Golden Sky Minerals Corp. Options the Squid East Property in the Matson Creek Placer Camp, Yukon

Golden Sky Minerals Corp. Options the Squid East Property in the Matson Creek Placer Camp, Yukon

Golden Sky Minerals Corp. (TSXV: AUEN.V, OTC:MCREF) (the "Company" or "Golden Sky") is pleased to announce that the company has signed an option agreement with Metals Creek Resources Corp. (TSXV: MEK, OTC: MCREF) whereby Golden Sky has the right to earn a 100% interest in the company's Squid East claims in the Yukon.

Metals Creek Resources Corp (Metals Creek) initially staked the Squid East Property in February 2011, during the staking rush that ensued after the discovery of the White Gold deposit. The claims are located proximal to the Matson Creek placer gold operations, approximately 80 km northwest of Newmont's Coffee Project and 90 km southwest of Dawson City. Soil sampling, trenching and limited diamond drilling carried out in 2013 and 2017 resulted in the discovery of a new gold (Au)-silver (Ag) zone with characteristics similar to other discoveries in the White Gold district. Adding the Squid East Property bolsters Golden Sky's land package in a district known for metallogenically diverse deposit settings including significant porphyry copper-gold-molybdenum (Cu-Au-Mo) systems, Intrusion Related Gold systems (IRGS), and Volcanogenic Massive Sulphide (VMS) systems (Figure 1).

John Newell, President and CEO of Golden Sky Minerals Corp. states: "Golden Sky Minerals and the geological team are excited to compile the recently acquired Squid East data and get boots on the ground as soon as possible. We plan on confirming and expanding the known showings but also investigating areas that previous exploration may have overlooked. To add to this, the Squid East property is a neighbour to our recent bonanza-grade discovery on the Hotspot Property (42.4 g/t Au over 1.05 m, within 102 meters of 0.85 g/t Au in hole HS-21-02) . We plan on using what we've learned at Hotspot and applying some of the same techniques at Squid East."

Golden Sky Minerals Hotspot Property is located 18 kilometers southwest of the Squid East option along the Yukon-Alaska border (Figure 2). The properties are located in the North Ladue placer district which has produced >20,000 oz of placer gold. The North Ladue area is ~50km south of the prolific Sixtymile placer district which has produced >230,000 oz of placer gold historically.

Squid East Property Highlights

  • The Squid Property is located within the Tintina Gold Province, which is a region that underwent significant magmatism during the Cretaceous period (Figure 1). This period of magmatism is associated both with Cu-Au-Mo Porphyry systems and Intrusion Related Gold systems such as the Casino porphyry Cu-Mo-Au-Ag deposit (2.4 Bt grading 0.14% Cu and 0.19 g/t Au) and the nearby Tanacross Project, which hosts the Taurus porphyry Cu-Mo-Au-Ag deposit in Alaska (75.2 Mt grading 0.275% Cu and 0.166 g/t Au).
  • The property is located at the intersection of northwest and northeast trending fault systems that developed in conjunction with the more regional Tintina and Denali fault systems. Magmatic activity is often concentrated around these secondary structures, which commonly act as conduits for mineralized fluids.
  • In 2013, airborne magnetic geophysical surveys were flown by Metals Creek Resources, which outlined several magnetic anomalies in the southwest area of the property (Figure 3). These magnetic anomalies are haloed by moderate "low" magnetic signatures, interpreted as zones of magnetic destruction due to localized metasomatism. Soil geochemical sampling revealed that these features are associated with elevated Cu, Au, Ag, Mo, zinc (Zn), mercury (Hg), arsenic (As), barium (Ba), and antimony (Sb) values. Anomalous zones with elevated molybdenum, copper, gold, and zinc may outline potential porphyry targets (Figure 3).
  • Soil sampling in 2012 outlined the Exploits zone (~600m x 200m) with gold-in-soil values ranging from 15.6 ppb up to 1,086.5 ppb gold (Figure 4). Trenching in 2013 uncovered bleached, locally hematite and fuchsite-altered sericite schist that returned 1.96 g/t Au and 160.6 g/t Ag over 22 metres. A 4-hole, 428 m diamond drilling program defined a shallowly dipping mineralized zone, with the best interval assaying 1.55 g/t Au and 114.1 g/t Ag over 21.0 metres (see MEK press releases dated August 6, 2013 and October 8, 2013)(Figure 5).
  • Additional drilling was carried out by Trifecta Gold in 2017, totaling 546.5 metres in five holes. This drilling yielded elevated gold and silver assays to a maximum of 2.1 g/t Au and 325 g/t Ag over 1.19 metres. (See Trifecta Gold's news release dated November 13, 2017). While Trifecta's drill program did not replicate the Metals Creek intersection, the mineralized horizons were intersected where anticipated, and the target remains open down-dip and along strike in both directions.

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dc6b56a8-c295-445b-994f-46784f853f30

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87a81e07-3c97-467d-8085-a94015ecfbfa

Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/033e1063-0696-40fa-b2d9-4d827a61c58b

Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8c3ee16-afe2-45eb-8bda-5b139e204b6f

Figure 5 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fadbcd1b-1ace-400b-b4b9-b223d75c99da

Transaction Details

Gold Sky Minerals will be deemed to have exercised the Option upon:

issuing an aggregate 1,200,000 Shares to Metals Creek as follows:

  • 150,000 Shares upon receipt of TSX Venture Exchange (the "Exchange") approval for the proposed transaction.
  • 150,000 Shares on or before the 31 st of December 2022;
  • 200,000 Shares on or before the 31 st of December 2023;
  • 300,000 Shares on or before the 31 st of December 2024; and
  • 400,000 Shares on or before the 31 st of December 2025.

Golden Sky will pay an aggregate of $100,000 to Metals Creek as follows.

  • $10,000 upon receipt of Exchange approval for the proposed transaction.
  • $15,000 on or before the 31st of December 2022;
  • $20,000 on or before the 31st of December 2023;
  • $20,000 on or before the 31 st of December 2024; and
  • $35,000 on or before the 31 st of December 2025

Golden Sky having expended a minimum of $850,000 of Exploration Expenditures on the Property as follows:

  • $50,000 on or before the 31 st of December 2022;
  • a further $100,000 on or before the 31 st of December 2023;
  • a further $200,000 on or before the 31 st of December 2024; and
  • a further $500,000 on or before the 31 st of December 2025.

Once Golden Sky is vested at 100% by meeting all the payments and expenditures above, Metals Creek will retain a 2.0% Net Smelter Return (NSR) Royalty on any future mineral production. Golden Sky Minerals Corp. will have the right to purchase 50% of the NSR from MEK for $1,000,000.

Alexander (Sandy) Stares, President and CEO of Metals Creek states, "We are delighted to find an option partner such as Golden Sky that is active in the Yukon, for an option agreement on the Squid East property. This agreement allows for the Squid East Project to receive the exploration it deserves while Metals Creek remains committed to and focused on the Dona Lake Gold Project in northwestern Ontario and the Ogden Project in Timmins."

The foregoing proposal may be subject to Exchange approval, in which regard the parties will provide such assistance and cooperation as may reasonably be required.

About Golden Sky Minerals Corp.

Golden Sky Minerals Corp. is a well-funded junior grassroots explorer engaged in the acquisition, assessment, exploration, and development of mineral properties located in highly prospective areas and mining-friendly districts. Golden Sky's mandate is to develop its portfolio of projects to the mineral resource stage through systematic exploration.

The drill-ready projects include Hotspot, Bullseye, and Luckystrike, all in Yukon, Canada. In addition, the recent purchases of the Rayfield Copper-Gold Project in southern British Columbia, and the staking of the Eagle Mountain Gold Project in the Cassiar Gold District in northern British Columbia, add to the company's substantial early-stage Canadian project pipeline.

The company was incorporated in 2018 and is headquartered in Vancouver, British Columbia, Canada.

More information can be found at the Company's website at www.goldenskyminerals.com

ON BEHALF OF THE BOARD

John Newell, President and Chief Executive Officer

Carl Schulze, P. Geo., Consulting Geologist with Aurora Geosciences Ltd, is a qualified person as defined by National Instrument 43-101 for Golden Sky's Yukon exploration projects and has reviewed and approved the technical information in this release.

For new information from the Company's programs, please visit Golden Sky's website at www.GoldenSkyMinerals.com or contact John Newell by telephone (604) 568-8807 or by email at info@goldenskyminerals.com or john.newell@goldenskyminerals.com .

Neither the 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.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities legislation. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "anticipates", "expects", "understanding", "has agreed to" or variations of such words and phrases or statements that certain actions, events or results "would", "occur" or "be achieved". Although Golden Sky has attempted to identify important factors and risks that could affect Golden Sky and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended, including, without limitation: inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Golden Sky's expectations; accidents, equipment breakdowns, title and permitting matters; labour disputes or other unanticipated difficulties with or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on its projects; that Golden Sky may not be able to confirm historical exploration results and other risks set forth in Golden Sky's public filings at www.sedar.com. In making the forward-looking statements in this news release, Golden Sky has applied several material assumptions, including the assumption that general business and economic conditions will not change in a materially adverse manner. 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. Except as required by law, Golden Sky does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


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