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2017

February 02, 2017

Mineral Resource Update for Block 14 Gold Project, High-Grade Underground Potential, and Positive Results on Liseiwi Target

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 2, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to announce an updated Mineral Resource Estimate on the Company's Block 14 Gold Project in the Republic of the Sudan, and provide guidance on the high-grade underground potential at Block 14.

Highlights

  • Drilling within the Preliminary Economic Assessment ("PEA") pit shells has confirmed the Mineral Resource and reduced the Inferred Resources to less than 3% of total materials within those shells:
    • The updated Mineral Resource estimate, using a cut-off grade of 1.0g/t, comprises an Indicated Resource of 30.6 Mt grading 1.82g/t for 1.792 Moz of gold and an Inferred Resource of 9.7 Mt grading 1.7g/t for an additional 0.536 Moz;
  • Drilling at a number of locations in Block 14 (See Figure 1 in this news release) has confirmed the potential of high-grade mineralization below the PEA pit designs:
    • Wadi Doum: four plunging high grade shoots within and at the edge of the current resource contain high-grade mineralisation with intercepts including 25m at 18.40g/t (MET004DD), 27m at 5.47g/t (GSRC615), 30m at 8.06g/t (GSRC542), 30m at 5.83g/t (GSRC690) and 14m at 13.37g/t (GSRC691);
    • Galat Sufar South: Intercepts at the footwall of the Main Zone included 30m at 7.98g/t (GSRC082), 17m at 4.72g/t (GSRC001) and 20m at 7.18g/t (MET007DD) while a high-grade plunging shoot intersected 100m south of the Main Zone footwall returned intercepts of 19m at 13.6g/t (GSRC003), 16m at 17.97g/t (GSRC081) and 7m at 9.67g/t (GSRC183);
    • Liseiwi Target: Short drill programme confirms high-grade mineralisation with assay results of 10m at 15.32g/t (GSRC596), 8m at 12.8g/t (GSRC599) and 17m at 5.03g/t (GSRC595).

Mineral Resource Estimate

The Mineral Resource update was undertaken by MPR Geological Consultants of Perth, Western Australia as part of the Pre-Feasibility Study ("PFS") currently in progress. 6,236m of reverse circulation and 826m of diamond core drilling were completed to upgrade Inferred Resources to Indicated Resources. The programme targeted the 10% of material within the designed pits used in the Preliminary Economic Assessment (see Company News Release on July 26, 2016). Results of the Mineral Resource update are shown below at a range of cut-off grades:

Block 14 Mineral Resource Update February 2017

Deposit Cut off Indicated Inferred
Au g/t Mt Au g/t Au koz Mt Au g/t Au koz
Galat Sufar South 0.50 64.3 1.17 2,426 22.3 1.1 787
0.60 54.1 1.29 2,246 18.3 1.2 716
0.70 45.8 1.41 2,073 15.1 1.3 651
0.80 39.0 1.52 1,909 12.6 1.5 591
0.90 33.3 1.64 1,755 10.6 1.6 535
1.00 28.6 1.75 1,609 9.0 1.7 485
1.10 24.5 1.87 1,473 7.6 1.8 438
1.20 21.1 1.99 1,347 6.4 1.9 395
Wadi Doum 0.50 3.8 1.83 222 2.9 1.1 98
0.60 3.2 2.04 213 2.1 1.3 84
0.70 2.8 2.24 204 1.5 1.5 72
0.80 2.5 2.44 196 1.2 1.7 64
0.90 2.2 2.62 189 0.9 1.9 57
1.00 2.0 2.79 183 0.7 2.2 52
1.10 1.9 2.95 177 0.6 2.4 47
1.20 1.7 3.10 172 0.5 2.6 44
Combined 0.50 68.0 1.21 2,648 25.1 1.1 884
0.60 57.3 1.33 2,459 20.3 1.2 800
0.70 48.6 1.46 2,277 16.7 1.3 723
0.80 41.5 1.58 2,105 13.8 1.5 654
0.90 35.6 1.70 1,944 11.5 1.6 592
1.00 30.6 1.82 1,792 9.7 1.7 536
1.10 26.4 1.94 1,650 8.2 1.8 485
1.20 22.8 2.07 1,518 6.9 2.0 439
Notes: Defined under Canadian National Instrument 43-101 ("NI 43-101"), Standards of Disclosure for Mineral Projects. Numbers may not add up due to rounding.

In comparison to the previous estimate (July 2016), Indicated Resources have increased by 10% or 159 koz and Inferred Resources have decreased by 15% or 98koz. The drilling was directed within the PEA design shells and has reduced the Inferred Resources within those shells to less than 3% of total material. Accordingly, the infill programme has successfully confirmed and expanded the PEA resource estimate.

High-Grade Underground Potential Identified

The recent infill drill programme at Block 14 has confirmed the potential of high-grade mineralization below the PEA pit designs. Similar potential has also been identified at the Liseiwi target.

Wadi Doum

At Wadi Doum, high-grade mineralisation has been identified in four plunging high grade shoots within or at the edge of the current resource. Significant intercepts include: 25m at 18.4g/t (MET004DD), 27m at 5.47g/t (GSRC615), 30m at 8.06g/t (GSRC542), 30m at 5.83g/t (GSRC690) and 14m at 13.37g/t (GSRC691), occurring at, close to the base of, or at the edge of the PEA design pit. (See Figure 2 in this news release).

Galat Sufar South

At Galat Sufar South, high grades were intersected at the footwall of the Main Zone (Main Zone FW) of the deposit where intercepts of 30m at 7.98g/t (GSRC082), 17m at 4.72g/t (GSRC001) and 20m at 7.18g/t (MET007DD) were received. In addition, a high-grade plunging shoot (320 Zone Shoot) was intersected 100m south of the Main Zone footwall returning intercepts of 19m at 13.6g/t (GSRC003), 16m at 17.97g/t (GSRC081) and 7m at 9.67g/t (GSRC183) (See Figure 3 in this news release).

Liseiwi Target - Confirmed High-Grade Mineralization

In late 2016, the Company completed a short programme of seven reverse circulation holes at the Liseiwi prospect, 15km north of Wadi Doum. Assay results are highlighted by intersects of 10m at 15.32g/t (GSRC596), 8m at 12.8g/t (GSRC599) and 17m at 5.03g/t (GSRC595). (See Figure 4 in this news release).

Exploration in the first half of 2017 will focus on further developing Liseiwi as a high-grade target within the project area, as well as on the underground potential at Wadi Doum and Galat Sufar South, by extending the high-grade mineralization to depth).

Commenting on these updates at Block 14, Rick Clark, CEO and Director of Orca, said, "The updated Mineral Resource achieved exactly what was planned with the conversion of most of the Inferred Mineral resources within the PEA design shells into the Indicated category. The new Resource will form the basis of the PFS and declaration of the first Mineral Reserves on the project. The conversion programme also confirmed the potential of high-grade underground options at both the Wadi Doum and Galat Sufar South deposits. Furthermore, the confirmation of high-grade mineralization at the Liseiwi target, north of Wadi Doum, could represent an expanded development opportunity at Block 14. We look forward to announcing the results of the upcoming drill programmes as they become available."

About Orca Gold Inc.

Orca Gold Inc. (TSX VENTURE:ORG) is a Canadian resource company focused on exploration and development opportunities in Africa, where it is currently focused on the development of its 70%-owned Block 14 project in the Republic of the Sudan. The Company has an experienced board of directors and management team and a strong balance sheet, with a treasury in excess of $9.5 million as at December 31, 2016.

The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Stuart is the President of the Company and a Chartered Geologist and Fellow of the Geological Society of London.

The Mineral Resource estimate was carried out by Nic Johnson of MPR Geological Consultants of Perth, Western Australia who is considered to be independent of Orca Gold Inc. Mr. Johnson is a member in good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43‐101. Mr. Johnson consents to the inclusion in this press release of the information, in the form and context in which it appears. Samples used for the results described herein are prepared and analyzed by fire assay using a 50 gram charge at the ALS Chemex facility at Rosia Montana in Romania in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted.

Figure 1 - Block 14, Showing Galat Sufar South and Wadi Doum Deposits as well as Liseiwi Target: http://media3.marketwire.com/docs/orca22a.jpg

Figure 2 - High-Grade Shoots Within Wadi Doum Deposit: http://media3.marketwire.com/docs/orca22b.jpg

Figure 3 - Main Zone Footwall Structure and 320 Zone High-Grade Shoot within Galat Sufar South: http://media3.marketwire.com/docs/orca22c.jpg

Figure 4 - Liseiwi Target High-Grade Drill Section: http://media3.marketwire.com/docs/orca22d2.jpg

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws, including statements regarding Orca's (the "Company", the "Corporation", "we" or "our") plans and expectations relating to the Block 14 project ("Block 14") in northern Sudan and the Pre-Feasibility Study ("PFS") currently being conducted by the Corporation. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute "forward-looking statements" to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. The assumptions, risk and uncertainties outlined below are non-exhaustive. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this presentation.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "expects", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential", "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about the following (the "Forward-Looking Factors"): future prices of gold and other metals; successful exploration, development, and production of Block 14; the timing and completion of the PFS; performance of contractual obligations by counterparties; operating conditions; political stability; obtaining governmental approvals and financing on time; financial projections and budgets; obtaining licenses and permits; government regulation of the Corporation's mining activities; environmental risks and expenses; market conditions; the securities market; price volatility of the Corporation's securities; currency exchange rates; foreign mining tax regimes; insurance and uninsured risks; financial projections and results; competition; availability of sufficient capital, infrastructure, equipment and labour; dependence on key personnel; dependence on outside parties; conflicts of interest; litigation; land title issues; local community issues; estimation of mineral resources; realization of mineral resources; timing and amount of estimated future production; the life of Block 14; reclamation obligations; changes in project parameters as plans continue to be evaluated; and anticipated costs and expenditures and our ability to achieve the Corporation's goals. While we consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies, many of which are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation known and unknown risks, uncertainties and other factors relating to the Forward-Looking Factors above, and those factors disclosed under the heading "Risk Factors" in the Corporation's documents filed from time to time with the securities regulators in the provinces of Canada.

In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, and there is no assurance that the actual results, performance or achievements of the Corporation will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in the Corporation's annual and interim management's discussion and analyses on file with the Canadian securities regulatory authorities and available electronically on the SEDAR website at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events, results, performance or achievements to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause actions, events, results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements and information are made or given as at the date of this presentation and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities law. The reader is cautioned not to place undue reliance on forward-looking statements or forward-looking information.

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.

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