First Earn-In Option And Joint Venture At the Preston Uranium Project

VANCOUVER - Dixie Gold Inc. announced that Orano Canada Inc. has completed the first earn-in option of a fifty-one percent (51%) interest in the Preston Uranium Project, located in the western Athabasca Basin, Saskatchewan, Canada. Orano previously held an option to acquire the interest through an option agreement entered into with Dixie Gold and Skyharbour Resources Ltd..

"We are pleased to have entered into a JV agreement at the Preston Uranium Project with both Orano and Skyharbour. The structure of the JV agreement is beneficial to Dixie Gold as it allows us to make future investment choices and enables us to keep our own team focused on the operation and exploration of our Red Lake Gold Project. Dixie Gold remains attentive to our share structure and evaluates share dilution and project interest dilution closely and prudently," said, Ryan Kalt, Chief Executive Officer of Dixie Gold.

The significant potential of the Project has been highlighted by recent discoveries in the area by NexGen Energy Ltd. (Arrow), Fission Uranium Corp. (Triple R) and a joint venture consisting of Cameco Corporation, Orano and Purepoint Uranium Group Inc. (Spitfire). Exploration at the Project has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochem, lake sediment, and geological mapping surveys, as well as exploratory drill programs. Over a dozen high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through these methodical, multiphased exploration initiatives, which have culminated in an extensive, proprietary geological database for the project area.