Mr. Brian Skanderbeg reports

GFG CLOSES FINAL TRANCHE OF FINANCING

GFG Resources Inc. has closed the second and final tranche of its previously announced private placement financing for additional gross proceeds of $1,581,773. The company has raised aggregate gross proceeds of $4,119,677 from both tranches of the offering.

Pursuant to the second tranche of the offering, GFG issued 8,550,128 flow-through (FT) common shares of the company at a price of 18.5 cents per FT share for gross proceeds of $1,581,773.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106, Prospectus Exemptions, the FT shares sold pursuant to the offering have been issued pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 and accordingly such securities will not be subject to a hold period pursuant to applicable Canadian securities laws. There is an amended and restated offering document on Form 45-106F19 related to the offering that can be accessed under the company's profile on SEDAR+ and on the company's website. The offering remains subject to the final approval of the TSX Venture Exchange.

The proceeds raised from the offering will be used for exploration activities in Ontario that will qualify as Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)). The gross proceeds raised from the sale of the premium units and the FT shares will be used for exploration activities on the company's projects in Ontario.

Related party transaction

An aggregate of 786,667 FT shares were purchased by directors and/or officers of GFG, in the second tranche closing. The purchase of FT shares by insiders of GFG is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 on the basis that the transaction, insofar as it involved related parties, represented less than 25 per cent of the market capitalization of GFG, all in accordance with subsections 5.5(a) and 5.7(1)(a) of MI 61-101.

In connection with the close of the second tranche of the offering, the company paid cash finders' fees on portions of the offering totalling $25,529.42.

About GFG Resources Inc.

GFG is a North American precious metals exploration company focused on district-scale gold projects in Tier 1 mining jurisdictions. The company operates three gold projects, each hosting large and highly prospective gold properties within the prolific gold district of Timmins, Ont., Canada. The projects have similar geological settings that host most of the gold deposits found in the Timmins gold camp, which have produced over 70 million ounces of gold.

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