Compass Gold Closes $2,677,500 Private Placement

Not for distribution to United States newswire services or for dissemination in the United States

Initiating a 9,000-Metre Follow-Up Drill Program Along the Tarabala Trend and on Additional Exploration Targets

TORONTO, July 28, 2021 (GLOBE NEWSWIRE) -- Compass Gold Corporation (TSX-V: CVB) (“Compass” or the “Company”) announced today that it has issued, on a non-brokered private placement basis, a total of 13,387,500 common shares of the Company, at a price of $0.20 per share, for aggregate gross proceeds of $2,677,500 pursuant to the closing of its previously announced private placement (the “Offering”) (see Compass news releases dated July 7, 2021).

Larry Phillips, Compass Gold’s President and CEO, said, "Thanks to the support of our loyal existing shareholders, we are very pleased to have been able to complete our latest private placement so quickly. The fact that this financing was taken up entirely by current shareholders, insiders and our management team has enabled us to substantially reduce dilution for those investors who have supported us in the past. Now, with these funds in hand, we are ready to launch an extensive follow-up drill program to test beneath the exciting near-surface targets that our technical team has identified. We will be reporting results throughout the course of the rainy season between now and November as we advance towards our goal of identifying an open-pittable gold deposit at Sikasso."

Extensive new exploration and drill program launched

Compass has recently identified several targets for follow-up deeper reverse circulation and diamond drilling on the Tarabala Trend. The purpose of the drilling will be to test the width, grade and continuity of previously defined near surface gold mineralization, and determine whether subsequent resource definition drilling is warranted. At the same time, Compass continues to advance exploration throughout its 867 sq. km Sikasso property, where it has identified additional targets that will be drill tested in due course.

Placement Details

In connection with the Offering, the Company paid finder’s fees of an aggregate of $36,300 (in cash), 375,000 common shares (in lieu of cash ), and 556,500 compensation warrants, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. Each compensation warrant is exercisable to acquire one common share of the Company at a price of $0.20 for a period of two years following the closing of the Offering.