Visible Gold Intersected from Diamond Drilling on the Clone Gold Project

Phase One of Clone Diamond Drill Program Complete

VANCOUVER, August 22, 2019 - Sky Gold Corp. (TSXV:SKYG)(OTCPINK:SRKZF) ("Sky Gold Corp." or the “Company”) is very pleased to announce that Phase One of the Clone Gold Project diamond drill program is now complete and that visible gold* was intersected in three intervals in drill hole SCL-19-02, from within the Main “H” Zone (see photos on the Company’s website). In addition, the Treble Zone, drilled for the first time, showed favourable alteration and visible sulphide mineralization*. The Phase One drill program comprised 811 metres drilled in six HQ-diameter diamond drill holes and was designed to confirm historical results and to test new areas, such as the Treble Zone. In order to potentially unlock more gold than previously identified in the system, the Company is the first operator to compile historic data in three dimensions for use as a targeting tool; to drill HQ-diameter core; and to introduce metallic sieving procedures at Clone. Development of the Phase Two drill program at Clone will be initiated based on upcoming assay results from the Phase One program.

Some highlights of the Phase One drill program include:

• Main “H” Zone - Four diamond drill holes, totaling 512 metres, have now been completed on the Main “H” Zone target. These holes were designed to confirm historical drill results and to test extensions along strike, down dip and down plunge of the known mineralization. Hole SCL-19-02 was located near the “bulk sample” taken in 2011 by a previous operator (see Company Press Release dated 12 October 2017), when 102 tons averaged 137.1 g/t gold (4.0 oz/ton gold). This hole twinned historic hole CL96-110 (which returned 116.2 g/t gold over a 3.5 metre intercept) and intersected visible gold* in three intersections: at 5.9 m, 6.3 m and 9.0 m depth down hole; all associated with strong hematite alteration. Strong hematite alteration, along with quartz and hematite veining, are favorable indications of gold mineralization in the Main “H” Zone.
• Treble Zone - The Treble Zone is located approximately 4.4 kilometres west-northwest of the Main “H” zone and soil sampling in this area during the Company’s 2018 exploration program included five samples with greater than 1 g/t Au (8.33 g/t, 6.68 g/t, 3.7 g/t, 1.66 g/t, 1.61 g/t). One drill hole was completed at Treble, SCL19-06 (150 metres length), which was collared in gray volcaniclastic units that showed favorable indications of strong limonite, sericite, quartz veining and visible sulphide mineralization* including pyrite, chalcopyrite and sphalerite, noted locally throughout the hole to a depth of 140 m.
• Gossan Zone - The Gossan Zone is located approximately 1.3 kilometres west of the Main “H” Zone, and is a high priority, 50 by 200 m target area where rock grab sample geochemistry returned strong gold values of up to 37 g/t Au (sampling 1996, ARIS 23878). The mineralization at the Gossan Zone is very similar to that of the Main “H” Zone. One drill hole was completed at Gossan, SCL19-05 (149 metres in length), which was collared in green volcanics and showed visible sulphide mineralization* including pyrite and chalcopyrite, noted locally throughout the entire hole.

*Occurrence of visible gold, favorable alteration and veining, and/or sulphide mineralization, while encouraging, are not definitive indications of any significant precious metal values and should not be relied upon. To date, the Company has received no assays on the Clone 2019 drill program”

Given the encouraging visual results of the Phase One drill program at the Clone Property, the Company will be designing a Phase Two program to be undertaken once assay results from Phase One are received. Drilling equipment and support materials will remain on the Property, with the proposed Phase Two program anticipated to begin in September. Core samples from the Phase One program have been sent to ALS Global - Geochemistry of Terrace, British Columbia, Canada for preparation and pulps sent to ALS Global - Geochemistry Analytical Lab of North Vancouver, British Columbia, Canada for assaying.

“The preliminary drill indications from both the Main “H” Zone and the Treble Zone targets are encouraging and the Company eagerly awaits receipt of the first round of assays from the laboratory, prior to initiating a Phase Two drill program, this September,” states Mike England, CEO of Sky Gold Corp.

About the Clone Project

The Clone Property is located approximately 20 kilometres southeast of Stewart, British Columbia, Canada, and 15 kilometres south of Ascot Resources Ltd., advanced Red Mountain Project, in the southern portion of the prolific Golden Triangle. The Clone property has previously returned high-grade diamond drill intercepts from multiple mineralized zones (1995 -1997; Teuton Resources Corp. and Minvita Enterprise Ltd., financed by a major, Homestake Mining Corp., and Murray Pezim's flagship company, Prime Resources Corp.). Years of receding snowpack, known as ablation, has revealed many new targets never exposed to previous operators.

Diamond drill services are supplied by More Core Drilling Services Ltd., and pad building and logistics are conducted by Minconsult Exploration Services Inc. Ridgeline Exploration Services Inc. of Kelowna, B.C., supplies geological supervision and project management.

Qualified Person

Catherine Fitzgerald, P.Geo., a Qualified Person under National Instrument 43-101, is the Qualified Person responsible for reviewing and approving the technical contents of this news release as they pertain to the Clone property.

About Sky Gold Corp.

Sky Gold Corp. is a junior mineral exploration company engaged in acquiring and advancing mineral properties across Canada’s top mining jurisdictions. The Company’s flagship asset is the Clone high-grade gold project located in B.C’s Golden Triangle.

ON BEHALF OF THE BOARD

“Mike England”

Mike England,
CEO&DIRECTOR

FOR FURTHER INFORMATION PLEASE CONTACT:

Telephone: 1-604-683-3995
Toll Free: 1-888-945-770

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: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).

SOURCE: Sky Gold Corp.