Mr. Stephen Wallace reports

SEARCHLIGHT ASSIGNS FLIN FLON NORTH PROJECT TO CANADIAN GOLD CORP.

Searchlight Resources Inc. has entered into an agreement with Canadian Gold Corp. to option the company's Flin Flon North project to Canadian Gold, for total compensation of $130,000 cash and $200,000 in Canadian Gold shares.

The Flin Flon North project includes five claims covering 5,644.6 hectares, located 10 kilometres north of Flin Flon, Man. The project is held by Searchlight under an option agreement with GEM Oil Inc., signed July 9, 2019. Searchlight is assigning a 100-per-cent interest in the GEM option to Canadian Gold, for financial considerations outlined in this news release.

Terms of the option agreement

Under the terms of the option agreement and subject to the approval of the TSX Venture Exchange, over a four-year period, Canadian Gold will be required to make cash and share payments to exercise the option, as detailed in the attached table. Under the terms of the GEM option, 25 per cent of the payments will be made to GEM and 75 per cent to Searchlight.

"Searchlight wishes to thank Gem Oil Inc. for optioning the original group of claims that serve as the foundation for this assignment to Canadian Gold Corp.," stated Stephen Wallace, president and chief executive officer of Searchlight.

"As a project generation exploration company, this is another successful agreement for Searchlight," stated Alf Stewart, chairman of Searchlight. "The company continues to seek deals on its other projects in the Flin Flon mining camp."

Searchlight Resources Flin Flon exploration targets

Searchlight is actively exploring two other gold properties in the Flin Flon district

Bootleg Lake: advanced exploration, multiple drill-ready targets:

• Brownfields project with three past-producing, high-grade gold mines;
• Includes Rio mine with 1,500 meetres of modern, trackless underground workings viable for reopening for exploration and future production;
• 60 to 80 historical drill holes, plus six drill holes by Searchlight;
• Other gold and base metal potential on claims;
• 18 claims (49.4 square kilometres), with key claims in good standing until 2040.

Robinson Creek: advanced exploration, drill-ready targets:

• Exploration target of 77,000 to 154,000 ounces gold;
• 70 historical diamond drill holes;
• 18 kilometres from Creighton, Saskatchewan and Flin Flon, Man.;
• 10 kilometres from Laurel Lake gold deposit, owned by SSR Mining;
• Seven claims (2.8 square kilometres).

About Canadian Gold Corp.

Canadian Gold is a Canadian-based mineral exploration and development company, the objective of which is to expand the high-grade gold resource at the past-producing Tartan mine, located in Flin Flon, Man. The historic Tartan mine currently has a 2017 indicated mineral resource estimate of 240,000 ounces (oz) gold (1.18 million tonnes at 6.32 grams per tonne (g/t) gold) and an inferred estimate of 37,000 oz gold (240,000 tonnes at 4.89 g/t gold). The company also holds a 100-per-cent interest in greenfields exploration properties in Ontario and Quebec, adjacent to some of Canada's largest gold mines and development projects, specifically, the Canadian Malartic mine (Quebec), the Hemlo mine (Ontario) and the Hammond Reef project (Ontario). McEwen Mining Inc. holds a 5.7-per-cent interest in Canadian Gold, and Robert McEwen, the founder and former CEO of Goldcorp Inc., and chairman and CEO of McEwen Mining, holds a 32.9-per-cent interest in Canadian Gold.

About Searchlight Resources Inc.

Searchlight Resources is a Canadian mineral exploration and development company focused on Saskatchewan, Canada, which has been ranked as the top location for mining investment in Canada by the Fraser Institute. Exploration focus is on battery minerals and gold throughout the province, concentrating on projects with nearby infrastructure.

Qualified person

Stephen Wallace, PGeo, is Searchlight's qualified person within the meaning of National Instrument 43-101, and has reviewed and approved the technical information contained in this news release.

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