Liberty Gold Reports Q1 2017 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 16, 2017) - Liberty Gold Corp. (TSX:LGD) ("Liberty Gold" or the "Company"), formerly Pilot Gold Inc., is pleased to announce its financial and operating results for the three months ended March 31, 2017.

All amounts are presented in United States dollars unless otherwise stated.

Company highlights through and subsequent to March 31, 2017:

• Changed our name to Liberty Gold Corp. from Pilot Gold Inc. on May 9, 2017.
• Published the results from our phase 1 metallurgical test work of oxide material from Goldstrike on April 3, 2017¹ with the following highlights:
  • 20 Column leach tests produced a weighted average² 85.9% extraction.
  • Rapid gold extraction with >80% of the extractable gold recovered within the first 10 days of column leaching.
  • Gold extraction can be projected out to 80% passing 150 mm (6 inch) particle size, simulating run of mine conditions, without significant loss of gold recovery.
• Reported drill results from the Warrior, Aggie, Peg Leg and Dip Slope targets at Goldstrike, all located within the Main Zone. Highlights include³:
  • Peg Leg
    • 2.05 grams per tonne gold (g/t Au) over 9.1 m within 1.61 g/t Au over 13.7 m and 0.98 g/t Au over 15.2 m in PGS227
    • 1.15 g/t Au over 16.8 m within 0.94 g/t Au over 29.0 m in PGS224
  • Dip Slope
    • 1.02 g/t Au over 9.1 m, within 0.41 g/t over 56.4 m in PGS212
    • 1.41 g/t Au over 4.6 m in PGS199
  • Warrior and Aggie
    • 1.93 g/t Au over 15.2 m in PGS197
    • 1.08 g/t Au over 13.7 m, within 0.56 g/t Au over 45.7 m in PGS201
    • 1.21 g/t Au over 7.6 m, within 0.83 g/t Au over 15.2 m, and 0.46 g/t Au over 13.7 m, and 1.16 g/t Au over 6.1 m in PGS193

Goldstrike, Utah

The 2017 RC drilling program began on February 1, 2017 and will continue through to November, for a total of 42,500 m of drilling. Areas of focus are located to the north and west of the Main Zone, and include the Peg Leg Graben, Warrior, Aggie and Dip Slope targets. There are 7 historical mined pits within this initial 4km² area.

The results from the metallurgical testing of oxide material provide support for a simple heap leach mining scenario. Twenty column leach tests produced a weighted average of 85.9% gold extraction. The gold recoveries from 19 of these 20 column tests were rapid and >80% complete within 10 days, with final column leach recoveries ranging from 65% to 97%. Importantly, gold extraction has proven relatively insensitive to particle size, and can be projected out to 150 millimetres (mm) (6 inch) particle size, simulating run of mine conditions, without significant loss of gold recovery.

For the three months ended March 31, 2017, expenditures, including non-cash items, at Goldstrike were $1.08 million, including: drilling and assaying ($0.61 million), salaries ($0.21 million), and analyses and surveys ($0.13 million).

The Company is operating under a Notice of Intent ("NOI"), allowing for up to almost 10 acres of disturbance for access and drill sites. In February 2017, the Company applied for an additional NOI for a further 1.8 acres of disturbance in the property's Mineral Mountain area. We expect to receive approval on a full Plan of Operations ("PoO") by the mid-June 2017, which will allow access for drilling over a large number of targets property-wide.

The Company also expects to report a first-time mineral resource estimate at Goldstrike in a revised technical report in Q3-Q4 2017.

Kinsley, Nevada

The 2017, 1200 m reverse circulation drill program began on April 19, 2017 focussed along the Western Flank's eastern extension and in an area southeast of the historical Main Pit. The Company's share of expenditures at Kinsley for the three months ended March 31, 2017 was $0.02 million.

Moira Smith, Ph.D., P.Geo., Vice President Exploration and Geosciences, Liberty Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.

Goldstrike and Kinsley are early stage exploration projects; the potential quantities and grades disclosed herein are conceptual in nature and, except for the mineral resource estimate at the Western Flank deposit at Kinsley, there has been insufficient exploration to define a mineral resource for other targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. The potential to define an additional mineral resource at Kinsley or a resource at Goldstrike is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat.

SELECTED FINANCIAL DATA

The following selected financial data is derived from our condensed interim consolidated financial statements and related notes thereto (the "Interim Financial Statements") for the three months ended March 31, 2017, as prepared in accordance with International Financial Reporting Standards. A copy of the Interim Financial Statements can be found on the Company's website (www.Libertygold.ca) or on SEDAR at www.sedar.com.

Beginning January 1, 2017, in order to enhance the relevance to the decision making needs of users, and improve comparability with our peers, the Company has voluntarily changed its accounting policy with respect to exploration properties and deferred exploration expenditures. In prior periods, the Company's policy was to defer exploration expenditures until such time as the properties are put into commercial production, sold or become impaired. The Company has elected to change this accounting policy to expense exploration expenditures as incurred, effective with the presentation of the March 31, 2017 Interim Financial Statements, on a retrospective basis. The Company will continue to defer acquisition expenditures on mineral properties until such time as the properties are put into commercial production, sold or become impaired.

The information in the tables below is presented in $000s except per share data:

Losses attributable to shareholders for the three months ended March 31, 2017 of $2.51 million were higher than the $2.44 million incurred in the comparative period, due mostly to an additional $0.43 million in exploration and evaluation expenditures in 2017, offset by $0.33 million collective reduction in expenditures on wages and office and general expenditures over the comparative period. The largest contributions to loss in the three months ended March 31, 2017, are exploration and evaluation expenditures, wages and benefits, and office and general costs, which combined comprise $1.94 million of the overall loss; these same three categories are the largest contributors to the loss in the three months ended March 31, 2016 (combined: $1.85 million). Net cash operating outflows of $1.78 million in the three months ended March 31, 2017, were $0.27 million lower compared to the comparative period, despite higher costs in the current quarter, due to the receipt on January 5, 2017 of $0.50 million in VAT recoverable at our Turkish subsidiary.

The net other comprehensive income attributable to shareholders for the three months ended March 31, 2017, was $0.12 million compared to $0.64 million in the same period in 2016, driven by lower exchange gains on translation of foreign currency subsidiaries in 2017. The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2017 and March 31, 2017, the United States dollar appreciated 0.9% relative to the Canadian dollar (three months ended March 31, 2016: 7.7%).

Total assets comprise primarily exploration and evaluation assets of $24.02 million and cash, cash equivalents and short term investments of $10.80 million. The 40% share of capitalised acquisition costs of TV Tower owned by Teck is included as a component of the $9.95 million non-controlling interest on the Company's statement of financial position. Total assets also include $0.18 million in receivables, and prepayments, and $1.43 million in value recorded for the Company's 40% interest in the PEA-stage Halilaga copper-gold project in Turkey.

Total liabilities at March 31, 2017, December 31, 2016 and 2015 primarily reflect accounts payable and accruals recorded at period end arising from ongoing activities. The March 31, 2017 and 2016 balance also includes a deferred tax liability of $0.58 million and $0.50 million respectively (2015: $nil million) arising from the impact of foreign exchange differences on the carrying value of TV Tower.

ABOUT LIBERTY GOLD

Liberty Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our core projects are Goldstrike in Utah, Black Pine in Idaho and Kinsley Mountain in Nevada. The management group at Liberty Gold is responsible for discovering, developing and/or building two of the latest seven heap leach gold deposits in the world that are now operating mines, including Long Canyon in Nevada and Karma in Burkina Faso.

For more information, visit www.libertygold.ca.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Liberty Gold within the meaning of applicable securities laws, potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans the release of an initial resource report at Goldstrike, and the successful delivery of results of metallurgical testing and positive results thereof. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time; obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market and geo-political conditions, availability of equipment, accuracy of any mineral resources, the amenability of mineralization to produce a grade or quality of concentrate sufficient to be economic (as there can be no assurances as to the results of the metallurgical testing and no inferences should be drawn therefrom), the accuracy of any metallurgical testing completed to date, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Liberty Gold and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks and uncertainties, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, the timely receipt of regulatory approvals; risks related to the interpretation of results and/or the reliance on technical information provided by our joint venture partner or other third parties as related to the Company's mineral property interests; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; the uncertainty of negotiating with foreign governments, expropriation or nationalization of property without fair compensation, adverse determination or rulings by governmental authorities delays in obtaining governmental approvals, government regulation of exploration and mining operations, and the application thereof in accordance with the rule of law, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 28, 2017 in the section entitled "Risk Factors", under the Company's SEDAR profile at www.sedar.com.

Although Liberty Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Liberty Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Contact

Liberty Gold Corp.
Evelyn Cox
Director Corporate Communications
604-632-4677 or Toll Free 1-877-632-4677
info@libertygold.ca
www.libertygold.ca