Vancouver, B.C. (November 13, 2020) – Contact Gold Corp. (the "Company" or "Contact Gold")(TSXV: C; OTCQB: CGOL) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2020.
All dollar amounts are presented in Canadian dollars unless otherwise stated.
Highlights and recent developments
• Began drill program at the past-producing Green Springs gold property in Nevada ("Green Springs") in early September (September 2, 2020), and added a core drill rig to push drill holes down to the Pilot Shale target (September 30, 2020). Assays are pending for all holes drilled to date in the 2020 exploration program.
• Closed a public offering of units of the Company ("Units") at a price of $0.20 per Unit raising aggregate gross proceeds of $14,774,000 (the "Offering") (September 29, 2020).
• Concurrent with closing of the Offering, redeemed all of the Company’s outstanding preferred shares ("Preferred Shares") (September 29, 2020).

Exploration update
The Company’s planned 7,000 metre drill program is underway at Green Springs with two drill rigs active at the property. The program is focused on high confidence step-out holes on known zones of Chainman and Pilot Shale hosted gold mineralization beneath the 2.5 km mine trend, as well as greenfields targets to the East and North of the mine trend. Drilling continues with assay results pending from 26 RC holes, and 7 core holes completed to date.
Due to the timing and focus on the Green Springs program, the drill program at the Pony Creek gold property ("Pony Creek"), has been pushed to 2021. Pony Creek is fully permitted to test multiple undrilled gold targets on trend from Gold Standard Ventures’ Railroad project.

Selected financial data
Details of financial results as at and for the three and nine months ended September 30, 2020, are described in the unaudited condensed interim consolidated financial statements and related notes thereto (the "Interim Financial Statements"), as prepared in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), and the MD&A for the corresponding period, copies of which are available on SEDAR at www.sedar.com.
The following selected financial data is derived from the Interim Financial Statements. Unless otherwise stated, the information herein, and in the tables below, is presented in Canadian dollars.
Three months ended September 30, Nine months ended September 30,
Attributable to shareholders:
2020 2019 2020 2019
Loss for the period $ 5,187 $ 2,159 $ 8,581 $ 7,601
Other comprehensive loss (gain) $ 816 $ (442) $ (1,008) $ 1,193
Loss and comprehensive loss $ 6,003 $ 1,718 $ 7,573 $ 8,795
Basic and diluted loss per share $ 0.05 $ 0.03 $ 0.09 $ 0.11
As at September 30, 2020 As at December 31, 2019
Cash $ 7,997,468 $ 844,169
Working capital $ 7,191,734 $ 737,309
Total assets $ 48,027,213 $ 39,675,218
Current liabilities $ 1,361,168 $ 501,434
Preferred shares $ - $ 13,246,524
Shareholders’ equity $ 44,639,036 $ 23,957,436

Losses attributable to shareholders for the three and nine months ended September 30, 2020 of $5.19 million and $8.58 million (2019: $2.16 million and $7.60 million), respectively, are largely reflective of several large non-cash accounting charges, including (i) a $3.60 million loss recognized on the Redemption of the Preferred Shares, (ii) accretion expense relating to the host instrument of the Preferred Shares through to their Redemption of $0.68 million and $1.96 million for the three- and nine-month periods, (iii) a foreign exchange loss of $0.36 million in the nine-month period ended, and (iv) stock-based compensation expense of $0.06 million and $0.21 million for the three- and nine-month periods, off-set by non-cash accounting gains of $185,391 and $634,417 on fair value adjustments to the Preferred Shares embedded derivatives in the three- and nine-month periods, respectively.
Operating losses include expenditures for exploration and evaluation of the Company’s exploration property interests of $0.83 million and $1.51 million for each of the three- and nine-month periods, and (ii) costs incurred for professional, legal and advisory fees, administration & office expenditures, wages and salaries, and investor relations activities in aggregate for the three- and nine-month periods $0.46 million and $1.56 million.
During the nine months ended September 30, 2020, exploration and evaluation expenditures were predominantly related to activity at Green Springs property, including the evaluation and review of data generated through 2019 and the commencement of the 2020 program. Approximately $1.41 million in expenditures had been incurred through September 30, 2020 for exploration at Green Springs and at Pony Creek (in aggregate through September 30, 2019, $2.09 million).
Other comprehensive gain/loss attributable to shareholders for the three- and nine-month periods ended September 30, 2020 was a loss of $0.82 million and a gain of $1.01 million (three and six months ended September 30, 2019 gain of $0.44 million and loss of $1.19 million), respectively. The other comprehensive loss or gain in a given period reflects primarily the foreign currency impact arising on the carrying value of the Company’s exploration property portfolio, whereby the gain or loss reflects the relative value of the Canadian dollar (the Company’s reporting currency) compared to the United States dollar (the currency in which the value of the exploration property portfolio is recorded).
The Company’s has elected to capitalize mineral property acquisition costs, and expense exploration expenditures as incurred. Total assets at September 30, 2020 comprised primarily: exploration and evaluation assets of $39.33 million, and $8.00 million in cash. At December 31, 2019 total assets primarily comprised exploration and evaluation assets of $38.36 million, and $0.84 million in cash.

Total liabilities at September 30, 2020 include payables and accruals of $1.32 million (December 31, 2019: $0.47 million). The Redemption of the Preferred Shares during the period ended September 30, 2020 resulted in the elimination of the related obligation on the balance sheet. The value of the Preferred Shares reported at December 31, 2019: $13.25 million.
Accumulated other comprehensive gain of $0.39 million at September 30, 2020 (December 31, 2019: $1.40 million loss) is the aggregate foreign currency impact on the translation to Canadian dollars of the value of the Company’s portfolio of exploration properties.

About Contact Gold Corp.
Contact Gold’s extensive land holdings are on Nevada’s Carlin, Independence and Cortez gold trends which host numerous gold deposits and mines. Contact Gold’s land position, including the Pony Creek and Green Springs gold projects comprises approximately 140 km2 of target-rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage (the "Contact Gold Properties").
All of the Contact Gold Properties are early-stage exploration properties and do not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). There has been insufficient exploration to define a mineral resource estimate at any of Contact Gold Properties.

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a "qualified person" within the meaning of NI 43-101.
Additional information about the Company is available at www.contactgold.com