjoining Riley Gold's PWC boundary) are top producers within Nevada, a State that has consistently produced between 4-5 million ounces of gold a year.

Figure 2: PWC Location (project boundary approximate)

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Qualified Person

This news release has been reviewed and approved by Richard DeLong, P.Geo., Director of Riley Gold and a 'qualified person', as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Riley Gold Corp.

Riley Gold is an exploration and development company focused in Nevada, USA, with assets that include the Pipeline West/Clipper Gold Project located in the Battle Mountain Eureka Trend (within the Cortez District) and the Tokop Gold Project located within the Walker Lane Trend. Riley Gold's founders and leadership team have a proven track record of maximizing shareholder value during each phase of the mining life cycle: exploration, development, and production.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Todd Hilditch
Chief Executive Officer
Tel: (604) 443-3831

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.

Cautionary statement regarding forward-looking information.

This press release contains statements which constitute "forward looking information" under applicable Canadian securities laws, including statements regarding plans, intentions, beliefs and current expectations of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking information. Although Riley Gold believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Riley Gold can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties and the Company's future business activities may differ materially from those in the forward-looking information as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions and the ability to obtain the requisite approvals of the TSX Venture Exchange when necessary. Investors are cautioned that any such forward-looking information is not a guarantee of future business activities and involves risks and uncertainties. Additional information on these and other factors that could affect Riley Gold operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

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FAQ

What were the key findings from RLYGF's first PWC drill hole in 2024?

The first drill hole (PW24-01) intercepted 1,251 feet of lower plate carbonates, including 1,193 feet of Wenban Formation, with gold values up to 0.29 ppm and elevated Carlin-type pathfinder elements.

When will Kinross begin the next phase of drilling at RLYGF's PWC project?

Kinross plans to begin additional drilling in Q2 2025, targeting areas 1.5-2 km northwest of the first drill hole.

What are the terms of Kinross's earn-in agreement with RLYGF for the PWC project?

Kinross can earn up to 75% interest in the PWC project by spending USD$20 million on exploration, as per the March 2024 agreement.

What is the size and location of RLYGF's PWC gold project?

The PWC project covers approximately 24.7 km² in Nevada's Cortez District within the Battle Mountain - Eureka Trend.

What are the target depths and geological formations at RLYGF's PWC project?

The first drill hole reached 3,597 feet depth, with target formations including lower plate carbonates starting at 2,346 feet depth.