Kalo Gold Announces Target Size Expansion From IP Survey at Vatu Aurum Gold Project in Fiji

VANCOUVER, July 21, 2021 - Kalo Gold Holdings Corp. (TSXV:KALO) ("Kalo Gold," or the "Company"), is pleased to announce an update on exploration activities from multiple targets at Qiriyaga Hill at Kalo Gold's 100% owned, large 360 km², Vatu Aurum gold project in the South Pacific's Ring of Fire, in Fiji.

Highlights:

• The number of drill targets in Qiriyaga Zone have more than doubled, increasing from two to five, with Induced Polarization (IP) geophysical survey, identifying three additional large shallow-to-moderately deep chargeability anomalies broadly coincident with gold geochemical anomalies and silica-clay alteration.
• The three new targets in Qiriyaga Zone have not been drill-tested and indicate the possible presence of mineralized bodies beyond Qiriyaga Hill and Vuinubu Ridge deposit areas. Review of historical drilling indicates that the targets occur beyond the limits of previous drilling (see Figures 2, 3 and 5).
• Regional exploration continues to identify additional high priority targets, with soil geochemical sampling in Coqeloa prospect defining several gold anomalies coinciding with high gold values in rock samples of up to 9.02 g/t Au. Second pass soil grid sampling program at Mouta complete and awaiting assay - first pass results press released May 21, 2021 recorded a high grade rock sample of 6.2g/t Au, 645g/t Ag and 3.12% Cu (19.3g/t AuEq).

Fred Tejada, Kalo Gold Chief Executive Officer, commented: "We are very excited about the results from the IP survey, indicating that the Qiriyaga Zone has the potential to be a large system, and the Qiriyaga Hill Deposit could be just the tip of the iceberg. Multiple large high priority targets have been identified from the IP survey and the vast majority have never been drill tested or they occur beyond the limits of historical drilling as shown in the Figures 2, 3 and 5. We are immediately leveraging this new information by adjusting parts of the remaining Phase 1 Drill Program accordingly. Beyond the Qiriyaga Zone, regional programs continue to record high grade results at Coqeloa and Mouta, highlighting the large potential of our land package, which shows several caldera features."

Qiriyaga Zone IP Results

Seventeen lines of induced polarization / resistivity (DCIP) were completed over the Qiriyaga Zone during April through May 2021 by Fender Geophysics of Australia. The Qiriyaga Zone is a 2.5km long mineralization trend identified by anomalous gold in soil geochemistry and trenching. Acquisition parameters comprised 100m dipoles using a dipole-dipole array, reading down to n=16. Results were 2D modelled by Campbell & Walker Geophysics utilizing the UBC DCIP2D inversion software. The results of this modelling indicate a large (~600m diameter), moderately chargeable and relatively resistive anomaly (Target #2) laying just north of the main Qiriyaga Hill zone, coincident with a significant gold in soil geochemical anomaly (see Figure 1). With respect to the limited historical and shallow drilling to date, it appears to have missed the edges of this geophysical anomaly or were not drilled deep enough to fully test the anomaly (see Figures 2 & 4). Additionally, a second moderately chargeable and relatively resistive anomaly (Target 1) occurs slightly northeast of the Vuinubu Ridge (see Figures 1, 3 & 5). This feature occurs over an area approximately ~200m x 600m, trending northeast. No drilling has been conducted in this area. However, a total of 322 soil samples have been collected and sent to ALS laboratory in Brisbane, Australia for analytical testing. The third geophysical anomaly (Target 3) is found on the southeast part of the surveyed area measuring ~300m (defined by two lines) and is open to the south (see Figures 1 & 5).

For recent drill results, refer to news releases dated:

• March 29, 2021 - "Vatu Aurum Gold Project Confirming Multiple Thick, Near-Surface Gold Intersections".
• July 17, 2021 - "Kalo Gold drills additional thick, near-surface, high-grade gold mineralization, with 69m at 0.91 g/t Au (including 4m of 5.11 g/t au), at Vatu Aurum gold project in Fiji."

Figure 1. Map showing modelled IP chargeability and Au soil geochemical map. The contour lines (grey lines) are 5m elevation contours.

Figure 2. Section along Line 1 looking southeast. Extent of block model on Qiriyaga Hill shown on the upper right side is historical.

Figure 3. Section along Line 2 looking northwest. No drilling has been undertaken in this part of the Qiriyaga mineralized trend.

Figure 4. Section along IP Line 11400N.

The gold soil geochemical map shown in Figure 1, includes the assay results from 1,173 recently collected samples to both expand and infill the target area. The sampling program covered Qiriyaga Hill, Vuinubu Ridge, Qiriyaga East, Vunikulukulu and Namalau. The modelled IP chargeability shows coherence with the broad soil anomaly at the center from Qiriyaga East to Namalau, which remains untested to date by drilling.

Figure 5. 3D model showing IP chargeability and alteration zones - viewed looking SE (bearing 145 deg) at -35-degree angle.

The silica and silica-clay alteration zones were defined by mapping along the soil geochemical and IP lines. The zones show a NE-SW trend, generally coinciding with the soil gold anomalies. The broad zones of silicification at Vunikululu and Namalau areas consist of strongly silica altered float train and possible sub-crops of altered volcanic rocks and hydrothermal breccia. Strong silica alteration was also recognized at Urabuta Creek located ENE of Vuinubu Ridge characterized by floats of silica altered volcanic and occasional boulders of hydrothermal breccia. The silica alteration further strengthens the prospectively of these areas and the need to confirm this by drilling.

The holes that were drilled in Qiriyaga East area were either shallow (FCD-24 drilled to 101m depth and FCD-02 drilled to 148m; holes bearing WNW at -60 deg inclination) or offset and did not intersect the high chargeability zone which starts to manifest at 150m and at its strongest, at around 250m depth (see Figure 4). To confirm the presence of mineralization in this area, the Company plans to drill deeper holes located close to the high chargeability zone.

Update on Mouta Prospect

Following up the most recent rock sampling of the Company which identified Mouta as a high-grade gold-silver-copper prospect (see news release dated May 26, 2021), the Company has completed a grid soil sampling program over an area of 1.2km² centered around the high grade Mouta mineralization. The samples had been sent to ALS Minerals Laboratory in Brisbane, Australia ("ALS" for analysis. Two test IP lines were also completed before the Fender Geophysics survey team returned to Australia. Mapping along the IP and soil sampling lines identified several zones of clay±silica and silica alteration within the sampled area. Mapping will continue to define the alteration zones.

Figure 6. Location map showing Mouta and Coqeloa relative to Qiriyaga Hill and the locations of the other prospects in Vatu Aurum.

Update on Coqeloa Prospect

The Company conducted infill soil sampling on a 50m x 50m grid covering an area of 4.5km x 2.5km in Coqeloa collecting a total of 1,070 soil samples. The results defined several coherent gold soil anomalies which coincide with silica-clay altered zones as shown on Figure 7. A grab sample taken from one of the silicified boulders with quartz stockworks on a hill on the NE corner of the grid in 2018 assayed 9.05 g/t Au while two grab samples taken close to the middle IP line assayed 2.16 g/t Au and 2.01 g/t Au came from weathered volcaniclastics with cross cutting quartz veinlets. These samples, taken by Kalo Exploration PTE Limited (previous operator) in 2018, confirm the presence of gold in the area.

Three lines each cutting a gold anomalous zone were surveyed by IP. The data collected will be processed and interpreted by CW Geophysics and will be used, together with soil geochem and geological observations, to guide the Company's exploration plans in Coqeloa.

Figure 7. Coqeloa gold soil geochemical map and IP survey lines.

Sampling, Analysis and QAQC

The Company sends its samples to ALS for sample preparation and analysis. The drill core was sampled at 1m intervals and cut into half with an electric-powered core saw at the at the Company's exploration camp. Gold was analyzed using Au-AA24 method (50g split). Multi-element analysis was also carried out using ME-ICP61m and Hg-MS42 methods. Au-AA24 and ME-ICP61 are also used for rock chips or grab samples. Kalo's Quality Control and Quality Assurance (QAQC) protocol for drill core samples includes: 1) field measurement of half core sample weights, 2) insertion of certified reference materials at 1 in 20 frequency; 3) insertion of Certified Reference Materials (CRM) or blank sample at 1 in 20 frequency; and 3) insertion of duplicate core samples. ALS has internal QAQC protocols that include analysis and results monitoring for certified reference materials, blank samples, and duplicate core samples.

Health & Safety Update

Fiji has been under COVID-19 inter-island travel restrictions since mid-April 2021. Drilling in Qiriyaga Hill and Vuinubu Ridge will resume when restrictions on inter-island travels are lifted to allow the Company's drillers to return to site. The Company will continue with the review of surface and core geology and expansion of soil sampling in Qiriyaga Zone, mapping of Mouta following the completion of soil sampling, and mapping of the other prospects.

Kalo Gold operates solely on the northern Fijian island of Vanua Levu, where there are currently no confirmed community cases of COVID-19. The Company has implemented additional safety controls to ensure the health and safety of all employees, contractors, and communities. These measures are in line with the Fijian Ministry of Commerce, Trade, Tourism and Transport Protocols for COVID Safe Business Operations. Such measures include employee temperature checks, the implementation of the CareFiji App, ongoing hygiene training, social distancing, and frequent handwashing.

About Kalo Gold

Kalo Gold is a mineral exploration company focused on the Vatu Aurum gold project on Fiji's north island, Vanua Levu. Kalo holds two mineral exploration licenses covering 36,700 hectares of land and on trend with many of the largest gold deposits in the world in the Southwest Pacific Ring of Fire.

Qualified Person

The technical information in this news release was reviewed by Fred Tejada, P.Geo, a director and officer of Kalo Gold, and Christopher (Kit) Campbell, P.Geo, Chief Geophysicist of Campbell and Walker Geophysics, qualified persons as defined by National Instrument 43-101 (NI 43-101).

On behalf of Kalo Gold

Fred Tejada
Chief Executive Officer and Director

For more information contact, please contact Kevin Ma, President and Director, at info@kalogoldcorp.com or +1-604-363-0411.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward Looking Statements Disclaimer

Certain statements in this release are forward-looking statements, which are statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to proposed drilling timeline and the proposed expansion of the exploration program. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements, other than statements of historical fact, included in this release, including statements regarding the proposed drilling timeline and the proposed expansion of the exploration program, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to raise the necessary capital to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's filing statement dated February 9, 2021 and latest interim Management Discussion and Analysis filed with certain securities commissions in Canada.

The reader is cautioned that assumptions used in the preparation of any forward-looking statements herein may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect, and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

SOURCE: Kalo Gold Holdings Corp.