Vancouver, British Columbia – FIORE GOLD LTD. (TSXV: F) (OTCQB: FIOGF) (“Fiore” or the “Company”
is pleased to announce preliminary production results for the Company’s first fiscal quarter (“Q1”) of 2020 for its Pan open pit mine in White Pine County, Nevada. The Company is also providing full-year production guidance for fiscal year 2020.

Highlights:
•Quarterly gold production of 8,750 ounces, including 3,989 ounces in December 2019
•Gold sales of 9,093 ounces
•Mined ore production in Q1 above plan at approximately 15,290 tons per day with the stripping ratio at 1.8:1.0
•26,861 man-hours worked in Q1, achieving our goal of zero reportable incidents, zero reportable accidents, and zero lost-time injuries. As of December 31, 2019, the operation is at 1,322 consecutive days of attaining this Triple-Zero achievement
•Transition from Run of Mine (“ROM”) to crushed ore placement largely complete
•Preliminary Economic Assessment (“PEA”) on the federally permitted Gold Rock project nearing completion, with expected release in calendar Q1 2020

In Q1 2020, the Pan mine ramped up towards the higher gold production levels expected from the installation of the primary crusher. Gold production in the first two months of Q1 were below plan as the operating team worked to optimize crusher throughput and fine-tune the reagent mix and operating procedures. As with all heap leach operations, there was also a natural timing delay between placing crushed ore on the leach pad and gold reporting to the process plant. However, the positive impact of the operational improvements began to be seen in December 2019 with gold production of 3,989 gold ounces and similar production levels continuing through January 2020. Despite the ramp-up challenges, our operating team was able to identify and resolve issues efficiently and safely.

Tim Warman, Fiore’s CEO commented, “While the changeover at the Pan Mine from ROM to crushing took longer than anticipated, our experienced operating and technical teams have addressed and corrected the key issues we encountered. As a result, gold production has increased steadily over the quarter, reaching almost 4,000 ounces in December. Although total ounces recovered in Q4 2019 and the first two months of the current quarter were lower than expected, management believes these ounces are simply delayed, and will likely be recovered over the coming months. Our full-year guidance for FY2020 shows a significant increase in gold production over the previous year as the benefits of the crushing circuit are fully felt. Higher guided cash costs are related to the temporarily higher stripping ratios, which are expected to decline significantly in the second half of the year.”

FY2020 Guidance
With the crushing circuit startup largely behind us, the Company is providing the following guidance metrics for the full fiscal year 2020, which ends September 30th, 2020:

•Gold production in FY 2020 will be weighted towards the second half of the fiscal year, and despite the production shortfall in Q1 is still expected in the range of 45,000-48,000 ounces, a significant increase over the previous year.
•Mining rates are expected to stay at approximately 14,000 tpd ore. Stripping ratio for full year 2020 is expected to approximate the life of mine average of 1.6:1.0. As we are stripping at higher rates earlier in the year, the strip ratio is projected to drop significantly to approximately 1.1:1.0 by Q4 2020.
•Mined ore grade is forecast to be in the range of 0.014 – 0.016 oz/t, with higher grades biased towards H2 2020.
•Total cash costs per ounce1 are expected in the range of $975 – $1,025/oz, Pan Mine AISC1 in the range of $1,075 – $1,125/oz, and Fiore Consolidated AISC1 in the range of $1,175 – $1,225/oz for the full FY 2020. Both cash costs1 and AISC1 are expected to drop significantly in Q4 2020 as the stripping ratio decreases in tandem with higher gold grades and production.

Cash costs1 in 2020 are guided to be approximately $100 per ounce higher than 2019. The increase is due to the impact of higher stripping, higher processing costs without the full year benefit of higher production from crushed ore, and general escalation in contractor mining costs. As noted, stripping is expected to decrease in H2 and with the impact of higher-grade ore and escalating gold production from crushed ore, cash costs1 are expected to decrease later in the year. Pan and Fiore Consolidated AISC1 are also impacted by the increase in cash costs1, as well as higher sustaining capital. The increase in sustaining capital is largely due to higher capitalized exploration related to the resource expansion drilling program at Pan.


1 This is a non-IFRS financial measure. Please refer to “Non-IFRS Financial Measures” at the end of this news release for a description of these non-IFRS financial measures.

Webinar
Red Cloud Financial Services will be hosting a webinar to discuss the above results this Thursday, February 6th at 2 PM EST/ 11 AM PST. To register please visit: https://www.redcloudfs.com/rcwebinar-f/

Technical Disclosure
The scientific and technical information relating to Fiore Gold’s properties contained in this news release was approved by J. Ross MacLean (MMSA), Fiore Gold’s Chief Operating Officer and a “Qualified Person” under National Instrument 43-101.

Corporate Strategy

Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
•continue to grow gold production at the Pan Mine, while increasing the resource and reserve base
•advance the development of the nearby Gold Rock project
•acquire additional production or near-production assets to complement our existing operations

On behalf of FIORE GOLD LTD.

“Tim Warman”

Chief Executive Officer