Japan Gold Expands Area of Prospecting Rights Applications and Commences Work Program at Aibetsu Project in North Hokkaido

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2017) - Japan Gold Corp. (TSX VENTURE:JG)(JGLDF) ("Japan Gold" or the "Company") is pleased to announce that it has expanded its portfolio in Japan with extensions to the Aibetsu Project and also commenced its 2017 regional work program at Aibetsu.

The Ministry of Economy, Trade and Industry (METI) has accepted thirteen new prospecting rights applications at the Aibetsu Project extending the area further to the north and east. The new applications cover prospective areas of mapped alteration and mineralization centered along northeast trending structures that extend out of the existing applications at Aibetsu, refer to Figure 1.

The Metal Mining Agency of Japan (MMAJ) completed regional stream geochemical sampling within the newly extended applications area which shows elevated gold and arsenic values associated with mapped alteration in the same order of magnitude as those occurring within the pre-existing applications around the historically mined mineralization at Aibetsu. The Aibetsu Project area now comprises 22 applications for a total of 7,034.5 hectares.

Five historic epithermal gold / silver and mercury mines are located within the Aibetsu Project area, Figure 1. Tokusei, the largest known historic mine at Aibetsu, is reported to have produced approximately 38,580 ounces-gold and 472,600 ounces-silver between 1930-421. Underground workings were developed at Tokusei along an array of parallel epithermal quartz-adularia veins located beneath a silica sinter and hydrothermal breccia capping1. The project area has had only minor exploration since the 1940's which included mapping, soil sampling, and resistivity surveys by the MMAJ over the Tokusei mine area between 1998 and 2002. This work culminated in five deep diamond drill holes targeted mainly on Tokusei mine extensions. Narrow high-grade gold and silver intercepts in two drill holes targeted beneath a mercury soil anomaly located approximately 500 meters northeast of the Tokusei mine workings, included 0.95 m @ 69 g/t Au, 263 g/t Ag (13MAHB-1) and 1.15 m @ 12 g/t gold and 7 g/t Ag (13MAHB-2) 2, at about 300 meters and 450 meters below surface respectively. A wider gold intercept of 7.5 m @ 1.92 g/t Au and 11 g/t Ag (14MAHB-1) was recorded from drill hole 14MAHB-13 located approximately 500 meters to the southeast of drill hole 13MAHB-1 along a parallel structure, refer to Figure 2.

2017 Aibetsu Regional Work Program

Within the pre-existing applications, the Company plans to infill and extend southwards, from previous MMAJ mapping and soil geochemical sampling completed over the Tokusei mine area, to define new drill targets. Surveying and clearing of grid-lines to allow access for mapping and soil sampling over an approximate 5 km by 4 km area commenced in mid-May 2017, soil sampling is expected to commence in mid-June 2017. Mapping conducted along some recently cut grid lines has confirmed the presence of silica capping and sinter outcrops on Mt Maruyama above the Tokusei veins, indicating that limited erosion has occurred and that the vein systems are therefore well preserved.