The offering will consist of a combination of flow-through shares and charity flow-through shares. The flow-through shares are priced at $1.70, and the charity flow-through shares are priced at $1.90.

The company may pay finders’ fees in connection with the offering, in accordance with the policies of the TSX Venture Exchange. Proceeds from the offering will be used to finance upcoming drill programs on the company’s Rackla project in the Yukon.

The shares issued pursuant to the offering will be subject to a four-month hold period from the date of issue of the shares. The offering remains subject to the acceptance of the TSX-V.

Each unit will consist of one common share of the company and one-half of one common share purchase 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 60 cents.

The net proceeds received from the offering will be used for the company’s exploration and development activities as well as for general corporate purposes.

It is anticipated that the closing of the offering will occur in mid-August, 2020, 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 per cent of the gross proceeds of the offering (reduced to 3 per cent for purchasers on the president’s list) and brokers’ warrants in an amount equal to 6 per cent of the number of units issued under the offering (reduced to 3 per cent for purchasers on the president’s list). The brokers’ warrants are exercisable for a period of 24 months at the issue price.

American Creek Resources Ltd.’s joint venture partner, Tudor Gold Corp., has completed the second set of diamond drill holes at the Treaty Creek property, located in the heart of the Golden Triangle of northwestern British Columbia. Diamond drilling is progressing very well on the Goldstorm Zone which is on-trend from Seabridges’ KSM Project located five kilometers southwest of our Goldstorm System. As well, three more drills have been mobilized to the project. This brings the total to five diamond drill rigs working at Treaty Creek. A sixth diamond drill is expected to arrive shortly at Treaty Creek. Tudor Gold intends to double the diamond drill hole program from the original plan of 20,000 meters to at least 40,000 meters of drilling for 2020. Tudor Gold is fully funded to complete this aggressive drill hole program. The preliminary drilling this season has yet to delineate the limits of the Goldstorm system as it remains open in all directions and to depth. It will require all six drills to complete the drilling required for the completing the exploration program for the Goldstorm Au-Cu-Ag System.

Tudor Gold’s Vice President of Project Development, Ken Konkin, P.Geo., states: “For the second time this month, we are very pleased to have bettered the results obtained earlier from GS-20-57 which has an enriched interval that averages 1.40 gpt AuEq over 217.5 meters (544.5 to 762.0 meters) within an overall composite average of 0.845 gpt AuEq over 973.05m (34.50 to 1077.55 meters). Hole GS-20-65 was designed as a 100-meter undercut to drill hole GS-20-57. The result was a remarkable 348 meter intercept of 2.120 gpt AuEq within a larger 930 meter intercept of 1.161 gpt AuEq in drill hole GS-20-65. More drilling will be required in this central region in order to better define these higher-grade metal plumes that we believe occur throughout the Goldstorm System. There were three results over 15.0 gpt Au that occurred within GS-20-65. These include: 19.7 gpt Au over 1.5m (145.5 to 147.0 meters), 22.5 gpt Au over 1.5m (310.5 to 312.0 meters) and 34.2 gpt Au over 1.0 meter (921.0 to 922.0 meters). The focus for the rest of this summer will be to complete the exploration drilling to the limits of the known mineralization along the north-eastern axis. We have begun drilling on Pad 8 which is a 150 meter north-easterly step out from hole GS-20-47, which was the best intercept generated in 2019 where we obtained an intercept of 0.697 gpt AuEq over 1081.5 meters. That hole stopped in mineralization as it was the limit of the drill’s capacity. This year all six drills have modified heads to complete drill holes in excess of 1,800 meter depths. However, we anticipate that our longest holes for 2020 will be approximately 1,400 meters long.

“One of the most impressive aspects of the Goldstorm System is the consistent strength of the mineralization. Drill hole GS-20-64 was a steep-angled 150m step-out hole drilled to the northeast beyond the trace of the DS-5 intercept. This exploration hole targeted the extension of a very robust stockwork system that was intersected at the bottom of drill hole GS-19-47, 0.996 gpt AuEq over 243 meters (933.5 to 1176.5 meters). The intercept ended in mineralization at 1199m. The same DS-5 zone was intersected in GS-20-64 that doubled the intercept length from 243 meters to over 550 meters averaging 0.983 gpt AuEq (648.4 to 1198.95 meters) which is extremely consistent with the results obtained in GS-19-47. An enriched, upper portion of the stockwork system yielded 1.482 gpt AuEq over 154.5 meters (771.5 to 926.0 meters). We are currently re-drilling drill hole GS-19-47 as the system may be much larger than originally thought given the results obtained from the 150m northeast step out hole GS-20-64. The target is to drill through the entire stockwork profile that was discovered in 2019.”

The attached table provides the complete list of drill hole results.

Walter Storm, president and chief executive officer, stated: “Our technical team continues to explore several fronts of the target while obtaining excellent results and we continue significantly expand the size of Goldstorm system. The northeast-trending axis of the mineralized body of Goldstorm now exceeds a kilometre in length and we have yet to find the limit of the mineralization to the northeast and to depth. It was necessary to intensify our efforts by doubling our program to 40,000 meters and utilizing more drill rigs. We are very happy to announce the approval of our new work permit that allows us to expand drilling at Goldstorm as well as drill other zones. Tudor Gold’s construction crews are planning on building a lower drill camp that will add several months to the exploration season. We are now able to build operational trails to gain over-land access to the zones from the current camp and from the proposed lower camp at the toe of Treaty Glacier.”

Tudor Gold and our associated service companies have taken extreme measures to maintain the highest professional standards while working within COVID-19 health and safety protocols. Only essential personnel are permitted to enter the camp and staging areas. Of those who are at the project site and staging site, we have strict daily monitoring of the workers’ temperatures and general health conditions. We have a certified paramedic at the staging area to examine all in-coming and out-going Tudor personnel and all service providers.

Quality assurance/quality control

Drill core samples were prepared at MSA Labs’ Preparation Laboratory in Terrace, BC and assayed at MSA Labs’ Geochemical Laboratory in Langley, BC. Analytical accuracy and precision are monitored by the submission of blanks, certified standards and duplicate samples inserted at regular intervals into the sample stream by Tudor Gold personnel. MSA Laboratories quality system complies with the requirements for the International Standards ISO 17025 and ISO 9001. MSA Labs is independent of the Company.

Qualified Person

The Qualified Person for this news release for the purposes of National Instrument 43-101 is the Company’s Vice President of Project Development, Ken Konkin, P.Geo. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.

Treaty Creek JV Partnership

The Treaty Creek Project is a Joint Venture with Tudor Gold owning 3/5th and acting as operator. American Creek and Teuton Resources each have a 1/5th interest in the project creating a 3:1 ownership relationship between Tudor Gold and American Creek. American Creek and Teuton are both fully carried until such time as a Production Notice is issued, at which time they are required to contribute their respective 20% share of development costs. Until such time, Tudor is required to fund all exploration and development costs while both American Creek and Teuton have “free rides”.

Berenguela silver-copper project highlights:

• Epithermal polymetallic carbonate replacement deposit;
• Total tenement package of 6,594 hectares;
• 50 kilometres (km) to Juliaca and 204 km to Arequipa, both with daily flight connections to Lima;
• Located six km from the town Santa Lucia, with rail access to the port of Matarani.

Historic 2018 Joint Ore Reserves Committee (JORC) mineral resource:

• Containing:
  • Silver — 98 million ounces in measured and indicated and an additional 28 million ounces in inferred;
  • Copper — 624 million pounds of in measured and indicated and an additional 147 million pounds in inferred.

Historic 2018 scoping study:

• Open pit mining, low strip 0.96, with a mine life of 12 years at 2 million tonnes per year
• Mining inventory (Measured & Indicated) of 21.8 Mt @ 111 g/t Silver, 0.98% Copper & 7.6% Manganese
• Conventional processing flow sheet with annual average production:
  • 4.85 million ounces of silver in dore;
  • 13,883 tonnes of copper in cathode;
  • 96,087 tonnes of manganese in magnesium sulphate (MgSO4) mono-hydrate;
  • 5,098 tonnes of zinc in cathode.

Transaction summary

Aftermath Silver and SSRM have agreed to a total consideration of $13-million (U.S.) made in staged cash payments, $3-million in Aftermath Silver common shares and a sliding-scale net smelter returns royalty (NSR), as follows:

1. $1-million (U.S.) deposit, to be paid within 48 hours of signing the LOI (paid);
2. $1-million (U.S.) cash on the closing date of the proposed transaction and $3-million in Aftermath common shares, using the volume-weighted average share price five trading days prior to the date of signing the acquisition agreement, capped a maximum 9.9 per cent of Aftermath’s issued and outstanding shares, with the remainder, if any, to be paid in cash;
3. $2.25-million (U.S.) cash to be paid on the 12-month anniversary date of closing;
4. $2.5-million (U.S.) cash to be paid on the 24-month anniversary date of closing;
5. $3-million (U.S.) cash to be paid on the 48-month anniversary date of closing;
6. Completion of a preliminary feasibility study (PFS) and filing on SEDAR of a National Instrument 43-101 technical report summarizing the PFS, within 48 months of the anniversary date of closing;
7. $3.25-million (U.S.) cash to be paid on the 72-month anniversary date of closing;
8. A sliding-scale net smelter returns royalty (NSR) on all mineral production from the Berenguela project for the life of mine commencing at the declaration of commercial production, based on the following:
   • 1-per-cent NSR, on all mineral production when the silver market price is up to and including $25 (U.S.) per ounce;
   • 1.25-per-cent NSR on all mineral production when the silver market price is over $25 (U.S.) per ounce and when the copper market price is above $2 per pound.

Closing of the acquisition is subject to Aftermath Silver and SSRM having executed and delivered the acquisition agreement, SSRM having reacquired a 100-per-cent direct and indirect interest in SOMINBESA, the owner of the project, from Valor Resources Ltd., the approval of the TSX Venture Exchange and certain other customary closing conditions.

Ralph Rushton, president and chief executive officer of the company, commented: “The Berenguela acquisition perfectly matches our corporate strategy of acquiring derisked assets with immediate value creation for our shareholders. When the Berenguela acquisition is complete, Aftermath Silver will have assembled one of the largest portfolios of silver development assets. Combined with the organic growth we hope to achieve at Challacollo, we believe it positions Aftermath as one of the pre-eminent silver development companies.”

About the Berenguela silver-copper deposit

Berenguela is located in the Department of Puno, in Southern Peru, between 4,150 and 4,280 metres above sea level in the Western Cordillera of southern Peru. It is located six km northeast of the closest community of Santa Lucia, the nearest town. Berenguela is close to regional centres at Juliaca (1.5 hours drive) and Arequipa (2.5 hours drive), these cities have daily flights from Lima. A railway loading station is located at Santa Lucia, connecting to the port of Matarani on the Pacific coast. Santa Lucia is connected to the national grid at 220 volts.

Small-scale production from surface pits and underground occurred in the early 1906 through to 1958, for a total of approximately 500,000 tonnes. ASARCO optioned the project in 1965, undertaking the first large-scale investigations. Several companies subsequently performed drilling and bulk sampling for metallurgical test work. SSRM (then Silver Standard) optioned the project in 2004. Between 2004 and 2005, SSRM undertook 222 RC holes, metallurgical testwork and produced a National Instrument 43-101 technical report on the mineral resource in October, 2005, to complete 100-per-cent ownership. Subsequently, SSRM drilled 28 diamond holes between 2010 and 2015. SSRM optioned the property in 2017 to Australian Securities Exchange-listed Valor Resources, which completed 69 RC holes in 2017. In April, 2020, SSRM and Valor entered into a definitive agreement pursuant to which Valor has agreed to return to SSRM a 100-per-cent direct and indirect interest in SOMINBESA, the owner of the project. A total of 318 drill holes have been drilled between 2004 and 2017 for a total of 34,796 metres.

Berenguela is an epithermal polymetallic carbonate replacement deposit. The mineralization is present from surface to a depth of about 100 m. The deposit has a known strike length of 1.4 km and is 200 to 300 m wide, 30 to 100 m thick.

Stockwork bodies of manganese oxides (magnetic) are hosted within folded and faulted carbonates and include massive flat-lying lenses. It is interpreted that manganese oxides have replaced the dolomitic limestones in areas that have been structurally prepared through folding and faulting associated with northwest-north-striking folds.

Associated with the manganese oxide body is an irregular crosscutting network of quartz veins. These veins contain the copper and silver minerals — malachite, azurite, covellite, chalcopyrite, chrysocolla, pyrite, acanthite and small quantities of native silver.

In January, 2018, the previous operator reported a mineral resource estimate under the Joint Ore Reserves Committee (JORC) 2012 guideline for Berenguela.

The company cautions that an independent qualified person (QP), as defined in National Instrument 43-101, has not yet completed sufficient work on behalf of Aftermath Silver to classify the estimate as a current measured, indicated or inferred mineral resource and Aftermath Silver is not treating the historical estimate as a current mineral resource. Aftermath Silver will need to validate previous work to produce a mineral resource that is current for CIM purposes. Details of the historic mineral resource are found in an attached table.

Historic scoping study summary

The previous operator undertook a scoping study on Berenguela (Salva Mining, May, 2018) to a quoted level of accuracy of plus or minus 35 per cent. A summary of the scoping study economic highlights follows, the results have not been verified by the company and the reader is cautioned not to rely on the economic results:

• Open-pit mining inventory (of historic measured and indicated mineral resource) of:
  • 21.8 million tonnes at 111 g/t silver, 0.98 per cent copper and 7.6 per cent Manganese at a 1-per-cent copper equivalent (CuEq) cut-off;
• Conventional processing flow sheet:
  • Crushing, dry grind and magnetic preconcentration;
  • Solvent extraction and electrowinning of copper and manganese;
  • Cyanide leaching and Merrill-Crowe precipitation of silver dore;
• Mine life of 12 years at two million tonnes per year using open-pit methods;
• Metal price assumptions — $19.10 per ounce silver, $3.22 per pound copper, $500 per tonne manganese sulphate and $1.07 per pound zinc;
• Average overall metallurgical recoveries — 67.9 per cent silver, 70.8 per cent copper, 63.2 per cent manganese and 69.4 per cent zinc;
• Average annual metal production of 4.85 million ounces of silver, 13,883 tonnes of copper, 96,087 tonnes of manganese in MgSO4 mono-hydrate and 5,098 tonnes of zinc;
• Preproduction capital of $260.3-million, includes working capital, engineering, procurement and construction (EPCM), owner’s costs, and 30-per-cent contingency;
• Life of mine sustaining capital of $85.2-million, including closure costs;
• Average operating cost of $52.62 (U.S.) per tonne run of mine, all-in sustaining cash cost includes royalties;
• Cumulative free cash flow of $1,658,000,000
• Pretax net present value (NPV) (8 per cent) of $815 million and internal rate of return (IRR) of 49 per cent;
• After-tax NPV (8 per cent) of $564-million and IRR of 35 per cent.

Aftermath Silver’s immediate plans

Upon closing of the proposed transaction, Aftermath will immediately commence a detailed review of the historic scoping study and define the scope of a prefeasibility study for Berenguela. This will involve upgrading of any inferred mineral resource into indicated mineral resources, the twinning of historic drill holes, acquiring fresh metallurgical samples, mine and civil geotechnical investigations, and hydrology studies.

Aftermath Silver will also review the significant exploration potential around Berenguela and will drill test the most prospective targets.

Finders’ fees

Finders’ fees commensurate with TSX Venture Exchange policies will be payable to Elysium Mining Ltd. in cash and shares. Elysium is a company in the business of identifying mineral project acquisitions.

Prior to the financing, K2 held 31,719,000 common shares representing approximately 10.44 per cent of the issued and outstanding common shares of Moneta. After the financing, the partnership continues to hold 31,719,000 common shares representing approximately 9.15 per cent of the issued and outstanding common shares of Moneta.

K2 ceases to be an insider in Moneta but continues to hold the securities for investment purposes only and may, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over, or exercise its current rights to acquire, common shares or other securities of Moneta Porcupine Mines through market transactions, private agreements or otherwise.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price of $1.10 per Warrant Share for a period of 24 months from the closing of the Offering. Provided that if, at any time prior to the expiry date of the Warrants, the closing price of the Common Shares on the TSX Venture Exchange (the “Exchange”), or other principal exchange on which the Common Shares are listed, is greater than $1.75 for 10 consecutive trading days, the Company may, at the Company’s discretion, and at any time going forward, within 15 days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the “Accelerated Exercise Period”). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.

“Dolly Varden’s new geological team has uncovered a significant number of high-grade silver targets that warrants an aggressive drill program. There is some real excitement for us to commence drilling to expand the Torbrit silver resource as well as additional exploration along the Torbrit horizon. These funds give Dolly Varden the opportunity to uncover and refine the potential results this 2020 drilling season. I would like to thank Mr. Sprott and the other key new institutional investors to allow us to unlock value for our shareholders,” remarked Shawn Khunkhun, Dolly Varden’s Chief Executive Officer.

The Agents will have an option (the “Agent’s Option”) to offer for sale up to an additional 15% of the number of Units sold in the Offering at the Offering Price, which Agent’s Option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Offering.

The Company intends to use the net proceeds from the Offering for further exploration, mineral resource expansion and drilling at the Dolly Varden silver property in northwestern British Columbia, Canada, working capital and general corporate purposes.

The securities to be issued under the Offering will be offered by way of private placement in each of the provinces of Canada, other than Quebec, and such other jurisdictions as may be determined by the Company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.

The Offering is scheduled to close on or about the week of August 17, 2020, or such date as agreed upon between the Company and the Agents (the “Closing”) and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Exchange. The Units to be issued under the Offering will have a hold period of four months and one day from Closing.

Pursuant to the ancillary rights agreement between Hecla Canada Ltd. (” Hecla “) and the Company dated September 4, 2012, Hecla will be entitled to acquire Common Shares at a price of $0.71 per share to maintain its pro rata equity interest in the Company. If Hecla exercises its pro rata rights under the ancillary rights agreement, any Common Shares issued to Hecla will be in addition to those issued as part of the Offering.

In connection with the Offering, the Agents will receive an aggregate cash fee equal to 6.0% of the gross proceeds from the Offering, including in respect of any exercise of the Agent’s Option. In addition, the Company will grant the Agents, on date of Closing, non-transferable compensation warrants (the “Compensation Warrants”) equal to 6.0% of the total number of Units sold under the Offering (including in respect of any exercise of the Agent’s Option). Each Compensation Warrant will entitle the holder thereof to purchase one Common Share at an exercise price equal to the Offering Price for a period of 24 months following the Closing.

Highlights include (Grades are uncut; lengths are measured along the holes, Table 1):

DDH 17315-20-114 returned 1.18 g/t Au over 136.2 m including 12.14 g/t Au over 3.0m in the Bonnefond intrusive DDH 17315-20-117 returned 29.38 g/t Au over 5.6m including 111.70 g/t Au over 1.4m in a shear zone south of the Bonnefond intrusive. DDH 17315-20-119A returned 1.79g/t Au over 228.7m including 13.58 g/t Au over 7.0m in the Bonnefond intrusive.

“Since 2017, when QMX first began drilling at Bonnefond, this deposit has continuously shown its strong upside potential. As with all the previous drilling campaigns, the results from the Winter Program consistently expand the project both in size and grade. We anticipate this will continue as we explore the shear zones to the north of the deposit over the summer months”, commented Brad Humphrey, President and Chief Executive Officer. “In the coming weeks and months, we look forward to a number of key catalysts including, the Bonnefond resource update and further drill results from Bonnefond and River and the initial results from the Poulmaque target.”

“We are very excited to once again show that our Bonnefond project is high in grade, especially where the shear zones are in contact with the tonalite intrusion”, says Dr. Andreas Rompel, Vice President Exploration, ” and we are looking forward to an updated resource estimate for Bonnefond later this summer.”

The Bonnefond deposit is composed of a tonalitic intrusion with an elliptical shape measuring approximately 250m by 60m and dipping 70 degrees to the north-east and a series of mineralized shear zones dipping 45 degrees to the north which lie south of the intrusive body.

The three drill holes included in this batch of assays are located in the central part of the Bonnefond deposit (Figure 2). DDH 114 and 117 targeted the series of shear zones located to the south and north of the tonalite. They both intercepted grades typical of the Bonnefond intrusive. DDH 117 was also successful at intersecting high-grade mineralization in a shear zone south of the intrusive which assayed 29.38 g/t Au over 5.6m including 111.70 g/t Au over 1.4m.

DDH 119A was drilled close to the eastern edge of the intrusive, down plunge, to test grade continuity between pre-existing drill holes. Mid-way along its length the hole exited the tonalite but re-entered it about 60m further down the hole. The drill hole returned two sections of mineralized tonalite grading 1.79 g/t Au over 228.7m and 1.05 g/t Au over 184.3m.

The three drill holes intersected several high-grade zones within the tonalite with grades ranging from 4.55 g/t Au over 2.8m to 13.58 g/t Au over 7.0m.

 Table 1: Results from DDH 114, 117 and 119A - Bonnefond Deposit
 
 Hole Number Azimuth(degree)Dip(degree)HoleLengthFrom(metre)To(metre)Length*(metre)Au**(g/t)Comment    
17315-20-114    180     -80     655       356.8     493.0      136.2       1.18    Tonalite  
                               Incl.      362.8     364.8       2.0        5.09              
                               Incl.      411.0     414.0       3.0        12.14             
                                                                                             
17315-20-117    180     -80     520       46.5      52.5        6.0        2.09   South Shear
                                          240.7     329.0       88.3       1.69    Tonalite  
                               Incl.      277.4     282.5       5.1        14.89             
                               Incl.      326.4     329.0       2.6        4.09              
                                          350.2     354.0       3.8        2.43   South Shear
                                          365.0     368.2       3.2        5.29   South Shear
                                          415.8     421.4       5.6        29.38  South Shear
                               Incl.      420.0     421.4       1.4       111.70             
                                                                                             
17315-20-119A    5      -70     582       48.0      276.7      228.7       1.79    Tonalite  
                               Incl.      150.7     165.2       14.5       4.05              
                               Incl.      216.0     223.0       7.0        13.58             
                                          305.8     317.3       11.5       1.86   Shear Zone 
                                          342.2     526.5      184.3       1.05    Tonalite  
                               Incl.      469.2     471.2       2.0        9.03              
                               Incl.      475.2     477.2       2.0        5.30              
                               Incl.      506.0     508.0       2.0        17.55             
                               Incl.      523.7     526.5       2.8        4.55              
                                                                                             

* Reported length measured along the hole.

** Au uncut

Current Exploration Drilling

QMX Gold currently has 3 drill rigs turning on its Val d’Or property, with one drilling on the River Target and two drilling on the East Zone.

At the Bonnefond Deposit, QMX is in the process of updating the 2019 43-101 resource estimate and has commenced a 10,000m exploration program on Bonnefond to test for new mineralized shear zones north of the current pit shell. Drilling results, compilation and close-by projects suggest the currently known series of shear zones could extend further north on the Bonnefond property.

QMX has also launched a follow up exploration drilling program on the River Target as a result of its highly successful reconnaissance program, which returned 39.83g/t Au over 2.0m in DDH 17421-19-046 (See Press Release January 26, 2020) and 38.69g/t Au over 3.5m in DDH 17421-19-048 (See Press Release February 24, 2020).

The planned reconnaissance drilling program on the Poulmaque Target, located on the eastern side of the Bourlamaque batholith, will commence shortly. The objective of this initial program of at least 3,000m is to narrow the target area.

Poulmaque is a highly prospective target located 3km west of Probe Metals “Courvan gold trend” and 5km from the “Pascalis gold trend”. The northern end of the target area hosts the F-Zone and the southern end the Callahan deposit on QMX Gold’s Beacon property. The F-Zone has returned 10.93g/t Au over 1.4m and 28.45g/t Au over 1.6m according to the MERN Sigeom database and the Callahan deposit was drilled by QMX in 2017 returning quartz veins grading 32.6g/t Au over 1.0m and 7.6g/t Au over 3.0m in drill hole DDH 17319-17-005 (See Press Release May 23, 2017).

Quality Control

During the drilling program, assay samples were taken from the NQ core and sawed in half. One half is sent to Swaslab Ltd., a certified commercial laboratory. The other half of the core is retained for future reference. A strict quality assurance and quality control program was applied to all samples, which included insertion of mineralized standards, blank samples and duplicates inside each batch of 20 samples. The gold analyses were completed by fire-assay with an atomic absorption finish on 50 grams of material. Repeats were carried out by fire-assay with a gravimetric finish on each sample containing 5.0 g/t Au or more. The gold analyses were undertaken by fire-assay on 50 grams of pulp with an atomic absorption finish. Repeats were carried out by fire-assay with a gravimetric finish on each sample containing 5.0 g/t Au or more.

Qualified Persons

The scientific and technical content of this press release has been reviewed, prepared and approved by Melanie Pichon, P.Geo, M.Sc, Exploration Manager, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

An Exploration Target for Colomac suggests anywhere from 18 Mt to 23 Mt at grades ranging from 1.80 gpt Au to 2.00 gpt Au for a total of between 1.0 Moz upwards to 1.5 Moz Au could be added to the current resource by continuing to drill the projected extensions of currently defined mineralized zones. The Exploration Target is based on the limited extension of known zones to depth and laterally as defined by the current drill density. The potential quantity and grade is conceptual in nature, and the Exploration Target is not a mineral resource and there remains uncertainty if a mineral resource would be delineated. However, this target illustrates a clear path forward for resource expansion opportunities proximal to the currently defined resource in the near term. Outside of this Exploration Target, there remains a large portion of the host quartz diorite (mineralized portion of the sill) that remains untested, and therefore a focus for continued exploration.

Follow this link to view a formatted version of this release.

Conference Call Details – Nighthawk Gold 2020 Resource UpdateManagement will host a conference call and webcast to discuss the updated resource estimate today, July 28, 2020 at 8:30am ET. To access the webcast and for further details, please see details listed at the end of this release or visit the Company website at nighthawkgold.com.

Callers should dial in 5-10 min prior to the scheduled start time.

NA Toll-free: 1-800-319-4610; Toronto: +1-416-915-3239; International: +1-604-638-5340

To access the Webcast please follow this link.

Dr. Michael Byron, President & CEO commented, "This latest resource estimate is the most refined, and accurate representation to-date, and for the first time includes constrained open pit and underground Indicated Resources at Colomac with an average grade of 2.01 gpt Au. Constraining of resources has resulted in a substantial upgrade to the quality and level of confidence in the 2020 Colomac MRE, resulting in greater perceived value given that 82% of the resource now falls within the Indicated category. With additional infill drilling, Indicated Resources have the possibility to be upgraded to Measured Resources or possibly Mineral Reserves if determined to be economic to extract.

"A newly defined Exploration Target for Colomac suggests that up to 1.5 Moz Au with grades between 1.8 gpt Au and 2.0 gpt Au could be added to the current resource. We believe this can be achieved with anywhere from 50,000 to 75,000 metres of additional drilling, of which we plan to complete upwards of 25,000 metres this year with drilling already well underway. Furthermore, with limited drilling information available with respect to the recently discovered widening of the mineralized portion of the Colomac Main sill and especially in light of the sill's expansion to upwards of 155 metres in true width at approximately 750 metres depth at Zone 1.5, this tremendous prospect was not captured in the current resource estimate. There remains significant upside to build additional ounces, over and above the Exploration Target within the vastly unexplored portions of the host quartz diorite. Given these strategic prospects we anticipate rapid resource growth in addition to the outlined Exploration Target areas.

"We are confident that this latest resource represents a giant step forward in terms of increasing project robustness and value and provides a solid platform from which to rapidly add ounces and to develop Colomac quickly and efficiently. We look forward to discussing these highlights in a conference call later this morning, the details of which are mentioned above"

Highlights: The 2020 Colomac MRE Upgraded to Constrained Resources1,2 – Based on the level of exploration achieved to date and in accordance with the Canadian Institute of Mining (“CIM”) best practice guidelines, open pit resources are constrained by pit shells using GEOVIA WhittleTM, and underground resources optimized (manually constrained) to demonstrate a reasonable prospect for eventual economic extraction. Deposits are constrained based on economic and technical parameters that are relevant, reliable and in accordance with industry standards. Defining constrained resources are essential to the process of advancing Colomac towards a development decision.

82% Conversion Ratio to Indicated Resources4 – The excellent conversion ratio from Inferred to Indicated Resources substantiates the geological and grade continuities of the 2020 Colomac MRE deposits. With additional infill drilling, Indicated Resources (which carry a higher level of resource confidence and value), have the possibility to be upgraded to Measured Resources and eventually Mineral Reserves if proven to be economical to extract.

Defining an Underground Resource is an Important Step Forward in the Advancement of Colomac2 – This development opens up the largest part of the mineralized sill and supports continued drilling to depth where the deposit expands significantly in true width over 3.5 kms of the deposit’s total 7.0 km length strike length that has been drill tested to depth so far , thus improving the potential for future resource expansion. The Colomac Main underground Indicated Resource carries a much-improved average grade of 2.21 gpt Au and contemplates a bulk mining approach given the style of mineralization and distribution of gold within the quartz diorite.

Improved Average Resource Grade to 2.01 gpt Au for Indicated Resources and 2.03 gpt for Inferred Resources – The 2020 Colomac MRE reports an improvement in grade by up to 25% to 2.01 gpt Au for Indicated Resources and 2.03 gpt Au for Inferred Resources. This is a key improvement for a northern project and is expected to positively impact future project economics especially in-light of the vast underground potential.

Exploration Target3 Outlines Potential for Upwards of 1.5 Mozs of Additional Resources within Close Proximity to the Current Resource – With an estimated 50,000-75,000 metres of additional drilling it is reasonable to expect that between 18 Mt and 23 Mt at grades between 1.8 gpt Au and 2.0 gpt Au for a total of between 1.00 to 1.50 Mozs of gold could be added to the current resource by drilling the extensions of currently defined mineralized zones at depth and laterally, of which the Company intends to complete upwards of 25,000 metres in this year’s drill program.

Strong Foundation for Growth1,2 – The high conversion ratio from Inferred to Indicated Resources combined with the updated litho-structural model and constrained resources, have greatly improved project robustness, overall estimate confidence, and elevated the potential in situ value of the 2020 Colomac MRE. There remains considerable room for resource expansion given that after the 2019 drill program, extensive areas of the host quartz diorite remain unexplored.

Initial Resource Estimate for Damoti1,2 – Damoti is a high-grade gold deposit located south of Colomac and considered a primary candidate to provide higher-grade feed (with an average grade of 4.97 gpt Au) to possible future mining and milling operations at Colomac.

This Mineral Resource Estimate has been prepared using reasonable cut-off grades for pit constrained, bulk underground and selective underground extraction mining methods.Specific extraction methods are used only to establish reasonable cut-off grades for various portions of the deposit. No Preliminary Economic Analysis, Pre-Feasibility Study or Feasibility Study has been completed to support economic viability and technical feasibility of exploiting any portion of the mineral resource, by any specific mining method.The reader should be cautioned that this exploration target is not a mineral resource estimate and is conceptual in nature. There has been insufficient exploration to define this as a mineral resource, and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource. As well, the estimate on metres drilled to achieve this target is based on the Company's projections derived from its experience with metres drilled and ounces added through its previous drilling campaigns and the resulting mineral resource estimates.An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.

FUTURE OPPORTUNITIES AND NEXT STEPS:

Realize Exploration Potential As discussed above, the Company believes that with an additional 50,000 to 75,000 metres of drilling, up to 1.5Mozs could be added to the current mineral resource estimate.A planned 25,000 metre drill program is underway on the Indin Lake Gold Property with approximately 70% of the drilling metres and two drills focused on further delineation of Colomac.Test resource expansion potential at depth where Colomac Main expands significantly in true width across the 3.5 km strike length from Zone 3.5 northwards to Zone 1.5 of the deposit’s total 7.0 km length that has been drill tested to depth so far.Considering the sheer size of the host quartz diorite and surrounding deposits that have limited exploration to date, drilling beyond the Exploration Target is a key focus for the Company to continue adding ounces moving forward. Continued Advancement of Colomac Towards a PEA Stage ProjectAs previously announced, the 2020 Colomac MRE will be utilized by JDS Mining and Energy to produce a preliminary internal scoping study to assess the economic viability of the project based on known information to date.82% of the resources have been upgraded to the Indicated Resource category, providing more confidence in the future economic viability of the project. Furthermore, with additional drilling, these ounces could be upgraded to Measured Resources and possibly Mineral Reserves in the future.The results of this study will assist with developing future exploration focus to expedite continued resource growth and advance the project towards a Preliminary Economic Assessment stage. Regional Exploration Potential Nighthawk continues to actively explore its many regional prospects. Two priority areas, the Leta Arm Gold Project and the Treasure Island Gold Project, are of particular interest as they lie within well mineralized and largely unexplored structural corridors that extend for several kilometres. Limited drilling since 2011 has resulted in many near-surface intercepts of strong mineralization showing good continuity laterally and to depth.Archean greenstone belts hosting large regional deformation zones that are pregnant with gold mineralization are known to host significant deposits, thus they represent coveted targets. Nighthawk intends to continue to aggressively explore these areas and others within this fertile terrain. Regional Prospecting In 2020 Nighthawk will be active on a number of regional prospects and expects to maintain a similar scale of activity into the future with the goal of advancing known deposits and showings and to make new discoveries. Heap Leach Potential and Ongoing Metallurgical Testing Ongoing metallurgical testwork continues to deliver consistently strong results, with heap leach test results falling within an acceptable range. Given the large amount of mineralized rock hosted by the Colomac Main and Goldcrest sills, heap leaching may augment a standard milling operation resulting in possible cost savings.

Colomac Gold Project, 2020 Updated Mineral Resource Estimate - 2020 Colomac MRE, effective at July 28, 2020
(Broken down by deposits for combined open pit and underground bulk mining method scenarios)
Deposit     Area (mining method)Cut-off (g/t)Indicated resource               Inferred resource              
                                             Tonnage (T*1000)AU (g/t)Ounces   Tonnage (T*1000)AU (g/t)Ounces 
Colomac     Open pit            0.6          7,996           1.73    443,800  159             1.46    7,500  
            UG Bulk             1.3          14,922          2.21    1,058,8004,740           2.08    316,500
Goldcrest   Open pit            0.6          1,362           1.56    68,100   8               1.00    300    
            UG Bulk             1.3          780             2.08    52,200   217             1.79    12,500 
Grizzly BearOpen pit            0.6          628             1.62    32,800   12              1.52    600    
            UG Bulk             1.3          202             1.89    12,300   30              1.80    1,700  
24/27       Open pit            0.6          -               -       -        375             1.89    22,800 
            UG Bulk             1.3          -               -       -        171             1.92    10,600 
Sub-total Open pit              0.6          9,986           1.70    544,700  554             1.75    31,200 
Sub-total UG Bulk               1.3          15,904          2.20    1,123,3005,158           2.06    341,300
TOTAL                                        25,890          2.01    1,668,0005,712           2.03    372,500

Table 2. Damoti Mineral Resource Estimate - Damoti MRE, effective at July 28, 2020

(for an underground selective mining method scenario)Mining MethodCut-off (gpt Au)Inferred Resources               
                                   Tonnes(000's)Grade(gpt Au)Ounces 
DamotiUG selective 2.00            736          4.97         117,800

Notes to accompany the Mineral Resource Estimate:The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43-101, are Marina Lund P.Geo., and Carl Pelletier, P.Geo., both from InnovExplo Inc., and the effective date is July 28, 2020.These mineral resources are not mineral reserves, as they do not have demonstrated economic viability.The mineral resource estimate follows current CIM definitions and guidelines for mineral resources.The results presented are undiluted and are considered to have reasonable prospects of economic viability.The estimates encompass six (6) gold deposits (Colomac Main, 24, 27, Goldcrest, Grizzly Bear, and Damoti), subdivided into 52 zones (6 for Colomac Main, 1 for 24, 1 for 27, 3 for Goldcrest, and 3 for Grizzly Bear, and 38 for Damoti) each defined by individual wireframes with a minimum true thickness of 3.0 m for the Colomac Main, 24, 27, Goldcrest and Grizzly Bear deposits and a minimum true thickness of 2.0 m for the Damoti deposit, using the grade of the material when assayed or a value of zero when not assayed. One (1) low grade envelope was create using the quartz diorite geological solid for the Colomac deposit and four (4) low grade envelopes were created using the BIF geological solid for the Damoti deposit. The resource was estimated using GEOVIA GEMS 6.8.2.High-grade capping supported by statistical analysis was done on raw assay data before compositing and established on a per-zone basis. Colomac Main deposit: all zones were capped at 50 g/t, except for the low-grade 1.0 zone and the low-grade envelop which were capped at 15.00 g/t; 24 and 27 deposits: not capped; Goldcrest and Grizzly Bear deposits: all zones were capped at 30.00 g/t; Damoti deposit: all high grade zones were capped at 100.00 g/t, except zones 2000, 2100 and 2200 capped at 45.00 g/t and zone 4300 capped at 40.00 g/t. The low-grade envelopes were capped at 20.00 g/t.Grade interpolation was performed with the ID3 method on 1.5 m composites for the Colomac Main, Goldcrest and Grizzly Bear deposits, with the ID2 method on 1.5 m composites for the 24 and 27 deposits and by Ordinary Kriging on 1.0 m composites for the Damoti deposit. The Colomac Main, 24 and 27, Goldcrest, Grizzly Bear block models have block size of 5.0 m by 10.0 m by 10.0 m and the Damoti block model has block size of 3.0 m by 3.0 m by 3.0 m.Bedrock was assigned a density value of 3.20 g/cm3 for the Damoti deposit and a value of 2.70 g/cm3 for the Colomac Main, 24. 27, Goldcrest and Grizzly Bear deposits corresponding to the mean of SG measurements. A fixed density value of 2.00 g/cm3 was assigned to the overburden.The Mineral Resource Estimate is classified as Indicated and Inferred. For the Colomac Main, 24 and 27, Goldcrest and Grizzly Bear deposits, the Inferred category is defined with a minimum of two (2) drill holes within the areas where the drill spacing is less than 75 m and shows reasonable geological and grade continuity. The Indicated mineral resource category is defined with a minimum of three (3) drill holes within the areas where the drill spacing is less than 50.0 m. For the Damoti deposit, the Inferred category is defined with a minimum of two (2) drill holes within the areas where the drill spacing is less than 60.0 m and shows reasonable geological and grade continuity. Clipping boundaries were used for classification based on those criteria.The Mineral Resource Estimate is locally pit-constrained using GEOVIA Whittle™ with a bedrock slope angle of 50degree and an overburden slope angle of 30degree. It is reported at a rounded cut-off grade of 0.60 gpt Au (in pit), 1.30 gpt Au (bulk underground), and 2.00 gpt Au (selective underground). The cut-off grades were calculated using the following parameters: mining cost = 4.79 to CA$ 65.00; processing cost = 22.50 to CA$ 25.00; G&A = 8.00 to CA$ 18.00; refining and selling costs = CA$ 5.00; gold price = US$ 1,425.00/oz; US$:CA$ exchange rate = 1.33; and mill recovery = 97.0%. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.).The number of metric tonnes was rounded to the nearest thousand, following the recommendations in NI 43-101 and any discrepancies in the totals are due to rounding effects. The metal contents are presented in troy ounces (tonnes x grade / 31.10348).InnovExplo Inc. is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, or marketing issues, or any other relevant issue not reported in the Technical Report, that could materially affect the Mineral Resource Estimate.

Colomac Mineral Resource Estimate Cut-Off Sensitivity Table 
(including the Colomac Main, Goldcrest, Grizzly Bear, 24 and 27 Deposits)
All Deposits, 
by mining method        Cut-off (gpt Au)Indicated Resources                  Inferred Resources                 
                                            Tonnes (000's)Grade (gpt Au)Ounces   Tonnes (000's)Grade (gpt Au)Ounces 
Open pit                    >3.00           982           4.46          141,088  47            3.70          5,623  
                            >2.00           2,573         3.20          264,927  197           2.69          17,024 
                            >1.50           4,228         2.62          356,840  296           2.39          22,705 
                            >1.30           5,206         2.39          400,709  334           2.27          24,445 
                            >1.20           5,754         2.28          422,658  366           2.18          25,690 
                            >1.00           7,112         2.06          470,517  432           2.02          28,030 
                            >0.80           8,520         1.86          511,239  479           1.91          29,388 
                            >0.70           9,368         1.77          531,730  528           1.80          30,562 
                            >0.60           9,986         1.70          544,662  554           1.75          31,124 
                            >0.50           10,650        1.62          556,348  596           1.66          31,873 
                            3.00           2,275         4.44          324,877  534           4.47          76,937 
                            >2.00           6,326         3.14          637,297  1,758         2.99          169,154
                            >1.50           11,814        2.48          940,467  3,661         2.33          274,285
                            >1.30           15,904        2.20          1,123,3675,158         2.06          341,364
                            >1.20           18,656        2.06          1,233,7986,048         1.94          377,103
                            >1.00           25,818        1.79          1,485,7178,215         1.72          453,410
                            >0.80           35,460        1.54          1,763,60711,568        1.48          549,910
                            >0.70           41,076        1.44          1,898,76913,709        1.36          601,018
                            >0.60           47,181        1.33          2,026,14216,089        1.26          650,773
                            >0.50           53,694        1.24          2,141,10618,664        1.16          696,225
                            <0.50           115,380       0.68          2,522,07163,830        0.44          913,768

Note: The reader is cautioned that the figures in this table are not a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.

Colomac Mineral Resource Estimate Gold Price Sensitivity Table
                                                            Indicated resource            Inferred resource   
Gold price       Deposit            Area   Cut-off   Tonnage      AU     Ounces  Tonnage      AU    Ounces
(USD/oz)                 (mining method)     (g/t)     (000)   (g/t)               (000)   (g/t)
1350             Colomac        Open pit      0.65     6,419    1.81    373,954      103    1.58     5,223
                                 UG Bulk       1.4    13,238    2.36  1,003,142    4,015    2.21   285,620
               Goldcrest        Open pit      0.65       564    1.55     28,205        3    0.99        86
                                 UG Bulk       1.4       984    2.30     72,846      175    1.90    10,703
            Grizzly Bear        Open pit      0.65       633    1.62     33,075        7    2.02       439
                                 UG Bulk       1.4       166    2.02     10,772       26    1.88     1,548
               24 and 27        Open pit      0.65         -       -          -      351    1.93    21,820
                                 UG Bulk       1.4         -       -          -      158    1.99    10,095
               Sub-total                              22,004    2.15  1,521,994    4,838    2.16   335,534
                  Damoti    UG selective       2.1         -       -          -      710    5.09   116,016
                   TOTAL                              22,004    2.15  1,521,994    5,548    2.53   451,550
1425             Colomac        Open pit       0.6     7,996    1.73    443,800      159    1.46     7,500
                                 UG Bulk       1.3    14,922    2.21  1,058,800    4,740    2.08   316,500
               Goldcrest        Open pit       0.6     1,362    1.56     68,100        8    1.00       300
                                 UG Bulk       1.3       780    2.08     52,200      217    1.79    12,500
            Grizzly Bear        Open pit       0.6       628    1.62     32,800       12    1.52       600
                                 UG Bulk       1.3       202    1.89     12,300       30    1.80     1,700
               24 and 27        Open pit       0.6         -       -          -      375    1.89    22,800
                                 UG Bulk       1.3         -       -          -      171    1.92    10,600
               Sub-total                              25,890    2.01  1,668,000    5,712    2.03   372,500
                  Damoti    UG selective       2.0         -       -          -      736    4.97   117,800
                   TOTAL                              25,890    2.01  1,668,000    6,448    2.37   490,300
1500             Colomac        Open pit       0.6     8,937    1.72    493,101      190    1.38     8,468
                                 UG Bulk       1.2    17,044    2.06  1,126,776    5,546    1.96   348,858
               Goldcrest        Open pit       0.6     1,492    1.52     73,004       11    1.00       348
                                 UG Bulk       1.2       873    1.96     55,014      275    1.68    14,838
            Grizzly Bear        Open pit       0.6       641    1.61     33,220       16    1.38       700
                                 UG Bulk       1.2       235    1.80     13,600       39    1.67     2,100
               24 and 27        Open pit       0.6         -       -          -      397    1.85    23,584
                                 UG Bulk       1.2         -       -          -      175    1.88    10,613
               Sub-total                              29,222    1.91  1,794,714    6,650    1.92   409,508
                  Damoti    UG selective       1.9         -       -          -      763    4.87   119,500
                   TOTAL                              29,222    1.91  1,794,714    7,413    2.22   529,008

Note: The reader is cautioned that the figures in this table are not a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of gold price.

Damoti Mineral Resource Estimate Cut-Off Sensitivity Table
Mining Method        Cut-off (g/t)Inferred Resources                 
                                  Tonnes (000's)Grade (gpt Au)Ounces 
Underground Selective>7.00        108           12.57         43,560 
                     >5.00        216           9.20          63,988 
                     >4.00        321           7.65          79,039 
                     >3.00        498           6.17          98,771 
                     >2.00        736           4.97          117,781
                     >1.00        1,097         3.82          134,581
                     >0.50        1,507         2.97          143,962
                     <0.50        8,838         0.59          166,889

Note: The reader is cautioned that the figures in this table are not a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.

2020 Mineral Resource EstimateThe 2020 MRE was prepared by InnovExplo, Val-d'Or, Quebec, in accordance with CIM definitions and guidelines for mineral resources (November 2019) and NI 43-101 Standards of Disclosure for Mineral Projects and has been reviewed internally by the Company's Qualified Person. The full technical report will be available on SEDAR within 45 days of the date of this release. Mined volumes of the Colomac deposit have been removed from the current resource model. Mineral Resources were classified as Indicated and Inferred Mineral Resources based on data density, search ellipse criteria, drill hole spacing and interpolation parameters.

The 2020 MRE was generated using reasonable cut-off grades for pit constrained and potential bulk underground extraction mining methods. Specific extraction methods are used only to establish reasonable cut-off grades for various portions of the deposits. No Preliminary Economic Analysis, Pre-Feasibility Study or Feasibility Study has been completed to support economic viability and technical feasibility of exploiting any portion of the mineral resources, by any specified mining method.

The Indin Lake Gold Property is located 200 kilometres northwest of Yellowknife, Northwest Territories. Access is by winter road from Yellowknife or year-round by chartered aircraft to a 5,000-foot airstrip at the former Colomac Mine site. An all-season road build is underway and will extend the current all-season road from Yellowknife to within 100 kms southwest of the property. Nighthawk has secured a contiguous land position fully surrounding Colomac by consolidating more than 95% of the Indin Lake Greenstone Belt including the related Indin Lake Gold Camp. Colomac lies within the central portion of Nighthawk's Indin Lake Gold Property and includes at least five separate gold deposits open in all dimensions (Colomac Main, Goldcrest, Grizzly Bear and the 24 and 27 deposits), only one of which, the Colomac Deposit, was historically mined. Intermittent mining from 1990 to 1997 was limited to three shallow open pits developed on a steeply dipping differentiated mafic intrusion (Colomac Main Sill). Historical production is reported to be 527,908 ounces gold with an average head grade of 1.66 gpt gold. Mining activities impacted only a small portion of the sill's 7-kilometre mineralized strike length. All mining and processing equipment and infrastructure have been removed from the Colomac Property.

ColomacThe 2020 Colomac MRE is based on 924 drill holes totaling 177,598 metres (608 historical drill holes totaling 72,521 metres, and 316 drill holes totaling 105,076 metres completed by Nighthawk between 2012 and 2019. Mineral resources for the Colomac Main and Goldcrest deposits (differentiated mafic sills), as well as the Grizzly Bear and the 24 and 27 deposits (contact related) (Figure 1), were compiled using a minimum cut-off grade for two combined extraction method scenarios: 0.60 gpt Au for open pit and 1.30 gpt Au for underground bulk (Table 1). A cut-off sensitivity Table (Table 3) and a gold price sensitivity table (Table 4) are provided for Colomac which includes the Colomac Main, Goldcrest, Grizzly Bear and the 24 and 27 deposits (Table 3).

The current disclosure incorporates an updated geological model upgraded with additional structural data from oriented core, drone LiDAR survey of the open pits and detailed surface structural mapping collected since 2016. Measurements indicate that Colomac mineralized vein sets consist of a simple to complex conjugate network of gold-bearing, extensional veins and hydrothermal breccias with local laminated quartz-carbonate fault-fill veins in moderately to steeply dipping, compressional brittle-ductile shear zones and faults. The complex stockwork of flat lying to steeply dipping gold-bearing structures appear to be hosted and controlled by the quartz diorite upper portion of the subvertical sill. Structural modeling suggests that steeply dipping ore shoots within the quartz diorite are related to complex stacking of gold-bearing veins. Increased drilling, field data acquisition and the introduction of oriented core measurements have greatly advanced the understanding of Colomac mineralization, resulting in a more evolved litho-structural model, which in turn has improved the level of certainty in the geological and grade continuities of the mineralized zones.

The "reasonable prospects for eventual economic extraction" were satisfied with a constrained pit shell (open pit) and manual selection of blocks (underground) according to the economical parameters selected (cut-off grade, mining method, etc.) and the geological continuity of the mineralization.

Exploration Target1InnovExplo has stated that the potential tonnage and grade of additional mineralization that may be added to a mineral resource by drilling the extensions of currently defined mineralized zones at depth and laterally could be 18.00 to 23.00 Mt, grading between 1.80 gpt Au and 2.00 gpt Au for approximately 1.0 to 1.5 Moz of gold. Highlighted in Figure 2 are some of those areas as well as deeper unexplored regions of Colomac Main that have yet to be drilled but are expected to provide additional resources beyond those noted in the Exploration Target (Figure 2).The potential quantity and grade are conceptual in nature as there has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

Additions to the 2020 Colomac MRE Relative to the 2018 Mineral Resource Estimate ("MRE")

The 2020 Colomac MRE is vastly improved over the 2018 MRE, which only reported inferred resources, did not include an underground resource, nor were rigid underground and open pit resource constraints employed. Conversely, the 2020 Colomac MRE incorporates significantly more refined geological and structural models and mineralized domains, presents a tightly constrained open pit and underground resource, and the majority of Inferred Resources have been converted to Indicated Resources, yielding the most comprehensive and representative estimate to-date (Figure 2). Defining a large underground resource at Colomac allows exploration to benefit from the substantial true width expansion of the mineralized quartz diorite portion of the sill to depth. Drilling the sill to depth will expedite resource growth beyond what would have been possible if Colomac had remained primarily perceived as an open pit project.

Colomac Main accounts for 84.6% of the current MRE and represents the largest area for future resource expansion opportunities. Since 2018, 126 holes totaling 45,476 meters were drilled on Colomac Main to test the extension of the mineralization to the north and at depth and to infill near surface gaps in drill coverage. While drilling has increased the size of the block model, extensive infill drilling has also allowed the conversion of most of the Inferred Resources to Indicated Resources, which could potentially be converted to Measured Resources with additional infill drilling, and ultimately Mineral Reserves if they can be deemed economically, and technically feasible to extract.

In 2019 a newly defined panel of mineralization exhibiting strong continuity was described being formed by the merger of high-grade Zone 1.5 and the northern portion of Zone 2.0. It was traced for 500 metres along strike with a true width of up to 50 metres at shallow depths that progressively expands to upwards of 155 metres in true width at 800 metres vertical depth where it remains open. The discovery that the best mineralized portion of the Colomac sill widens upwards of three-fold to depth is one of the key advances made to-date and highlights this area for its promise to host significant higher-grade mineralization over expansive true widths.

Recent drilling at Zones 2.0, 2.5, 3.0, and 3.5 has established continuity of mineralization within near-surface gaps in drill coverage, extended zones to depth below the previous resource, and identified new areas of higher-grade mineralization that may indicate the presence of new higher-grade gold shoots. 2019 drilling also confirmed that the mineralized portion of Colomac Main widens considerably to depth throughout the 3.5 kilometres that separates Zone 3.5 northwards to Zone 1.5 (Figures 1 and 2). The progressive widening to depth reflects the sill's true geometry and is believed representative of its entire 7-kilometre strike length, thus providing an opportunity for significant resource expansion at depths that remains untested

In 2019, 1,914 metres were drilled at Goldcrest, extending the maximum depth of the resource model from 300 metres to 425 metres below surface, where it remains open. This drilling also confirmed zone continuity by infilling gaps in drill coverage which has helped with the re-classification of most of the Inferred resources to Indicated resources totalling 2.14 Mt at an average grade of 1.74 gpt Au, for 0.12 Mozs.

Ten holes totaling 2,157 metres were drilled at Grizzly Bear in the 2018. Results support continuity of the mineralized zones and have extended the deposit to a depth of 200 metres vertical, where it remains open. An increase in the size of the model has added 0.65 Mt at an average grade of 1.69 gpt Au resulting in an additional 20,386 ounces of gold.

The 24 and 27 deposits have never been drilled by the Company. Inferred resources for these deposits are based on historical drilling conducted prior to Nighthawk's acquisition of Colomac. In 2019 and 2020 the Company has carried out extensive outcrop stripping, mapping, and channel sampling programs on this highly prospective area to better understand the controls on mineralization in preparation for future drilling.

DamotiMineral resources for Damoti were compiled using a minimum cut-off grade of 2.00 gpt for an underground selective extraction method scenario (Table 2). A cut-off sensitivity Table is provided for Damoti (Table 5). The Damoti MRE is based on 266 drill holes totaling 33,433 metres (256 historical drill holes totaling 30,157 metres, and 10 drill holes totaling 3,276 metres), completed by Nighthawk between 2012 and 2019.

Damoti lies 28 kilometres south of Colomac (Figure 3). Mineralization is hosted in folded Archean iron-formation associated with fold related fracturing and hydrothermal alteration where gold is preferentially located within fold noses and parasitic structures. Areas of significant gold mineralization occur in association with sulphide minerals, predominantly pyrrhotite and to a lesser extent pyrite replacing magnetite. A small historical high-grade, near-surface gold deposit was previously defined that showed resource expansion opportunities (see press release dated, November 17, 2005, for Anaconda Gold Corp.).

In 2009, 2010, and 2018 Nighthawk drilled a total of 86 holes (18,787 metres) to expand the main deposit, to test known zones laterally, and explore for new opportunities. Drilling of the Horseshoe Zone ("Horseshoe"), the principal part of the deposit (Figures 3 and 4), successfully infilled priority areas within the historical resource and extended mineralized zones along strike and to depth. Drilling was also conducted on similar mineralized fold structures immediately west of Horseshoe with variable results. Areas of high-grade mineralization are best developed along the keel of the folds and in association with smaller parasitic folds along the limbs, and as discrete mineralized zones that crosscut the main unit. New gold zones were also discovered within the lower west limb and keel areas of the Horseshoe and Red Mountain synclines that remain open (Figure 4). Limited historical underground development via ramp was developed into the core of Horseshoe and a 4,000 tonne bulk sample grading 15.43 gpt Au was removed and stored on surface.

Drilling at Damoti since 2018 by Nighthawk has confirmed geological and grade continuity of the mineralized zones supporting the initial mineral resource estimate for the project of 0.74 Mt at an average grade of 4.97 gpt Au for 0.12 Mozs (Table 2). Nighthawk considers Damoti an important satellite deposit and intends to expand on its resource growth potential. Damoti illustrates the unique opportunity that some of the other high-priority regional assets may represent in terms of contributing possible high-grade feed for any future development opportunity at Colomac.

Qualified Person

Technical information related to the 2020 MRE contained in this news release has been reviewed and approved by Marina Iund, M.Sc., P.Geo., Project Geologist and Carl Pelletier, P.Geo., Co-President Founder of InnovExplo who are independent Qualified Persons as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of this data. The technical report supporting the 2020 MRE will be filed on SEDAR within 45 days.

Dr. Michael J. Byron, Ph.D., P.Geo., President & Chief Executive Officer of Nighthawk, who is the "Qualified Person" as defined by NI 43-101 for this project, has reviewed and approved of the technical disclosure contained in this news release.

Technical Information

Nighthawk has implemented a quality-control program to comply with best practices in the sampling and analysis of drill core. Drill core samples were transported in security-sealed bags for analyses at ALS Chemex Assay Laboratory in Vancouver, BC ("ALS Chemex"). ALS Chemex is an ISO 9001:2000 certified laboratory. Pulp and metallics assaying for gold was conducted on the entire pulverized sample.

As part of its QA/QC program, Nighthawk inserts external gold standards (low to high grade) and blanks every 20 samples in addition to the standards, blanks, and pulp duplicates inserted by ALS Chemex.