dixie gold inc. commences district-scale sgh soil sampling program at red lake gold project

Intensive 2,000 Sample Program Now Underway Covering 17.5km x 2km Initial Area of Focus

Vancouver, British Columbia – September 17, 2020 – Dixie Gold Inc. (TSX VENTURE: DG)(FWB: 2YCA) (“Dixie Gold” or the “Corporation”) is pleased to announce that it has commenced a large-scale inaugural SGH soil sampling program at its Red Lake Gold Project in Ontario. The highway-accessible, multi-crew program targets the collection of SGH soil samples from approximately 2,000 individual site locations across the full-extent of the southern portion of Dixie Gold’s Red Lake Gold Project. The soil program is designed to assist in the potential delineation of future drill targets.

Dixie Gold’s Red Lake Gold Project is situated contiguous to and northeast of the Dixie Gold Project being advanced by Great Bear Resources Ltd.

“Dixie Gold is pleased to announce one of the largest single-phase soil programs to be performed in the emerging Dixie Gold District. Our Red Lake Gold Project represents a once-in-a-generation at-scale exploration opportunity and delivers the unique occasion to explore near multiple new gold discoveries made at the contiguous project by Great Bear Resources. Moreover, the mining claims comprising our Red Lake Gold Project were staked prior to Great Bear Resources’ gold discovery at the LP Fault and we believe the potential for splays and parallel faults in the area underlain by our project to be significant. Dixie Gold is excited to start field exploration and begin our efforts to communicate to the market what we believe could quickly become a company-making asset. Our large inaugural field program is designed to intensively explore a 17.5km x 2km section of our broader Red Lake Gold Project utilizing proven exploration techniques that have been demonstrated as effective within this new gold camp,” stated Ryan Kalt, Chief Executive Officer of Dixie Gold Inc.

Dixie Gold has 25,737,188 common shares issued, with no warrants outstanding.

The large-scale exploration program announced today is funded through the Corporation’s existing treasury.

About Dixie Gold’s Red Lake Gold Project / Soil Sampling Program

Dixie Gold’s highway-accessible Red Lake Gold Project is located in close proximity to the town of Red Lake in northwestern Ontario. The district-scale gold exploration project is comprised of 1,241 mining claims totaling approx. 25,269 ha in size (approx. 62,441 acres). Dixie Gold’s Red Lake Gold Project is situated adjacent to the Dixie Gold Project being advanced by neighbouring exploration company Great Bear Resources Ltd.

Figure 1: Dixie Gold Inc. – Red Lake Gold Project Map

Exploration efforts by Dixie Gold at the Red Lake Gold Project are designed to target potential gold mineralization analogous to gold being discovered elsewhere in the immediate region (e.g. the adjacent Dixie Gold Project held by Great Bear Resources Ltd.), including sulphide replacement, quartz veining in mafic volcanics and disseminated gold within high-strain zones.

As relates to the inaugural phase one SGH soil sampling program, multiple crews are expected to soil sample approximately 2,000 locations across the southern area of Dixie Gold’s Red Lake Gold Project. Sample collection will use 50m spacing based on 200m spaced lines.

Figure 2: Dixie Gold Inc. – Fall 2020 SGH Soil Sampling Program Area

The field program is expected to be completed by mid-October. Program samples will be sent to Actlabs in Ancaster, Ontario for assay, with results presently expected approx. 5-6 weeks after sample delivery.

The SGH soil exploration program was designed and is being managed by Clark Exploration Consulting Inc. of Thunder Bay, Ontario.

The Corporation cautions that past results or discoveries on the adjacent project (e.g. Great Bear Resources’ Dixie Gold Project) may not necessarily be indicative as to the presence of mineralization on the Corporation's project (e.g. Dixie Gold’s Red Lake Gold Project).

Qualified Person:

Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is the “Qualified Person” as defined in NI 43-101, who has reviewed and approved the technical content in this press release.

About Dixie Gold Inc.

Dixie Gold Inc. (TSXV:DG) is a publicly-traded exploration company involved in a diverse portfolio of exploration projects in Canada. For more information, please visit www.dixiegold.ca.

Signed,

Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.

Forward-Looking Statements

This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently expected or forecast in such statements.

Neither the 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.

Contact Info:

Ryan Kalt
Chief Executive Officer

Dixie Gold Inc.
E. info@dixiegold.ca
W. www.dixiegold.ca