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Osprey Provides Update on Nova Scotia Gold Properties and Three Priority Drill Targets

TSXV– OS

VANCOUVER, MAY 21, 2019. OSPREY GOLD DEVELOPMENT LTD. (the “Company” or “Osprey”) (TSXV: OS, OTCQB: OSSPF) is pleased to provide an update on ongoing exploration at its five historically producing gold projects in Nova Scotia, Canada.

The Company holds the right to acquire a 100% interest in all of its projects and is focused on exploring for disseminated mineralization within the host sediments, around historically mined high grade veins, similar to the style of mineralization found at the deposits making up Atlantic Gold’s Moose River Consolidated Project.

Based on Osprey’s recent and previous work, three key target areas have emerged as priorities for immediate follow-up drill testing. Each of these past producing projects holds the potential to host significant mineralization, and is integral to the consolidated district opportunity.

Drilling is currently planned for:

- The Goldenville Zone (Goldenville Project), Osprey’s most advanced project and Nova Scotia’s largest historic gold producer with a current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 grams per tonne (“g/t”) gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped). The deposit is open to the east and northwest, and significant infill opportunities exist on the south limb.

- The Mitchell Lake Zone (Goldenville Project), is located approximately 3.5 kilometres (“km”) west of the Goldenville resource area where significant mineralization was encountered in Osprey’s previous drill program. Highlighted results includes hole MIT97-01 which intersected a broad zone of gold mineralization; 30.50 m of 0.70 g/t gold, including 8.10 m of 1.10 g/t gold, and 9.40 m of 1.02 g/t gold. MIT97-02 intersected 20.2 metres of 1.33 g/t.

- The Elk Zone (Caribou Project), located 8 km north of Atlantic Gold’s Touquoy Mine and Moose River Consolidated mill site and completely surrounded by Atlantic Gold claimholdings;

All three of these target areas are easily accessible via existing roads and drill contract discussions are underway.

“We’re pleased to see the hard work of our neighbors Atlantic Gold validated and congratulate their management team on the recent $802 million takeover offer by St Barbara,” said Company President Cooper Quinn. “Importantly, the recently announced proposed transaction presents a ‘proof of concept’ for open pit gold mining in Nova Scotia, and the style of mineralization being explored and expanded within Osprey’s current portfolio of projects. Looking at historic mining districts in favorable jurisdictions, with extensive mineralization endowments, coupled with modern exploration tools has proven time and again to be a potential path to successful mining operations. Moose River Consolidated is showing that this thesis can be successful in Nova Scotia and Osprey is committed to advancing multiple similar assets in the region.”

Figure 1 - Osprey’s projects across the gold-bearing Meguma Terrane are all accessible by existing roads, and are near existing infrastructure. It is approximately 100 km from Gold Lake to Lower Seal Harbour directly. Historically, it’s high grade veins were mined underground.

Upon inception in 2017, Osprey utilized local expertise to select a highly prospective portfolio of property assets that combine high-grade gold vein systems, historic production, and exploration potential for multiple styles of near-surface mineralization around existing infrastructure. Several of these projects are situated within the same geological environment as Atlantic Gold’s Moose River Consolidated Project. These projects have been advanced by Osprey through a series of work programs comprised of surface sampling and mapping, geophysical surveying, and diamond drilling. Evaluation and interpretation of all available datasets is being used to define a drill plan for the next phase of drilling to test the host sediments surrounding high grade veins on several priority targets within the Company’s portfolio.

The Goldenville Property

Osprey’s most advanced project, Goldenville, was Nova Scotia’s largest historic gold producer, and is located approximately 3 km by paved highway from the town of Sherbrooke, NS.

Goldenville hosts a current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped). Since this resource was completed by Osprey, the Company has drilled an additional 3,044 metres (“m”) on the project, including 3 holes approximately 3.5 km to the west of the resource at the property’s Mitchell Lake Zone, where significant mineralization was discovered including hole MIT17-01 which intersected a broad zone of gold mineralization; 30.50 m of 0.70 g/t gold, including 8.10 m of 1.10 g/t gold, and 9.40 m of 1.02 g/t gold. The Mitchell Lake area is identified by the Company as a priority exploration area for additional work and follow-up drilling in 2019, because of the broader gold intercepts and lack of historic drilling that left large sections of untested potential. Visit the Goldenville Project Page on the Company’s website for a location map and full project details.

The Caribou Property

Caribou is strategically located, 8 km north of Atlantic Gold’s Touquoy Mine and Moose River Consolidated mill site and completely surrounded by Atlantic Gold claimholdings.

Historic reports indicate approximately 108,250 ounces of gold production occurred on the property at an average mined grade of approximately 13 g/t, with local areas of 68 g/t according to records.

Osprey has identified several targets at Caribou, including surface mineralization at the Elk Zone similar in grade to Atlantic Gold drill intercepts and mill head grade. Another priority target for the Company is the distinctive zones of stockwork veining hosted within the anticline, like the B/C Zone. These contain high grade gold in zones broader than the stratabound veins normally seen in the terrane, and historic drill results include 11.2 metres grading 10.86 g/t gold in Hole CM-98-01 and 9.8 m grading 12.2 g/t gold in Hole SB-88-11. While the scale of the stockwork zones is currently unknown, the grade/thickness combination could allow for more cost efficient underground mining. Visit the Caribou Project Page on the Company’s website for a location map and full project details.

An historical technical report prepared for Scorpio Gold Corporation by Guy Mac Gillivray, P.Geo. of W.G. Shaw and Associates Limited dated October 8, 2008 (the “Historical Report”) provides an inferred historic resource of 94,763 ounces of gold in 350,305 tonnes grading 8.81 g/t gold, uncut (the “Historic Estimate”). Using a grade cap for gold of 47.0 g/t the Historical Estimate for the Caribou Gold Property is 350,305 tonnes grading 5.83 g/t gold, or 67,425 ounces of gold. (The reader is cautioned that a qualified person has not done sufficient work to classify this Historical Estimate as current resources and Osprey is not treating this Historical Estimate as a current mineral resource. While this estimate was prepared in accordance with National Instrument 43-101 and the “Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines” in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The Historical Estimate is relevant to obtain a reference to mineral potential present on the property. The Company has not undertaken any verification of the historical data upon which the historical estimates are based on.)

About Osprey

Osprey is focused on exploring five historically producing gold properties in Nova Scotia, Canada. Osprey has the option to earn 100% (subject to certain royalties) in all five properties, including the Goldenville Gold Project, Nova Scotia’s largest historic gold producer. All five properties in Osprey’s current portfolio have a history of high-grade gold production. A copy of the Company’s technical report titled “Technical Report on the Goldenville Property, Guysborough County, Nova Scotia Canada” prepared by David G. Thomas, M.Sc., P. Geo. and Neil Pettigrew, M.Sc., P. Geo. is available under the Company’s profile at www.sedar.com.

Perry MacKinnon, P.Geo, Vice-President of Exploration of Osprey and a ‘Qualified Person’ under NI 43-101. Mr. MacKinnon has reviewed and approved the technical content of this release.

Additional information regarding Osprey and the Goldenville property is available under the Company’s profile at www.sedar.com and at www.ospreygold.com.

ON BEHALF OF OSPREY GOLD DEVELOPMENT LTD.,

Cooper Quinn

Cooper Quinn, President and Director

For further information please contact Osprey at (778)986-8192 or cooper@ospreygold.com

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.

All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to Osprey within the meaning of applicable securities laws. Osprey provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in Osprey’s public filings under Osprey’s SEDAR profile at www.sedar.com. Although Osprey has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Osprey disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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