Liberty Gold Announces Closing of the Sale of the Halila?a Porphyry Copper Gold Deposit in Turkey, and Receipt of US$6,000,000 Cash Payment

VANCOUVER, Aug. 12, 2020 - Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased to announce the closing of sale of its 40% interest in the Halilağa copper gold porphyry deposit (“Halilağa” or “the Project”), located in Biga Province, northwest Turkey to Cengiz Holdings A.Ș. (the “Transaction”).

Terms of the Agreement:

• US$4,000,000 – received on November 18, 2019 (see press release)
• US$6,000,000 – received (August 12, 2020)
• US$6,000,000 – pending on August 15, 2021(bank guaranteed)
• US$6,000,000 – pending on August 15, 2022 (bank guaranteed)

Closing of the Transaction has been approved by the Turkish Ministry of Energy and Natural Resources.

Liberty Gold continues to hold a 60% operating interest in the TV Tower Project, a high-sulphidation epithermal gold-silver and porphyry copper-gold project located in close proximity to the Halilağa Project. The TV Tower Project hosts numerous gold discoveries and abundant untested targets. To date, there are three porphyry copper-gold and two oxide gold discoveries and one gold – silver discovery, the latter the subject of a Technical Report prepared pursuant to NI 43-101 and containing 996,000 Indicated gold-equivalent ounces and 351,000 Inferred gold-equivalent ounces.¹

The Company is exploring options as to how to monetize this asset.

Proceeds from the Halilağa Transaction will be used to accelerate the exploration program at Liberty Gold’s Black Pine Carlin-style oxide gold project in southern Idaho.

¹The Classified Mineral Resource estimate is quoted at a cut-off grade of 0.50 grams per tonne (“g/t”) gold equivalent (“AuEq”). At a 0.50 g/t AuEq cut-off, the strip ratio is 1.47:1. Gold equivalence was calculated using a ratio of Au:Ag of $1200:$20, at 75% recovery and copper (“Cu”) at $3/lb at 70% recovery. The Classified Mineral Resource comprises an Indicated 23.06 million tonnes grading 0.63 g/t Au, 27.6 g/t Ag and 0.16% Cu (1.34 g/t AuEq) and an Inferred 10.77 million tonnes grading 0.15 g/t Au, 45.7 g/t Ag and 0.06% Cu (1.01 g/t AuEq). Additional details are in the 43-101 Technical Report entitled "Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey" dated effective January 21, 2014, available on the Company’s website or at www.sedar.com.

Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, 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 information contained in the release is accurate.

ABOUT LIBERTY GOLD
Liberty Gold is focused on exploring the Great Basin of the United States, home to large-scale gold projects that are ideal for open-pit mining. This region is one of the most prolific gold-producing regions in the world and stretches across Nevada and into Idaho and Utah. We know the Great Basin and are driven to discover and advance big gold deposits that can be mined profitably in open-pit scenarios. Our flagship projects are Black Pine in Idaho and Goldstrike in Utah, both past- producing open-pit mines, where previous operators only scratched the surface.

For more information, visit www.libertygold.ca or contact:

Susie Bell, Manager, Investor Relations
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@libertygold.ca

Cautionary language regarding forward-looking statements

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, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. 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, the receipt of the staged payments, assumptions about future prices of gold, 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 licenses and permits and obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, the availability of drill rigs, 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, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results and/or the reliance on technical information provided by 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; labour disputes and other risks of the mining industry, including impacts from the pandemic of the novel coronavirus (COVID-19); delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 26, 2020 in the section entitled "Risk Factors", under Liberty Gold’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.