OVERVIEW:

On January 18, 2023, Firefox Gold Corp. announced the results from the first 3 holes from their fall 2022 drilling program conducted at the 100%-owned Mustajärvi Project’s East Target. This program consisted of 6 holes for 977.1m, which tested a new near-surface high-grade gold zone at the East Target. We are maintaining our SPECULATIVE BUY rating and our target price of $0.40/share for FFOX.

LOCATION AND GEOLOGY:

The Mustajärvi Project is located in northern Finland, along the highway between the cities of Kittilä and Sodankylä, approximately 17km east of Kittilä. The property straddles the Mustajärvi Shear Zone (MSZ), which is a major right-lateral shear zone that has associated second and third-order structures, which further dissect the project into separate structural zones. The Sodankylä Group rocks, which are primarily to the north of the shear zone in the footwall, include metamorphosed sedimentary and volcaniclastic rocks. Geophysics and drilling have identified an extensive corridor of albite-sericite alteration in the footwall along more than 2km of the structure.

DRILL HIGHLIGHTS:

Drillholes 22MJ021 and 22MJ022 both encountered significant high-grade gold at depths of less than 20 metres below surface:

•             22MJ021: 15.5m at 13.09 g/t Au from 11.0m depth, including 3.6m at 16.45 g/t Au from 14.4 metres depth;

•             and 6.5m at 19.18 g/t Au from 20.0 metres depth, including 3.5m at 24.35 g/t Au from 23.0 metres depth

•             22MJ022: 7.2m at 16.43 g/t Au from 22.8 metres depth, including 3.0m at 37.9 g/t Au from 26.2 metres depth;

•             and 1.7m at 31.6 g/t Au from 86.0 metres depth

•             22MJ023: 1.0m at 26.4 g/t Au from 53.0 metres depth; and 4.0 metres at 4.22 g/t Au from 89.0 metres depth, including 2.0 metres at 6.36 g/t Au

o             This hole was to test the expansion of the mineralized trend farther to the north

This drill program was conducted because of the great results from a previous program, where hole 22MJ006 returned 13.85m at 28.74 g/t gold from only 24 metres downhole. The 3 reported drill holes from this release were drilled perpendicular to 22MJ006 to test for lateral and downdip extension of 22MJ006.

Firefox completed 25 drill holes for 3,904m at Mustajärvi in 2022. These holes tested the Northeast Target, the East Target, the Gabbro Target and the Central Zone. The Central Zone, the Northeast Target, and the East Target are all along a 2.1km segment of the MSZ.