August 16, 2017

Redstar Gold Announces Positive Results from Soil Sampling Exploration Program at Unga Gold Project

Redstar Gold Announces Positive Results from Soil Sampling Exploration Program at Unga Gold Project

August 16, 2017

August 16, 2017: Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ("Redstar" or the "Company") today announces positive soil sampling results from its recent 2017 Summer Exploration Program. The Company will also be announcing assays from its summer drill program shortly, and is currently finalizing its plans for an immediate follow-up exploration program to commence in the next 4 to 6 weeks.

Highlights of the Soil Sampling Program:

  • Results from the 2017 soil sample data has defined multiple target areas that exhibit similar geochemical signatures to the Shumagin Gold Zone.
  • Anomalous target areas within the Northern Footwall area at Shumagin correlate with broad quartz-sericite alteration zones and exposures of anomalous quartz-adularia-carbonate veins as well as geophysical anomalies defined during May 2017.
  • Anomalous targets along strike to the southwest of the footwall splay and the main Shumagin structure indicate potential for additional blind vein/breccia systems.
  • Sampling taken along a NE trending parallel scarp located approximately 200 meters north of the Shumagin Main Breccia returned ~4.5ppm Au and indicates a strong potential of a mineralized vein/breccia system obscured beneath the vegetation mat nearby.

Peter A. Ball, President and CEO commented,We were very pleased to confirm a number of anomalies and structures across the Shumagin Gold Zone, to the north and also to the southwest. Some soil samples highlighted very high anomalous gold and silver zones, which will assist the company in targeting new priority areas as we continue to explore and understand the large and expansive Shumagin gold system. We expect to announce drill results shortly and we are currently finalizing our plans to commence a follow-up exploration program in the coming weeks.”

2017 Soil Sampling Grid Work

Previously gridded soil samples completed by Redstar during 2014 (see press release dated Dec. 19, 2014) covered approximately 750m of the southwest-most strike extent of the Shumagin Gold Zone (2500E to 1700E). This soil grid was expanded by the 2017 surface sampling program to cover the entire Shumagin Gold Zone as well as the entire footwall basalt/andesite package north of the Shumagin Scarp. The 2017 soil grid was also expanded towards the southwest and merged with the Red Mountain soil grid that was completed during 2016 (see press release dated Aug. 22, 2016), thus providing continuous gridded soil sample data from Orange Mountain to Shumagin for approximately 4.5 kms.

Approximately 600 gridded soil samples were taken synchronous with the 2017 drill program, at every 25m station located along northwest oriented grid lines spaced 50 to 100m apart, that were previously utilized for the 2017 spring ground geophysical survey.

2017 Results: Shumagin Gold Zone

At Shumagin, the combined soil grid datasets show an approximate 1,500 meter long by 100 meter wide scattered, anomalous gold (20 to 50ppb Au) & silver (>1ppm) soil anomaly centered along the crest of the Shumagin Scarp from the Southwest Extension to East Zone. Soil samples directly adjacent to exposed breccia bodies returned higher gold values ranging from 100-200ppb Au with values up to 8.3ppm Au. The highest (>98th percentile) gold, silver, copper, lead and zinc values all occur directly along the Shumagin Scarp and clearly traces out the high-grade mineralized breccia bodies that occur along its length.

2017 Results: Northern Footwall Anomaly (NFA)

Geophysical work performed during Spring 2017 defined the Northern Footwall Anomaly (NFA) as a 600m long, N60E trending area of geophysical anomalies that occur as sharp breaks in contoured resistivity data and zones of subtle magnetic destruction that are similar to geophysical features observed along portions of the Shumagin Gold Zone (see press release dated May 3rd, 2017).

Follow-up prospecting work within the NFA delineated an approximate 800m by 250m area of strong quartz-sericite-pyrite alteration of the footwall basalt/andesite package, with multiple occurrences of quartz-adularia-carbonate (QAC) boulders in small drainages and an outcrop of EW striking crustiform QAC veins cutting altered andesite that collectively returned anomalous rock chip values similar to those observed along the Shumagin Scarp (up to 31ppb Au; 0.75ppm Ag; 45ppm Cu; 234ppm Pb; 318ppm Zn).

2017 soil grid work covering the NFA returned elevated Au, Ag, Cu, Pb, & Zn in soils that occur as overlapping trends that are parallel to common NNE & NE oriented structures visible throughout the footwall area. Soils with values of up to 130ppb Au, 1.7ppm Ag & >98th percentile Cu, Pb, Zn all occur along within the areas of observed QSP altered basalt/andesite and quartz-adularia-carbonate veins and cobbles.

Sample H269760 was taken along a NE trending scarp located approximately ~200 meters north of the Shumagin Scarp and returned very anomalous values and indicates a strong potential of a mineralized vein/breccia system obscured beneath the vegetation mat nearby (4.5ppm Au; 0.16ppm Ag; 41ppm Cu; 12.7ppm Pb; 68ppm Zn).

2017 Results: Red Creek & Saddle Anomalies

The surface trace of vein breccias recently drilled by Redstar within the SW Extension drill area and the trace of the main Shumagin structure both project across a north-draining creek located at line 1700E along the northern and southern margins of a 400 meter wide “body” of basalt/andesite that is interpreted as the southwest continuation of the footwall units at Shumagin. Soil sampling across these two splays, herein called the Red Creek Trend and Saddle Creek Anomaly, returned narrow ~100 meter wide NE trending zones with elevated Ag, Cu, Pb, & Zn +/- Au where values are similar to those that occur along the Main Breccia at Shumagin.

Prospecting work within creek beds that cross the Red Creek Trend discovered exposures of sheared and quartz-sericite-pyrite altered basalts and volcanic breccia cut by cm scale quartz stockwork with minor carbonate, pyrite and galena that returned highly anomalous Shumagin-style pathfinder element suites (54ppb Au; 5.4ppm Ag; 256ppm Cu; 238ppm Pb; 1,360ppm Zn). Anomalous soils within this area trend farther to the southeast for about 400 meters to the edge of the soil sample grid.

No bedrock geologic data exists for the Saddle Creek Anomaly yet the 125m by 125m area of concentrated >90th percentile Zn, and lesser Pb, Ag & Au resemble dispersion of enriched soils downslope from the Rhodo breccia ~ 900 meters along strike towards the northeast.

Discussion & Future Work

Results from the 2014 & 2016 surface programs provided significant data to clearly differentiate the geochemical signatures between gold-poor and gold-bearing major epithermal-related features observed across the Unga District. Early, wide-spread Advanced Argillic alteration assemblages of vuggy, residual quartz +/- sulfidic bodies haloed by alunite-dickite-illite clays and sulfide-rich quartz-chalcedony breccias that are both generally gold-poor and have a distinct geochemical signature (Au-Ag, As, Sb, Hg +/- Ba) that clearly contrasts from later, cross-cutting high-grade intermediate-suflidation style breccias (Au-Ag, Pb, Zn, Cu +/- Mn) that are the main target type at Unga.

Results from the 2017 soil sample data corroborate these well documented geochemical relationships observed along the Shumagin and Apollo-Sitka and has defined multiple target areas that exhibit similar geochemical signatures to the Shumagin Gold Zone. Geochemical patterns from compiled soil data that cover the area between Orange Mountain and Shumagin highlights the distinct geochemical change from broad Advanced Argillic alteration at Orange Mountain to structurally-controlled Intermediate-sulfidation breccia systems visible along the Shumagin Scarp and new geochemical anomalies along structures in the footwall and to the southwest of Shumagin.

The distribution of greater than >90-98th percentile ranges of arsenic, stibnite, and mercury that clearly highlight areas of AA alteration at Orange Mountain are absent or rarely visible along structures hosting high grade IS breccias at Shumagin. Conversely, AA alteration at Orange Mountain is completely devoid of any zinc signature and with minor lead & copper localized along late cross-cutting structures which are the key pathfinder elements related to high-grade IS breccias at Shumagin. Moderate silver and weak gold values do occur scattered about Orange Mountain, yet these metals are associated with an earlier sulfide-rich event superimposed about the AA alteration zones that resulted in the abundant arsenic, stibnite, and mercury values. This suite of metals and associated gold-silver values are misleading for exploration of high-grade IS breccia exploration within the Unga Gold Projects as markedly increased gold-silver values are spatially localized with elevated with zinc, lead, and copper.

These geochemical relationships observed along the Shumagin Trend are striking and provide a very strong template of geochemical pathfinder elements to target additional high-grade IS breccias across the Unga Gold Project. Numerous targets with these key geochemical patterns have been defined from the new 2017 soil work that occur within the Northern Footwall Anomaly and in areas along strike to the southwest of Shumagin. Follow-up prospecting work about these anomalous zones will commence during the fall Phase 2 drill program scheduled to begin during September, 2017.

Quality Control/Quality Assurance

The 2017 exploration program at the Unga Project includes a Quality Control/Quality Assurance (QA/QC) program, overseen by Jesse C. Grady, Redstar’s Vice President of Exploration.

Soil samples are allowed to dry before weighing and shipping. Quality control is monitored by the insertion of blind certified reference standards and blanks into each sample shipment at a frequency of approximately 1 control per 15 soil samples. Samples are shipped to ALS Labs Fairbanks, Alaska sample preparation facility and then on to ALS Labs in Reno, Nevada or Vancouver, B.C. for gold assaying and multi-element analysis. Sample preparation is monitored by comparing shipped weights to reported received weights to ensure proper sample layout at the lab. Soil samples are screened by the lab to remove coarse fragments using an 80 mesh screen. Samples are analyzed for Au using a 50g fire assay with ICP-AES finish to achieve a 0.001ppm lower detection limit. Multi-elements are analyzed using a four acid digestion and ICP-MS with Hg (ME-MS61m). Analytical accuracy and precision are monitored by the analysis of blanks and certified reference standards. All blanks and reference standards reported within acceptable tolerances.

Jesse C. Grady, MSc, CPG-11592, is a Qualified Person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.

Board Changes

It was with great regret that we accepted the resignation of Robert “Rob” McLeod as a member of Redstar Gold’s Board of Directors. Rob’s decision was guided by the growing time demands of his leadership of IDM Mining and the riguourous expectations of independent corporate governance advisors. Institutional governance advisors are increasingly sensitive to “over-boarding” and will make punitive recommendations if they believe that a the CEO of a public company is a member of what they believe is an excessive number of boards. For example, in 2017 Glass Lewis (leading governance advisor) will generally recommend voting against a director who serves as an executive officer of any public company while serving on a total of more than two public company boards and any other director who serves on a total of more than ve public company boards.

The board would like to thank Rob for his wise, witty advice coupled with a geological mind which is second to none. The board will seek a successor to Rob. This process is expected to take a few months.

About The Unga Gold Project

The 100% controlled Unga Gold Project covers key strategic portions of adjacent Unga and Popof Islands, approximately 900 kilometers southwest of Anchorage, Alaska. Redstar controls a 240-square kilometer land package that is host to numerous structurally controlled, volcanic hosted intermediate-sulfidation epithermal high-grade vein, breccia, stockwork and disseminated gold-silver occurrences.

The Unga Project has excellent infrastructure, including direct daily flights from Anchorage, a deep-sea port and a temperate climate. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska’s first underground gold mine and the site of historic high-grade gold production.

About Redstar Gold Corp

Redstar is well-financed junior exploration company, with a very strong, supportive institutional shareholder base, no debt, and is focused on high-grade gold exploration and advancing its high-grade Unga Gold Project in Alaska. The 100% controlled Unga Gold Project is an intermediate sulfidation epithermal high-grade gold project on a district scale, with the property encompassing approximately 240 km2, and containing multiple high grade gold zones drilled or identified at surface. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska’s first underground gold mine and the site of historic high-grade (~10 g/t Au) gold production. The Unga Gold Project has extensive infrastructure with daily flights from Anchorage landing on a one mile long paved airstrip and a deep-water port on neighboring Popof Island, and a moderate climate noting it resides at the 55th degree latitude and next to tidewater. In addition, Redstar owns approximately 19.5% of NV Gold Corp. (TSXV: NVX). Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada.

On Behalf of the Board of Directors,

Peter A. Ball, President and CEO

For additional information please contact:

T: +1.604.245.5861
Toll Free: 877.310.3330

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Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.