The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update on the Company's regional exploration activities from its 100% owned Rio Amarillo Project in northern Ecuador, held by wholly owned subsidiary Carnegie Ridge Resources S.A.

Highlights

Ø Four high-priority porphyry targets at Rio Amarillo porphyry cluster are now supported by high quality magnetic data which reveals a highly magnetic NE/SW trending corridor, spatially coincident with porphyry style surface mineralisation covering a vertical extent of up to 1500m over a 12km long northeast trending porphyry belt.
Ø Extensive porphyry litho-caps and associated copper and gold mineralisation discovered by SolGold at Rio Amarillo Project are typical of the surface expression of large fertile porphyry copper and copper-gold systems.
Ø A cluster of preserved porphyry targets at the Rio Amarillo Project is geologically consistent with regional distribution of porphyry deposits. The giant Alpala (~14Mt CuEq) and Llurimagua (~11Mt CuEq) deposits occur some 30km and 60km away respectively.

Ø Drill testing expected to commence this year.

Commenting on the recent developments, Technical Services Manager Benn Whistler, said:

"The enormous copper and gold potential in the virtually unexplored region of northern Ecuador is very exciting for explorationists. The limited exploration to date has already led to the discovery of two giant porphyry deposits at Alpala (~14Mt CuEq or ~75Moz AuEq) and Llurimagua (~11Mt CuEq or ~14Moz AuEq).

SolGold's Rio Amarillo project is an excellent example of the potential for exploration on SolGold's tenements to deliver additional world class resources to northern Ecuador's metallogenic inventory. Brand new state-of-the-art 3D magnetic work has enhanced drill targeting capabilities, at what is considered a very large cluster of sizeable and fertile porphyry systems similar to those discovered at the Company's Alpala Project some 30km to the northwest.

The main target areas at Varela, Florida, Palomar and Chalanes show porphyry style surface mineralisation covering a vertical extent of up to 1500m over a 12km long, by 3km wide, northeast trending porphyry belt that has never been explored or drilled before SolGold acquired the ground in 2017.

The surface geology, mineralisation, alteration and magnetic signatures of the four major porphyry targets identified at Rio Amarillo are typical of similar systems and clusters of systems along the Andean Copper Belt that have generated some large globally significant porphyry deposits at similar special frequencies, many of which have become major mines.

The project area holds similar infrastructure advantages to the Alpala Project, and drill testing at Rio Amarillo is expected to commence this year when drill targets are finalised, and permits are received."

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Further Information
SolGold's 100% owned Rio Amarillo Project in Northern Ecuador lies approximately 30km Southeast of the Company's flagship Alpala Porphyry Copper-Gold-Silver Deposit which holds a Measured plus Indicated Resource of 9.9 Mt Cu, 21.7 Moz Au, 92.2 Moz Ag.

The Rio Amarillo Project comprises three concessions Rio Amarillo 1, 2 & 3 (Figure 1).
The conspicuous geological feature of the Rio Amarillo Project is a cluster of preserved litho-cap zones with associated porphyry style veining and copper-gold mineralisation discovered through geological mapping and sampling.

The main target areas at Varela, Florida, Palomar and Chalanes exhibit porphyry style surface mineralisation covering a vertical extent of up to 1500m which is coincident with a 12km x 3km wide northeast trending, highly magnetic, porphyry belt (Figure 2). The major northeast trending magnetic belt is intersected by a secondary northwest magnetic feature, likely to represent the intersection of two deep seated crustal fractures, later filled by intrusive bodies with magnetic characteristics indicative of strongly differentiated and mineralised systems. This structural regime has strong similarities to that encountered at the Alpala Deposit some 30km to the northwest.

Recent 3D inversion MVI Magnetic modelling of the helicopter-magnetic survey data has produced 15 potential locations of magnetic signatures consistent with porphyry copper and copper-gold deposits over a 12km by 10km area. Of this group, four high-priority targets were identified, and coincide with litho-cap target areas at Target#1, Varela, Chalanes, and Palomar prospects (Figure 3).

Further work at the Rio Amarillo project includes follow up rock-saw channel sampling, soil-grid sampling and Terra-Spec4 (ASD) analysis of soil samples to map hydrothermal alteration over the main litho-cap areas at Chalanes, Varela and Palomar.

Varela and Florida
3D MVI magnetic interpretations at Varela encompasses a large, 2km x 2km, weakly magnetic zone interpreted as widespread pervasive alteration which extends from surface to approximately 3000mRL, indicative of a mineralised porphyry system. The upper 700m of this zone is interpreted to contain interspersed moderate to high magnetite concentrations, which may reflect alteration derived secondary magnetite (Figure 4).

The Varela and Florida target areas lie within an extensive 2km x 1km litho-cap with geochemical distribution typical of many preserved porphyry systems globally. At Target#1, outcropping B-type quartz veins occur in volcano-sedimentary host rocks, whilst at Varela outcropping porphyry style A, M and B type quartz vein stockworks occur in dioritic host rocks that returned encouraging rock-saw channel sample results of 99m @ 0.12% Cu, 0.29 g/t Au, and 38.7ppm Mo including 25.1m @ 0.12% Cu, 0.61 g/t Au, and 85ppm Mo.

Litho-cap rocks are characterised by advanced argillic alteration with crackle and hydrothermal breccias that likely contain veins containing mineral assemblages typical of the upper levels of some mineralised porphyry systems. Deep seated arc-parallel northeast and arc-normal northwest structures have been mapped and interpreted from the magnetic data with the mineralised quartz veinlets predominantly striking in a northwest direction.

Palomar
The Palomar Target occurs as an exceptionally large (2km x 2km) and complex distribution of interspersed high- and low-magnetic response, potentially reflecting widespread pervasive alteration over a vertical column of approximately 1500m. This target is located adjacent to a deep seated highly magnetic source, with near surface zones of alteration and inferred secondary magnetite to about 700m depth (Figure 5).

At Palomar, low susceptibility material is modelled over a 1.0km x 1.5km lateral extent, extending from surface to a depth of 1000m. It takes the form of a circular depression that is overlain by more magnetic material and flanked by several magnetic apotheosis that extend toward surface (Figure 6).

Similar magnetic features have been observed over other globally significant porphyry systems, with the cause for the low susceptibility material being pervasive alteration and the high susceptibility material potentially caused by secondary magnetite.

The Palomar target is characterised (similar to those at Alpala) by an extensive 2km x 2km litho-cap with outcropping porphyry mineralisation characterized by B-type quartz veins and D-type pyritic veins which at Palomar return rock-saw channel results of 140m @ 0.24% Cu, including 13m @ 0.65% Cu. Hydrothermal alteration in this creek is interpreted as early potassic overprinted by late phyllic alteration, similar to those at Alpala.

Chalanes
At the Chalanes litho-cap area, porphyry B-type quartz vein stockworks occur within dioritic host rocks. Rock chip results from this porphyry-style of mineralisation include up to 0.93g/t Au and 0.18% Cu. Follow up rock-saw channel sampling is in progress.

Figure 1: Location plan showing the Rio Amarillo project in relation to the giant Alpala (SolGold) and the Llurimagua (Codelco) deposits. The Rio Amarillo project holds similar infrastructure advantages to the Alpala Project.

Figure 2: Location plan showing mapped litho-cap areas (outlined red), comprising the four target areas of outcropping porphyry mineralisation at Palomar, Varela, Florida and Chalanes. Rock-saw channel sample sites are marked as large black circles, within the Palomar and Varela litho-cap areas. Recent 3D magnetic inversion models are also shown, highlighting the major northeast trending magnetic belt, which is intersected by a secondary northwest magnetic feature, likely to represent the intersection of deep seated crustal scale fracture zones filled by intrusive bodies. This structural regime has strong similarities to that encountered at the Alpala Project some 30km to the northwest. (Source: Moore Geophysics).

Figure 3: Four high-priority targets are identified at Rio Amarillo, based on geological- and alteration- mapping, surface geochemistry and magnetic modelling at Target#1, Varela, Chalanes, and Palomar (Source: Moore Geophysics).

Figure 4: East-West section through Varela and Florida Targets (looking north), showing 3D MVI magnetic interpretations encompassing a large, 2km x 2km, weakly magnetic zone interpreted as widespread pervasive alteration which extends from surface to approximately 3000mRL. The upper 700m of this zone contains inferred, interspersed moderate to high magnetite concentrations, potentially reflecting hydrothermal alteration-derived, secondary magnetite Source: Moore Geophysics).

Figure 5: East-West section through Palomar Target (looking north), showing 3D MVI magnetic interpretations encompassing a large zone of low magnetic response, 1.5km x 1.0km, which is interpreted as widespread magnetite-destructive alteration that extends from surface to approximately 2000mRL. The upper 700m of this zone is inferred to contain moderate-to-high magnetite concentrations, potentially reflecting alteration derived secondary magnetite (Source: Moore Geophysics).

Figure 6: Perspective view of Palomar Target (looking downwards), showing 3D MVI magnetic interpretations, courtesy of Moore Geophysics. A central magnetitic depression (cyan) is overlain by a central magnetic high and surrounded by several magnetic apotheoses (yellow) that extend toward surface.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

Qualified Person:
Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the Company. Mr Ward is a Fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years' experience in mineral exploration and is a Qualified Person for the purposes of the relevant LSE and TSX Rules. Mr Ward consents to the inclusion of the information in the form and context in which it appears.

By order of the Board
Karl Schlobohm
Company Secretary

CONTACTS
Nicholas Mather
SolGold Plc (Chief Executive Officer) nmather@solgold.com.au

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