GFG Resources Inc. reported initial assay results from the 2019 Phase 2 drill program at its 100% owned Pen Gold Project located 40 kilometres west of the prolific Timmins Gold District in Ontario, Canada. In the fourth quarter of 2019, the Company completed 2,500 metres of drilling from eight drill holes testing six targets. The initial results from four drill holes are highlighted by hole PEN-19-39 which successfully outlined mineralized stacked lenses with high-grade gold intercepts at the HGM target grading 7.53 g/t Au over 2.2 metres and 25.96 g/t Au over 1.0 metre. Deerfoot Region - HGM Prospect: The HGM prospect was initially discovered and drilled by Hemlo Gold Mines and successively tested between 1994 and 2011 with 15 holes. It is hosted along the Deerfoot Corridor, a one by three kilometre area in the easternmost part of the Pen Gold Project, that contains the westward extension of the Porcupine-Destor Fault Zone and second order sub-parallel shear zones and fault splays. Detailed review of historic drill logs and re-logging of available drill core by GFG outlined a series of stacked, replacement style gold lenses within a sequence of carbonate-silica-sericite altered, brecciated mafic volcanic rocks. Historic drilling focused on the first 300 metres from surface and returned multiple high-grade assays over broad widths such as to 21.59 g/t Au over 3.9 metres and 4.30 g/t Au over 5.0 metres. During Phase 2 of the 2019 drill program, GFG drilled two holes at the HGM target to test the eastern depth and western strike continuity of the system. Assays received to date from drill hole PEN-19-39, the deepest and easternmost hole testing the system, outlined five distinct mineralized intervals within a 225-metre-long section from 146.2 to 372.0 metres downhole. Most significant are two, visible gold-bearing intervals that assayed 7.53 g/t Au over 2.2 metres (including 31.80 g/t Au over 0.5 metres) and 25.96 g/t Au over 1.0 metres (including 51.80 g/t Au over 0.5 metres) from 309.7 and 371.0 metres, respectively. The former is hosted within a strongly silicified and sericitized, quartz breccia-veined mafic volcanic interval with 10% disseminated and stringer pyrite with visible gold. The latter is associated with quartz-carbonate brecciated mafic volcanic hosting 10% disseminated and stringer chalcopyrite, pyrrhotite, pyrite with visible gold. Further up-hole, several lower grade intervals returned 0.49 g/t Au over 1.2 metres, 0.63 g/t Au over 0.5 metres and 1.24 g/t Au over 1.0 metres from 146.2, 215.8 and 233.6 metres. Assays remain outstanding for a number of sections between and below the aforementioned intervals. Mineralized intervals from Hole PEN-19-39 are interpreted to link to historic hole 94-18 located 75 metres up-plunge that returned 6.52 g/t Au over 2.0 metres and 21.59 g/t Au over 3.9 metres and to hole 95-23 located 50 metres along strike to the west that returned 21.94 g/t Au over 1.0 metres. Drill hole PEN-19-36 tested the western strike extension of the HGM target and intersected two distinct mineralized intervals ranging from 269.6 to 322.7 metres downhole. Most significant is a 7.4 metre interval that returned 0.93 g/t Au, including 1.2 metres at 2.86 g/t Au. The interval is associated with a moderately quartz-carbonate brecciated and veined mafic volcanic interval with 1 to 5% disseminated and stringer pyrite and pyrrhotite. Further downhole, an interval returned 0.42 g/t Au over 1.3 metres.