Savary Announces Results from the Phase 3 Drill Program Drilling Discovers Three New Zones and Further Extends Known Zones

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Tags: Mining

Executive Summary:

• -Results from last part of Phase 3 drill program (109-holes, 6,747 metres) including the discovery of three new gold zones

  -Summary of work done since the maiden mineral resource estimate in Q4/2015

  -Next steps - Resource update targeted for end of Q3, 2017, new exploration plan

Toronto, Canada - August 21, 2017 - Savary Gold Corp. (TSX-V: SCA) ("Savary" or the "Company") is pleased to announce the results from its 6,747 metre, phase 3, 109-hole drill program that commenced at the beginning of June on the Karankasso JV Project in south western Burkina Faso.

A summary of select results, in the order they were drilled, are presented below (see Figure 1 for locations).

Karangosso South

• -AC-17-029 - 2.58 g/t gold over 9 metres (new zone)

  -AC-17-036 - 4.83 g/t gold over 5 metres (new zone)

Serakoro 1 West Zone area

• -AC-17-064 - 2.78 g/t gold over 5 metres (new zone)

  -RC-17-093 - 1.00 g/t gold over 6 metres (in-fill)

  -RC-17-094 - 0.59 g/t gold over 12 metres (in-fill)

  -RC-17-097 - 2.14 g/t gold over 9 metres (50 metre down-dip step-out)

Serakoro 1 Main Area

• -RC-17-102 - 0.90 g/t gold over 18 metres (100 m step-out)

  -RC-17-102 - 2.27 g/t gold over 3 metres (100 m step-out)

Karangosso North

• -RC-17-125 - 2.10 g/t gold over 3 metres (new, 500 m step-out)

Central Auger Anomaly

• -AC-17-013 - 1.71 g/t gold over 8 metres (new zone)

Diosso South Zone

• -RC-17-110 - 2.02 g/t gold over 4 metres (in-fill)

  -RC-17-111 - 3.97 g/t gold over 3 metres (in-fill)

  -RC-17-113 - 4.08 g/t gold over 3 metres (in-fill)

  -RC-17-122 - 1.19 g/t gold over 12 metres (100 m step-out)

  -RC-17-122 - 14.50 g/t gold over 1 metre (100 m step-out)

WTN Zone

• -RC-17-120 - 2.40 g/t Au over 3 metres (in-fill)

Kueredougou West Zone

• -RC-17-126 - 1.70 g/t gold over 7 metres (new priority target)

  -RC-17-128 - 1.54 g/t gold over 8 metres (100 m step-out)

Don Dudek, President and CEO of Savary stated, "The phase 3 program was predominantly designed to evaluate new targets that were developed from the auger drilling program and previous drilling, with a lesser emphasis on the zones with current mineral resource estimates. As a result, we have further increased the scope of the project by making several new gold zone discoveries and continued to extend the select existing zones, as highlighted below:

• -an exciting new, felsic intrusion-hosted discovery located one kilometre south of the Karangosso Zone and another, good grade intercept 500 metres to the north of the currently defined Karangosso deposit;

  -Extensions to the gold zones at Serakoro 1 West and the discovery of new gold mineralization;

  -Discovery of new gold mineralization along the Central Auger Anomaly;

  -A new parallel zone of gold mineralization to the west of the Kueredougou West Zone,

  -Further incremental extensions to the Diosso South and Kueredougou West Zones; and

  -An extension to a new area of gold mineralization at the south end of the Serakoro 1 Main area.

An updated resource estimate is in progress with an expected delivery date in the latter half of September. Once approved, follow-up drilling of these and other targets will commence as soon as approved by the JV Board and practical to do so."

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Figure 1 - Karankasso JV Project New Results Overview

Phase 3 of the program was completed in the beginning of July with 109 holes totalling 6,747 metres, drilled. These include 68 air core (AC) holes totalling 2,631 metres and 41 reverse circulation holes totalling 4,116 metres. Not all planned holes were drilled due to weather-related logistics. As well, only a minor amount of follow-up drill holes were completed due to atypically slow analytical turn around at the laboratory. A summary of significant results from these latest holes, predominantly using 0.5 g/t gold cut-off, are presented in Tables 2 and 3 at the end of this news release.

Project Advancements since Q4, 2015 Mineral Resource Estimate of In-pit Inferred Mineral Resources of 671,000 ounces* grading 2.28 g/t gold in six zones (Karangosso, Diosso South, West Trend, Kueredougou West, Kueredougou, Kien East) using a 0.5 g/t gold cut-off (see Savary News Release Oct. 8, 2015 and Figure 2, for zone locations).

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Figure 2 - Karankasso Gold Zone locations and select results

Karangosso Zone

Four AC holes, located approximately 1,000 metres south of the Karangosso deposit (see Figure 4), drilled to test gold-in-auger anomalies of up to 600 ppb gold, intersected in at least six, closely spaced (across 65 metres), parallel lenses of gold mineralization (see Figure 3). Highlights include the following intercepts:

• -2.58 g/t gold over 9 metres in hole AC-17-029 from 20 metres

  • -Includes 9.00 g/t gold over 2 metres

  -0.74 g/t gold over 2 metres in hole AC-17-029 from 33 metres

  -1.12 g/t gold over 4 metres in hole AC-17-038 from 14 metres

  -4.83 g/t gold over 5 metres in hole AC-17-038 from 28 metres

  • -Includes 9.94 g/t gold over 2 metres from 30 metres

  -1.47 g/t gold over 6 metres in hole AC-17-039 from 14 metres

  -1.59 g/t gold over 2 metres in hole AC-17-039 from 33 metres

  -1.25 g/t gold over 5 metres in hole AC-17-40 from 14 metres

  -1.26 g/t gold over 2 metres in hole AC-17-40 from 40 metres (hole stopped in mineralization)

All of these holes intersected a similar-looking, sericite- and pyrite-altered, quartz veined felsic intrusion, similar in appearance to the host of the nearby Karangosso Deposit. These holes were drilled in two groups, located 400 metres apart along a moderate strength geophysical IP resistivity anomaly, again similar to that related to the Karangosso Deposit. This anomalous trend, appears to extend to the south for at least another 600 metres where a partially drilled gold-in-auger anomaly returned a strongly an omalous interval grading 0.29 g/t gold over 6 metres. The geophysically anomalous zone extends off of the survey grid to the south. Follow-up RC drilling, auger drilling and geophysical surveys have been recommended to both follow-up on obvious good drill results and to extend this high priority target to the south.

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Figure 3 - Cross-section Karangosso South New Discovery

In addition to extending the Karangosso target area to the south, a single, 132-metre long RC hole was drilled 500 metres to the north, along the interpreted trend of the Karangosso mineralization. This hole successfully intersected, what is interpreted as the northern strike extension of the Karangosso Deposit control structure, returning an intercept of 2.10 g/t gold over 3 metres. This intercept is hosted by sheared, sericite- and fuchsite-altered and quartz veined intermediate volcanic with 1-5% disseminated pyrite. Mineralization and alteration continues to the end of the hole with the last sample containing a 0.26 g/t gold over 1 metre. Follow-up drill testing of this area is required.

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Figure 3 - Karangosso Area Phase 3, 2017 Summary Drill Results

Serakoro 1 West

A significant portion of the phase 3 program was focussed on the Serakoro 1 West area with 27 AC holes totalling 1,127 metres and 9 RC holes totalling 1,098 metres completed (see Figure 5). This work successfully confirmed the presence of three main gold-bearing trends as well as other, less well defined to narrow parallel lenses of mineralization.

The eastern-most trend lies along a distinct geophysical IP resistivity anomaly, proximal to the interpreted sheared eastern contact of the host granitic intrusion and has returned intermittent higher-grade intervals including 18.72 g/t gold over 4 metres and 2.55 g/t gold over 17 metres. Holes from the phase 3 program returned intercepts to 1.06 g/t gold over 5 metres and 1.00 g/t gold over 5 metres along with wide, low grade intervals of up to 0.23 g/t gold over 26 metres. More drilling is required to determine if the higher-grade portions of this highly anomalous trend, have continuity.

The central gold-bearing trend is highlighted by a recent phase three hole that returned near true width intercept of 2.14 g/t gold over 9 metres, approximately 50 metres down-dip of an interval that had returned 1.85 g/t gold over 7 metres. As with the eastern mineralization trend, mineralization along this trend can be intermittently traced for approximately 3,500 metres with a best intercept of 6.42 g/t gold over 15 metres. More drilling is required to determine if the higher-grade portions of this highly anomalous trend, have continuity.

A third, western trend of gold mineralization, was intersected in the recent drill program with an intercept of 2.78 g/t gold over 5 metres. This hole lies 200 metres south of an intercept of 4.04 g/t gold over 2 metres and 600 metres north of an intercept of 9.53 g/t gold over 2 metres and 800 metres north of 1.19 g/t gold over 9 metres. It is uncertain if these intercepts lie along the same mineralized trend, as there is no linking geophysical feature; however, all of these intercepts lie approximately the same distance from the western edge of the Serakoro 1 concession.

A fourth, far east trend of gold mineralization may have been intersected in AC holes with an intercept of 0.64 g/t gold over 8 metres associated with additional wide, lower grade intercepts to 0.20 g/t gold over 12 metres.

Diosso South Zone

A highlight from the phase 3 program includes two intercepts from a 100-metre north extension of the zone with intercepts of 1.19 g/t gold over 12 metres and 14.50 g/t gold over 1 metre (see Figure 6). The remainder of the holes were designed to fill gaps within the interpreted mineralized trend and testing for parallel zones. In general, these holes accomplished their targeted goals set by management, who believe they will be supportive of a future mineral resource estimate update. A total of 14 holes comprising 1,202 metres, were drilled on or nearby the Diosso South Zone.

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Figure 5 - Serakoro 1 West Area Phase 3, 2017 Summary Drill Results

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Figure 6 - Diosso South Area Phase 3, 2017 Summary Drill Results

Kueredougou West Zone

Five holes totalling 496 metres, were drilled to test for strike extensions to the Kueredougou West Zone (see Figure 7). Highlights of this phase of the drill program include a 100-metre, north step out that returned 1.54 g/t gold over 8 metres from a wide, Diosso Zone-like, sericite-altered shear zone and an intercept of 1.76 g/t gold over 7 metres, located approximately 50 metres below an intercept of 2.96 g/t gold over 7 metres. Additional step out drill holes are now required to continue to trace the Kueredougou West Zone, northward to the Kueredougou Zone, a distance of approximately 900 metres.

One hole, which tested 26 metres below a Lens 5 RAB (rotary air blast) drill intercept of 1.45 g/t gold over 4 metres, returned an intercept of intercept of 1.70 g/t gold over 7 metres. Lens 5 has only been tested by three reconnaissance RAB holes, and now one RC hole, along a 940-metre strike and is located approximately 150 metres west of the Kueredougou West resource. Additional drilling in required in this poorly tested area.

Serakoro 1 Main

Three holes totalling 384 metres were drilled at the south end of the Serakoro 1 Main trend to follow-up on a hole that returned 14.66 g/t gold over 6 metres. One of the three follow-up holes, drilled 100 metres to the south of the above intercept intersected significant amounts of gold mineralization with intercepts of 0.90 g/t gold over 18 metres (including 1.76 g/t gold over 6 metres) and 2.18 g/t gold over 3 metres. All three holes, however, intersected two to four mineralized zones. Management believes, based on an initial review of the data, suggests that the geological units may be flat lying to shallow-east-dipping and as a result, the holes may not have adequately followed up on the early high-grade intercept. Additional holes will be required to continue the evaluation of this new target area.

One additional hole, totalling 140 metres, was drilled to test 200 metres south of an intercept of 2.04 g/t gold over 5 metres and 50 metres down-dip of 0.74 g/t gold over 7 metres. The goal was to determine if there is potential for a higher-grade gold zone along a specific portion of the Serakoro 1 Main area. This hole intersected two lower grade zones which returned 0.66 g/t gold over 6 metres and 0.77 g/t gold over 2 metres. Two additional holes had been planned, but due to weather conditions, the holes were cancelled for this program. These holes will likely be completed during the next drill program.

Central Auger Anomaly

The Central Auger Anomaly is a 3+ kilometre long area of anomalous gold-in-auger samples that lies along a previously untested portion of the 46-kilometer long, central, gold-in-soil trend. During the phase three program this area was tested by 23 AC holes totalling 931 metres and one RC hole totalling 102 metres (see Figure 8). The best auger hole returned 1.71 g/t gold over 8 metres and several other significant intercepts of 1.20 g/t gold over 4 metres, 1.08 g/t gold over 3 metres and 0.90 g/t gold over 4 metres, were returned. An RC hole drilled below the best AC intercept, intersected a wide sericite-pyrite altered shear zone and was unfortunately stopped in an altered zone which returned 1.00 g/t gold over 1 metre, the best intercept in the hole.

Most of the AC holes intersected gold zones that contained enough gold mineralization to explain the gold-in-auger values. However, several very anomalous gold-in-auger values to 2,210 ppb gold, remain unexplained. It is possible that the anomalous auger samples were offset from their source areas or were not tested by the AC holes. Additional AC holes are warranted to complete the evaluation of this area.

S-Nosa Zone

Two shallow holes, totalling 124 metres were drilled to test for up-dip extensions of intercepts of 13.05 g/t gold over 4 metres and 2.43 g/t gold over 7 metres. Only weak mineralization was intersected in these holes, suggesting that the mineralization does not come to surface. One planned hole to trace the zone south along strike was not drilled.

QA/QC Comments

Savary's procedure for handling reverse circulation drill chips comprises initial riffle splitting of the rock chips from one metre drill length samples into approximately 2.5-kilogram samples, as well as description and logging into a database. A duplicate 2.5-kilogram sample, prepared at the same time as the assay sample, is kept as a reference for each sample. NQ-size core assay samples are first logged into a database and then are sawn in half with half of the core submitted for analysis; the length of the core samples depends on logged geological controls with samples varying from 0.3 metres to 2.0 metres in length. A sample duplicate and assay blank was inserted sequentially every 5 to 14 samples and an assay standard was inserted every 29 to 34 samples. This results in 8% of the assayed samples being reference/blank/control samples. Blanks and duplicates were preferentially inserted in visually mineralized zones to better test the assay results. This sampling procedure was periodically reviewed by Savary's President and CEO, and the Company QP, Don Dudek, P. Geo. All assay samples were collected at site by staff from SGS Burkina Faso SA ('SGS') from Ouagadougou, Burkina Faso where sample preparation and analysis were performed. Each sample was dried, crushed to 75% passing 2 mm and then split to 1.5 kg by rotary splitter. This split was pulverized to 85% passing 75 ?m. Fifty grams of the pulverized material was analysed for gold via fire assay with an atomic absorption spectroscopy (AAS) finish. SGS operates according to ISO 17025 standards and institutes a full Quality Assurance/Quality Control (QA/QC) program consisting of insertion of internal blanks, standard reference material, repeats and reject splits which in total account for up to 25% of all determinations conducted. All standards and blank control samples returned results within expected ranges.

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Figure 7 - Kueredougou West Phase 3 2017 Summary Drill Results

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Figure 8 - Central Auger Anomaly Phase 3 2017 Summary Drill Results

About Savary Gold Corp.

Savary is a Canadian exploration company which, along with JV partner Sarama Resources Limited, is focused on exploring and developing the Karankasso Gold Project in Burkina Faso. Upon closing, it is anticipated that the Karankasso JV Project will be approximately 69.5% owned by Savary and 30.5% owned by Sarama Resources Limited ("Sarama") with Savary as operator. The Project is located within the Birimian age, Hounde Greenstone Belt, which hosts Semafo's Mana mine, Roxgold's Yaramoko Mine and additional gold deposits that are presently subject to production decisions and extensive exploration efforts (including Endeavour Mining's Hounde Project, Orezone's (acquired by Sarama) Bondi Project and Sarama's/Acacia's South Hounde Project, which is adjacent to Savary's property). The Project contains an Inferred open pit constrained mineral resource estimate of 9.16 million tonnes grading 2.28 g/t gold (Savary news release November 24, 2015). For additional information please visit our website at www.savarygold.com.

* Open pit constrained Mineral resource estimate presented in Savary news release dated October 8, 2015

Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

SAVARY GOLD CORP.

On behalf of the Board

"Don Dudek"

President & Chief Executive Officer

For more information, please contact:

Don Dudek, President and CEO

T: 647-259-2097

E: info@savarygold.com; www.savarygold.com

Cautionary Notes

Neither 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.

This news release may contain forward-looking statements. These statements include statements regarding the details of the potential value growth of the JV, the upside of the property, the drill program, the company's exploration plans and the timing of results, the focus on existing drill targets and new targets. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.

Table 2 - Summary of Significant Phase 3 AC Intercepts

* True widths vary from 70 to 95%

Table 3 - Summary of Significant Phase 3 RC Intercepts

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