American Eagle's CSAMT Results Outline Prospective Carlin-Type Drill Targets; Seismic Survey Currently Underway

TORONTO, July 7, 2021 - American Eagle Gold Corp. (TSXV: AE) ("American Eagle" or the "Company") is pleased to announce that it has identified potential carlin-type drill targets at its Golden Gate property that are closer to the surface than initially believed. These new targets have been delineated from the Controlled Source Audio Magnetotelluric ("CSAMT") survey the Company completed in May. The Company also reports that it has begun a 2D seismic survey at Golden Gate, which will be combined with the data from the CSAMT to further refine its drill program in the fall.

Promising CSAMT Results

The purpose of this CSAMT survey is to identify resistive units that may represent carbonate rocks that could host favourable Carlin-type mineralization. The results from the CSAMT indicate the presence of highly resistive rocks beginning at 300 metres from the surface in an area that has never been drill tested.

As a follow-up to the CSAMT survey, the Company is refining these potential drill targets with a two-line seismic survey now laid across the Golden Gate. This seismic survey will be completed in July and combined with the data from an earlier seismic survey undertaken on the Golden Gate property by Barrick Gold Corporation.

2D seismic surveys are widely used in the oil and gas industry to delineate folding and low-angle structures which are undercover. This exploration method is critical to understanding the deposit structure, allowing American Eagle Gold to delineate higher probability targets.

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Permitting and Drill Program

The Notice of Intent for drilling will be filed in early August, with permitting expected to be received in early September. The Company is in the process of hiring a drilling contractor for its fall drilling campaign. Future exploration will focus on defining drill targets by analyzing the relationship between the productive structures, geochemical anomalism and possible geophysical signature of buried Carlin-type deposits.

See Map of Golden Gate Property

Closing of the Garden Gate Acquisition Expected Shortly

As disclosed in the Company's news release dated June 29, 2021, the Company entered into a lease with option to purchase agreement dated June 28, 2021, with Pyramid Lake LLC ("Pyramid Lake"), pursuant to which the Company has agreed to acquire Pyramid Lake's interest in Garden Gate in exchange for initial consideration consisting of a cash payment of $25,000 and the issuance of 200,000 common shares of the Company (each, a "Share") as well as the grant of a 3.0% net smelter returns royalty on production from Garden Gate, with American Eagle Gold having the right to buy back one and a half percent (1.5%) at the time of a production decision for $1,000,000.

In addition to this initial consideration, the Company has agreed to make advanced royalty payments to Pyramid Lake as follows:

• a cash payment of $15,000 in the first year of the agreement (in addition to the initial cash payment specified above);
• cash payments of an aggregate of $30,000 in each of the second and third years of the agreement;
• cash payments of an aggregate of $34,000 in the fourth and fifth years of the agreement;
• cash payments of an aggregate of $40,000 in the sixth year of the agreement; and
• following the sixth year, cash payments each year thereafter in an amount equal to the aggregate cash payments made in the prior year, plus an additional 5%.

Further, the Company has the right to ultimately purchase the Garden Gate property at any time upon the payment of $2,000,000 in cash and the issuance of 2,000,000 Shares to Pyramid Lake.

Closing of the American Eagle Gold acquisition of Garden Gate from Pyramid Lake remains subject to receipt of approval of the TSX Venture Exchange. For additional information on Garden Gate and the terms of the proposed acquisition, please refer to the Company's news release dated June 29, 2021.

About American Eagle Gold Corp.:

American Eagle Gold is traded on the TSX Venture Exchange under the symbol 'AE' and is focused on exploring its flagship property, Golden Gate. The property is strategically situated on the Cortez Trend, which hosts three large Carlin-type gold deposits operated by Barrick and Newmont's Joint Venture, Nevada Gold Mines (Pipeline, Cortez Hills and Goldrush). The property is located 10 km south of Cortez Hills and 5 km south of Goldrush and shows many of the same geological characteristics as at the two deposit areas.

QP Statement
American Eagle's Vice President of Exploration, Mark Bradley, B.Sc., M.Sc., P.Geo., a Certified Professional Geologist and 'qualified person' for the purposes of Canada's National Instrument 43-101 Standards of Disclosure for Mineral Properties, has verified and approved the information contained in this news release.

For information and updates on American Eagle Gold, please visit: www.americaneaglegold.ca

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release. Certain information in this press release may contain forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the listing of the Company's Common Shares on the TSX Venture Exchange and the anticipated timing thereof, the planned work program on the Golden Gate project and the timing of the program milestones. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. American Eagle Gold Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to American Eagle Gold Corp. Additional information identifying risks and uncertainties is contained in filings by American Eagle Gold Corp. with Canadian securities regulators, which filings are available under American Eagle Gold Corp. profile at www.sedar.com.

SOURCE American Eagle Gold Corp.