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Gowest Gold announces Statement of Claim from Cementation Canada Inc.

Jul 4, 2022

Gowest Gold Ltd. (TSXV: GWA) ("Gowest" or the "Company") has announced that a statement of claim has been issued against the Company under the Construction Lien Act (Ontario) by Cementation Canada Inc., seeking payment in the amount of approximately $7.4 million in respect of certain services and materials provided to the Company under a contract between the parties dated as of March 2, 2017. Cementation has further caused a lien to be registered on title to the Company's Bradshaw Gold Deposit. The statement of claim also names Greenwater Investment Hong Kong Limited ("Greenwater"), the Company's largest shareholder and secured creditor, as a defendant in the action. The Company is currently evaluating the merits of the claim, its defence and other potential options available to it in response to the action.

Further, the Company remains in discussions with Greenwater with respect to the closing of its proposed additional equity investment in the Company, including the impact that the Cementation action may have on this proposed investment (see Gowest news releases dated January 24, March 10, March 31, and April 28, 2022).

The Company remains committed to moving forward with its efforts to restart mining activities at Bradshaw and intends to continue its activities in this regard. 

Additional information concerning the Cementation action and proposed Greenwater investment will be provided by the Company in due course.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw) on the Frankfield Property, part of the Company's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.

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