H.C. Wainwright & Co. acted as the sole book-running manager for the offering.

The shares of common stock described herein were offered by the company pursuant to a shelf registration statement on Form S-3 (File No. 333-220461) filed with the Securities and Exchange Commission and declared effective on Sept. 28, 2017, and the accompanying prospectus contained therein. The offering of the shares of common stock was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and the accompanying prospectus relating to this offering were filed with the SEC on July 22, 2020, and may be obtained on the SEC’s website or by contacting H.C. Wainwright at 430 Park Ave., third floor, New York, N.Y., 10022, by e-mail at placements@hcwco.com, or by calling 646-975-6996.

Gary O’Connor, chief executive officer and chief geologist of Moneta, commented: “The strong institutional interest in Moneta reflects the exceptional exploration potential we have identified on our flagship Golden Highway. With the closing of the financing, we will now expand our exploration program to accelerate the increase in our gold resource base. We are pleased that Mr. Eric Sprott and other existing institutional shareholders have shown continued support in increasing their ownership interest in the company, and we welcome our new institutional investors.”

The proceeds from the flow-through shares will be used to incur Canadian exploration expenditures that are flow-through mining expenditures, as defined in the Income Tax Act (Canada), on the company’s Golden Highway project, which will be renounced to the subscribers with an effective date no later than Dec. 31, 2020. The proceeds from the common shares will be used for exploration expenditures and general working capital purposes.

Mr. Sprott subscribed to 6,428,600 shares in the private placement, increasing his shareholdings in Moneta to 34,299,055 shares, or 9.9 per cent of the total shares outstanding. An account managed by Dundee Goodman Merchant Partners also subscribed to 4.8 million shares in the private placement.

Finders’ fees were paid in the amount of $287,447 and 2,002,192 brokers’ warrants, with each broker’s warrant exercisable at 21 cents and expiring 24 months following closing. Paradigm Capital, Dundee Goodman, XIII Capital and Industrial Alliance Securities acted as advisers to the company. The placement is subject to a standard four-month hold period and final regulatory approval.

Aurion drilled a total of 43 holes for approximately 5,940 metres. Due to COVID-19, a single, limited capacity scout drill rig was operated for one shift per day with most holes drilled to depths less than 125 metres. The majority of the drill holes were located in a 1.0-by-1.5-kilometre area in the northern portion of the property.

Highlights

Hinge zone target is located in the north-central portion of the property and interpreted to be a blind fault/shear zone associated with a tightly folded mafic unit based on ground magnetic geophysics and occurs along the west side of the Christmas deformation zone (CDZ) corridor. This target was tested with three drill holes. Drill hole LN20042 intersected a gold-bearing 27 m wide (core length) fault zone starting at approximately 15 m downhole. Unfortunately, there was 92-per-cent core loss in this interval due to the broken and deeply weathered nature of the host rock; however, much of the remaining core (2.7 m) was mineralized including three intervals that assayed 30.70 g/t Au over 0.10 m (remaining weathered material from a 3.6 m wide interval), 8.65 g/t Au over 0.55 m (remaining quartz vein material from a 3.2 m wide interval) and 0.52 g/t Au over 1.10 m. Several other samples from the zone were also weakly anomalous (up to 0.05 g/t Au). Two additional drill holes failed to reach target depth.

The Hinge zone target is an isoclinal fold structure interpreted primarily upon ground magnetic geophysics and appears to have more than 1.5 km of strike length. The shear zone reported here occurs along the eastern limb of this tight fold. This type of geological feature is often an ideal site for the location of shear/fault zones and for potentially hosting robust gold mineralization. A recent example of this type of potential occurs at Great Bear Resources’ Dixie property in Northern Ontario. Future drilling with a larger capacity drill rig will also test the western limb as well as the hinge or core of this fold structure.

CDZ corridor is located in the northeastern portion of the Launi property. Twenty-nine 40 to 200 m spaced drill holes were completed over a strike length of approximately 1.0 km, testing several targets along a narrow trend of high-grade boulder and outcrop samples (greater than 300 rock samples averaging 5.18 g/t Au) within a north-northwest-south-southeast-trending 300 to 400 m wide 2.5 km long corridor bounded to the east by the Sirkka shear zone (a 125 km long major crustal-scale fault) and the Hinge zone target to the west. Gold mineralization was intersected in 22 of 29 drill holes and is hosted by flat to steep quartz-pyrite-hematite veins and/or breccias up to 1.0 m in width. The best results include 63.90 g/t Au over 0.37 m, 5.50 g/t Au over 0.40 m and 3.08 g/t Au over 0.70 m. See the associated table for complete assays results.

The corridor is underlain by tightly folded and faulted and variably silica-sericite-fuchsite-altered sedimentary rocks and locally outcropping quartz veins. Most of this corridor is overburden covered. While the drilling was primarily testing one main three to five m wide north-northwest-south-southeast-trending shear zone within the CDZ corridor, the results indicate the presence of numerous concealed steep to shallowly dipping gold-bearing quartz veins parallel or subparallel to this shear zone.

Midsommer target is located approximately 350 m west of the CDZ corridor and comprises a series of north-northwest-south-southeast-trending intermediate volcanic-hosted quartz-tourmaline veins in outcrop and boulder fields over an area of roughly 250 by 300 m. Previously, 209 rock samples collected assayed an average of 2.01 g/t Au. Six 40 to 90 m spaced drill holes tested this target. Four of the drill holes drilled beneath a boulder field. Gold-bearing quartz-pyrite-tourmaline veins and stockwork up to 10 m wide were encountered in all drill holes. The best intercepts include 1.37 g/t Au over 1.00 m, 1.01 g/t Au over 2.35 m and 0.34 g/t Au over 10.00 m, including 1.84 g/t Au over 0.90 m. See the associated table for complete results.

Bonanza target is located approximately 4.4 km south of the CDZ corridor and 1.4 km to the west of the Sirkka shear zone. Trenching exposed a 125 m long gold-bearing west-southwest-east-northeast quartz-tourmaline vein where surface channel samples returned values of 39.5 g/t Au over 0.56 m, 29 g/t Au over 0.44 m and 19.5 g/t Au over 0.77 m in quartz veining. Five drill holes spaced 20 to 40 m apart were completed with best results of 3.71 g/t Au over 1.50 m, including 11.15 g/t Au over 0.45 m and 2.02 g/t Au over 0.64 m.

Mother’s Day and Launi SE targets located in the southern portion of the property were tested with one and two drill holes, respectively. No significant values were returned.

Aurion is planning a follow-up drill program on Launi and is currently mobilizing a rig to drill untested targets on its flagship Risti property.

The company is fully financed for exploration.

Comments

“The Launi East reconnaissance scout drill program was successful in intersecting gold mineralization over a wide area, locally very near surface and/or beneath blind targets,” commented Mike Basha, president. “We are encouraged by these results of this first-ever drill program on a property that has no previous history of gold exploration and which was only acquired in 2018 based on a high-level geological concept. As we assess these results we look forward to returning to Launi for follow-up with a more capable rig to drill deeper with larger diameter core recovery.”

Discussion

The 42-square-kilometre Launi East property straddles a flexure in the Sirkka shear zone (a greater than 125 km long crustal-scale fault) and the boundary between Archean- and Proterozoic-aged terranes. The arcuate stratigraphy on the Launi East property includes a folded package of siliceous sandstones and mafic to intermediate volcanic rocks.

The primary objective of the scout drill program was to drill test the gold mineralization encountered in boulders and limited trenching on a number of targets initially identified by prospecting in 2018 to 2019. Gold mineralization was encountered in most of the drill holes and more significantly beneath blind targets such as the Hinge zone. The scout rig was useful in testing many targets but was limited when difficult ground conditions were encountered. As such Aurion plans to follow up on these results with a higher-powered, larger-diameter core rig in the fall, with the expectation of improved core recoveries and the ability to drill deeper holes.

                         LAUNI DRILL HOLE HIGHLIGHT SUMMARY TABLE  
                                                               
Hole ID                 From                  To               Width                  Au
                         (m)                 (m)                 (m)               (ppm)

LN19007               109.20              109.70                0.50                0.44
and                   156.00              160.20                4.20                0.31
incl.                 157.00              158.00                1.00                0.67
LN20008                78.50               78.90                0.40                5.50
and                   213.45              214.00                0.55                1.62
and                   216.55              217.00                0.45                0.94
and                   229.50              230.40                0.90                0.48
LN20009               152.05              153.03                0.98                1.55
LN20010                 8.69                9.33                0.64                2.02
LN20011                                                                              NSV
LN20012                                                                              NSV
LN20013                19.50               21.00                1.50                3.71
incl.                  19.50               19.95                0.45               11.15
LN20014                85.50               87.00                1.50                1.58
incl.                  86.30               87.00                0.70                3.08
and                   260.83              261.20                0.37               63.90
LN20015                30.45               30.88                0.43                2.98
LN20016                                                                              NSV
LN20017                                                                              NSV
LN20018               163.60              164.10                0.50                1.73
and                   220.40              220.70                0.30                0.72
LN20019                                                                              NSV
LN20020               122.00              123.00                1.00                0.61
LN20021                17.85               18.15                0.30                1.85
and                    19.75               20.35                0.60                1.17
and                    25.20               26.00                0.80                0.45
LN20022                                                                              NSV
LN20023                                                                              NSV
LN20024                58.70               60.00                1.30                0.36
LN20025                                                                              NSV
LN20026                39.00               41.15                2.15                0.15
LN20027               117.00              123.00                6.00                0.25
incl.                 117.00              117.35                0.35                1.29
incl.                 122.20              122.50                0.30                1.10
LN20028                                                                              NSV
LN20029                                                                              NSV
LN20030                                                                              NSV
LN20031                                                                              NSV
LN20032                                                                              NSV
LN20033                                                                              NSV
LN20034                                                                              NSV
LN20035                                                                              NSV
LN20036                                                                              NSV
LN20037                                                                              NSV
LN20038               177.75              179.95                2.20                0.86
incl.                 178.60              179.45                0.85                1.62
LN20039                                                                              NSV
LN20040                                                                              NSV
LN20041                                                                              NSV
LN20042                14.90               16.00                1.10                0.52
incl.                  16.00               19.60                3.60               30.70
and                    28.40               31.60                3.20                8.65
LN20043                96.60               98.20                1.60                0.21
LN20044                10.95               13.10                2.15                0.38
and                   149.10              150.15                1.05                0.30
and                   160.90              162.40                1.50                0.31
LN20045               149.65              152.00                2.35                1.01
LN20046                13.55               14.35                0.80                0.20
LN20047                 2.90                7.50                4.60                0.31
incl.                   6.00                6.80                0.80                1.16
LN20048                18.85               21.80                2.95                0.30
and                    33.90               35.75                1.85                0.53
and                    39.75               42.65                2.90                0.33
and                    96.70               97.45                0.75                0.40
LN20049                 4.00                7.00                3.00                0.20
and                    10.00               11.50                1.50                0.41
and                    21.00               25.55                4.55                0.13
and                    44.00                5.00                1.00                0.64
and                    58.00               60.00                2.00                0.18
and                    72.00               82.00               10.00                0.34
incl.                  74.00               74.90                0.90                1.84
and                   111.00              112.90                1.90                0.33
and                   132.00              134.00                2.00                0.46
and                   164.00              167.00                3.00                0.88
incl.                 166.00              167.00                1.00                1.37
and                   175.90              176.85                0.95                0.50

All widths are core widths. True width is not known at this time.                                      
All assay values are uncut.                                                                             
 

Background

The geological setting of the Launi East project has many similarities to prolific gold-rich orogenic gold belts globally, including the Timmins camp of the Abitibi province of Northern Ontario. In the Abitibi province, many high-grade, multimillion-ounce gold deposits are temporally and spatially associated with major regional fault zones such as the Porcupine-Destor or Cadillac Lake-Larder Lake deformation zones. Aurion has landholdings covering approximately 80 km of the regional Sirkka shear zone within the Central Lapland greenstone belt. Launi East shares many hallmark characteristics of these belts including the presence of the Sirkka shear zone, which bisects the property; however, it lacks the history of systematic gold exploration. Aurion is the first company to place an exploration permit on this property.

Quality Assurance and Quality Control

All samples were delivered to ALS preparation facility in Sodankyla, Finland, where sample preparation work was completed. All analytical work was completed at ALS facility in Loughrea, Ireland, and Rosia Montana, Romania. ALS is an internationally accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). All samples were analyzed for gold using the Au-AA26 procedure (50-gram fire assay with atomic absorption spectroscopy finish: lower detection limit of 0.01 g/t gold, upper limit of 100 g/t gold). Any samples that returned overlimit values (greater than 100 g/t gold) or had visual indication of mineralization, such as visible gold or prospective vein intervals (greater than 100 g/t gold), were analyzed by Au-SCR24 one-kilogram, screen fire assay Au (0.05 to 1,000 ppm) by one-kilogram screen fire assay (50-gram nominal sample weight). The sample pulp (one kilogram) is passed through a 100-micron stainless steel screen. Any material remaining on the screen (greater than 100 micron) is retained and analyzed in its entirety by fire assay with gravimetric finish and reported as the Au (plus) fraction. The material passing through the screen (less than 100 micron) is homogenized and two subsamples are analyzed by fire assay with AAS finish. The average of the two AAS results is taken and reported as the Au (minus) fraction result. All three values are used in calculating the combined gold content of the plus and minus fractions. The gold values for both the (plus) 100- and (minus) 100-micron fractions are reported together with the weight of each fraction as well as the calculated total gold content of the sample. Multielement analysis (ME-ICP61, four-acid digestion, 35-element inductively coupled plasma atomic emission spectroscopy) was completed on all samples. Certified standards and blanks were inserted every 20 samples. ALS has its own QA/QC protocol using standards, blanks and duplicates.

This news release has been reviewed and approved by Andrew Hussey, PGeo, GIS geologist and database manager for Aurion Resources, a qualified person as defined by National Instrument 43-101.

Snoball Property, Golden Triangle, northwestern B.C.

First-ever Phase 1 drilling of the Pyramid Peak target from the “Apex” pad is progressing on schedule, with approximately 1,675 metres of the targeted 2,400 metres, in 8 holes, completed to date, and hole SB-20-009 presently underway. It is anticipated that drilling will continue from the Apex pad for the remainder of the Phase 1 program. Contingent upon successful results of the Phase 1 work, a Phase 2 drill program may be undertaken during the latter half of the 2020 field season.

The objective of the Phase 1 drill program is to explore Pyramid Peak for the potential source, or sources, of a large, strong, gold-silver soil and talus-fines geochemical anomaly developed by Noranda in the early 1990s at considerably lower elevations, some 500-700 metres downslope. The identification of Pyramid Peak as the potential source followed sampling by Evergold in 2016 and 2017, which returned consistently strong values of gold and silver in talus fines.

Following a recent surge in drilling in northern B.C., the Company estimates up to 7 weeks for receipt of assay results upon completion of any one drill hole. Accordingly, the Company anticipates receiving initial Phase 1 assay results in August. Phase 1 results will be released when assays have been received back from the lab, quality checked, compiled and evaluated. To provide context, results will generally be released in batches of several holes per news release. Should Phase 1 results warrant extension of the drill program into an immediate second phase, release of assay results could continue to year end.

Golden Lion Property, Toodoggone region, north-central B.C.

Phase 1 drilling commenced July 26 on the GL1 target area, following completion of geochemical and geophysical surveys to refine and prioritize targets. Geophysical and geochemical programs are now underway over the GL2 and GL3 target areas located to the northeast and east, respectively, of GL1. Approximately 2,400 metres of Phase 1 drilling is planned, focused on multiple high priority gold, silver and copper targets within the GL1, GL2 and GL3 target areas. Contingent upon successful results of the Phase 1 work, a Phase 2 drill program may be undertaken immediately thereafter.

The Company will provide further updates as exploration activities advance on both properties.

Quality Assurance and Quality Control

Andrew J. Mitchell, P.Geo., Vice President, Exploration for Evergold Corp. and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this news release.

The Copperstone Gold Mine is currently subject to an aggregate 6% Royalty held by TOMCL (4.5%) and the Angie Patch Survivor’s Trust (1.5%). The purchase agreement entered into between the Company’s subsidiary, Bonanza Explorations Inc. (“Bonanza”), and TOMCL provides for the buyback of a 3% Royalty held by TOMCL for US$2,500,000 on or before March 31, 2021 (the “Royalty Buyback”). The Royalty Buyback is conditional on the Company successfully arranging project financing for the re-start of production at the Copperstone Gold Mine.

Giulio T. Bonifacio, Chief Executive Officer stated: “We are extremely pleased with the ability to buy down the current royalty which will significantly enhance Copperstone’s project economics. The value to be paid will also prove of great benefit to all stakeholders moving forward as we continue our efforts to grow the resource and reserve at the Copperstone Gold Mine.

The proposed Royalty purchase constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 {&#A A ; –} Protection of Minority Security Holder in Special Transactions (“MI 61-101”) as TOCML is owned by Fahad Al Tamimi, a director of the Company and the beneficial owner of 63,273,463 common shares of the Company, or approximately 20.3% of the total issued and outstanding common shares. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the consideration to be paid to TOMCL for the purchase of the Royalty does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

The company has applied for trademarks for the terms NetZero Nickel, NetZero Cobalt and NetZero Iron in the United States, Canada and other jurisdictions related to zero-carbon production of nickel, cobalt and iron products.

“The electric vehicle industry and many other consumer sectors needs zero-carbon metal this decade — not in a nebulous 2050 time frame contemplated by many other resource companies,” said Mark Selby, chair and chief executive officer of Canada Nickel.

“As a result of the unique advantages of the Timmins region with its close proximity to zero-carbon hydroelectricity and our Crawford nickel-cobalt sulphide project, comprised largely of serpentine rock that naturally absorbs CO2 when exposed to air, Canada Nickel has the potential to develop zero-carbon products that our customers are expecting from the mining sector. With nickel as a preferred metal to power the clean energy revolution, our commitment to net-zero carbon production is the right step to take for the environment, for consumers and for our investors.”

Serpentine rock, the host rock comprising more than 90 per cent of the mass of the resource at the Crawford nickel-cobalt sulphide project (1), has had numerous studies completed that note that the rock naturally absorbs carbon dioxide (CO2) when exposed to air through a naturally occurring process of spontaneous mineral carbonation.

The nickel industry faces a number of challenges as the current processing approach of laterite and sulphide ores generate a significant environmental footprint in the form of SO2 and CO2 emissions. These environmental challenges will only worsen given the industry supply profile with the bulk of recent nickel supply growth and the main source of future production growth being nickel pig iron production in Indonesia, which, according to industry sources, uses 25 to 30 tonnes of coal to produce each tonne of nickel, which when combined with other sources of CO2, generates nearly approximately 90 tonnes of Scope 1 and Scope 2 CO2 emissions per tonne of nickel produced.

For an electric vehicle battery pack that contained 50 kilograms of nickel from this source, it would represent approximately four tonnes of CO2 emissions for that vehicle. Other sources of nickel supply growth that have additional environmental footprint issues are HPAL projects in Indonesia that are considering technologies such as deep-sea discharge of tailings which would result in ocean discharge of approximately 100 tonnes of material per tonne of nickel.

Key technologies being explored to develop a zero-carbon footprint operation

Canada Nickel will explore the use of various alternatives to achieve its NetZero objectives in each stage of the mining process: mining, milling and processing.

Mining

The biggest single technology to reduce the carbon footprint of mining activities is the utilization of electric rope shovels and trolley trucks which utilize electricity, rather than diesel fuel, as a power source wherever possible. Given the close proximity to zero-carbon hydroelectric-generating capacity, electricity use in place of diesel fuel has the potential to significantly reduce carbon emissions.

The deposition of waste rock and tailings during the mining process will also expose the serpentine rock to air which provides the potential for this material to absorb CO2 through natural mineral carbonation and offsetting any CO2 emissions from the project. The exact amount and rate at which CO2 can be absorbed from materials mined at Crawford will be analyzed during upcoming phases of work.

Milling

Traditionally, large-scale processing of lower grade sulphide ores utilizes a significant amount of electricity. Again, the local proximity to hydroelectricity provide the potential to minimize carbon emissions for this stage of production.

NetZero Metals — nickel-cobalt concentrate processing

Existing processes for processing nickel-cobalt concentrates to remove sulphur, iron and other impurities have resulted in the generation of significant quantities of CO2, SO2 and other impurities for a number of producers worldwide.

Canada Nickel will explore the potential for producing nickel and cobalt products from existing pyrometallurgical processes such as roasting, sulphation roasting and reduction using electric arc furnaces (utilizing natural gas rather coke or coal as a reductant) with the offgases captured and rerouted to allow the CO2 be captured by the waste rock and tailings from the Crawford nickel-cobalt sulphide project (1). The company will also look at existing hydrometallurgical processes to produce nickel and cobalt products such as the Albion or other similar processes, which generate minimal off-gases to produce nickel and cobalt products. The off-gases will again be captured and treated to ensure CO2 and SO2 emissions are minimized.

NetZero Metals — magnetite concentrate processing

The company will explore the potential for the production of iron products utilizing existing direct reduced iron (DRI) processes or reduction in electric arc furnaces utilizing natural gas and then rerouted to allow the CO2 to be captured by the waste rock and tailings from the deposit.

Next steps

The company will announce some key leadership changes at the board level to help guide the company in this important endeavour. The NetZero approach will be incorporated into the work done for the engineering for the preliminary economic assessment which has been previously announced and currently underway. Specific studies to analyze the quantity and timing of CO2 absorption by the host rock at Crawford and process design for downstream processing of nickel and cobalt materials and magnetite concentrate will be announced and get under way through the remainder of the year.

(1) The Crawford nickel-cobalt sulphide project is an early-stage exploration and development project. There is no guarantee that the project will reach advanced development or production stage. The economic viability and technical feasibility of the company’s Crawford nickel-cobalt sulphide project has not been established at any level of confidence supported by a preliminary economic assessment, prefeasibility study or feasibility study, and as such there is currently no evidence to support that the project would result in a net zero-carbon footprint. The company is currently planning to complete a PEA by year-end 2020.

Each Unit will consist of one common share of the Company (a “Unit Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will be transferrable and entitle the holder to acquire one common share of the Company for 24 months from the closing of the Offering at a price of C$0.60.

The Company will grant the Underwriters an option, exercisable, in whole or in part, at any time up to three days prior to the closing of the Offering, to purchase up to such number of Units as is equal to 15% of the number of Units purchased under the Offering.

The net proceeds received from the Offering will be used for the Company’s exploration and development activities and for general corporate purposes.

It is anticipated that closing of the Offering will occur about mid-August or such other date as the Company and the Lead Underwriter may agree. The Offering is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. The securities to be issued under the Offering will have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.

In consideration for their services, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the Offering (reduced to 3.0% for purchasers on the President’s List) and broker warrants in an amount equal to 6.0% of the number of Units issued under the Offering (reduced to 3.0% for purchasers on the President’s List) exercisable for a period of 24 months at the Issue Price.

Highlights:

East Niv

• The original monzodiorite showing, first identified in 2019 and grading up to 0.82% copper, 1.14 g/t gold in composite grab samples (see press release dated August 14, 2019), was extended to 400m strike length.
• A second mineralized monzodiorite outcrop, measuring 200 m in strike length was discovered 650 metres to the east (see Figure 1 ).
• A pronounced discrete magnetic high signature, approximately 1500 by 300m in extent encompasses the two showings.
• 4 additional discrete magnetic high/low signatures with supporting anomalous copper geochemistry extend the favourable trend to over 3.5km in length (see Figure 2 ).

Serengeti has tripled the property size as a result of these encouraging early results.

Top Cat

Additional pyroxenite-skarn float boulder samples, shown to grade up to 1.39% copper, 0.69 g/t gold and 1.38 g/t palladium from 2019 sampling, were collected along a 3.5km transect over a prominent magnetic target.

Two outcrop zones (measuring 140 by 100m; and 220 by 50m) show pyroxenite contacting syenitic units hosting disseminated chalcopyrite and occasional bornite.

Several areas of anomalous copper geochemistry were identified by XRF along a prominent magnetic corridor measuring 7km in strike length.

David Moore, President and CEO of Serengeti commented, “I’m excited by these preliminary results from the field program and particularly so from what the crew turned up on our 100% held East Niv property. We have early indications here of a mineralized system of significant size that we know from our work last year, at least locally, contains some interesting gold and copper grades. To put this into perspective, the 3.5 km long, open ended trend we’ve identified here so far compares favourably with the footprint of the entire Kwanika system which contains two deposits, the Central and South Zones. I look forward to seeing the analytical results from this work and to the results of the IP geophysical survey that is scheduled to begin shortly.”

East Niv Exploration

From July 4th to July 16, a crew of 5 completed an 11 day mapping/sampling program on the East Niv property located 45 km southwest of the Kemess Mine. A total of 294 Ah-horizon soil samples were collected over a 150m spaced grid in addition to 100m spaced contour samples in areas of interest; as well as 11 silt samples and 123 rock samples collected for assay. Rock samples were collected from representative geological units, and mineralized monzodiorite intrusive outcrops represented the majority of units sampled. Several areas of interest were identified which form a 3.5 km long by up to 1.3 km wide northwest-southeast prospective trend from treeline to valley floor (approximately 3 km2 in extent). The trend consists of a number of discrete magnetic high features, several mineralized occurrences, and correlated anomalous copper soil geochemistry from 2019 analytical results and preliminary 2020 field XRF results. The main monzodiorite showing, first identified in 2019 and grading up to 0.82% copper, 1.14 g/t gold* in composite grab samples (see press release dated August 14, 2019), was extended significantly in strike extent, and a second mineralized monzodiorite outcrop, measuring 200 by up to 50m in width was discovered 650 metres to the east along a pronounced magnetic high signature, approximately 1,500 by 300m in extent. The monzodiorite is mineralized with chalcopyrite and occasional bornite and is moderately to intensely potassically altered. Quartz veining +/- magnetite +/- chalcopyrite is locally pervasive in the potassically altered zone which is bounded upslope by a quartz-sericite-pyrite (phyllic) halo.

Preliminary field XRF results have confirmed the presence of copper mineralization as well as the soil anomalism, and Serengeti will be following up this first phase program with an IP geophysical survey to begin shortly, plus additional sampling to further delineate the extent of the East Niv mineralized system. Samples from the 2020 program have been submittedto the laboratory; results are pending and will be used for future drill targeting. Further to these encouraging results from the current program, the property has been tripled in size and now comprises 18,170 hectares.

Top Cat Exploration

Nova Zone

From June 16 to June 29, a crew of 6 carried out a 14 day mapping/sampling program over the Nova zone at Top Cat in order to follow up on results from the 2019 field program including the identification of additional “pyroxenite skarn” boulders identified in 2019 found to host up to 1.39% copper, 0.69 g/t gold, 6.45 g/t silver and 1.38 g/t palladium in a float boulder (see press release dated January 19, 2020). A total of 393 Ah samples were taken over a 200m spaced grid in addition to 53 stream sediment samples and 90 rock samples. Most rock samples were selected from boulder float where bedrock is interpreted to be close to surface, and represent primarily strongly altered pyroxenite and alkaline intrusives of the Duckling and Thane Creek suites. Several areas of anomalous copper geochemistry were identified by XRF near the interpreted contact between pyroxenite and felsic intrusive units along a prominent magnetic corridor measuring some 7km in strike length. In Nova cirque (toward the northwest along the magnetic trend) actinolite-biotite altered pyroxenite is intruded by syenitic intrusives showing quartz-sericite-pyrite (phyllic) to K-feldspar (potassic) alteration hosting disseminated chalcopyrite. Preliminary field XRF results have confirmed the presence of copper mineralization, and Serengeti is currently following up this first phase program with an IP survey. Analytical results from the 2020 sampling program are pending release from the laboratory and will be used for future drill targeting.

Cat Mountain Zone

Cat Mountain is an advanced gold-copper prospect which has seen over 10,000 metres of historical drilling, intercepting grades of 1.15 g/t gold and 0.15% copper over 95.4 metres in DDH CAT-94-01 (see related press release , dated January 19, 2020). Serengeti completed a data compilation and 3D modelling exercise on Cat Mountain, the results of which suggest that drilling intercepts remain open to the northwest and have identified a potential offset to the southeast. See Figure 3 for Cat Mountain targets. Exploration at Top Cat is continuing with the completion of IP surveys over the Nova and Cat Mountain zones which arecurrently underway. Kwanika Resource and Exploration Drilling Program

The Company will put out in the near future, a detailed update on its flagship Kwanika Copper Gold project outlining the 2020 exploration and drilling program. The drill program is slated to begin in early August and IP surveying totalling 15 line km was recently completed over three target areas on the Kwanika claim block to help define drilling targets.

Qualified person

The field and analytical programs described herein were supervised by Serengeti Resources staff and the technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the company’s qualified person, David W. Moore, P.Geo., President and CEO of Serengeti Resources, who has supervised the preparation of, and approved, the scientific and technical information in the news release.

*Grab sample grades are by nature selective and not necessarily an indication of the overall grade of a mineralized zone.