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Fremont Gold To Acquire Past Producing Griffon Gold Project from Liberty Gold

Vancouver, British Columbia--(Newsfile Corp. - December 18, 2019) - Fremont Gold Ltd. (TSXV: FRE) (FSE: FR2) (OTC Pink: USTDF) ("Fremont") is pleased to announce that it has entered into a purchase option agreement (the "Agreement") with Pilot Gold (USA) Inc. ("Pilot"), a wholly owned subsidiary of Liberty Gold Corp. (TSX: LGD), to acquire 100% of the past-producing Griffon gold project ("Griffon"), located in White Pine county, Nevada.

Griffon highlights

"It isn't often that a project of this quality comes along in Nevada," said Blaine Monaghan, CEO of Fremont. "We screened numerous advanced-stage gold projects in the Western U.S., projects with the potential to host an economic deposit with a minimum of 1.0 million ounces of gold, and Griffon emerged as the top gold project. Griffon is located at the southern end of the Cortez Trend and, outside of the pit areas, is essentially untested. We know that Carlin deposits have the potential to be very large mineralizing systems and we look forward to testing that potential in the New Year".

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Figure 1: Griffon location

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"Griffon is an underexplored Carlin-type gold system," said Clay Newton, Fremont's Vice President of Exploration. "Historical drill holes at Griffon were shallow, the vast majority did not exceed 100 metres in depth, and were concentrated in the two pit areas. I am particularly interested in drilling through the Blackrock fault, which separates jasperoid-rich Chainman shale in the hanging wall from potential known ore host units in the footwall, such as the Joana Limestone, an overlying unit transitional between the Joana and the Chainman and the Pilot shale below the Joana. The Blackrock fault can be traced for ~ 3km and has never been drilled."

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Figure 2: Residual gravity map of Griffon completed by Pilot

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Figure 3: Gridded soil sample results completed by Pilot

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Figure 4: Griffon geology

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Figure 5: An east-west simplified cross section through the Discovery and Hammer pits

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Table 1: Selected historic unmined drill intercepts from Griffon

Hole Zone From (metres)To (metres)Intervalg/t Gold
GR94-76Discovery N 3.0
GR94-98Hammer SW 4.6
GR97-160Hammer SW 22.948.825.91.10
GR97-162Hammer SW 30.567.136.60.93
GR97-163 Hammer SW 38.162.524.40.69
GR97-164Hammer SW 9.156.447.20.89
GR97-175 Hammer SW 22.980.857.9 0.86
GR97-184 Hammer SW


Summary terms of the Agreement

Fremont may accelerate the exercise of the Agreement and acquire 100% of Griffon at any time by giving Pilot ten days' notice and paying all of remaining payments in full.

Pilot will retain a 1% NSR which may be reduced by 1% (leaving no NSR) for US$1.0 million.

The Agreement, including the issuance of Fremont common shares, is subject to the approval of the TSX Venture Exchange. The Agreement will automatically terminate if the Effective Date has not occurred within 60 days of the Execution Date. In addition to any statutory resale restrictions, the Fremont common shares will be subject to a 12-month voluntary hold period.

Fremont and Liberty will enter into an investor rights agreement on the first anniversary of the Execution Date pursuant to which and subject to certain conditions, Liberty will have the right (until such time as Liberty beneficially owns less than 5% of Fremont's shares) to participate in any future equity financings by Fremont in order to maintain its proportionate interest in Fremont.

Qualified person

The content of this news release was reviewed by Dennis Moore, Fremont's President, a qualified person as defined by National Instrument 43-101.

About Fremont Gold

Fremont's mine-finding management team has assembled a portfolio of high-quality gold projects in Nevada's most prolific gold trends. Fremont's gold projects include Griffon, Cobb Creek, North Carlin, Goldrun, and Hurricane. We are aligned with our shareholders: Insiders own more than 20% of Fremont.

On behalf of the Board of Directors,

"Blaine Monaghan"


Telephone: +1 604-676-5664

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 statements and information contained in this press release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which are referred to collectively as "forward-looking statements". The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will", "hope", "will be", "expected" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this and other press releases include but are not limited to statements and information regarding the Agreement, the potential for the discovery of a Carlin-type deposit, regulatory approvals, and Fremont and Liberty entering into an investor rights agreement. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Actual results and future events could differ materially from those anticipated in such statements. Fremont undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

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