President’s Letter to Compass Gold Shareholders

Dear Shareholders,

I am pleased to report that our 2019 exploration program at our Sissako property in southern Mali is well underway. Thanks to the careful management of expenses, we are able to complete the first three months of this latest phase of exploration work with funds remaining from our 2018 budget.

As we have reported, last year, our exploration team in Mali successfully identified fourteen large, high priority gold targets for deeper drilling. All of those targets were located in Ouassada, one of five permit areas that comprise our Sissako properties.

This drilling, which we completed in Q4 2018, was focused on just the first five targets and, as a result, we gained some critical knowledge of the mineralized structure going down to depths of more than 100 metres. Several wide significant mineralized zones were found under the very large Farabakoura target. (For details, please see our press release dated January 10th, 2019). Based on this deep drilling – the first ever conducted on these properties – we have learned that the orientation of the mineralized zones is likely along a NW trend at a shallow angle.

Before proceeding with further comprehensive and costly deeper drill testing along all fourteen of the Ouassada targets, we will use a combination of some diamond (DD) and reverse circulation (RC) drilling, as well as roughly 65 km of ground induced polarization (IP) surveying.

The IP survey will be completed over all fourteen Ouassada targets, plus five more targets subsequently identified from additional data processing and interpretation. The results of the IP survey will provide further assistance in locating the mineralized zones, including their depths, as well as the rock type.

In implementing this geophysical survey first, we can dramatically reduce the drilling required to discover the best mineralized zones within the target areas. As our Technical Director, Dr. Sandy Archibald, so aptly put it, “Instead of drilling the barn door, we can focus on the keyhole.

Presidents Letter to Shareholders

President’s Letter to Shareholders

This is a very exciting time for Compass Gold as we are on the verge of commencing the first ever bedrock drilling on four of the 14 bedrock drilling targets identified during Phase 1 of our 2018 Exploration Campaign in Southern Mali. We have waited patiently for an exceptionally heavy rainy season to come to an end. (Here is a link to a recent drone video tour of the site, which shows the residual rain water. https://youtu.be/PIl_zykX0G4)

Our team is currently in the field, preparing the drill pads and double-checking the exact locations where the first drill holes will each penetrate up to roughly 100 metres into the bedrock layer below. Each of the first four targets will be examined with 10-15 drill holes for a total cost of roughly $1 million.

Presidents Letter to Shareholders

President’s Letter to Shareholders

Since my last letter we have been reporting on the extensive soil sample and auger drilling results spanning the nearly 1200 sq. km of our Sikasso property in Southern Mali. Tens of thousands of soil samples and thousands of metres of auger drilling have now been completed, analysed and cross referenced by our technical team, using a variety of geological tools, data and independent studies. The exciting result is that we are now ready to commence a focused bedrock drilling program on numerous, high priority targets. By the end of our first year, we will have completed the first bedrock drilling ever performed on the Sikasso Property. This work will begin after the rainy season ends in the coming weeks and once the ground has dried out enough to enable our team and contractors to safely access the first priority target areas on our Ouassada permit.

For those not familiar with the weather conditions to which I am referring, the Sikasso Property is located on the southern edge of the Sahel, or sub-Saharan belt, and is characterized by a subtropical to hot climate with dry and wet seasons. Normally, the rainy season extends from May to October, with an average rainfall of 800-1000 mm, followed by six-months of hot dry conditions. (See the graph and photos below.) Although some limited exploration activity can be conducted year-round, many roads and streams are dangerous or simply impassable during the wet season, and also for some weeks after the rains cease. By all accounts, this latest rainy season has been one of the wettest in the last ten years.

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President’s Letter to Shareholders

Yesterday we released our latest exploration results from our Sikasso Property in Southern Mali. (The full press release can be found here: http://compassgoldcorp.com/geochemical‐survey‐identifies‐four‐additional‐strong‐shallow‐gold‐anomalies/ )

The work by our exploration team over these past three months has been outstanding. Through extensive soil sampling, they have already identified at least nine large, near-surface gold anomalies ranging in length from 2km to 12 km. It is remarkable that every target zone we have worked on so far has produced significant anomalies.

Our team has also completed more than 27,000 metres of auger drilling below the 12km long anomaly at Ouassada. We expect to receive the assays from that drilling, which reaches to depths of 20 metres, later this month. We are very interested to see those results as they will guide our plans for deeper bedrock drilling starting about mid-year.

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President’s Letter to Shareholders

As your new President and CEO of Compass Gold Corp., I would first like to thank the many individuals who have made this exciting “relaunch” of our company possible. The strong support of our shareholders, the sound guidance of our advisors and the diligent efforts of our management team and directors have all combined to bring us to where we are today; ready to return to Mali and roll out an aggressive gold exploration program on our highly prospective Sikasso properties.

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