Blackwolf Signs MOU With Two Other Companies To Study Viability of Hub and Spoke Mill Complex at a Permitted Site at Kitsault, BC

VANCOUVER, BC / ACCESSWIRE / January 31, 2023 / Blackwolf Copper and Gold (" Blackwolf ", or the " Company ") (TSXV:BWCG), (OTC PINK:BWCGF) is pleased to announce that it has signed a Memorandum of Understanding (" MOU ") with Dolly Varden Silver (TSXV:DV, OTC:DOLLF), and New Moly LLC (collectively, the " Companies "), to jointly study the viability of using New Moly's Kitsault Project (" Kitsault " or the "Project") as the potential site for a centralized polymetallic processing facility that could accept mineralized material from the Companies' respective deposits (" Kitsault Polymetallic Mill "), located at or near tidewater in northwestern, B.C. and/or southeastern, Alaska (See Figure 1). Prior to signing the MOU, Blackwolf undertook initial discussions with Nis g a'a Lisims Government regarding potential amendments to the Mines Act Permits for Kitsault to support a polymetallic mill.

The proposed site at Kitsault previously hosted a molybdenum mine. Within the past decade, Kitsault received Canadian Federal and Provincial Permits and given the buoyant molybdenum market, New Moly is now considering funding requirements to restart a larger scale project. The Project is located on the BC Hydro grid, has road access to the Nass Valley and tidewater access. The Kitsault Polymetallic Mill concept may assist to enhance and de-risk the potential restart of Kitsault.

The Companies have engaged Fuse Advisors Inc. to complete an initial assessment of the technical viability of the Kitsault Polymetallic Mill concept. By reviewing the respective metallurgical test work completed at the various deposits, Fuse will assess the potential for blending or batching mineralized material, potential process flow-sheets, potential throughputs from the various deposits and associated mill sizing and timelines. Fuse will also be completing industry benchmarking by assessing similar polymetallic mines and mills, which include Boliden's operations in Scandinavia and the Jiama Project in China.

" We are optimistic about the potential synergies of working with the Companies in a scenario to reduce respective capital costs as well as reduce permitting timelines and risks by using a permitted site located on tidewater ," said Robert McLeod, President and CEO of Blackwolf. " With the Niblack Cu-Au-Zn-Ag Deposit also located on tidewater and marine bulk transport being reasonably cost effective, we believe that the Kitsault site could be a potential good fit for Blackwolf. Other companies with projects near tidewater in Alaska and B.C. have also expressed interested in participating."

"Nis g a'a Lisims Government has had initial discussions with the Company on the concept of a hub and spoke mill at the site of the Kitsault Project. We look forward to further consultation on this and other natural resource opportunities within the Nass Area which is subject to the Nisga'a Final Agreement where we have constitutionally protected title and rights" said Charles Morven, Secretary and Treasurer for Nis g a'a Lisims Government .

The Companies will jointly share the costs of this study. Fuse Advisors is a Vancouver based consultancy that provides project management and technical advisory services to development stage companies in the resource sector.

NIBLACK

Blackwolf Copper and Gold's Niblack Project hosts multiple Cu-Au-Zn-Ag deposits and prospects, located next to tidewater on Prince of Wales Island in southeast Alaska. Current Mineral Resources ¹ include 5,628,000 tonnes averaging 0.95% Cu, 1.75 g/t Au, 1.73% Zn and 29.52 g/t Ag in the Indicated Category and 3,393,000 tonnes averaging 0.81% Cu, 1.33 g/t Au, 1.29% Zn and 20.10 g/t Ag in the additional Inferred Category. Primarily hosted in the Lookout Zone, the Mineral Resources have excellent metallurgical recoveries within a wide mineralized zone, up to 120 meters in true width. Mineralization is wide open for expansion in most areas, and numerous prospects have only received limited drill testing. Blackwolf is currently finalizing an updated Mineral Resource for the Niblack Project, incorporating three additional rounds of drilling.

1. Refer to the NI43-101 compliant Mineral Resource Estimation - Niblack Polymetallic Sulphide Project report dated December 6, 2011, whereby the November 2011 estimates by Deon Van Der Heever, Pr. Sci. Nat., Hunter Dickinson Inc., a Qualified Person who was not independent of the Company at the time. Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1,150/oz, silver US$20.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries (used for all NSR calculations) to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag. Detailed engineering studies will determine the best cutoff.

DOLLY VARDEN/HOMESTAKE RIDGE

The contiguous Dolly Varden and Homestake Ridge projects, owned 100% by Dolly Varden Silver, make up a 163 sq. km. land package that is accessible to tidewater at the end of Alice Arm, just across the inlet from the Kitsault site, via a 28km historic mine road. Mineralization in the area consists of silver and gold systems in several areas, often with significant zinc and copper values. The Dolly Varden and Torbrit deposits have seen combined historic production of approximately 20 million oz Ag and have demonstrated good metallurgical recoveries. The property remains prospective for the discovery of additional deposits along a 15 kilometer trend of favorable host rocks and alteration.

NEW MOLY KITSAULT MINE

The Kitsault Mine Project is one of the largest and highest-grade primary molybdenum deposits in the world. The Project is owned by Avanti Kitsault Mine Ltd. (" AKML "), in which New Moly has a 100% interest. The Kitsault Mine is located in northwestern British Columbia within the Regional District of Kitimat-Stikine, approximately 140km northeast of Prince Rupert and south of the terminus of Alice Arm, an inlet of the Pacific Ocean (See Figure 2).

The Kitsault Mine is a brownfield site with considerable past mining activity and basic infrastructure in place. From as early as 1968, and intermittently until 1982, the mine produced approximately 30 million pounds of molybdenum from open-pit mining. Rehabilitation of the 1981 - 1982 mining program was started under an approved reclamation program in the mid-1990s and was completed in 2006.

AKML completed the purchase of an undivided, 100 percent (%) direct interest in the Kitsault Mine (molybdenum mine and surrounding mineral tenures) from Aluminerie in October 2008. Under AKML, permits have been well advanced with key provincial and federal permits in place for development of an estimated mine life of 15 years with an ore production rate of 16.2 Mt/year. Kitsault's development would include construction of a process plant, upgrade of the existing powerline, expansion of the existing open pit, construction of a low-grade ore stockpile, waste rock management facility, and a tailings management facility with associated water management ponds. In 2014, AKML entered into a Cooperation and Benefits Agreement ("CBA") and an Environmental Agreement with the Nis g a'a Nation. This agreement recognizes and formalizes the working relationships between the Nis g a'a Nation and AKML and is a vital step in the development of Kitsault Mine.

New Moly also owns 80% of the Mt. Hope molybdenum project in Nevada, one of the largest permitted primary molybdenum projects in the world with more than a billion pounds of molybdenum and a proposed mine life of more than 40 years. Further information on New Moly can be found at www.newmoly.com

QUALIFIED PERSON:

Jodie Gibson, P.Geo., Vice President Exploration for the Company and a Qualified Person, as defined by NI 43-101, has reviewed and approved the scientific and technical content of this release.

ABOUT BLACKWOLF COPPER AND GOLD

Blackwolf's founding vision is to be an industry leader in transparency, inclusion and innovation. Guided by our Vision and through collaboration with local and Indigenous communities and stakeholders, Blackwolf builds shareholder value through our technical expertise in mineral exploration, engineering and permitting. The Company holds a 100% interest in the high-grade Niblack copper-gold-zinc-silver VMS project, located adjacent to tidewater in southeast Alaska as well as the Hyder Area gold-silver and VMS properties in southeast Alaska and northwest British Columbia. For more information on Blackwolf, please visit the Company's website at www.blackwolfcopperandgold.com .

ON BEHALF OF THE BOARD OF DIRECTORS

"Robert McLeod"

Robert McLeod

President, CEO and Director

For more information, contact:

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements relating to the concept of a hub and spoke mill at Kitsault and the Company's future objectives and plans. Forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market volatility; the state of the financial markets for the Company's securities; fluctuations in commodity prices and changes in the Company's business plans . In making the forward looking statements in this news release, the Company has applied several material assumptions that the Company believes are reasonable, including without limitation, that the Company will continue with its stated business objectives and its ability to raise additional capital to proceed. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. The Company seeks safe harbor.

For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com .

SOURCE: Blackwolf Copper and Gold Ltd