Zacapa Resources Provides Update On Exploration And Drill Program At South Bullfrog In The Beatty District, Nevada

VANCOUVER, Aug. 24, 2022 - Zacapa Resources (TSXV: ZACA) (OTCQB: ZACAF) (DE: BH0) is pleased to provide an update on exploration activities (completed and ongoing) at its 100% owned South Bullfrog gold project in the Beatty District of Nevada.

• Follow up soil geochemistry at the newly identified Longtail target reveals strongly elevated pathfinder epithermal suite elements including gold, silver, and mercury associated with silicified, alunite-bearing, brecciated subcrop surrounded by alluvial cover
  
  
• Recently completed gravity geophysical survey mapped a prospective low gravity feature coincident with a magnetic low feature at the Longtail target which could represent structurally controlled alteration
  
  
• Consulting report on integrated geophysical interpretation has identified new targets and reinforced conviction on existing targets
  
  
• Sledge, Shingleback, and Longtail prospects identified as areas to be fast tracked for drilling in 2022

"The coincidence of gravity and magnetic anomalies in proximity to strongly altered outcrops and anomalous soil geochemistry reinforces our confidence in the value of Longtail as a significant new prospect in the Beatty District," comments Adam Melnik, CEO and Director. "Zacapa's technical team has been working efficiently to identify the most prospective drill targets for testing and the highly compelling Longtail target is representative of the success our approach can deliver when challenged with exploring through cover."

An infill soil sampling program was conducted at the recently identified Longtail target (see June 6, 2022). The new soil sampling was conducted between previously collected reconnaissance soil sampling points that cross through the Longtail target area to determine if a more closely spaced grid could help refine the soil anomaly and correlate it to structures visible in magnetic geophysical surveys. The strict adherence to Zacapa's rigorous sampling protocol resulted in significantly elevated gold, silver, and mercury values relative to the prior survey. Of the 24 samples collected, 9 are among the top 50 in terms of gold concentration for the entire South Bullfrog Project area, which includes 963 soil samples (Table 1). To date more than a quarter of the 50 highest Au and Hg values at the South Bullfrog Project occur at Longtail. A detailed soil sampling campaign will commence at Longtail in mid-September to more fully resolve the extent of the anomaly and aid in identifying controlling structures that may be concealed under alluvial cover. Preparation and analysis of the soil samples was completed by ALS using their Super Trace Gold and Multi-element package. Lab inserted quality control materials included four standards, two blanks, and two duplicates.

In conjunction with the Longtail soils program additional follow-up soil sampling is slated at the Bottom's Up target where reconnaissance lines showed anomalous pathfinder elements and mapping revealed zones of strong silicification. Additional soil sampling will also be completed at the Sourdough prospect to test the continuation of a major structure extending north off the Fluorspar Canyon detachment zone that is associated with significant alteration at the Vanderbilt Minerals clay mine.

A ground-based gravity geophysical survey was completed on northern portions of the South Bullfrog project. The gravity survey was targeted at identifying potential fault zones and other structural discontinuities that may have provided fluid pathways for mineralizing solutions. The survey was particularly useful in the Longtail area where coincident gravity and magnetic lows occur along interpreted fault zones and could potentially be related to hydrothermal alteration (Figure 2).

Dr. Jon Woodhead has completed a full geophysical interpretation incorporating data from magnetic, radiometric, gravity, and induced polarization geophysical surveys with regional and local geologic mapping, surface geochemistry, and remote sensing to provide a robust new interpretation of the geophysical data that Zacapa has collected. The results of this study show a good correlation between existing targets and targets selected based on geophysics and also identifies other areas of interest (Figure 3).

Table 2: Established Resources of the Beatty District

Prospects being fast tracked for drilling in 2022

Work to date, including advice of consultants with decades of experience in the Beatty District, has indicated that Shingleback, Sledge, and Longtail are high priority target areas. Additional rock sampling is underway to aid in refining the most prospective zones along outcropping structures for drill testing.

Drill permitting is progressing, including the required surveys, and a drill contractor procurement process is nearing completion. Drilling is expected to commence in Q4 2022.

The South Bullfrog gold project is centrally located in the Beatty District in the heart of the Walker Lane Trend. The Beatty District has seen rapid increases in gold resources, currently over 8.6 million ounces of gold. Zacapa's project area is 5 kilometres south of AngloGold Ashanti's North Bullfrog development project which is anticipated to be operational in the next 3 years, and the central hub in a hub-and-spoke development scenario outlined by AngloGold Ashanti following its US$370M⁶ acquisition of Corvus Gold. AngloGold has stated that the combined assets will help the Beatty District become a large, long life, low-cost operation with the potential to develop Tier-1 "company making" mines (Figure 1)⁷. South Bullfrog is comprised of 488 unpatented mining claims covering approximately 9,900 acres with a clear path to value creation by executing rigorous exploration in the middle of an increasingly active district where major gold mining companies are actively acquiring property and developing new mines.

Zacapa is a copper and gold focused mineral exploration company engaged in responsible exploration for the new energy economy. Its projects are concentrated in world class jurisdictions in the southwest U.S., including Arizona, Nevada, and Idaho. The portfolio includes porphyry copper projects at Red Top, Pearl, and Dewdrop Moon, and epithermal gold projects at South Bullfrog and Miller Mountain. These assets are being advanced by a highly disciplined and seasoned professional team with successful track records of discovery, resource development and mine permitting.

For more information, please visit www.zacaparesources.com. All documents are available on Zacapa's profile page on SEDAR at www.sedar.com.

All scientific and technical information contained in this press release was prepared under the supervision of Daniel MacNeil, MSc., P. Geo., and a "Qualified Person" as defined by National Instrument 43-101.

On behalf of the Board of Directors,

"Adam Melnik"

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

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although Zacapa believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Zacapa cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of factors, many of which are beyond Zacapa's control. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Readers are advised to rely on their own evaluation of such uncertainties. Except as required under applicable securities legislation, Zacapa undertakes no obligation to publicly update or revise forward-looking information.

Cautionary Note to US Investors

NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM.

United States investors are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. The term "contained ounces" is not permitted under the rules of SEC Industry Guide 7. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. The mine economics presented herein and derived from the PEA are preliminary in nature and may not be realized. The PEA is not a feasibility study. U.S. investors are urged to consider closely the disclosure in our latest reports and registration statements filed with the SEC. You can review and obtain copies of these filings at http://www.sec.gov/edgar.shtml. U.S. Investors are cautioned not to assume that any defined resource will ever be converted into SEC Industry Guide 7 compliant reserves.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

SOURCE Zacapa Resources