Zacapa Resources provided details of ongoing exploration activities and permitting related to its upcoming drill campaign at its 100% owned South Bullfrog gold project in the Beatty District of Nevada. In Third Quarter 2022, 893 soil samples were collected primarily from the Longtail and Bottoms-Up target areas with additional reconnaissance in the Sourdough target area. Sampling at Longtail sought to refine the distribution of strongly altered rocks and related structures where they project under post-mineral cover. The results define an elevated mercury geochemical response northeast of the favorably altered Longtail outcrop (silicified, alunite-bearing, brecciated subcrop surrounded by alluvial cover) and coincident with an interpreted fault bound magnetic low. The presence of a robust mercury anomaly at Longtail is significant because mercury is an important pathfinder for gold in the Beatty District where it is associated with the upper levels of gold bearing epithermal systems. The anomaly is also associated with a magnetic low, which is significant because magnetic lows can be the geophysical expression of magnetite destructive hydrothermal
alteration. These results add confidence that Zacapa's soil sampling methods have been successful in detecting mercury through cover and that the observed magnetic low is likely to be related to hydrothermally altered rocks beneath the cover sequence. There are a total of 15
samples that are considered anomalous in mercury (concentrations greater than two standard deviations above the mean). All of these samples occur along strike of the Longtail outcrop (within ~300 meters) within an attractive magnetic low domain. Longtail magnetic RTP 1st vertical derivative map showing the location of the alunite/kaolinite altered outcrop, and the mercury in soil anomaly, within a large magnetic low domain. Anomalous values are defined as greater than three standard deviations above the mean (0.128 ppm) within a data set that ranges from 0.008 to 1.925 ppm mercury. B) Map of 560 soil sample points at Longtail. Points are colored based on mercury content and a contoured grid placed overtop of topography to help visualize the distribution to elevated mercury. Yellow contour indicates values near the mean, warmer colors (orange, red, pink) indicating increasing deviation above the mean, cooler colors (green blue) indicating deviation below the mean. (CNW Group/Zacapa Resources). Soil sampling at the Bottoms-Up target was conducted to infill and expand the footprint of anomalous arsenic and mercury pathfinder elements detected in initial reconnaissance soil survey lines positioned downslope from several small areas of outcropping silicified breccia. The results include a robust multi-line, multi-station arsenic anomaly that overlaps with alunite-kaolinite spectral anomalies and coincides with one of the silicified zones in outcrop. The zone of elevated arsenic (300m x 400m) also occurs adjacent to a fault that was previously mapped by the U.S. Geological Survey. Mapping and sampling are planned to follow up on this encouraging new target area). Magnetic RTP map showing interpreted structures with alunite/kaolinite bearing outcrops and arsenic in soil anomalies. Anomalous zones are defined as samples greater than three standard deviations above the mean; samples range from 3.03 to 45 ppm arsenic with a mean of 7.88 ppm. B) Map of the Bottoms-Up target displaying 355 soil sample locations colored by arsenic concentration and underlain by a contoured grid to help visualize the results. Yellow contour represents the mean value with warmer colors (orange, red, pink) indicating increasing deviation above the mean and cooler colors (green, blue) indicating deviation below the mean. (CNW Group/Zacapa Resources). The most pronounced resistivity and chargeability features in the previously completed 21 line- kilometer IP-resistivity geophysical survey occur on the south side of the Shingleback target in an area where several faults have been interpreted. Zacapa's newly permitted drill proposal will test these zones of elevated resistivity from the southeast (SB-002) and northwest (SB-001) to maximize the number of fault intersections while drilling the core of the strong IP-resistivity high. While this is the primary focus, Zacapa is also testing the potential for gold mineralization at the Twin Shafts fault (SB-006) and the Basalt fault (SB-011). The permitted Shingleback drill program consists of four pad locations, with approximately 1,200 meters of drilling planned in phase one. 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 five kilometres south of AngloGold Ashanti's North Bullfrog development project, and 11 kilometers west of AngloGold Ashanti's Silicon, Merlin, and Motherlode projects that are anticipated to be producing gold within the next three years. AngloGold Ashanti completed its acquisition of Corvus Gold for USD 370M1 and recently continued to consolidate the Beatty District by acquiring the Crown & Sterling projects from Coeur Mining for up to US$200M8. 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. 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 centre of an increasingly active district where major gold mining companies are actively acquiring property and developing new mines.