Pasofino Gold Provides Further Results for the Dugbe F Infill Drilling Program

Toronto, May 31, 2021 - Pasofino Gold Ltd. ((TSXV: VEIN) (OTCQB: EFRGF) (FSE: N07) "Pasofino" or the "Company") is pleased to announce that it has received results from a further 18 holes drilled at the Dugbe F deposit. The drill results continue to prove the consistency of the grade throughout the deposit. Dugbe F is one of two deposits on the Dugbe Gold Project, in which the Company has an option to earn a 49% economic interest (prior to the issuance of the Government of Liberia's 10% carried interest).

Highlights

• Of the 36 infill holes drilled within the deposit 'footprint' at Dugbe F since the start of the program in January, 34 have intersected the main mineralised layer, supporting the continuity of this extensive and shallow gold mineralised 'sheet' which is approximately 2.5 km in length and up to 1.3 km wide.
  
  
• Results of the intersections of the gently dipping mineralised layer in 18 'new' holes include the following:

• The Dugbe F drilling program was completed on the 21^st April 2021. 6,850 m were drilled for 80 holes. Results have been received for approximately half of these. Sampling and analyses continue. The drillholes are aimed at 'upgrading' a large portion of the Inferred Mineral Resource Estimate (MRE) to Indicated. The current Inferred MRE is 16.3 Mt with an average grade of 1.57 g/t Au containing 823 k oz of gold. The existing Indicated MRE of 273 k oz gold, with an average grade 1.46 g/t.
  
  
• At the nearby 2 Moz (Indicated MRE) Tuzon deposit 12 exploration /resource holes have been completed since early April, the first of which should be ready to report within days. Drilling at Tuzon has been for infill and 'step-out' on the existing deposit.

Ian Stalker, CEO, commented; "The continuity of the Dugbe F mineralization continues to deliver with 95% of the infill holes within the deposit footprint intersecting mineralization. All were drilled into the existing Inferred MRE which suggests that we may achieve a strong conversion. Meanwhile, we have drilled 12 exploration and resource holes at the 2 Moz (Indicated MRE) Tuzon deposit, the first of which we anticipate will be reported within days".

Table 1. All intersections from the additional 18 new drillholes with assay results. Drillholes are estimated to be close to true thickness (within approximately 10-15%).

*geotechnical hole.

Figure 1. Plan view map showing the Dugbe F deposit and drillholes.

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Figure 2. Cross section through the southern part of Dugbe F as shown in Figure 1 (Line of Section 1). New intersections highlighted yellow.

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Figure 3. Cross section through the central part of Dugbe F as shown in Figure 1 (Line of Section 1). New intersections highlighted yellow.

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Dugbe F deposit

The deposit length as defined by the dimensions of the conceptual pit is 2.5 km (Figures 2 and 3). The width of the deposit ranges from 1.3 km in the south to 200-300 m in the north. Figures 1 to 3 illustrate the nature of the deposit, it being an undulating gently dipping sheet which outcrops for its entire length along its western side and dips gently eastwards. The mineralized layer is mostly continuous except where cut by cross-cutting pegmatite intrusions or where it comes to surface and has been eroded (Figure 3). The eastward sloping topography has the effect of minimizing the depth to the mineralized layer in some areas which would support a favorable strip ratio if mined. The host rock is orthopyroxene gneiss with increased sulphide content (visible pyrrhotite, arsenopyrite and pyrite) and seems to be a largely stratiform layer close to the contact with overlying quartz biotite gneiss.

The Infill Drilling program

Since 21 January 2021 approximately 6,850 meters have been drilled at Dugbe F for the completion of 80 drillholes. These new holes are positioned between existing holes to increase the density intersections within the areas of the deposit that fall within a conceptual mining pit-shell. The objective is to upgrade a large portion of the Inferred Mineral Resource Estimate to Indicated, to increase the resource base that will be used for the Feasibility Study. The results of the infill drilling to date are encouraging supporting both grade and continuity. The current Inferred Mineral Resource Estimate at Dugbe F is 16.3 Mt with an average grade of 1.57 g/t Au and has contained gold of 823 k oz. The Indicated Mineral Resource Estimate at Dugbe F currently stands at 5.8 Mt with an average grade of 1.46 g/t Au containing 273 k oz gold.

Figure 4. Dugbe Gold Project Mineral Development Area.

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Drilling procedure and Quality Assurance and Quality Control (QAQC)

The new holes were positioned using a handheld GPS and lidar data for elevation. Downhole orientation surveys were completed for all holes and core was oriented to assist with interpretation. All drilling and logging was completed in adherence to industry standard operating procedures. Core recovery is over 95% for all mineralized intersections. Core was drilled HQ (65 mm diameter) through the overburden typically 2-10 m depth, then NQ (47 mm diameter) size. Samples were all half core, analyzed by ALS in Burkina Faso, a facility compliant to ISO 17025:2005 for the analytical methods used for the samples. Samples range from 1 kg to over 5 kg depending on the length of each sample. Within every 20 core samples submitted a certified standard and blank was inserted. The results of these samples show acceptable levels of variance. Duplicate (other half of the core) samples were inserted 1 in every 20 core samples to check on precision. Sample weights on dispatch and received sample weights were examined to monitor for sample swaps. All samples were stored and transported to the laboratory securely and accompanied by a company representative until arrival at the laboratory. Similar QAQC measures were undertaken for the previous drillholes reported herein; those samples were analyzed by ALS in Loughrea, Ireland which is an ISO 17025:2005 compliant facility for the analytical methods used for the samples. All samples were analyzed by fire assay with atomic absorption finish on a sample with 50g nominal weight.

Table 2. Collar positions of the drillholes reported herein. Coordinates are in UTM zone 29N, WGS84 datum.

Qualified Persons Statement

Scientific or technical information in this disclosure that relates to exploration results was prepared and approved by Mr. Andrew Pedley. Mr. Pedley is a full-time consultant of Pasofino Gold Ltd.'s wholly-owned subsidiary ARX Resources Limited. He is a member in good standing with the South African Council for Natural Scientific Professions (SACNASP) and is as a Qualified Person under National Instrument 43-101.

About the Dugbe Gold Project

The 2,559 km² Dugbe Project is located in southern Liberia and situated within the south westmost part of the Birimian Supergroup, which is host to the majority of West African gold deposits. To date, two gold deposits have been identified on the Project; Dugbe F and Tuzon. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralization in the area. A large amount of exploration in the area was conducted by Hummingbird, including 74,497 m of diamond coring. 70,700 m of this was at the Dugbe F and Tuzon deposits, discovered by Hummingbird in 2009 and 2011 respectively. Both deposits outcrop at surface and may be amenable to open-cut mining. In addition, there are a number of prospects within the Project, including 'Sackor' where gold mineralization has been intersected in drill-holes and where additional drilling is planned. No other prospects have been drill-tested to date. At some prospects extensive trenching identified anomalous levels of gold that require drill-testing. An aggressive exploration program to test the prospects is planned by the Company. In 2019, Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the Government of Liberia providing the necessary long-term framework and stabilization of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50%, and the Government of Liberia is granted a free carried interest of 10% in the Project. Over $70 million has been spent by Hummingbird on the Project.

Table 3. Mineral Resource Estimate for the Dugbe Gold Project using a 0.5 g/t Au cut-off grade

1. Rounding errors may be evident when combining totals in the table but are immaterial.
2. The effective date of the Mineral Resource Estimate is August 19, 2020 as reported in "Dugbe Gold Project, Liberia NI 43-101 Technical Report, Effective Date 19 August 2020," a report prepared by SRK Consulting (UK) Limited.
3. The Qualified Person is Mr. Martin Pittuck (CEng, MIMMM).
4. The Mineral Resource has been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101).
5. The estimates are stated using a 0.5 g/t Au cut-off grade.
6. Mineral Resources are not Mineral Reserves and have no demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
7. Mineral Resource estimates are stated within conceptual pit shells that have been used to define Reasonable Prospects for Eventual Economic Extraction (RPEEE). The pit shells used the following main parameters: (i) Au price of US$1700/ounce; (ii) plant recovery of 90%; and (iii) mean specific gravity of 2.78 t/m3for fresh rock and 1.56 t/m3for oxide material for Tuzon, and for Dugbe F a mean specific gravity of 2.73t/m3.

About Pasofino Gold Ltd.

Pasofino Gold Ltd. is a Canadian-based mineral exploration company listed on the TSX-V (VEIN). Pasofino, through its wholly-owned subsidiary, has an option to earn a 49% economic interest (prior to the issuance of the Government of Liberia's 10% carried interest) in the Dugbe Gold Project.

For further information, please visit www.pasofinogold.com or contact:

Ian Stalker, President & CEO
T: 604 367 8110
E: istalker@pasofinogold.com

Cautionary Statements Regarding Forward-Looking Statements

This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as "aim", "plan", "expect", "project", "seek", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the ability to raise the funds to finance its ongoing business activities including the acquisition of mineral projects and the exploration and development of its projects. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the ability to successfully file and obtain approval for the Qualifying Prospectus, the ability to obtain all requisite regulatory approvals in respect of the Qualifying Prospectus, the results of exploration activities; the ability of the Company to complete further exploration activities; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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