The Quebec Mineral Exploration Association (QMEA) launched a standard in November 2019 to recognize and promote environmental, social and economic best practices: the first certification of its kind for mineral exploration companies. The standard was adapted by Underwriters Laboratories (“UL”) to create the ECOLOGO Certification, which enables companies to communicate their commitment to the environment, human health, well-being of the community, and fair economic practices to both investors and stakeholders. UL, accredited by the Standards Council of Canada (SCC), is an independent, safety testing, certification and inspection organization with a trusted name for more than 125 years.

Troilus CEO and Director Justin Reid commented, “Being the first mineral exploration company to be awarded ECOLOGO Certification is a proud achievement for our company. Troilus benefits from a legacy of environmental stewardship, strong community ties and a commitment to sustainable development that we intend to continue as we move the project forward. The ECOLOGO certification demonstrates to our stakeholders and investors that a trusted third party has carefully evaluated our operations and procedures to validate our sustainable practices. We view our commitment to environmental, social and economic best practices as essential to building a successful company.”

Valerie Filion, Executive Director of QMEA stated “The Quebec Mineral Exploration Association congratulates Troilus Gold Corp. for its ECOLOGO certification related to responsible development for mineral exploration companies. Troilus is the first mineral exploration company to complete all the necessary steps to comply with this new certification. This responds to the growing concern of stakeholders and investors towards our industry with regard to environmental standards and social acceptability of projects”.

The southern portion of the Tolillar salar is characterized by basaltic flows on the western edge, similar to what is seen in the Hombre Muerto salar, 10 kilometres directly east of the Tolillar salar. Additionally, it was previously unknown if the 700-metre-thick upper layer of sedimentary rock in the southern portion was brine bearing or if it was linked to a lithium source. What is exciting for the company is that it appears as though the highly conductive, presumably brine-bearing zones in the north (where the presence of both brine and lithium have been confirmed) appear to extend south, beyond the captured geophysical data. It also appears that these conductive zones extend from surface to depths of 400 metres to 450 metres below surface. This southern area is previously unexplored; and the company now believes it may hold significant potential.

The company anticipates that exploration of the new southern acreage will identify additional high-conductivity horizons and yield significant drilling targets and similar results to what was found during the company’s initial VES survey. The company’s first VES survey demonstrated that the southern limits of the area investigated identified high conductivity that extended south, beyond the data points.

The previous high-powered VES survey was shot on a small portion of the company’s 100-per-cent wholly owned 27,500 hectares over legacy data points that required validation. The company’s high-powered survey successfully detected several horizons of high conductivity and likely represent subsurface brine deposits. The results coincide with shallow tests previously conducted on the salar, which identified the presence of both brine and lithium.

The detailed operations and planning for a new, expanded southern-area VES survey are under way and arrangements are being made with Conhidro SRL, the same team of experts that performed the original VES survey, to conduct the expanded survey.

Brad Nichol, president and chief executive officer, commented: “What an exciting time for Alpha Lithium. On the heels of an exceptionally successful high-powered geophysics program, we are eager to follow the obvious trend south into uncharted territory and open up an exciting new portion of the Tolillar salar. The southernmost extent of our previous VES survey demonstrated obvious, thick, conductive horizons, which mandate following the trend to see what we can uncover. We will continue to refine our drilling targets from the first survey and look forward to adding more drilling locations to the mix when we get the results of this second VES survey.”

The company will report when the southern extension geophysics operations commence.

Qualified person

Pablo Gomez, MSc (hydrogeology), MAIG, is a principal hydrogeologist of Tuareg Geological Services. Mr. Gomez is a member of the Australian Institute of Geoscientists (AIG), a practising hydrogeologist with extensive experience exploring lithium salt lakes. Mr. Gomez is a professor at the University of Salta in Argentina and has worked on several advanced lithium brine projects. He is an independent consultant of Alpha. Mr. Gomez is a competent person as defined in the JORC Code (2012) and in National Instrument 43-101 who has reviewed and approved the scientific and technical content in this release.

In the South zone, hole KM-20-13 intersected a broad interval of 43.1 metres at a grade of 3.9 per cent copper equivalent, including 15.2 metres grading 6.7 per cent copper equivalent, located at a vertical depth of 341 metres.

Branch hole KM-20-10B, located 50 metres below KM-20-13, intersected 27.6 metres grading 2.9 per cent copper equivalent, including 3.5 metres at a grade of 6.7 per cent copper equivalent, 4.4 metres of 5.3 per cent copper equivalent and 6.6 metres at 4.8 per cent copper equivalent.

Branch hole KM-20-10C intersected an interval of 6.8 metres at a grade of 7.3 grams per tonne gold equivalent, including 4.3 metres grading 10.1 grams per tonne gold equivalent as well as 0.8 metre of 27.6 grams per tonne gold equivalent. This hole is located at the edge of the southern boundary of the historic estimate by Exxon Mineral (1982) in a newly defined gold-zinc-rich lens. It is located approximately 150 metres up dip from hole KM-20-09, which, in March, 2020, intersected 6.1 metres at a grade of 7.8 grams per tonne gold equivalent(including 4.4 metres at 9.3 grams per tonne gold equivalent as well as 1.1 metres grading 16.0 grams per tonne gold equivalent).

In the North zone, hole KM-20-12 intersected an interval of 4.9 metres at a grade of 4.8 per cent copper equivalent, including 1.9 metres grading 10.1 per cent copper equivalent, from a vertical depth of 318 metres. Approximately 5.8 metres farther down hole from this massive sulphide intersection, hole KM-20-12 also intersected 25.9 metres at a grade of 0.9 per cent copper equivalent.

Holes KM-20-14 and KM-20-15 have been completed and submitted to ALS Laboratories of Tucson, Ariz., for assaying. Holes KM-20-14A and KM-20-16 have been completed and are being sampled for submittal to ALS Laboratories.

Marc Pais, chief executive officer, commented: “Of the 20 holes drilled at the Kay mine to date, 18 have intersected massive sulphide mineralization. Because previous operators reported significantly better widths and grades in the fold hinges, the initial focus of the Kay mine phase 1 drilling in both the North and South zones has been to locate the fold hinges of the mineralized lenses. We have successfully done that, as shown by the thick intercept in hole KM-20-13 in the South zone of 43.1 metres grading 3.9 per cent copper equivalent, including 15.2 metres grading 6.7 per cent copper equivalent.

“In hole KM-20-12 in the North Zone, we encountered a broad intersection (25.9 m) of lower-grade mineralization (0.87% CuEq) just below 4.9 m of higher grade (4.8% CuEq) massive sulphide mineralization. We see this as an indication that we could be approaching a fold hinge in the North Zone as well.

“Earlier this week we started a downhole electromagnetic testing program, in order to better define new targets for extension of the hinges. The geophysical results will be used in conjunction with today’s results, and the four holes currently at the lab, to plan new holes.

“Now that we have located a hinge of significant thickness in the South Zone, we will begin planning a Phase 2 drill program to further define that hinge up- and down-plunge. Branch hole KM-20-10C has extended the gold-rich zinc lens, located outside of Exxon’s historic estimate, by 150 m up-dip from hole KM-20-09, which intersected similar grades and width. We see excellent potential to extend this zone both up-dip and down-dip, and also further to the south. Hole KM-20-15 is located 30 m south of KM-20-10C and was drilled to test the strike extension of the gold-rich zinc lens. This hole is currently at the lab being assayed.”

Kay Mine Downhole Electromagnetic Survey

On August 3, 2020, Zonge International of Tucson, Arizona, commenced a downhole electromagnetic survey of seven recently completed Kay Mine drill holes, including KM-20-10C, KM-20-11, KM-20-12, KM-20-13, KM-20-14A, KM-20-15, and KM-20-16. This geophysical survey is intended to identify the extensions of underground massive sulphide mineralization. The combined results of the drill hole assays and the downhole surveys will be used to design a Phase 2 drill program at the Kay Mine.

Covid-19 Monitoring and Mitigation Procedures

The Company’s drill contractor, Boart Longyear, has instituted Covid-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals Corp will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.

Summary of North Zone Drill Results:

Holes KM-20-01 through KM-20-06 all intersected massive sulphide mineralization. Hole KM-20-07 did not intersect significant mineralization and is believed to have passed between the North and South Zones. Arizona Metals’ drilling tested a vertical extent of approximately 50 m in the North Zone, to a vertical depth between 120-170 m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300 m below recent drilling by Arizona Metals.

Highlights of the first eight holes in the North Zone include:

KM-20-03: 2.7 m grading 5.4% CuEq (incl. 0.9 m of 10.3% CuEq), from a depth of 120 m

KM-20-03A: 4.6 m grading 6.9% CuEq (incl. 0.8 m of 18.2% CuEq) from a depth of 122 m

KM-20-05: 2.4 m grading 9.2% CuEq (incl. 1.2 m of 13.9% CuEq) from a depth of 150 m

KM-20-06: 13.5 m grading 2.9% CuEq (incl. 4.9 m of 4.5% CuEq) from a depth of 158 m

KM-20-11: 2.7 m grading 9.2% CuEq from a depth of 490 m

KM-20-12: 4.9 m grading 4.8% CuEq (incl. 1.9 m of 10.1% CuEq) from a depth of 318 m

KM-20-12: 25.9 m grading 0.9% CuEq, from a depth of 326 m

Summary of South Zone Drill Results:

Below are highlights of drilling to date in the South Zone:

KM-20-09: 6.1 m grading 7.8 g/t AuEq, including 4.4 m grading 9.3 g/t AuEq, and also including 1.1 m grading 16.0 g/t AuEq, from a depth of 575 m

KM-20-10A: 10.7 m grading 4.4% CuEq, including 1.5 m grading 8.6% CuEq, 3.1 m grading 4.2% CuEq, and 1.4 m grading 12.2% CuEq from a depth of 442 m

KM-20-10B: 27.6 m grading 2.9% CuEq, including 6.6 m at 4.8% CuEq, 4.4 m grading 5.3% CuEq, and 3.5 m grading 6.7% CuEq from a depth of 423 m

KM-20-10C: 6.8 m grading 7.3 g/t AuEq, including 4.3 m grading 10.1 g/t AuEq, and 0.8 m grading 27.6 g/t AuEq from a depth of 422 m

KM-20-13: 43.1 m grading 3.9% CuEq, including 15.2 m grading 6.7% CuEq and 4.4 m grading 10.3% CuEq from a depth 341 m

Sugarloaf Peak Project Update

On July 6th, 2020, Arizona Metals commenced a Phase 1 drill program at its Sugarloaf Peak Project in La Paz County, Arizona. Drill core from this program will be sent to Kappes Cassiday and Associates of Reno, Nevada, to undergo bottle-roll and column testing of gold recoveries by leaching of oxide material. Samples will also be sent to ALS Minerals in Reno, Nevada for gold assay, multi-element testing, and spectral analysis to determine trace-element levels and hydrothermal alteration variations.

The Phase 1 program, comprised of four drill holes, has been completed. The program was originally planned to total 1,300 m but was increased to 1,700 m. Two cored drill holes were extended to depths of approximately 550 m each to test a large geophysical target that the Company believes has the potential to host a higher grade “feeder” zone, that could be the source of the disseminated oxide mineralization identified by previous operators. The holes are currently being logged and will be submitted to the lab for assay during the month of August.

About Arizona Metals Corp

Arizona Metals Corp owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres that are not subject to any royalties.

The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth.

The Company also owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of “100 million tons containing 1.5 million ounces gold” at a grade of 0.5 g/t (Dausinger, 1983, Westworld Resources).

The Qualified Person who reviewed and approved the technical disclosure in this release is David Smith, CPG.

Quality Assurance/Quality Control

All of Arizona Metals’ drill sample assay results have been independently monitored through a quality assurance/quality control (“QA/QC”) protocol which includes the insertion of blind standard reference materials and blanks at regular intervals. Logging and sampling were completed at Arizona Metals’ core handling facilities located in Anthem and Black Canyon City, Arizona. Drill core was diamond sawn on site and half drill-core samples were securely transported to ALS Laboratories’ (“ALS”) sample preparation facility in Tucson, Arizona. Sample pulps were sent to ALS’s labs in Vancouver, Canada, for analysis.

Gold content was determined by fire assay of a 30-gram charge with ICP finish (ALS method Au-AA23). Silver and 32 other elements were analyzed by ICP methods with four-acid digestion (ALS method ME-ICP61a). Over-limit samples for Au, Ag, Cu, and Zn were determined by ore-grade analyses Au-GRA21, Ag-OG62, Cu-OG62, and Zn-OG62, respectively.

ALS Laboratories is independent of Arizona Metals Corp. and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal QA/QC procedures to assure the accuracy and integrity of results. Parameters for ALS’ internal and Arizona Metals’ external blind quality control samples were acceptable for the samples analyzed. Arizona Metals is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to herein.

In connection with the $2,015,400 offering, the company issued finders’ fees of $84,624 (totalling 4.2 per cent of the gross proceeds of the offering) and 423,120 finder warrants. Each finder warrant will be exercisable at a price of 27 cents into one common share for a period of 24 months from the date of issuance.

A portion of the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Securityholders in Special Transactions, as some of the units were issued to certain directors and officers of the company. The issuance of the units to the insiders of the company under the private placement are exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 pursuant to subsections 5.5(b) and 5.7(1)(a) as the company’s common shares are not listed on a specified market and the fair market value of these units will not exceed 25 per cent of the company’s market capitalization.

All of the shares and warrants issued pursuant to the private placement are subject to a minimum four-month hold period. The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities. Proceeds from the financing will be used to advance Frontier’s 100-per-cent-owned Pak lithium project located in Northwestern Ontario.

Number of shares:  10,077,000 shares

Purchase price:  20 cents per share

Warrants:  5,038,500 share purchase warrants to purchase 5,038,500 shares

Warrant exercise price:  27 cents for a two-year period

Number of placees:  47 placees

Insider:  1988109 Ontario Inc. (Reginald Walker), 1.4 million

Finders’ fees:  Wavecrest Securities LLC, $49,104.46 (U.S.) in cash payments and 29,526 broker warrants; Ede Asset Management Inc., $16,800 (Canadian) in cash payments and 84,000 broker warrants; Canaccord Genuity Corp., $600 (Canadian) in cash payments and 3,000 broker warrants; Barry Dennis, 306,594 broker warrants (Each broker warrant will be exercisable at 27 cents for one common share of the company for 24 months from the date of issuance.)

AMC is also pleased to announce that it has engaged Proconsul Capital Ltd. (the “Contractor”) to provide investor relations services pursuant to a contracting services agreement (the “Services Agreement”). The Services Agreement is dated effective August 1, 2020 and may be terminated by either party on one month’s notice. Services provided by the Contractor will relate to ongoing communications and promotional support for the Company’s relations with the professional investment community. Pursuant to the Services Agreement, the Company will pay to the Contractor a fee of $3,000 per month (plus applicable taxes) and an aggregate of 100,000 stock options (“Options”) to purchase common shares of the Company at a price of $0.80 for a period of two years. The Options will vest monthly in equal installments over the course of one year from the date of the Services Agreement. The Contractor is an arm’s length party to the Company and, to the Company’s knowledge does not currently own any securities of the Company as at the date hereof but may purchase securities in the Company from time to time for investment purposes. The Services Agreement is subject to acceptance by the TSX Venture Exchange.

Highlights

Drilling at 55 has confirmed gold mineralization over four km continuous strike from Windjammer South to 55 including the Southwest deposit:

• Confirmed the western extensions of gold mineralization up to 250 metres west and 150 m to the east of the current resource at 55:
  • MGH20-146: intersected 11.48 m at 1.83 grams per tonne gold (g/t Au) including 2.60 m at 4.04 g/t Au, including 0.69 m at 11.60 g/t Au;
  • MGH20-149A: intersected 7.30 m at 1.24 g/t Au including 4.15 m at 2.07 g/t Au;
  • MGH20-149: intersected 5.63 m at 1.68 g/t Au including 1.00 m at 5.28 g/t Au;
  • MGH20-157: 5.45 m at 1.61 g/t Au including 1.00 m at 3.56 g/t Au;
  • MGH20-154: intersected 5.00 m at 1.42 g/t Au including 0.60 m at 11.20 g/t Au;
  • Confirmed mineralization over 600 m at 55.

“The drilling at the 55 deposit has intersected gold mineralization in large stepouts at 55 extending the length of mineralization by over 400 metres,” commented chief executive officer and chief geologist Gary O’Connor. “We have confirmed the extensions of flat-dipping veins near surface and steeper veins at depth further extending the overall footprint of mineralization at 55. The recently completed drill program has now successfully confirmed continuous gold mineralization from 55 in the west to Windjammer South in the east for over 4.0 km. We look forward to updating the mineral resource estimate this year and to continuing to drill test the open extensions of mineralization.”

The latest assay results are from the five drill holes, plus one redrill (MGH20-149A), completed on the 2019/2020 winter drill program at the 55 deposit for a total of 2,259.0 m. The drilling was testing the western and eastern extensions of shallow-dipping gold zones beyond the current NI 43-101 resource estimate. The 55 deposit currently hosts 35,000 ounces at a grade of 5.11 g/t Au in 216,000 tonnes in the indicated category and 45,300 ounces of gold at a grade of 4.31 g/t Au in 327,000 t in the inferred category at a cut-off grade of 3.00 g/t Au. The 2019/2020 winter drill program consisting of 36 holes for 18,159.0 m was successfully completed under COVID-19 work safety protocols. The results of the drill program are now being used to update the mineral resource estimates for the 55 and Windjammer South deposits and produce a maiden resource for the new Westaway discovery, including the West block zone.

55 deposit drill results

Drill hole MGH20-146 was drilled up to 150 m west of the current resource at 55 to test the western and down-plunge extensions of shallow-dipping zones and steeper mineralized structures beyond the current resource. The hole confirmed the extensions of all shallow-dipping zones and intercepted up to 9.03 m at 2.20 g/t Au, including 2.60 m at 4.04 g/t Au, including 0.69 m at 11.60 g/t Au and 0.65 m at 5.85 g/t Au from zone 5, 9.36 m at 0.90 g/t Au including 0.60 m at 2.66 g/t Au from zone 9 and 1.79 m at 1.81 g/t Au including 0.88 m at 3.66 g/t Au from zone AB.

Drill holes MGH20-149 and redrill MGH20-149A were drilled from 50 m to the west of the current resource estimate at 55 to test for the western and downdip extensions of the shallow flat-dipping veins near-surface and the steep veins at depth. Both holes stopped short of target depth. MGH20-149A intersected up to 4.15 m at 2.07 g/t Au including 0.98 m at 5.63 g/t Au and MGH20-149 intersected 5.63 m at 1.68 g/t Au including 1.00 m at 5.28 g/t Au from zone 2.

Drill holes MGH20-153 and MGH20-157 were drilled on one section 250 m to the west of the current resource estimate at 55 to test for the western and downdip extensions of the shallow flat-dipping veins near surface and the steep veins at depth. MGH20-153 intersected up to 6.00 m at 1.24 g/t Au including 1.00 m at 2.78 g/t Au from zone 12, 5.68 m at 0.85 g/t Au including 0.64 m at 3.23 g/t Au from zone AB and 5.30 m at 0.94 g/t Au including 1.00 m at 4.84 g/t Au from a new vein. MGH20-157 intersected up to 10.67 m at 0.76 g/t Au including 1.00 m at 3.85 g/t Au from zone 5, 5.70 m at 0.89 g/t Au including 1.00 m at 2.78 g/t Au from zone 7.

Drill hole MGH20-154 was drilled up to 150 m east of the current mineral resource at 55 to test the updip extensions of the shallow-dipping zones and steep structures. MGH20-154 intersected up to 5.00 m at 1.42 g/t Au including 0.60 m at 11.20 g/t Au from zone 8 and 6.70 m at 0.74 g/t Au including 0.90 m at 4.29 g/t Au from a new zone extending the zones significantly to the east.

         55 DEPOSIT: SELECTED SIGNIFICANT DRILL RESULTS
  
Hole                From           To       Length           Au
No.                  (m)          (m)          (m)        (g/t)

MGH20-146         160.00       169.03         9.03         2.20
includes          160.00       162.60         2.60         4.04
includes          161.31       162.00         0.69        11.60
and               164.35       166.00         1.65         3.87
includes          164.35       165.00         0.65         5.85
MGH20-146         259.14       268.50         9.36         0.90
includes          259.14       259.74         0.60         2.66
MGH20-149A         87.90        92.05         4.15         2.07
includes           89.50        90.48         0.98         5.63
MGH20-149          86.80        92.43         5.63         1.68
includes           90.00        92.00         2.00         3.85
includes           90.00        91.00         1.00         5.28
MGH20-153         322.50       328.50         6.00         1.24
includes          323.50       324.50         1.00         2.78
MGH20-153         488.50       493.80         5.30         0.94
includes          491.00       492.00         1.00         4.84
MGH20-154         252.00       257.00         5.00         1.42
includes          253.50       254.10         0.60        11.20
MGH20-154         480.90       487.60         6.70         0.74
includes          480.90       481.80         0.90         4.29
MGH20-157          78.89        83.45         4.56         1.92
includes           81.00        82.00         1.00         3.56
MGH20-157          98.00       108.67        10.67         0.76
includes          102.00       103.00         1.00         3.85
MGH20-157         158.50       164.20         5.70         0.89
includes          160.00       161.00         1.00         2.78
 
Intercepts are calculated using geological boundaries, a 
maximum of three m internal dilution and no top cap applied. 
All intercepts are reported as drill widths and estimated to 
be 70 per cent to 95 per cent of true widths

55 deposit

The 55 deposit is located within a similar geological setting as the Southwest deposit. Gold mineralization is seen to occur as a series of mineralized vein structures, which occur adjacent to the regional Timiskaming-age banded iron formation A unit (BIF-A). The mineralized quartz-pyrite veins occur as extensional vein structures associated with ankerite-sericite-silica-pyrite alteration haloes. The zones occur as both stacked steeply west-dipping north-northwest-south-southeast-oriented mineralized zones and as wider shallowly west-dipping zones, which potentially are open-pit targets. A total of 18 shallow-dipping veins have been identified. A significant amount of historical drilling has defined the mineralized zones. The 55 deposit currently hosts 35,000 ounces at a grade of 5.11 g/t Au in 216,000 t in the indicated category and 45,300 ounces at a grade of 4.31 g/t Au in 327,000 t in the inferred category at an underground mining cut-off grade of 3.00 g/t Au.

          55 DEPOSIT: SELECTED SIGNIFICANT HISTORICAL DRILL RESULTS
  
Hole                    From                To            Length                Au
No.                      (m)               (m)               (m)             (g/t)

MA04-25                53.00             62.50              9.50              6.71
MN96-174               54.00             60.20              6.20              4.52
MN96-181               56.50             59.20              2.70              8.59
MA05-28                68.30             70.70              2.40              7.96
MA-08-43               80.90             83.80              2.90             42.29
M55-10-32             100.75            103.20              2.45              7.95
MA-08-49              127.00            164.00             37.00              7.78
MA-08-49              173.00            179.00              6.00              6.49
M55-10-20             217.10            220.20              3.10              7.96
MA-02-06              211.00            217.50              6.50              7.74
MA05-31               243.50            245.50              2.00             10.90
MA-05-30              245.30            250.50              5.20              7.92
M55-10-20             272.00            279.00              7.00              3.57
MN97-195              261.80            265.30              3.50             13.04
MA03-10X              311.80            314.00              2.20              8.42

Intercepts are calculated using geological boundaries and no top cap applied. 
All intercepts are reported as drill widths and estimated to be 70 per cent to 
95 per cent of true width.

Quality assurance/quality control procedures

All core drilling conducted by Moneta is oriented. Drill core is cut with half sent to AGAT Laboratories Inc. for drying and crushing to minus two millimetres, with a 1.00-kilogram split pulverized to minus 75 micrometres (200 mesh). AGAT is an International Organization for Standardization 17025-accredited laboratory. A 50 g charge is fire assayed and analyzed using an AAS (atomic absorption spectroscopy) finish for gold. Samples above 10.00 g/t Au are analyzed by fire assay with a gravimetric finish and selected samples with visible gold or high-grade mineralization are assayed by metallic screen fire assay on a 1.00 kg sample. Moneta inserts independent certified reference material and blanks with the samples and assays routine pulp repeats and coarse reject sample duplicates, as well as completing routine third party check assays at Activation Laboratories Ltd. Kevin Montgomery, PGeo, is a qualified person under National Instrument 43-101 and has reviewed and approved the technical contents of this press release.

Highlights:

• Significant air core drill intercept of 6.2 grams per tonne gold over six metres from 14 m depth (not true width);
• Intersection extends strike potential of FT prospect by 600 m to approximately three kilometres;
• Program has defined a 28 m wide target coincident with the key magnetic anomaly;
• Historical drilling from FT prospect of 9.31 g/t Au over 16 m, 9.84 g/t Au over 14 m and 2.91 g/t Au over 60 m (not true widths);
• Results pending from eight-hole (1,544 m) diamond drilling program completed by Graphex;
• Updated mineral resource estimate on Tabakorole to be completed by Graphex;
• Graphex earning an initial 33-per-cent interest in the project under the JV.

Steven Poulton, chief executive officer of Altus, commented: “We are delighted to report on these excellent results from the AC program completed at Tabakorole by our JV partner, Graphex. An intersection of 6.2 g/t Au over six metres from 14 m depth is exceptional. Perhaps even more impressively, the AC program has extended the potential strike length of the FT prospect by a further 600 m to approximately three km in length.

“Tabakorole is shaping up to be a potentially significant gold deposit in southern Mali, and we are looking forward to further news from the project, with the results from the recently completed diamond drill program expected shortly.”

Northwest extension

In March, 2020, a high-resolution (520 line km) ground magnetics survey was completed over the northern part of the Tabakorole licence. This survey defined an apparent continuation of the magnetic anomaly, which is coincident with the known gold mineralization within the FT prospect. A 2,042 m AC drilling program was also conducted, which confirmed the presence of gold mineralization coincident with this anomaly. The recently completed 92-hole (1,811 m) AC drilling program has established that the FT prospect extends farther to the west, providing a significant target for follow-up and deeper drilling.

Resource drilling update

Graphex has completed an eight-hole, 1,544 m diamond drilling program at Tabakorole, and the assay results are expected shortly. The program was designed to test the potential for high-grade plunge extensions, infill known gaps in the historic resource model and test the potential of the northwest strike extension. Graphex intends to incorporate these results into an updated mineral resource estimate on the project in accordance with the 2012 JORC (Joint Ore Reserves Committee) code and National Instrument 43-101.

Tabakorole project: location

The 100-square-kilometre Tabakorole gold project is located in southern Mali, approximately 280 km south of the capital city of Bamako. The project sits on the Massagui belt, which hosts the Morila gold mine (operated by Barrick), located approximately 100 km to the north. The project is 125 km southeast of the Yanfolila gold mine (operated by Hummingbird) and 100 km east of the Kalana gold project (operated by Endeavour Mining). Mineralization hosted on these properties is not necessarily indicative of mineralization hosted at Tabakorole.

Tabakorole project: geology

Tabakorole comprises a 2.7 km long shear zone, which is up to 200 m wide, hosted in the Archean- and Birimian-aged Bougouni basin of the Man shield of southern Mali. The geology is dominated by clastic sediments, cut by northwest-trending deformation zones that host gold mineralization. At least two, possibly three, Eburnean deformation events are believed to have affected the geology of Tabakorole. The project hosts the FT prospect comprising mylonites, sheared diorite, gabbro, mafic dikes and late-stage felsic dikes, within a folded and deformed metasedimentary package of meta-siltstone, meta-wacke and meta-sandstone. Mineralization is locally most favourably associated where structures cut gabbro and along lithological contacts with gabbro.

Tabakorole project: historical exploration

The project was discovered by a regional soil sampling program completed on a 500 m by 100 m grid by BHP in the early 1990s. Since 2003, a total of 28,912 m of DD, 31,943 m of RC, 6,577 m of auger drilling and 62,718 m of AC have been completed, in addition to 1,400 line km of airborne geophysics. A selection of drill intersects from Tabakorole is shown in the associated table.

In 2010 58 RC holes (5,492 m) were completed within and along strike of the FT prospect. Results included 6.05 g/t Au over 18.0 m from 12.0 m (10FLRC-12A) and 2.53 g/t Au over 24.0 m from 48.0 m (10FLRC-01A) (not true widths).

       TABAKOROLE SELECTED HISTORICAL DRILL INTERSECTIONS

Hole ID               From            To  Intersection         Grade
                       (m)           (m)           (m)      (g/t Au)

10FLRC-12A           12.00         30.00         18.00          6.05
05TKRC-18            24.00         68.00         44.00          3.29
10FLRC-07             4.00         42.00         38.00          2.63
10FLRC-01A           48.00         72.00         24.00          2.53
05FLRC-51            80.00         96.00         16.00          9.31
06TKDDH-008         179.00        190.00         11.00          5.64
05FLRC-11            14.00         74.00         60.00          2.91
05TKRC-52             2.00         18.00         16.00          2.33
05FLRC-12             2.00         12.00         10.00          3.36

Notes
(1) Intersections are based on 0.5 g/t Au cut-off and less than or 
equal to two m internal waste.
(2) Intersections are down the hole and do not represent true 
widths of mineralization.
(3) No grade capping has been applied.

Cautionary note regarding historic data

Readers are cautioned that the data on Tabakorole in this written disclosure are historical exploration data that have not been verified by a qualified person. Not all historical samples are available, and Altus does not have complete information on the quality assurance or quality control measures taken in connection with the exploration results, or other exploration or testing details regarding these results. Intersections cited in this news release do not represent true widths of the mineralized intervals. The historical drilling was predominantly angled at minus 60 and minus 55 degrees and intersected steeply dipping mineralization. True width determinations are estimated to be 50 to 57 per cent of the cited intersection lengths. There has been insufficient exploration to define a current mineral resource, and the company cautions that there is a risk further exploration will not result in the delineation of a current mineral resource.

Qualified person

The technical disclosure in this regulatory announcement has been read and approved by Mr. Poulton. A graduate of the University of Southampton in geology (honours), he also holds a master’s degree from the Camborne School of Mines (Exeter University) in mining geology. He is a fellow of the Institute of Materials, Minerals and Mining and has over 20 years of experience in mineral exploration and is a qualified person under the Alternative Investment Market rules and National Instrument 43-101 Standards of Disclosure of Mineral Projects of the Canadian Securities Administrators.

Second Quarter Summary Financial Results:

• Revenue of $1.2 million and a net operating margin (oxide plant lease revenue less lease costs) of $0.8 million related to the lease of the Company’s oxide plant in the second quarter 2020, compared to a $1.3 million net operating margin realized in the second quarter 2019. (All currency in USD.)
• $3.7 million in funding received in conjunction with the signing of an Earn-In Agreement with Barrick Gold Corporation (“Barrick”) ($0.9 million net), and from an equity offering and private placement of Golden common shares and warrants completed in April 2020 ($2.8 million net).
• Cash and cash equivalents balance of $3.6 million as of June 30, 2020 compared to $4.6 million at year-end 2019. Subsequent to June 30, 2020, additional funding of $7.9 million (net) received in July 2020 from an equity offering without warrants.
• Exploration expenses of $0.8 million compared to $1.3 million in the year ago period.
• Net loss of $2.3 million or $0.02 per share in the second quarter 2020, compared to a net loss of $2.5 million or $0.03 per share in the second quarter 2019.

Second Quarter Business Summary:

• Published Preliminary Economic Assessments (“PEA”) for the Velardena Properties and the Rodeo gold project (May 2020).
• Submitted permits for the Rodeo gold project (June 2020), with mining operations possible for Q1 2021 pending receipt of permits.
• Signed an Earn-in Agreement for the El Quevar silver project with Barrick (April 2020).

Golden Minerals’ President and Chief Executive Officer, Warren Rehn, commented, “With the recent capital raise completed, we have a significant cash balance and are now in an excellent position to fund a start-up of production at the Rodeo deposit early next year, assuming that the results of our confirmatory drilling program are satisfactory and providing we receive the necessary government approvals. We are also moving forward with additional engineering studies for a bio-oxidation plant at Velardena. We can now advance our exploration plans at several properties, including drilling at the Yoquivo District in Chihuahua, Mexico. The recent dramatic increase in gold and silver prices has greatly improved our projections of potential cash flow from both Rodeo and Velardena. We will continue to advance our plans to become a gold and silver producer again as quickly as possible.”

Financial Results

The Company reported revenue of $1.2 million in the second quarter 2020 related to the oxide plant lease and costs of approximately $0.4 million related to the services Golden provides under the terms of the lease, for a net margin of $0.8 million. Revenue and net operating margins were lower in the current period compared to the $1.3 million in the second quarter 2019 due to (1) a suspension of operations during portions of April and May related to COVID-19, and (2) a contract amendment permitting a lower variable price per tonne of ore processed beginning in January 2020. During the second quarter 2020 as noted above, Golden also received $3.7 million in net proceeds from the sale of common stock related to an Earn-In Agreement with Barrick and an offering of the Company’s common stock.

Exploration expenses were $0.8 million in the second quarter 2020 and include work at the Sand Canyon, Rodeo and other properties, as well as property holding costs and their allocated administrative expenses. El Quevar project expense was $0.2 million in the quarter which includes costs of exploration and evaluation activities, care and maintenance and property holding costs. Administrative expenses totaled $0.8 million in the second quarter 2020. These expenses, including costs associated with being a public company, are incurred primarily by the Company’s corporate activities in support of the Velardena Properties, the El Quevar project and the Company’s exploration portfolio. Golden reported a net loss of $2.3 million or $0.02 per share in the second quarter 2020 compared to a net loss of $2.5 million or $0.03 per share in the year ago period.

12-Month Financial Outlook

The Company ended the second quarter 2020 with a cash balance of $3.6 million. Cash inflows for the 12-month period ending June 30, 2021 are projected as follows (all figures are approximate):

• $7.9 million in net proceeds related to a July 2020 public equity offering;
• $1.3 million in net operating margin and $0.4 million from the collection of receivables following the termination of the oxide plant lease on November 30, 2020;
• $0.5 million in the third quarter 2020 relating to the sale of the Santa Maria project.

The Company’s currently budgeted expenditures during the 12 months ending June 30, 2021 total $9.8 million and are as follows (all figures are approximate):

• $1.5 million on mine development costs, capital expenditures, working capital and other start-up related activities ahead of a potential first quarter 2021 commencement of milling and processing operations at the Rodeo property,
• $2.0 million on evaluation activities, exploration and property holding costs related to the Company’s portfolio of exploration properties located in Mexico, Nevada and Argentina, including costs at El Quevar, Yoquivo and other properties;
• $1.6 million at the Velardena Properties for care and maintenance;
• $1.1 million for repayment of a related party loan to Sentient;
• $0.5 million for repayment of the remaining Autlan deposit associated with a cancelled 2019 agreement; and
• $3.1 million on general and administrative costs.

These projections are current as of the date of this news release but could be negatively impacted if further interruptions related to COVID-19 occur in Mexico. The Company currently includes anticipated expenditures for the potential start-up of mining at the Rodeo gold project in the first quarter 2021, but an estimate of revenues has not been included pending the results of a confirmatory drilling program in the third quarter 2020 and receipt of operating permits estimated to occur in late 2020.

Additional information regarding second quarter 2020 financial results may be found in the Company’s 10-Q Quarterly Report which is available on the Golden Minerals website.

“The U308 spot price is up over 30 per cent from the beginning of this year and we are delighted by the strong support received from our lead institutional investor as well as other long-term shareholders seeking exposure to our quality pipeline of mineral projects,” stated Govind Friedland, GoviEX executive chairman.

“We believe we are at a key turning point in the uranium market, and with this equity raise and support from a number of astute institutions, including a single lead investor taking the majority of the placement, the company will be well funded to achieve our corporate objectives for the year. The first half of 2020 has brought with it major challenges and GoviEX has responded to them well. Despite the various COVID-19 restrictions around the globe the company continues to advance its projects.

“The global demand for uranium has remained strong. New reactor construction is ongoing and COVID-19 related supply restrictions on top of existing production constraint from the major producers has put pressure on the uranium spot price to the upside.

“Accordingly, the updated prefeasibility study for the Madaouela project in Niger continues to be advanced with the team focusing improvements to the planned operations and process design to potentially reduce capital and operating expenses and improve resulting project economics from those previously reported in the current prefeasibility study on the Madaouela project, thereby improving the potential bankability of our flagship fully permitted Madaouela project. Although COVID-19 has slightly impacted the timing for completion of the study, we remain confident to be able to announce results later this year.”

Falea uranium-silver-copper project update

As announced on July 6, 2020, a recent gold geochemical sampling program on the company’s Falea and Madini exploration licences forming part of the Falea (uranium-silver-copper) project in Mali highlighted significant gold in soils anomalies that show the potential extensions of the Sirabaya West and the Siribaya-Bambadinka gold trends through, and potentially intersecting within, the Falea project. The company believes these preliminary results, when combined with the known uranium-silver-copper mineralisation of the Falea project mineral resources, have significantly raised the exploration potential of these licences. A significant portion of this current financing is anticipated to be allocated to testing this precious metal potential.

The private placement

Each unit consist of one Class A common share in the capital of the company and one transferable share purchase warrant. Each warrant will entitle the holder to acquire one common share for a period of 60 months from the date of issue at an exercise price equal to the U.S.-dollar equivalent of 20 cents.

All securities issued under this private placement are subject to the customary four-month hold period. In addition, securities issued to subscribers in the United States are subject to a hold period under the United States Securities Act of 1933, as amended, and can only be resold in strict compliance with the applicable exemptions from the registration requirements of the 1933 Act.

The net proceeds from the private placement will be used to finance continued exploration and development activities on GoviEx’s Madaouela, Mutanga and Falea projects and for general working capital purposes.

In connection with the private placement, the company will pay arm’s-length finders an aggregate cash commission of 6 per cent of the gross proceeds raised under the private placement from subscriptions sourced by finders and will issue that number of non-transferable finder’s warrants (equal to 6.0 per cent of the number of units sold under the private placement to subscribers sourced by finders) to acquire common shares. Each finder’s warrant will be exercisable for one common share at a price of 14 cents per finder’s warrant share.

Closing of first tranche of private placement

The company is also pleased to announce that it has closed the first tranche of the private placement. In this first tranche, the company issued an aggregate 33,664,286 units for gross proceeds of approximately $4.7-million. Warrants issued pursuant to the first tranche closing are exercisable at a price of 15 U.S. cents per warrant share until Aug. 6, 2025, subject to applicable adjustments.

GoviEX insiders subscribed for a total of 185,715 units. The placement to insiders constitutes a related-party transaction within the meaning of Exchange Policy 5.9 and Multilateral Instrument 61-101. The company has relied on exemptions from the formal 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 in respect of related-party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25 per cent of the company’s market capitalization (as determined under MI 61-101).

In connection with the first tranche close of the private placement, the finder, Red Cloud Securities Inc., will receive a cash commission of $209,460 and finder’s warrants exercisable until Aug. 6, 2025, to acquire an aggregate 1,496,142 finder’s warrant shares at price of 14 cents per finder’s warrant share.

All securities issued under the first tranche close of the private placement are subject to a hold period and may not be traded before Dec. 7, 2020.

The final tranche of the private placement is expected to close on or before Aug. 13 2020.

The private placement remains subject to the final TSX Venture Exchange acceptance.

Highlights

• Increased land holdings by approximately 2,500 acres (1,012 hectares) to approximately 7,000 acres (2,833 hectares) through staking of an additional 125 Federal Lode Mining claims on land managed by the BLM at the Cold Creek, Blue Hill Creek and Matrix Creek Prospects
• Continued application process for 960 acres (388 hectares) of State of Idaho-managed land as “mineral leases,” adding to the current 320 acres (129.5 hectares) of mineral leases for a total of 1,280 acres (518 hectares)
• Completed soil sampling across the newly staked ground with 1,347 samples sent for gold and multi-element analysis
• Completed 1,330 line-kilometer, airborne magnetic survey across the entire Oakley Project area including expanded footprint
• Completed detailed geologic mapping program over the Cold Creek Prospect

Claim Staking

Continuing on from exploration work completed in 2018, and in collaboration with Centerra, Excellon staked an additional 125 federal lode mining claims on the Cold Creek (78 claims), Blue Hill Creek (23 claims) and Matrix Creek (24 claims) Prospects (Figure 1). The additional claims were staked as follow-up to the gold and silver anomalies identified in soils and rocks in 2018 and the mineral trends identified to the north-west and south-east. The new staking adds 2,500 acres (1,012 hectares) to the existing 225 federal lode mining claims, or 4,500 acres (1,821 hectares), on public land managed by the Bureau of Land Management (BLM) for a total of 350 claims or 7,000 acres (2,833 hectares).

Mineral Leases

Excellon continues with the application process for State of Idaho mineral leases covering 960 acres (389 hectares). The proposed leases lie to the north of the Blue Hill Creek claims up to the Emery Claims, and to the west of the Matrix Creek claims; these areas are considered prospective and follow-up on the 2018 exploration program results that indicated north and northwest anomalous trends from soil and rock samples. (Figure 1)

Geochemistry

Excellon conducted soil geochemistry programs over the newly staked claims to further investigate the gold and silver anomalous trends identified as a result of the 2018 exploration program; results indicated the potential for mineralization to extend to the northwest and southeast of the existing land package into previously untested areas. A total of 1,347 soil samples were submitted, 522 from the Cold Creek prospect and 825 from the contiguous Blue Hill and Matrix Creek prospects, to Bureau Veritas in Sparks, Nevada for gold and multielement analysis. Results are expected in early August, 2020.

Geophysics

Excellon contracted Edcon-PRJ of Denver, Colorado to conduct a low level, airborne magnetic survey using a Reeder’s 206-L3 helicopter with a towed sensor array incorporating a Geometrics G823A magnetometer and dual frequency Hemisphere R-220 GPS antenna. The survey flew for a total of 1,330 line-kilometers in early July 2020. The results from this program will be integrated with all currently available exploration data to generate targets for follow-up with ground-based geophysics in early- to mid-fall 2020. (Figure 2)

Geology

Excellon has completed a detailed geologic mapping program over the existing and extended claim package at Cold Creek. The findings from mapping will be incorporated into the developing geologic model to guide ground geophysics and drill targets for the remainder of 2020. The mapping program has confirmed and extended the existence of surface outcrops of tertiary volcaniclastic and clastic sediments hosting low sulfidation hot spring-style epithermal mineralization containing anomalous gold (up to 1.9 g/t Au) and silver (up to 8.4 g/t Ag). The program also confirmed the existence of hydrothermally altered Palaeozoic clastic marine sediments including black jasperoidal rocks interpreted as altered limestones along with intensely stockwork veined, hydrothermally brecciated and faulted quartzite. The presence of altered Palaeozoic sediments underlying silicified and veined tertiary volcaniclastic rocks confirms the potential of the Cold Creek Prospect to host economic mineralization at depth.

Lidar & Orthophotography

Excellon has contracted Geoterra of Eugene, Oregon to conduct a Lidar and Orthophoto survey over the Oakley Project in early August 2020. Both the Lidar and Orthophoto data will provide high quality images that will be used to enhance the structural geology in the geologic model. The goal of the program is to interpret large- to medium-scale faulting by determining trends and orientations providing for a more comprehensive structural framework in the geologic model. This data along with all other exploration data will be incorporated into the current leapfrog model resulting in targets for drill testing in late 2020.

About the Oakley Project

The Oakley Project is a gold-silver exploration prospect located 21 km south of Oakley, Idaho. The exploration targets include hot-spring style low sulfidation epithermal mineralization hosted by tertiary rocks as well as the potential for low-sulfidation Carlin-style epithermal mineralization hosted within Basin-and-Range Palaeozoic sediments. The property lies along the western flank of the Albion Mountains, part of the Albion-Raft River-Grouse Creek Metamorphic Core Complex. Oakley contains multiple targets, including Cold Creek, Blue Hill Creek and Matrix Creek.

Qualified Person

Mr. Alan Roberts, Msc, CPG, Vice President Exploration (US), has acted as the Qualified Person, as defined in NI 43-101, with respect to the disclosure of the scientific and technical information relating to exploration results contained in this press release.

Mr. Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired a total of 6,976,944 units of the Company at a price of C$2.15 per unit for gross proceeds to the Company of C$15,000,429. Each unit is comprised of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to acquire one additional common share at a price C$3.00 per share for a period of 24 months from the closing date.

The net proceeds of the investment will be used by the Company to advance their exploration and development projects as well as for working capital and general corporate purposes.

Steppe Gold CEO, Mr Bataa Tumur-Ochir commented, “We are very happy to receive further foreign investment into Mongolia and into Steppe Gold as one of the world’s newest gold producers. This investment from Eric Sprott is a great endorsement of our team and our assets and allows us to accelerate our exploration programs as well as production expansion initiatives.”

Mr. Eric Sprott commented, “This first investment into Steppe Gold is very exciting. I am encouraged by how the team has demonstrated strong execution capabilities by bringing high-margin gold production online and can continue to expand their production while further exploring their two exciting gold and silver licenses.”

All securities to be issued pursuant to the investment will be subject to a four month hold period from the closing date under applicable securities laws in Canada. The Company is paying finder’s fees of C$600,000 in connection with the investment.

Prior to the above acquisition, Mr. Sprott did not beneficially own or control any securities of the Company. Following completion of the above acquisition, Mr. Sprott beneficially owns and controls 6,976,944 common shares and 6,976,944 warrants representing approximately 11.1% of the issued and outstanding common shares of the Company on a non-diluted basis and 19.9% of the issued and outstanding common shares on a partially-diluted basis assuming exercise of the warrants acquired hereunder and forming part of the units.

Mr. Sprott has acquired the units through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Steppe Gold including on the open market or through private acquisitions or sell securities of Steppe Gold including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Steppe Gold Ltd.’s head office is located at Olympic street 19A, Sukhbaatar District 1, Ulaanbaatar 14241, Mongolia. A copy of the early warning report 2176423 Ontario Ltd will appear on the Company’s SEDAR profile at http://www.sedar.com and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).