MegumaGold Continues to Expand Land Position on Moose River Anticline

Entered Into a Strategic Option Agreement With Genius Metals Inc. on Extension of Touquoy West Exploration Licences

HALIFAX, Nova Scotia, Dec. 09, 2019 (GLOBE NEWSWIRE) -- MegumaGold Corp. (CSE: NSAU, OTC: NSAUF, FWB: 2CM2) (“MegumaGold” or the “Company”) is pleased to announce that is has entered into an option agreement with Genius Metals Inc. (CSE: GENI) ("Genius") to acquire up to a 100% interest in 6 mineral exploration licences totalling 100 claims (1,620 hectares) directly adjoining the Company’s Touquoy West licences to the east and St Barbara Ltd.’s licenses to the west (See Figure 1 below).

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/99e45978-ac40-4d8f ...

The Genius licences encompass the interpreted Western Extension of the Moose River trend which hosts St Barbara Ltd.’s operating Touqouy Gold Mine, its Beaver Dam and Fifteen Mile

Stream development projects. In combination, these deposits contain current Proven and Probable Mineral Reserves of 1.9 million contained gold ounces. In 2020, the Touquoy Gold Mine is expected to produce 95,000-105,000 ounces of gold at all-in-sustaining-costs between US$630-$670/oz, making it one of the lowest cost producers in the world (Information regarding the Touquoy Gold Mine and the Beaver Dam and Fifteen Mile Stream development projects is taken from a St Barbara Ltd. Corporate Presentation dated November 25, 2019 that is available on that company’s website).

MegumaGold’s field work has recently been focused in the Touquoy West Project area (Figure 1) and has been successful in defining large arsenic in soil trends that are locally supported by corresponding elevated gold results (Figure 2). These features are developed along the interpreted west extension of the Moose River anticline that hosts the open pit Touquoy Gold Mine. The Company believes that this structure can be traced along an aeromagnetic trend that extends from the Touquoy Mine area southwesterly across St Barbara Ltd. holdings and then across the Touquoy West holdings. At that point, it appears to continue beyond MegumaGold’s west property boundary onto the optioned Genius property. The western arsenic and gold in soil trend identified by recent Company work is approximately 2,200 m in strike length at present, has a width ranging between 100 and 700 m, and remains open along strike to the southwest onto the Genius claims (Figure 2).