Golden Sky Intersects 78 m of Gold Mineralization With Discovery Trench on Its Bull’s Eye Property and Prepares to Drill Hotspot, White Gold District

The discovery trench, designed to test the Gold Crest zone, returned a value of 0.69 g/t gold (Au) over 78m with significant higher-grade intercepts. Results are shown in the following table:

The 2020 phase 1 exploration program was primarily focused on the Gold Crest zone and involved the collection of 560 soil samples, 50 prospecting grab samples, and the completion of a 134-metre-long trench.

Soil sampling has expanded the geochemical footprint of the Gold Crest zone to 500m x 200m (see attached map). The zone remains open along strike. Traditional soil sampling further along strike may be ineffective due to glacial overburden and permafrost. Therefore, the company is currently designing a Phase 2 geophysical program to explore these areas.

The 134-metre-long discovery trench was completed in the center of the Gold Crest zone. Results from the trench indicate the bedrock source of the geochemical anomaly was not fully exposed. The easternmost trench sample assayed 0.39 g/t Au over 2m (0.0m to 2.0m).

In addition to trenching, hand-dug pits were excavated in both directions along strike to confirm the bedrock source of the geochemical anomaly. A grab sample of bedrock material 100m south of the trench assayed 0.94 g/t Au; another grab sample assayed 0.18 g/t Au 100m north of the trench.

The Gold Crest zone is located along a regional geological contact between schists of the Devonian White River Formation to the northwest, and gabbro of the Triassic Snag Creek Formation to the southeast. This contact spans the entire length of the property. Both lithologies are present in the trench, with gold associated with quartz stockwork, strong silicification, sericite alteration, and pyritic mineralization.

Reconnaissance soil sampling conducted along this geological contact indicates potential for further mineralization related to this contact. Soil samples along the contact 1.7 km northeast of the Gold Crest trench assayed up to 31 ppb Au.

Soil sampling also identified a 250m x 100m gold anomaly with values up to 32 ppb Au approximately 1 km southeast of the Gold Crest zone. One soil sample in a glaciated area 1 km south of Gold Crest assayed 889 ppb Au.

Due to favourable visual results, 30 additional claims were staked during the program to increase the property to a total of 142 claims (2968 ha).

The Bull’s Eye property is located in a previously unrecognized gold sub-district 50 km south of Newmont’s Coffee gold deposit. Bull’s Eye is adjacent to K2 Gold Corp.’s Wels Gold project which has yielded notable drill intercepts of 2.37 g/t Au over 28.5m and 0.76 g/t Au over 97.5m.

HOTSPOT UPDATE: Drilling at Hotspot, new claims staked

Golden Sky Minerals is also pleased to announce the completion of a Phase 1 program at its Hotspot property located in the Yukon along the Yukon-Alaska border. The program’s primary goal was preparation for a Phase 2 inaugural drill program to be conducted mid-September, 2020. The program also involved the collection of 135 soil samples and 23 prospecting grab samples (assays pending). During Phase 1, 38 new quartz claims were staked to increase property to a total of 222 claims (4640 ha).

Situated along the Big Creek Fault, the Hotspot property hosts a 1.7-kilometer-long mineralized structure with gold-in-soil values up to 4.1 g/t Au, associated with a pathfinder signature indicative of a low-sulphidation epithermal system. A short trenching program in 2018 returned values of 0.42 g/t Au over 44m (see September 10, 2018 news release). The Hotspot property is located 25km southeast of the Taurus Cu-Mo-Au porphyry deposit (located in Alaska) which has an inferred resource of 68.3 million tonnes grading 0.275% Cu, 0.032% Mo, and 0.166 g/t Au.

Message from John Newell, President and CEO:

“The trenching results from Bull’s Eye are very encouraging. The fact that mineralization is open-ended gives even more ‘blue sky’ to the potential width of this zone. On top of this, the soil sampling has demonstrated 500m of open-ended strike length at the Gold Crest zone as well as plenty of new targets for follow-up along the regional geological contact.

Soil sampling and trenching have been prime tools in locating mineralized areas in the White Gold district, and results from the trench at the Gold Crest zone are similar to the initial discovery trenches at both Coffee Creek and the Golden Saddle that led to the drilling of those deposits. Building upon this, I believe we have a drill-ready target at the Gold Crest zone with enormous potential to expand further along strike.

Lastly, we would like to thank the Yukon Territorial Government and Yukon Geological Survey for funding part of this program through the Yukon Mineral Exploration Program (YMEP). Their support has been instrumental in advancing Bull’s Eye and similar programs through the initial exploration phase.”

Other

Carl Schulze, P. Geo., Consulting Geologist with Aurora Geosciences Ltd, is a qualified person as defined by National Instrument 43-101, for Golden Sky's Yukon exploration projects, and has reviewed and approved the technical information in this release.

ON BEHALF OF THE BOARD
John Newell, President and Chief Executive Officer

For new information from the Company's programs, please visit Golden Sky's website at www.GoldenSkyMinerals.com or contact John Newell by telephone (604) 568-8807 or by email at info@goldenskyminerals.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.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. Although Golden Sky has attempted to identify important factors and risks that could affect Golden Sky and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended, including, without limitation: inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Golden Sky’s expectations; accidents, equipment breakdowns, title and permitting matters; labour disputes or other unanticipated difficulties with or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on its projects; that Golden Sky may not be able to confirm historical exploration results and other risks set forth in Golden Sky's public filings at www.sedar.com. In making the forward-looking statements in this news release, Golden Sky has applied several material assumptions, including the assumption that general business and economic conditions will not change in a materially adverse manner. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Golden Sky does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/048a4700-bbba-4838-90fa-90c293445713