P2 Gold Commences Drilling at Gabbs and Provides Project Update

VANCOUVER, Jan. 13, 2022 - P2 Gold Inc. ("P2" or the "Company") (TSX-V:PGLD) reports it has commenced Phase Two drilling and provides an update on activities recently completed and underway at its Gabbs Project located on the Walker-Lane Trend in Nevada.

Gabbs Phase Two Drill Program Underway

The Gabbs Phase Two drill program has commenced with mobilization of a reverse circulation ("RC") drill rig to site. The Phase Two drill program is planned to total approximately 4,000 meters of RC drilling in 20 holes. The majority of the drill program will focus on definition drilling at the Lucky Strike Zone, with other holes designed to test the extension of the Lucky Strike and Car Body zones.

Gabbs Phase One Drill Program

The results from the final four RC drill holes of Phase One drilling at the Car Body (GBR-024 to 026) and Lucky Strike (GBR-027) zones have been received. Select drill results (see Table 1 below for drill results) from holes GBR-024 to GBR-027 include:

• Hole GBR-024 intersected 1.13 g/t gold over 28.96 meters, including 12.19 meters grading 2.35 g/t gold; and
• Hole GBR-026 intersected 1.09 g/t gold over 45.72 meters, including 15.24 meters grading 1.57 g/t gold and 12.19 meters grading 1.39 g/t gold.

Drill holes GBR-024 to 026 were designed to test the mineralization at the Car Body Zone, which is the smallest tonnage, highest-grading gold zone on the property. The gold mineralization at Car Body is interpreted to be low-sulphidation epithermal mineralization and is open in all directions.

Drill hole GBR-027 confirmed the continuity of the gold-copper mineralization to the northeast at the Lucky Strike Zone, and that the zone remains open to the east. The gold-copper mineralization at Lucky Strike, as with the Sullivan and Gold Ledge zones, is hosted within a volcanic package of rocks and is interpreted to be related to an alkaline gold/copper porphyry.

Plan maps and sections for drill holes GBR-024 to 027 of the Gabbs Phase One drill program are available here.

Gabbs Mineral Resource Update and Other Project Activities

The Gabbs Project Mineral Resource is being updated and expected to be completed this quarter. The updated Mineral Resource will incorporate the results of the Gabbs Phase One drill program completed in 2021 and both Phase One and Phase Two metallurgical programs.

The Phase Two metallurgical program is underway and is expected to be completed this quarter. The program is expected to determine the preferred extraction process to be used as the basis for a preliminary economic assessment targeted for completion in late 2022.

In the field, a 25.7-line kilometer Natural Source Magneto Telluric ("NSMT") survey has been completed over the project covering all four known zones of mineralization and the prospective locations of the potential gold-copper porphyry source at depth. Based on the results of the NSMT survey, a 22.5-line kilometer infill NSMT program has commenced over areas believed to potentially host the source gold-copper porphyry.

Gabbs Technical Report

The Company filed a National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") technical report entitled "Amended and Restated Mineral Resource Estimate of the Gabbs Gold-Copper Property, Fairplay Mining District, Nye County, Nevada, USA", with an effective date of January 13, 2021 (the "Gabbs Technical Report"). The Gabbs Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.p2gold.com.

The Gabbs Technical Report was prepared by Eugene Puritch, P.Eng., FEC, CET, Richard H. Sutcliffe, Ph.D, P.Geo., Fred Brown, P.Geo., Jarita Barry, P.Geo of P&E Mining Consultants Inc., each of whom is a "Qualified Person" as defined by NI 43-101 and independent of the Company. The Company hired Fred Brown as Exploration Manager on July 1, 2021.

There are no material differences in the Mineral Resources in the Gabbs Technical Report and those contained in the Company's February 23, 2021 news release.

Table 1: Selected Gabbs Drill Results, January 2022 (GBR-024 to GBR-027)^{(1, 2)}

(1) True thickness to be determined.
(2) All samples were submitted for preparation by ALS Global at its facilities in Elko, Nevada, with the analysis completed at ALS Global facilities in Reno, Nevada, and North Vancouver, British Columbia. All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold. Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and one in 20 samples had a sample cut from assay rejects assayed as a field duplicate.
(3) Gold Equivalent calculations were consistent with the Gabbs Mineral Resource, which used US$1,600 per ounce gold, US$3.00 per pound copper, and copper recoveries of 90%. See the Gabbs Technical Report.

Quality Assurance

Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Qualified Person, as defined by NI 43-101, responsible for the Gabbs Project. Mr. McNaughton has reviewed, verified and approved the scientific and technical information in this news release.

Other News

P2 has filed a NI 43-101 technical report entitled "NI 43-101 Technical Report on the Silver Reef Property, Omineca Mining Division, British Columbia, Canada", with an effective date of December 31, 2021 (the "Silver Reef Technical Report"). The Silver Reef Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.p2gold.com.

The Silver Reef Technical Report was prepared by Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, a "Qualified Person" as defined by NI 43-101.

P2 also announces that it has launched a new corporate web site at www.p2gold.com.

About P2 Gold Inc.

P2 Gold is a mineral exploration and development company focused on advancing precious metals and copper discoveries and acquisitions in the western United States and British Columbia.

For further information, please contact:

Neither the TSX Venture Exchange (the "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 release.

Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, information with respect to the Company's expectations, strategies and plans for the Gabbs Project including the Company's planned expenditures and exploration activities.

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. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's annual information form dated August 9, 2021 filed on SEDAR at www.sedar.com for a discussion of these risks.

The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.

Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.