Karus Gold Corp (“Karus Gold” or the “Company”) is pleased to provide a corporate update which includes the 2021 exploration programs at its FG Gold project (“FG Gold”) and Gold Creek project (“Gold Creek”), both part of the 1,000 square kilometer (“km”) South Cariboo Gold Property in British Columbia (see Figure 1).

Andrew Kaip, President and CEO of Karus Gold comments, “Our 2021 exploration programs at our two highly prospective gold projects – FG Gold and Gold Creek – in the South Cariboo were a success. Both programs confirmed the orientation of the gold mineralization at each project and sets us up for targeted 2022 drilling programs that continue to expand the high-grade mineralization. We anxiously await assays from each project in the coming weeks.” 

FG Gold project

During 2021, Karus Gold drilled 7,142 metres (“m”) in 19 diamond drill holes (see Figure 2). The program successfully (1) confirmed the orientation of vein corridors hosting high-grade gold mineralization identified by the 2020 drill program; (2) demonstrated continuity of gold mineralization within vein corridors through 50 m spaced drill holes along trend; and (3) opened the potential for stacked vein corridors with several zones of increased veining outside of the targeted corridors. Refer to the September 23, 2021 news release for more information.

Assays from the 2021 FG drill program and district area program are being processed with results expected in Q1 2022.  Based on these results Karus Gold will begin preparing for a 2022 exploration program that will be directed toward expanding the high-grade gold vein corridors at FG Gold which remain open along strike and at depth.

Gold Creek project

During 2021, Karus Gold drilled 1,374.6 m in five diamond drill holes were completed at Gold Creek (see Figure 3).  The Gold Creek drill program was designed to confirm the orientation of high-grade gold mineralization in the Camp Zone. Based on this drill program Karus Gold is confident that high-grade at the Camp Zone strikes northwest and dips approximately 70 degrees to the northeast.  The Camp Zone has been traced through wide-spaced drilling for 870 m along strike and to a depth of 280 m below surface.  Refer to the July 29, 2021 news release for more information.

Assays are being processed and expect to be announced early 2022. The Company is planning a Phase 2 drill program at Gold Creek with the aim of expanding the dimensions of high-grade gold mineralization at the Camp Zone.

Current Offering Memorandum Financing and Public Listing Update

On November 29, 2021, Karus Gold Corp. filed an Offering Memorandum (“OM”) on SEDAR (www.sedar.com) under the Company’s profile.  All proceeds raised pursuant to the OM will be used towards the Company’s ongoing listing application with the TSX Venture Exchange (“TSX-V”) and for general working capital purposes. The offering under the OM is expected to close by the end of December 2021 and will allow the Company to fulfill one of its requirements to be a “public company” as defined under subsection 89(1) of the Income Tax Act (Canada), thereby allowing Canadian shareholders that hold Karus Gold shares in registered and tax-free saving accounts. Shareholders should consult their own tax advisors on this matter.

Karus Gold filed an updated listing application in October 2021 and continues to work with the TSX-V to complete the listing process.

Technical information contained in this news release has been reviewed and approved by Andrew Kaip, P.Geo., who is Karus Gold’s President and CEO and is a qualified person under National Instrument 43-101 responsible for the technical matters of this news release.

About Karus Gold Corp.

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Cautionary Statement Regarding Forward-Looking Information 

This news release contains forward-looking statements relating to the future operations of the Company, closing of the offering under the OM and proposed use of proceeds, and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects”, “suggests” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements. Such forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. 

Such factors include, among others: risks related to exploration and development activities at the Company’s projects, and factors relating to whether or not mineralization extraction will be commercially viable; risks related to mining operations and the hazards and risks normally encountered in the exploration, development and production of minerals, such as unusual and unexpected geological formations, rock falls, seismic activity, flooding and other conditions involved in the extraction and removal of materials; uncertainties regarding regulatory matters, including obtaining permits and complying with laws and regulations governing exploration, development, production, taxes, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, site safety and other matters, and the potential for existing laws and regulations to be amended or more stringently implemented by the relevant authorities; uncertainties regarding estimating mineral resources, which estimates may require revision (either up or down) based on actual production experience; risks relating to fluctuating metals prices and the ability to operate the Company’s projects at a profit in the event of declining metals prices and the need to reassess feasibility of a particular project that estimated resources will be recovered or that they will be recovered at the rates estimated; risks related to title to the Company’s properties, including the risk that the Company’s title may be challenged or impugned by third parties; the ability of the Company to access necessary resources, including mining equipment and crews, on a timely basis and at reasonable cost; competition within the mining industry for the discovery and acquisition of properties from other mining companies, many of which have greater financial, technical and other resources than the Company, for, among other things, the acquisition of mineral claims, leases and other mineral interests as well as for the recruitment and retention of qualified employees and other personnel; access to suitable infrastructure, such as roads, energy and water supplies in the vicinity of the Company’s properties; and risks related to the stage of the Company’s development, including risks relating to limited financial resources, limited availability of additional financing and potential dilution to existing shareholders; reliance on its management and key personnel; inability to obtain adequate or any insurance; exposure to litigation or similar claims; currently unprofitable operations; risks regarding the ability of the Company and its management to manage growth; and potential conflicts of interest. 

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. 4

There is no certainty that all or any part of the mineral resource will be converted into mineral reserve. It is uncertain if further exploration will allow improving the classification of the Indicated or Inferred mineral resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 

Figure 1: Location of the 1,000 square km South Cariboo Gold District.

Figure 2: Location of the drill holes for the 2021 program at FG Gold.

Figure 3: Location of the drill holes for the 2021 program at Gold Creek.