UrbanGold Starts Phase 1 Drill Program at Pallador, Completes Additional Geophysics

UrbanGold Minerals Inc.(TSXV: UGM) (“UrbanGold” or the “Company”) is pleased to announce the start of drilling operations on its 100%-owned Pallador Project (the “Property’) in the Troilus area, Quebec. The diamond drill program of up to 2,500 metres will focus on gold exploration targets identified over the course of the summer and previously established targets. The Company is well funded to complete the work and additional drilling planned for later in the year.

Numerous angular gold bearing boulders of various sizes have been identified in the western part of the Property, and within an area with little outcrop exposure. A recently completed heliborne magnetic survey over the same area indicates the presence of an important east-northeast geological structure, which has been interpreted as being a major fault or shear zone coinciding with an unexplained electro-magnetic (VTEM) anomaly located under a lake. Drilling will also focus on two other electro-magnetic anomalies located to the south and southeast with gold mineralization identified at surface nearby.

In addition to the magnetic survey announced last week, UrbanGold completed a 821 line-km of heliborne magnetic survey over the northern part of the Dileo-Nord block which was recently acquired by the Company. The survey also covered the adjacent Cressida Gold Zone on the Bullseye property, on which UrbanGold had completed its maiden drill program in December 2019 with their joint venture partner Argonaut Gold and resulted in wide gold intersections in all three holes, including 1.02 g/t Au over 22 metres (See news release of February 4th, 2020). In 2018, an induced polarization survey was completed over the adjacent Dileo-Nord property by the previous operator and had resulted in several high priority chargeability targets located on strike and only 500 metres from the Cressida Gold Zone. Drill permits have been requested to drill these targets as soon as possible.

On the main Pallador block, results from soil sampling have recently been received and will help identify additional drill targets. Plans are under consideration to follow-up on surface results with an induced polarization survey, which may need to be completed over the winter due to the presence of a large body of water in the area. Kenorland Minerals recently announced drill results nearby which includes an intersection of 8.47 g/t Au over 29 metres (Kenorland Minerals July 29, 2020 news release).

Qualified Person

Technical aspects of this news release have been reviewed and approved by Mathieu Stephens, P.Geo., President and CEO for UrbanGold, the Qualified Person, as defined by National Instrument 43-101.

About UrbanGold

UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused in key gold prospective areas of Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company’s common shares trade on the TSX Venture Exchange under the symbol “UGM”.

Forward-Looking Information

This news release may contain certain forward-looking information and statements, including without limitation, future planned work on the Property. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in UrbanGold’s disclosure documents on the SEDAR website at www.sedar.com. UrbanGold does not undertake to update any forward-looking information except in accordance with applicable securities laws.

For further information

Mathieu Stephens, P.Geo
President and Chief Executive Officer
mstephens@urbangoldminerals.com

Jens Hansen
Chairman of the Board
jhansen@urbangoldminerals.com

Phone 1-888-397-3566
www.urbangoldminerals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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