Toronto, Ontario--(Newsfile Corp. - June 10, 2022) - Eric Sprott announces that today, 2176423 Ontario Ltd., a corporation which is beneficially owned by him, entered into a share purchase agreement to sell 7,140,371 common shares of Canagold Resources Ltd. ("Sold Shares"), by way of a private securities transaction ("Private Transaction") (representing approximately 8.25% of the outstanding common shares on a non-diluted basis) at a price of $0.323 per share for aggregate consideration of $2,306,339.83.

Upon closing of the Private Transaction (expected to occur on or about June 22, 2022), Mr. Sprott will own and control no common shares and 1,250,000 common share purchase warrants representing approximately 1.4% of the outstanding common shares on a partially-diluted basis.  Mr. Sprott currently beneficially owns and controls 7,140,371 common shares and 1,250,000 common share purchase warrants (representing approximately, 8.25% on a non-diluted basis and approximately 9.6% on a partially diluted basis). The disposition in conjunction with prior share issuances by the Company will result in an ownership change, on a partially diluted basis, of 10.4% since the last filing of an Early Warning Report and bring total holdings to under 10% on a partially diluted basis.  As a result, Mr Sprott and 2176423 Ontario Limited will cease to be insiders of Canagold Resources.

Mr. Sprott understands that Canagold Resources has filed a notice of meeting and record date on the company's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at which indicates that the date of the annual and special meeting of shareholders will occur on July 19, 2022 and the record date has been set at June 6, 2022, as a result of which 2176423 Ontario will be able to vote the Sold Shares. 2176423 Ontario will provide the purchaser under the Private Transaction an irrevocable proxy to permit the purchaser to vote the Sold Shares at any meeting of shareholders of Canagold Resources, which purchaser may or may not chose to vote in favour of all of Canagold Resources' management's director nominees. The common share purchase warrants noted above are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Canagold Resources Ltd. is located at 810 - 625 Howe Street, Vancouver, B.C. V6C 2T6. A copy of the early warning report with respect to the foregoing will appear on the company's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

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