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Key Highlights:

  • Followup Fall Drill Program to commence in 4 to 6 weeks.
  • Summer program designed to understand and test the SW Extension of Shumagin:
    • Shumagin breccia structure extended 400m by drilling to 1,600m.
    • Visible gold identified 370m to the SW from Main Breccia at 202m below surface.
    • Hole 17-SH-34 intersects 2.2m of 9.9 g/t of gold & 29.3 g/t of silver.
    • Geophysics program identifies new parallel footwall structure.
    • Soil sample program has identified multiple new structures and target areas.

August 22, 2017: Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ("Redstar" or the "Company") today announces drill results from its 2017 Spring/Summer Exploration Program, at the 100% controlled Unga Gold Project in Alaska. Final assay results are now received and compiled below. The program included approximately 600 soil samples, the completion of a 15.5 line-km MAG and 8.7 line-km IP geophysical survey, and a twelve (12) drill hole program totaling 2,287.8 m of HQ & NQ diamond drilling:

  • The 2017 summer exploration drill program focused on initially testing and reviewing the geological model over a distance of an additional 400m to the southwest of the known Shumagin Gold Zone, which currently strikes over approximately 950m.
  • The Company now has significantly more drilling information that it will apply to its updated geological model and assist in the understanding of the controls that guide the mineralization. This model will be used towards a follow-up drill program to commence in in the next 4 to 6 weeks.
  • Please see audio / video link www.redstargold.com/investors/presentations-and-media/ for latest interview with Redstar’s CEO and VP Exploration.

Peter A. Ball, President and CEO commented, “Preliminary drilling has extended the known strike length of Shumagin to 1,600m by intersecting the Shumagin structure in 10 out of 12 holes, encountered visible gold 370m to the southwest in hole 17SH032, and has provided a better understanding of the geological model and mineralization controls. This has provided the key information on where to focus our next drill program and efforts at Shumigan and elsewhere within the Unga Gold Project. Geological mapping and sampling towards the southwest from Shumagin indicates a very strong expansion potential along strike for an additional approximate 3 kms towards the Orange Mountain Zone, the interpreted hydrothermal center along the Shumagin Trend.”

Geological Highlights from Preliminary Southwest Extension Drill Program

  • Drilling intersected the targeted Shumagin-style breccia structure in 10 out of 12 drill holes.
  • Visible gold-bearing stockwork encountered in drill hole 17SH032 is identical to gold-bearing stockwork intercepted in drill holes 16SH019 (370m to the NE) and 11SH010 (750m to the NE).
    • Geological interpretation provides a strong indication for the potential of high-grade mineralization located at depth below the similar Shumagin structure identified in multiple holes within the SW Extension Zone.
  • The Shumagin Gold Zone has been expanded by drilling approximately 400m towards the southwest for a total of approximately 1,350m of strike length and remains open.
    • 17SH034 intersected 2.2m @ 9.9 g/t gold & 29.3 g/t silver
    • 17SH033 intersected 0.7m @ 5.7 g/t gold & 30.0 g/t silver
  • Results from the 2017 soil sample program has identified multiple new target areas that exhibit similar geochemical signatures to the Shumagin Gold Zone (Au, Ag, Zn, Pb, Cu).

Of the 12 drill holes completed during the program, 4 holes (17SH026 to 16SH029) were designed to initially obtain accurate strike & dip measurements of the breccia system prior to drilling additional step out holes towards the southwest (see Long Section L-L’).

Highlights of Selected Intervals from Drill Holes 17SH026 to 17SH037

Drill Hole
ID
From
(m)
To
(m)
Core length
(m)i
Gold
(g/t)
Silver
(g/t)
17SH02675.976.60.70.14410.95
78.379.10.80.39010.30
17SH027142.3143.31.00.43128.50
160.9161.50.60.02912.05
17SH02991.492.41.00.06610.80
17SH03076.077.11.10.5072.38
17SH032200.1201.21.10.12126.60
201.2202.21.02.1227.00
17SH03378.379.00.75.6930.00
100.6101.50.90.97211.30
101.5102.40.91.3315.05
17SH034106.0107.01.02.230.67
120.0120.80.81.4215.15
120.8123.02.29.9029.30
17SH035228.8229.81.00.0209.34
17SH037217.5218.81.30.01812.60

* True widths of the mineralized intervals are close to ~80% of Core length

Step out drill holes 17SH030 and 17SH031 targeted shallow projections approximately 75m below the surface along strike of the breccia system, whereas drill holes 17SH032, 17SH035, 17SH036, and 17SH037 were drilled along 100m grid lines for approximately 500m of strike with a goal to trace the breccia system at approximately 150m below the surface. Drill holes 17SH033 and 17SH034 were designed as infill holes to allow for connectivity of geological models within the Main Breccia area in the Shumagin Gold Zone.

Based on results from the 2016 Fall Drill Program, high-grade gold-silver mineralization within the Shumagin Gold Zone occurs at depth for approximately 950m of strike length and is not constrained to a northeast plunging mineralized shoot as previously interpreted.

The 2017 Summer Drill Program was designed to understand and to test an approximate (previously not drilled) 500m of strike-extent within the SW Extension Zone of the Shumagin Gold Zone. The program sucessfully traced out the Shumagin breccia system for an additonal approximate 400m along strike, encountered visible gold in hole hole 17SH032, but encountered lower grade mineralization throughout a number of other drilled holes. Data for the southwest extension is currently being geologically modelled and reviewed noting that very similar nature and geological characteristics were encountered that previously yielded much higher grade in the Main Breccia and Bunker Hill areas within the Shumagin Gold Zone. Surface exposures and drilling data collectively indicate that the Shumagin Gold Zone is appromxately 1.6 kms in strike length and remains open, and a further understanding is required of what may exist below the recent holes drilled in the southwest.

Geological relationships from the SW Extension Zone indicate that intermediate sulfidation breccia/veining can occur at depth below residual quartz bodies near the transition of Advanced Argillic Alteration to less acidic Phyllic & Propylitic assemblages and represents a significant exploration vector for the Unga Epithermal Gold District.

Long Section L-L’: New 2017 drill hole intercepts highlighted as red stars

The approximate 1,600m Shumagin Gold Zone, as defined by surface mapping, surface geochemical sampling and drilling, is part of the approximate 9 km long Shumagin Trend, a major regional structure responsible for the localization of epithermal mineralization along its exposed strike length. Geological mapping and sampling towards the southwest from Shumagin indicates a very strong expansion potential along strike for an additional approximate 3 kms towards the Orange Mountain Zone, the interpreted hydrothermal center along the Shumagin Trend. Geochemical trends observed within the footwall at Shumagin indicate a strong potential for additional hidden targets nearby the Shumagin Gold Zone and represent additional high-priority exploration zones.

The Shumagin Gold Zone is one of up to 14+ noteworthy gold-silver structures, totaling close to 35+ line-km of combined strike length either known or tested on Redstar’s Unga Gold Project and is a high-priority exploration target.

Shumagin Plan Map
~1.6 kms strike length of breccia bodies along surface exposures and drill intercepts.

Results: Rhodo-breccia strike & dip test

The first four holes of the program 17SH026 to 16SH029 were drilled to obtain accurate strike & dip measurements of the Rhodo-breccia exposed along the southwest-most crest of the Shumagin Scarp (e.g. 2250-2200E) prior to step-out drilling along strike towards the southwest (see plan map).

These drill holes covered approximately 90m of previously undrilled strike length to the southwest from drill hole DDH38 (1987 drill hole, 0.92m @ 2.94g/t Au; 6.2 g/t Ag) and approximately 100m below previously reported high-grade surface samples along the Rhodo-breccia (e.g. 2.3m @ 37.2 g/t Au; 103.7 g/t Ag). Drill holes 17SH026 & 17SH027 were drilled along grid line 2250E whereas drill holes 17SH028 & 17SH029 were drilled along grid line 2200E with drill holes targeting elevations of approximately 50m above sea level (ASL) & at sea level (see Long Section L-L’).

All four drill holes intercepted typical geological framework localized along the Shumagin Scarp (e.g. hangingwall pyroclastics, phreatomagmatic breccia, footwall basalt/andesite) which are crosscut by multiple cockade-crustiform textured quartz-adularia-carbonate +/- rhodochrosite-green clay breccia, veins and stockwork with < 1% disseminated pyrite, yellow sphalerite and finer grained galena.

Sampled intervals of breccia, veins, and stockwork from these drill holes all returned lower than normal values of gold (< 1 g/t) with a maximum interval of 0.878ppm gold. Portions of the sampled breccia intervals that exhibit textures and gangue mineralogy identical to areas with high-grade gold mineralization (e.g. Rhodo Breccia & Greenbaum Vein) exhibited highly anomalous levels of silver, lead, zinc and copper with little to no gold mineralization (17SH026- Rhodo Bx: 0.144ppb Au; 10.95ppm Ag, 242ppm Pb, 678ppm Zn, 11,650ppm Mn. 17SH027-Greenbaum Vein: 0.431ppb Au; 28.5ppm Ag, 309ppm Cu, 3050ppm Pb, 2590ppm Zn)

.

2017 Drill Core Photos: The Rhodo Breccia (17SH026; left) and the Greenbaum Vein/Breccia (17SH027, right). Both exhibit gangue-mineralogy and epithermal textures related to high-grade gold mineralization observed elsewhere along the Shumagin Gold Zone.

Results: SW Extension Step Out Test

Two step out drill holes (17SH030 & 17SH031) collared along lines 2100E and 2000E were drilled to target shallow projections of the blind breccia system along strike for approximately 200m to the southwest (see plan map). Four other drill holes were drilled along 100m grid lines (2100E to 1800E) for approximately 400m of strike targeting the breccia system at deeper elevations at approximately 80m below sea level (see plan map).

Shumagin-style breccia, veins and stockwork were intercepted in drill holes 17SH030, 17SH031, 17SH032, 17SH035, & 17SH037 defining an E-W trending, moderately southeast dipping (-65 degrees SE) continuation of the Shumagin Gold Zone for total combined strike length of 1,350m. Minor zones of alteration and stockwork veining occur within large fault zones within drill hole 17SH036 which indicates probable fault offset of the Shumagin Gold Zone in the vicinity of line 1800E (see plan map).

Bedrock geology cut by the breccia system between gridlines 2200E to 1800E drastically changes where the Shumagin Scarp typical hangingwall (pyroclastics) and footwall (basalt/andesite) contact appears to have been offset approximately 100m to the south of EW strike projections (see plan map). This most likely reflects a combination of the moderate southeast dipping contact and offset via faulting. The Shumagin Scarp was intercepted in shallow portions of holes 17SH037, 17SH032, 17SH035 & 17SH036 and defines the southwest continuation of this major structure and could potentially host additional splays of the breccia system where interconnected at deeper structural levels.

Footwall basalt/andesite units in the SW Extension area that host the intercepted QAC breccia are extremely altered by Advanced Argillic (AA) assembles similar to those observed at Orange Mountain and Empire Ridge. This alteration contrasts drastically from typical alteration assemblages associated with the Intermediate Sulfidation breccia system along the Shumagin Scarp. Footwall basalt/andesite and polymict breccia in the area are altered to a coherent, vuggy, leached and variably sulfide-rich flat lying residual quartz lithocap that is approximately 50m thick. The residual quartz lithocap is haloed by plumes of pervasive to wormy, sooty black sulfides and veinlets and vugs filled with pyrite + dickite-clay veinlets that variably, pervasively destroy original basalt/andesite volcanic textures.

Intercepts of the Shumagin Gold Zone consists of 0.5m to 3.0m wide zones of quartz-adularia-carbonate-clay breccia and minor stockwork cross cut the AA altered footwall, and where intercepted near the surface of drill holes 17SH030 & 17SH031, essentially define the upper parts of telescoped system intercepted in three of the undercut drill holes (17SH032, 17SH035 & 17SH037). Breccia and stockwork intercepted at >100m down dip consist of 5m to 10m wide zones of cockade-crustiform textured QAC breccia, veins and stockwork that are identical to breccia drilled along the entire length of the Shumagin Gold Zone and have consistent carbonate, green clay and similar sulfide & base metal assemblages.

Sampled intervals of breccia, veins, and stockwork from these drill holes exhibited highly anomalous levels of silver, lead, zinc and copper with lower than normal values of gold (< 1 g/t). Visible gold observed in quartz-adularia-carbonate stockwork localized in the footwall of an approximate 6m wide QAC breccia intercepted in drill hole 17SH032 returned 1.0m @ 2.1 g/t gold & 27.0 g/t silver. This relationship is identical to gold-bearing stockwork intercepted in drill hole 16SH019 (370m to the NE) and 11SH010 (750m to the NE) and indicates the potential of high-grade mineralization at depth below the SW Extension Zone.

Shumagin 3D Plan and Oblique Views:

Results: Infill Drill Holes

Two infill drill holes (17SH033 & 17SH034) were drilled along grid line 2450E and planned to connect geological models within the Main Breccia Zone where a 100m gap existed to the surface mineralization along the Rhodo Breccia. These two drill holes intercepted the typical Shumagin Scarp geological framework and multiple QAC breccia, veins and stockwork zones. Drill hole 17SH034 returned 2.2m @ 9.9 g/t gold & 29.3 g/t silver, whereas drill hole 17SH033 returned 0.7m @ 5.7 g/t gold & 30.0 g/t silver.

2017 Drill Program Geological Discussion

The 2017 drill program tested approximately 500m of blind strike extent within the SW Extension area of the Shumagin Gold Zone and have sucessfully traced out the breccia system for an additonal approximate 400m along strike. Surface exposures and drilling data collectively have proven that the Shumagin Gold Zone is approximately 1,600m in strike length and remains open. The 2017 drill program has thus effectively validated our structural models and geological interpretation that breccia-vein systems within the Unga Gold Project can span large strike extents and can be discovered via exploration drilling of hidden (or blind targets).

A number of sampled intervals of breccia, veins, and stockwork from a majority of the step-out drill holes returned lower than normal values of gold (< 1 g/t). Variable gold grade is a major feature that is a typical phenomenon of high-grade epithermal systems worldwide, where gold grade variability occurs at the hand sample level up to the outcrop level.

Outcrops devoid of gold-mineralization were tested during via drilling during 2016 at Bunker Hill, where surface exposures of QAC breccia returned little to no gold values in rock samples, yet exhibited the correct breccia textures, gangue mineralogy and trace element geochemistry. Drilling below this gold-devoid outcrop returned multiple intercepts with high-grade gold mineralization (16SH022, 1.5m @ 16.97g/t Au & 13.06g/t Ag; 16SH023 0.3m @ 34.5g/t Au, 16.45g/t Ag). Breccia intervals drilled at depth within the SW Extension area exhibit textures, gangue mineralogy, base metal assemblages and geochemical signatures that are identical to areas with high-grade gold mineralization elsewhere across the Shumagin Gold Zone.

Additionally, visible gold observed within stockwork localized at the footwall contact of a QAC breccia intercepted in 17SH032 is a one of the key features of super high-grade mineralization localized elsewhere along the Main Breccia (15SH011; 1.9m @ 202g/t Au, 82 g/t Ag; 11SH010; 0.55m @ 738g/t Au & 408g/t Ag, 15SH018 1m @ 41.2 g/t Au & 130g/t Ag, BM-01, 3.04m @ 41.04g/t Au & 31.5g/t Ag). These similar geological relationships that span over the strike length of Shumagin indicate that with further drill testing, mineralized shoots may potentially be identified below drill hole 17SH032.

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.

All analytical geochemistry of core samples from the 2017 Shumagin drilling project have been reviewed for quality assurance and quality control. At this time no significant sample preparatory or analytical problem has been found and ALS Labs has performed well and within expected tolerances. All drill core samples were submitted to ALS labs Fairbanks, Alaska prep lab with subsequent analysis at ALS labs Reno, Nevada or Vancouver, BC facility. All core samples were submitted for prep using code PREP-31BY (Boyd crusher and rotary splitter; 1kg pulverized split) with analysis for gold using AA-24 (50g fire assay) and multi-elements by ME-MS61m (four acid digestion; ICP-MS; ICP-AES; Hg add-on).

Quality control is monitored by the insertion of blind certified reference standards and blanks into each sample shipment at a frequency of 1 control sample per 10 core samples. All samples are weighed prior to shipping. Sample weights were reviewed by comparing lab received weights against shipped weights collected by field personnel. Any inconsistencies would identify sample layout and sequence errors which could lead to miss-matched sample numbers and geochemistry. No errors were encountered.

All blanks inserted show no detectable gold. Blank material used is a gold barren Tertiary age basalt flow collected directly from a local quarry in Fairbanks, Alaska. Multi-element data for the blanks has been reviewed and measured values fall within range for most elements (an extensive database of analytical results for the blanks has been used to establish average values to compare against). All gold control standards have been reviewed and compared against their certified and published values. The standards all performed within thresholds as compared to the certified standard for gold. Thresholds for standards follow the same protocol used by ALS labs. Lab prepared duplicates (samples split in half after crushing as directed by the client) were reviewed and analytical results for gold and multi-elements compare very well.

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.

About The Unga Gold Project

The 100% controlled Unga Gold Project covers key strategic portions of adjacent Unga and Popof Islands, approximately 900 kms southwest of Anchorage, Alaska. Redstar controls a 240 square kms 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
E: pball@redstargold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

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