Blue Star Gold Updates on Its Activities and Progress on Permitting for Its 2019 Field Program

Vancouver, British Columbia--(Newsfile Corp. - July 18, 2019) - Blue Star Gold Corp. (TSXV: BAU) ("Blue Star" or the "Company") is pleased to update on its activities and report on its progress on permitting its operations for the 2019 exploration program. Blue Star intends to drill this year on its priority gold targets within the Company's 100%-owned Hood River concessions in the Kitikmeot region of western Nunavut (the "Hood Property") and to map and sample in detail certain high-grade grade gold occurrences for future drilling programs.

Since our last update of March 21, 2019, the Company has continued the planning and permitting of its inaugural drill program on its Hood Property. Blue Star is pleased to report that the Nunavut Impact Review Board ("NIRB") completed its review process, issuing its positive Screening Decision Report, dated June 14, 2019. Immediately following the NIRB decision, Blue Star commenced land use licencing with the surface landowner, the Kitikmeot Inuit Association ("KitIA") and to renew and amend the existing water licence administered by the Nunavut Water Board ("NWB").

On July 15, 2019, Blue Star received a land use permit to enable a team of senior geological and archeological consultants accompanied and assisted by two members from the hamlet of Kugluktuk to visit the North Fold Nose gold zone ("NFN") where the 2019 exploration program will be focusing. The field studies are preliminary and expected to be done in less than a week. The purpose of study is two-fold. The archeologist will be assessing the work area to determine whether heritage resources exist in the vicinity, and if needed that any potential effects to these resources are suitably mitigated. The geological team will at the same time be prospecting the NFN; sampling surface occurrences, locating historical BHP drill collars and assessing options for seasonal camp sites.

The Company's application to the NWB was initiated on June 18, 2019 for amending and renewing the existing authorization for its planned exploration program, to include locating a new camp site and commencing the 2019 exploration and drill program. On July 15, 2019, the NWB issued a renewed and amended water licence, 2BE-HRP1924, for the Hood River Project, clearing the way for the next and final step being the issuance by the KitIA of a land use licence allowing for camp establishment and commencement of exploration drilling.

Stephen Wilkinson, CEO and President commented: "Through the process of engagement with stakeholders, regulators and interested parties within Nunavut, Blue Star is seeing excellent progress with respect to its permitting for this year's work programs. This two-way communication has enabled Blue Star to efficiently navigate the process of permitting in conjunction with the building of respectful and collaborative relations with the people and regulators of Nunavut. Specifically, we continue to work closely with the KitIA to ensure timely issuance of the land use licence to allow for exploration drilling to start this summer."

Hood Property and Exploration Plans - 2019

The Hood Property covers 8,015 hectares (80.15 square km) and is located 125 km west of Bathurst Inlet, Nunavut. The Hood Property lies entirely on Inuit-Owned surface and sub-surface land. Blue Star holds an agreement with Nunavut Tunngavik Inc. ("NTI") for the exclusive right to explore the parcel. Priority drill targets within the Hood Property are on-strike and north of the Ulu Mining Lease's advanced Flood gold zone and are related to the 5 km long Ulu regional fold. The NFN gold zone is within part of the Ulu fold that extends for 2 km from the Ulu lease boundary north. It is reported that several gold occurrences are located on this trend including the NFN, the Bizen and the Apex Veins. In 2014, the Company sampled the NFN taking 18 channel samples that had an average width of 0.92m and graded 6.94 grams/tonne gold (g/t Au) and 7.66 grams/tonne silver (g/t Ag). BHP tested the NFN with 5 diamond drill holes in 1990 and 1991. Diamond drill hole 90VD-81 tested the vein on the east fold limb and returned 6.03m grading 7.31 g/t Au, including 25.63 g/t Au over 1.54m at a vertical depth of 60m. Drill hole 91VD-111 was drilled underneath 90VD-81 the following year and intersected 9.16 g/t Au over 6.88m, including 54.94 g/t Au over 0.95m and 0.25m grading 18.2 g/t Au at a vertical depth of 95m below surface. Blue Star recognizes the NFN as an excellent candidate among others for a comprehensive program of highly detailed geological mapping and sampling of the surface showings.

Qualified Person

Warren Robb P.Geo. is a Qualified Person under National Instrument 43-101 ("NI 43-101"), and has reviewed and approved the geological information contained in this presentation.

About Blue Star Gold Corp

Blue Star is a Vancouver-based gold and silver exploration company focused on mineral exploration and development within Nunavut, Canada. The Company through its subsidiary, Inukshuk Exploration Inc., owns the highly prospective 8,015 ha Hood River gold property located contiguous to the Ulu mining lease. Blue Star holds a definitive agreement to acquire the Ulu, an advanced gold and silver project. The Company website is www.bluestargold.ca. Blue Star has 129.6 million shares outstanding and is listed on the TSX Venture Exchange with the symbol: BAU.

For further information, please contact:

Stephen Wilkinson, President and CEO
Telephone: +1 778-379-1433

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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This news release contains certain "forward-looking information" within the meaning of Canadian securities laws. Actual results may differ materially from those indicated by such forward-looking information. All information included herein, other than statements of historical fact, including the expected completion of the Placement and the timing thereof, and the expected use of proceeds are forward-looking statements and involves various risks and uncertainties. There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.

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