Mr. Steve Low reports

GOGOLD ANNOUNCES ANNUAL NET INCOME OF $8.1M USD FOR SEPTEMBER 30, 2019

GoGold Resources Inc. has released its financial results for the quarter and year ending Sept. 30, 2019, with record revenue of $27-million (all amounts are in United States dollars) from the sale of 1,758,307 silver equivalent ounces during the year.

Financial highlights for the year ending Sept. 30, 2019:

• Record revenue of $27-million, an increase of 28 per cent from prior year's record, from the sale of 1,005,899 silver and 8,752 gold ounces, at a realized price of $15.33 per silver equivalent ounce;
• Record production of 1,781,080 silver equivalent ounces, an increase of 37 per cent from prior year's record;
• Net income of $8.1-million (five cents per share);
• All-in sustaining costs of $14.82 per silver equivalent ounce, average of $13.70 over last six months;
• Cash costs of $11.80 per silver equivalent ounce;
• Gain on sale of Santa Gertrudis royalty of $11.8-million;
• Net working capital of $13.1-million available to finance operations and future exploration at Los Ricos.

"The company is in a strong financial position with Parral operating at record levels and the drilling results to date at Los Ricos looking exceptional. During the year, we were able to generate a significant gain on the sale of the Santa Gertrudis royalty, which combined with the gain on the marketable securities we took as consideration for that sale, generated $15-million in income, in addition to the $53-million realized last year on the sale of Santa Gertrudis. Our team continues to demonstrate our ability to generate value for shareholders from exploration projects," Brad Langille, president and chief executive officer, stated. "Our company generated $2-million in cash from operations, excluding working capital adjustments, in the September quarter, which is showing that Parral is the engine, which will drive our exploration of Los Ricos going forward."

GoGold generated record revenue from record production for the year ended Sept. 30, 2019, with cash costs per silver equivalent ounce of $11.80 for the year. Production for the year was 1,781,080 silver equivalent ounces, consisting of 1,033,365 silver and 8,673 gold ounces, an increase of 37 per cent from the prior year record.

On Aug. 15, 2019, the company acquired the Los Ricos project, which consists of 29 concessions in Jalisco, Mexico, from private Mexican owners. The concessions, along with an existing 2-per-cent net smelter royalty on the property, were acquired for share consideration of $5.4-million and cash consideration of $4.5-million, of which $3.9-million is payable over three years as of Sept. 30, 2019. In addition, the company spent $1.8-million during the year on drilling, which produced 62 holes totalling 8,919 m of HQ size drill core, with assayed results received and reported on 50 drill holes as of Sept. 30, 2019.

The company continues to progress on construction of the previously announced SART plant at Parral, with construction nearing completion and commissioning set to begin in January as planned. The SART plant is expected to bring important economic and technical benefits to the Parral facility. The main economic drivers are the recovery of a high-grade saleable copper sulphide product, the regeneration of cyanide, which is the largest single operating cost at Parral, and improved leaching efficiency of the heap.

The monetization of the sale of Santa Gertrudis was completed with the final sale of the 2-per-cent net smelter royalty for $12-million, which closed on Nov. 7, 2018. An additional $3-million gain on the value of the marketable securities received from the sale of the royalty was recorded as of Sept. 30, 2019. The royalty sale brought the total proceeds on the disposition of Santa Gertrudis to $95-million, which the company purchased in 2014 for $11-million and invested an additional $9-million for a total investment of $20-million.

The quarter ending Sept. 30, 2019, generated record quarterly revenues of $9.7-million on the sale of 572,435 silver equivalent ounces, at a realized price of $16.96 per ounce. All-in sustaining costs per ounce for the quarter were $13.78 per silver equivalent ounce. The company generated net income of $800,000 during the quarter and cash flow from operations before working capital of $2-million.

The following tables summarized financial information and key performance indicators.

                        SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION
                    (in thousands U.S. dollars, except per-share amounts)

                                            Three months ended Sept. 30  Year ended Sept. 30
                                                        2019       2018      2019       2018 

Revenue                                               $9,709     $3,492   $26,972    $21,016  
Cost of sales 1                                       $8,505    $25,610   $26,682    $45,294  
Operating income (loss)                                   $4  $(23,089)  $(4,410)  $(28,412)
Net income (loss) 2                                     $751  $(68,520)    $8,114  $(43,693)
Basic net income (loss) per share                      $0.00    $(0.39)     $0.05    $(0.43)  
Cash flow from operations, 
before changes in non-cash working capital            $1,959     $1,660    $2,974     $3,038   

1 Cost of sales in the quarter ended Sept. 30, 2018, includes an inventory writedown of 
$13,893.
2 Net loss in the year ended 2018 includes an impairment charge of $48.2-million.          

                                   KEY PERFORMANCE INDICATORS 1
                      (in thousands U.S. dollars, except per-ounce amounts)

                                                Three months ended Sept. 30   Year ended Sept. 30
                                                              2019     2018       2019       2018
  
Total tonnes stacked                                       300,263  370,558  1,654,393  1,619,061
AISC per silver equivalent ounce 2,4                        $13.78   $44.55     $14.82     $22.25    
Adjusted AISC per silver equivalent ounce 2,4               $13.78   $12.50     $14.11     $14.46    
Adjusted cash cost per silver ounce 3,4                      $7.27    $1.07      $7.82      $6.24     
Adjusted cash cost per silver equivalent ounce 2,4          $11.62    $7.92     $11.09     $10.20    
Realized silver price                                       $16.96   $14.44     $15.24     $15.79    

1 Key performance indicators are unaudited non-GAAP (general accepted accounting principles)                          
2 Gold is converted using actual realized prices                                   
3 Using gold as a byproduct credit                                     
4 Adjusted for net realizable value adjustment of $7,750 in quarter ending Sept. 30, 2018, 
see reconciliation in management's discussion and analysis

Board appointment

On Dec. 11, 2019, Brad Langille was appointed as a board member of the company.

This news release should be read in conjunction with the consolidated financial statements for the year ended Sept. 30, 2019, notes to the financial statements, and management's discussion and analysis for the year ended Sept. 30, 2019, which have been filed on SEDAR and are available on the company's website.

Technical information contained in this news release with respect to GoGold has been reviewed and approved by Bob Harris, PEng, who is a qualified person for the purposes of National Instrument 43-101.

We seek Safe Harbor.