Sky Gold Update on Geophysical Surveys for Silver-Rich Targets on The Evening Star Property, Nevada

VANCOUVER, March 17, 2021 - Sky Gold Corp. (TSX-V:SKYG)(OTC PINK:SRKZF) ("Sky Gold Corp." or the "Company") is pleased to report on two geophysical surveys completed on its Evening Star Property, located in Mineral County, Nevada. The Company awaits assays from the remaining 17 holes drilled at its Mustang Project located in Newfoundland.

The Evening Star property is located 12 kilometers southeast of the town of Hawthorne, and is contiguous to the Pamlico property, owned by Newrange Gold Corp.

The Evening Star property covers two historic, formerly producing mines; the Evening Star mine and the Gold Bug mine, and is prospective for gold, silver, and base metal mineralization in several deposit types. One objective of the recent surveys was to assist the targeting of silver-rich skarn and/or Carbonate Replacement Deposit ("CRD") mineralization encountered in a single diamond drill hole in 1970 (exact collar location unknown) which were reported to have returned the following historic intercepts:

Silver equivalent (Ag Eqv) values are calculated assuming 100-per-cent recovery using $24.00 (U.S) per oz Ag, $3.50 per pound Cu, $0.95 per pound Pb, and $1.25 per pound Zn. The company is disclosing results on a silver equivalent basis due to the overall silver-dominant value of the mineralization. It was confirmed by the geologist on the historic 1970 drill hole that it was not assayed for gold.

The reader is cautioned that these historic drill hole results from 1970 were completed prior to the implementation of National Instrument 43-101 and must be considered only as a historic reference. Neither the Company nor its Qualified Person have completed sufficient work to verify this historic drill hole, and they should not be relied upon.

Magee Geophysical Services based in Reno, Nevada completed a ground magnetic and gravity survey over the northern portion of the Evening Star property with detailed 33-meter line spacing in the target area of the 1970 drill hole. Interpretation and review were completed by Wright Geophysics based in Elko, Nevada. The detailed portion of the ground magnetics and gravity surveys were conducted over 0.4 square kilometers, and the larger survey at 66-meter spacing covered approximately 5.8 square kilometers.

The ground magnetic and gravity surveys were successful in supporting lithological interpretations and defining structures over much of the property. North-south and east-west structural features that traverse the property were indicated. Seven structures were identified as having the same orientation (WNW-ESE) as the La Panta vein, a historic producer of gold. One of these structures traverses the area of historic exploration in the vicinity of the Gold Bug mine, near the projected area of the 1970 drill hole. Figure 1 shows skarn targets as interpreted from the detailed gravity results along with a La Panta parallel structure target.

The Company views this La Panta parallel structure, that extends directly through the Gold Bug mine workings, coincident with a strong magnetic high anomaly, as a priority drill target for silver-rich skarn/CRD mineralization similar to the intercepts cut in the drill hole completed in 1970.

FIGURE 1 (J L Wright, Internal Report 2020) Skarn and La Panta Target Areas over Gravity Vertical Derivative data.

The Company is pleased to announce that EM Strategies has been retained to lead the permitting of a drill program directed at the above targets and additional zones on the federal Bureau of Land Management ("BLM") claims on the Evening Star property. EM Strategies, based in Reno and Elko, specializes in third party and proponent work with the BLM, U.S. Forest Service ("USFS"), and state and county governments to provide permit acquisition and regulatory compliance services. The Evening Star was most recently permitted in May 2017 by the Company.

Qualified Person

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

About Sky Gold Corp.

Sky Gold Corp. is a junior mineral exploration company engaged in acquiring and advancing mineral properties in Canada and the USA. In addition to the Company's Newfoundland properties, the Company also owns the Evening Star property, located 12 km southeast of Hawthorne, NV, which is prospective for gold mineralization and CRD (Carbonate Replacement Deposit) base and precious (silver and gold) mineralization.

ON BEHALF OF THE BOARD

"Mike England"
Mike England, CEO & Director

FOR FURTHER INFORMATION PLEASE CONTACT:

Tel. 1-604-683-3995
Toll Free. 1-888-845-4770

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.