Mexican Gold Announces a New Resource Estimate for the Las Minas Project in Veracruz, Mexico

VANCOUVER, Oct. 10, 2019 - Mexican Gold Corp. (the “Company” or “Mexican Gold") (TSXV: MEX) is pleased to announce a new NI 43-101 resource estimate for the Las Minas Project in Veracruz, Mexico. The resource estimate was prepared by Mine Development Associates (“MDA”) of Reno, NV.

Highlights:

• The Las Minas Project hosts 645,000 ounces of gold equivalent (“AuEq”) at an average grade of 3.674 g AuEq/t, in the Indicated category – see Table 1.
• The Las Minas Project hosts 217,000 ounces of AuEq at an average grade of 2.679 g AuEq/t, in the Inferred category – see Table 1.
• MDA prepared the Las Minas resource estimate based on potential exploitation by underground mining methods and deemed 1.5 g AuEq/t to be the appropriate cut-off grade for the resource. The resource is no longer being analyzed from an open-pit perspective.
• A new drill program exploring highly-prospective targets at Las Minas is scheduled to commence on October 15, 2019.

Philip O’Neill, Chief Executive Officer of Mexican Gold, stated, “We are very pleased with this robust resource estimate. The block model prepared by MDA holds together very well for a skarn deposit. The level of rigor used by MDA further allows us the opportunity to potentially explore economic studies for the potential exploitation of minerals at the El Dorado and Santa Cruz zones. Our focus now shifts to our upcoming drill program at Las Minas where we hope to unlock additional value through the drill bit, especially at our highly-prospective Pueblo Nuevo and Cinco Senores targets.”

A 3,000-meter drill program is scheduled to commence at Las Minas on October 15, 2019. The program is set to drill 4 highly prospective targets and 2 geological concepts. The 4 targets are Pueblo Nuevo, the Cinco Senores TEM Anomaly, Las Minillas and El Dorado; and the 2 geological concepts are the potential for skarn mineralization Sub-Sill and at the Mancuerna Dike Swarm. Kluane Drilling has now begun mobilization for the Las Minas drill program.

Table 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/311f094e-fa67-407c-b433-f8abae7cd290

CIM Definition Standards were followed for mineral resource estimates. The Las Minas mineral resource estimates were prepared by Mine Development Associates of Reno, Nevada under the supervision of Paul Tietz. Mr. Tietz is a Qualified Person and is independent of the Company as defined by NI 43-101. Mr. Tietz has reviewed and verified the Mineral Resource information in this press release.

The Effective Date of the Mineral Resource is September 12, 2019.

The stated resources are fully diluted to 3 m cubed blocks and are tabulated on a AuEq cutoff grade of 1.5 g AuEq/t.

Using the individual metal grades of each block, the AuEq grade is calculated using the following formula:

g AuEq/t = g Au/t + (0.0123077 * g Ag/t) + (1.4492753 * %Cu)

This formula is based on prices of USD $1,300.00 per ounce gold, USD $16.00 per ounce silver, and USD $2.75 per pound copper.

Metal recoveries were not included in the equivalency calculation since the metallurgical studies completed to-date indicate just a minor recovery difference. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to the Indicated classification with continued exploration.

An updated Technical Report will be prepared and filed on SEDAR (www.sedar.com) within 45 days of this news release.

About Mexican Gold Corp.

Mexican Gold Corp. is a Canadian based mineral exploration and development company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals and copper projects in the Americas. Mexican Gold is exploring the Las Minas Project, which is located in the core of the Las Minas mining district in Veracruz State, Mexico, and is host to one of the newest, under-explored skarn systems known in Mexico.

For more information, please contact:

Philip O’Neill – CEO, President, and Director
E-mail: info@mexicangold.ca
Website at www.mexicangold.ca

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.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Mexican Gold within the meaning of applicable securities laws, and with respect to the proposed Offering and proposed use of proceeds. Mexican Gold provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to completion of Offering, exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in Mexican Gold’s public filings under Mexican Gold’s SEDAR profile at www.sedar.com. Although Mexican Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Mexican Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.