Mr. Jeffrey Wilson reports

PRECIPITATE'S IP GEOPHYSICAL SURVEY IDENTIFIES DRILL TARGETS AT MOTHERLODE GOLD PROJECT IN NEWFOUNDLAND, CANADA

Precipitate Gold Corp. has completed induced polarization (IP) and magnetic geophysical surveying at the Motherlode gold project within the Burin Peninsula of southern Newfoundland, Canada.

IP geophysical surveying conducted at the high-priority Motherlode zone has yielded new and important information that will guide a planned diamond drilling program. The IP survey was conducted using both pole-dipole and gradient arrays, aimed at generating both near-surface detailed geophysical information and deep-penetrating (over 250 metres depth) data. Collectively, the analysis of geological and geophysical data demonstrates the surveys have successfully identified geophysical signatures related to rock types, contacts, fault-shear structures and, importantly, increased chargeability readings reflecting elevated sulphide concentration related to probable mineralization. These newly delineated untested anomalies represent prospective targets that are being refined and prioritized for near-term drill testing.

Motherlode zone IP geophysical survey highlights:

• Identified 500-plus-metre-long gradient chargeability highs extending northeast from the Motherlode surface gossan;
• Gradient chargeability-high anomalies are open along strike to the northeast and below the estimated survey depth limit of 300 metres vertically below surface;
• No historical drill testing of the newly identified gradient chargeability high; most historical drill holes appear to have missed other prospective chargeability anomalies;
• Untested discrete chargeability-high clusters within the main target Motherlode structural corridor, a zone of mixed quartz-sericite schists, shears and faults with subvertical to steep northwest dips;
• Sufficient technical data have now been compiled to commence planning a diamond drill program.

Jeffrey Wilson, Precipitate's president and chief executive officer, stated: "We're pleased with the results of the Motherlode zone IP survey, as it has delineated an untested 500-metre-long chargeability-high anomaly situated proximal to a mineralized outcropping surface gossan. Confirming that historic drill testing in the area failed to intersect any of these newly identified subsurface geophysical targets further enhances the significance of these new geophysical targets and the Motherlode zone's potential for discovery. As such we are excited at the potential to initiate Precipitate's first phase of drilling at the project and have submitted all requisite permitting applications with the intent to commence drilling this fall."

The geophysical survey grid covers one-third of the estimated three-kilometre-long northeast-trending Motherlode structure corridor, which hosts structurally related orogenic gold-style mineralization, where gold-enriched quartz-veins stockworks are strongly associated with an anastomosing series of quartz-sericite shears and faults, containing low pyrite and arsenopyrite sulphide concentrations. The Motherlode zone hosts the project's most notable gold mineralization and related surface colour gossan identified to date, with rock grab sample values up to 25 grams per tonne gold* and historical drill results, including 3.5 m at 1.4 g/t gold.

The survey grid is centred over the Motherlode surface colour gossan and consists of 11 lines at 100-metre spacing for an estimated total of 7.8 line-kilometres (oriented at 315 degrees to 135 degrees). Detailed magnetic and pole-dipole array induced polarization surveying was carried out over the entire grid while gradient array IP was completed on nine lines (excluding the two northeast lines).

Geophysical plan maps show (i) prominent northeast-trending anomalies with some crosscutting offsets likely resulting from left-lateral faulting and (ii) that the more prominent IP anomalies slope gradients and shapes suggest subvertical dip orientations. Over all, the chargeability anomaly responses are subtle, falling within a narrow range of 0.25 to 1.5 mv/v, which is consistent with the generally low-sulphide Motherlode zone environment. Notably, the IP chargeability anomalies are in high contrast with muted background chargeability, reflecting the near nil sulphide content of the local mafic volcanic host rocks. Consequently, the elevated chargeability anomaly clusters located within the inferred subsurface projection region of the subvertical-dipping Motherlode structure corridor likely correspond to modestly higher sulphide content and/or narrow shear structures, forming apparent drill test targets for gold mineralization.

The company has received laboratory results for the project-wide prospecting and sampling exploration program carried out in April/May. Rock samples report sub to weakly anomalous gold values. Examination of project historical gold-copper occurrences and various documented geochemical anomalies did not identify any sizable new gold or alteration/structural zones. A few new sub 0.5-metre-scale solitary quartz veins and/or quartz-carbonate breccia shears were discovered, which reported low precious metal content.

The induced polarization survey was carried out by Matrix Geotechnologies Ltd. of Toronto, Ont., using a 10-kilowatt (kW) generator time-domain IP system using the Elrec Pro 10 channel receiver with a receiver dipole spacing of 25 metres (both pole-dipole and gradient arrays), which provided quality subsurface resolution for gradient plan maps and quantitative section 2-D interpretation vertical figures.

The company's website has additional information and illustrations of recent and historical Motherlode project data.

*High-grade rock grab samples are selective by nature and are unlikely to represent average grades on the property.

This news release has been reviewed by Michael Moore, vice-president, exploration, of Precipitate Gold, the qualified person for the technical information in this news release under National Instrument 43-101 standards.

About Precipitate Gold Corp.

Precipitate Gold is a mineral exploration company focused on exploring and advancing its mineral property interests in Newfoundland, Canada, and the Pueblo Viejo mining camp and Tireo gold trend of the Dominican Republic. The company has entered into an earn-in agreement with Barrick Gold Corp., whereby Barrick can earn a 70-per-cent interest in the company's Pueblo Grande project by incurring $10-million (U.S.) within six years and producing a qualifying prefeasibility study. Precipitate is also actively evaluating additional high-impact property acquisitions with the potential to expand the company's portfolio and increase shareholder value, in other favourable jurisdictions.

We seek Safe Harbor.