“We are very excited to initiate a major drill program in the Khundii gold district, following up on the outstanding near-surface, high-grade gold intersections reported earlier in Q3,” said Peter Akerley, Erdene’s president and chief executive officer. “Our recent financing, led by Eric Sprott, provides us with the resources to advance our Bayan Khundii gold project towards development and to aggressively explore the broader Khundii gold district, which offers tremendous discovery potential as demonstrated by our high-grade gold discoveries to date.

“An 18,000-metre drill program is planned to be completed before year-end, with drilling now under way at Bayan Khundii and a second drill rig scheduled to arrive at Dark Horse next week,” continued Mr. Akerley. “The program is designed to test new areas in the district, add additional resources adjacent to current deposits and increase confidence in current resource areas, potentially adding to existing reserves at Bayan Khundii.”

Drilling highlights and plans

The Khundii gold district provides a multitude of exploration and development opportunities beyond the initial proposed open-pit development at Bayan Khundii. These opportunities include recent near-surface drilling successes and expansion opportunities within the Bayan Khundii deposit area, the new Dark Horse gold discovery, and the identification of very-high-grade gold in the discovery zone at Altan Nar, reported earlier in 2020. A brief overview of the main target areas and planned program is outlined herein.

Bayan Khundii deposit area

Midfield Southeast and Striker Southwest

Drilling in Q2 2020 discovered very-high-grade, near-surface gold zones in both Midfield Southeast and Striker Southwest. Midfield Southeast intersections included 5.5 m of 125.9 grams per tonne gold, including one m of 581.6 g/t gold in BKD-288, beginning 11.5 m downhole, and 15 m of 25.6 g/t gold including one m of 338 g/t gold beginning at 14.9 m downhole in BKD-274, located 40 m north of BKD-288. In total, 16 of 18 holes drilled at Midfield Southeast in Q2 2020 intersected anomalous gold (equalling 0.2 g/t) mineralization within 25 m of surface. This discovery is interpreted as the intersection of the stacked northwest-trending quartz adularia veins, with a north-south trending conceptual feeder structure. The Midfield Southeast structure has been traced over a strike length of at least 200 m with Q2 drill testing only the northern 50 m. The phase I drill program will target this conceptual feeder structure’s southeast continuation, which remains largely untested. As this area was classified as waste or low-grade stockpile material in the current resource, it has the potential to have a significant impact early in the project mine life. The possibility of parallel en echelon features is demonstrated by another outlier of high-grade gold in BKD-118, which intersected one m of 159 g/t gold located 200 m east of Midfield Southeast and outside of the proposed pit.

At Striker Southwest, recent drilling intersected anomalous gold (equalling 0.2 g/t) in all 11 holes in a 100 m by 50 m area within 25 m of surface. Hole BKD-290 intersected 20 m of 5.9 g/t gold beginning eight m from drill collar, including one m of 91.2 g/t gold, and BKD-292 intersected 15 m of 29 g/t gold beginning 0.9 m from drill collar, including one m of 353 g/t gold. This program established continuity of this very-high-grade zone in an area currently classified predominantly as low-grade or below-cut-off-grade material, which is scheduled to be mined in the first year of the Bayan Khundii development. Western continuity and potentially southern extensions of the Striker Southwest area will be tested in the current drill program.

Bayan Khundii — extensions and exploration beyond planned pit

The Bayan Khundii mineral resource includes 521,000 ounces of 3.16 g/t gold measured and indicated, and 103,000 ounces of inferred resources at 3.68 g/t gold. Within the M&I resource, a proven and probable open-pit reserve totals 409,000 ounces at 3.7 g/t. Several mineralized zones and exploration areas peripheral to the planned open-pit at Bayan Khundii host intervals of exceptionally high-grade (30 to 150 g/t gold intersections over one m) gold-bearing veins. This provides significant potential growth of reserves with the development of the remaining M&I and inferred resources, and areas beyond the current resources. In addition, the reported resource is an open-pit constrained resource beyond which drilling has previously intersected significant gold mineralized zones. These areas will also be the subject of phase I drilling to evaluate resource expansion.

Striker West and southern extension

Located approximately 210 m west of the planned Bayan Khundii open pit, drilling in 2019 confirmed and extended the Striker West target with the best intersection of this deposit area to date with three m of 40 g/t gold at a vertical depth of 136 m (BKD-265). Results from this hole also broadened the mineralized domain at shallow depth and outside the defined resource boundary with a 16 m interval of 1.1 g/t gold, including five m of 2.7 g/t gold, beginning only 28 m from the surface. This area is open to the south, where BKD-266 was drilled in Q2 2019, approximately 250 m west-southwest of the planned open pit, and outside the currently defined resource boundary. This hole intersected a high-grade, one m interval of 51.9 g/t gold at a depth of 264 m within a broad zone of silica-illite and magnetite altered volcanic tuff, suggesting a down-dip continuation of high-grade gold mineralization from the currently defined Bayan Khundii pit. The 2020 drill programs will seek to increase confidence in the high-grade core of Striker West and expand this zone to the south.

Dark Horse (Khar Mori)

The Dark Horse prospect and, by extension, the Altan Arrow prospect, 3.5 km north of the Bayan Khundii gold deposit, will be the subject of drilling in both the phase I and II drill programs. The Dark Horse prospect covers an approximately 1.5 km by the km area, connected to the northwesterly adjacent Altan Arrow gold prospect. Previous drilling along the subsidiary structures south of Altan Arrow (within 300 m of the Dark Horse target area) have provided the highest-grade intersections to date, including 24 g/t and 70 g/t gold over two m (AAD-03 and AAD-12) within 75 m of surface.

Initially, drilling will focus along the main structure at Dark Horse, which exhibits a 1.3 km gold-in-soil anomaly as well as areas of recent trenching successes, which include:

• Six m grading 8.8 g/t gold, including one m of 50.8 g/t gold on the main Dark Horse structure in trench KMT-01;
• Four m of 14 g/t gold, including one m of 45.3 g/t gold at KMT-03 on a structural intersection zone 850 m east southeast of KMT-01.

The main Dark Horse structure is characterized by gold-in-soil anomalism, very high gold grades in rock chip samples, residual quartz bodies, intense silicification and white mica alteration. The current interpretation of Dark Horse includes a series of structurally controlled gold-mineralized comb quartz stockwork zones situated along or proximal to the dominant northeast-trending faults, where the northeast structures are intersected by opposing northwest trending. The intersection of these opposing structures may result in dilation zones, creating preferential conduits for fluid flow and subsequent gold deposition. These are all features characteristic of the Bayan Khundii deposit to the south.

As a large, untested gold prospect, Dark Horse provides significant discovery potential along strike of the main structure and at or near northeast-northwest structural intersections where several isolated but intense gold-in-soil anomalies are located, many of which contain high-grade gold in rock chip. The extent of drilling at Dark Horse in phase II will be influenced by these initial results.

Altan Nar gold polymetallic deposit

At Altan Nar, approximately 16 km north of the Bayan Khundii gold deposit, a growing gold and polymetallic resource provides a significant opportunity for growth. The current Altan Nar gold resource includes 318,000 ounces of two g/t gold indicated and 186,000 ounces of inferred at 1.7 g/t gold in addition to significant silver and base metal content.

In early 2020, the company reported a high-grade discovery in the discovery zone (DZ), one of 18 high-priority targets along the 5.6 km mineralized trend on its 100-per-cent-owned Altan Nar project. Results included 23 m of 17 g/t gold, 44.7 g/t silver, 0.75 per cent lead and 1.47 per cent zinc within a black, sulphide-rich epithermal breccia (TND-135), which targeted a previously untested area of the DZ high-grade core with additional holes providing further support for the continuity of high grades within the target zone. This proof of concept opened up multiple areas for targeted testing along the Altan Nar trend. Only a small portion of the Altan Nar licence has been drill tested, and 90 per cent of the NI 43-101 mineral resource prepared by RPM Global in 2018 is within 150 m of surface and contained mainly within two of the 18 targets with all zones open along strike and at depth. The Q1 2020 results demonstrate continuity in size and grade within the high-grade DZ core, providing confidence for future expansion. Wave Geophysics has recently completed a compilation project for Altan Nar, and interpretation work is under way to develop the next round of drilling expected to commence in phase II of the 2020 program.

COVID-19 precautions

Throughout the 2020 field season, Erdene’s team on the ground has worked to deliver an injury-free, effective field exploration program, rolling out increased preventive measures in response to COVID-19 risk. The company has kept in place precautionary measures to protect against the spread of COVID-19. In the field, daily protocols are used to ensure basic hygiene, and daily briefing, induction and visitor reception procedures continue to include body temperature checks. Isolation facilities and personal protective equipment for emergency response have been prepared. Since late January, the government of Mongolia has implemented a series of preventive measures in response to COVID-19, including limitations on public gatherings, suspension of in-person classroom learning and international border controls. The most recent of these measures are currently in force until at least Aug. 31, 2020. As of Aug. 18, 2020, Mongolia has reported zero local transmissions of COVID-19 and zero deaths from the disease. All confirmed and reported cases to date have been amongst repatriated individuals.

Khundii gold district

Erdene’s deposits are located in the Edren terrane, within the Central Asian orogenic belt, host to some of the world’s largest gold and copper-gold deposits. The company has been the leader in exploration in southwest Mongolia over the past decade and is responsible for the discovery of the Khundii gold district comprising multiple high-grade gold and gold/base-metal prospects, two of which are being considered for development: the 100-per-cent-owned Bayan Khundii and Altan Nar projects. Together, these deposits comprise the Khundii gold project.

The Bayan Khundii gold resource includes 521,000 ounces of 3.16 g/t gold M&I and 103,000 ounces of inferred resources at 3.68 g/t gold. Within the M&I resource, a proven and probable open-pit reserve totals 422,000 ounces at 3.7 g/t, providing significant potential growth of reserves with the development of the remaining M&I and inferred resources. In July, 2020, Erdene announced the results of an independent feasibility study for the Bayan Khundii gold project. The feasibility study results include an after-tax net present value at a 5-per-cent discount rate and a $1,400 (U.S.) per ounce gold price of $100-million (U.S.) and internal rate of return of 42 per cent. The feasibility study envisions an open-pit mine at Bayan Khundii, producing an average of 63,500 ounces gold per year, for seven years, at a head grade of 3.71 g/t gold, utilizing a conventional carbon in pulp processing plant. Production is expected to commence in early 2022 based on the current project schedule.

Qualified person and sample protocol

Peter Dalton, PGeo (Nova Scotia), senior geologist for Erdene, is the qualified person, as that term is defined in National Instrument 43-101, and has reviewed and approved the technical information contained in this news release. All samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a quality assurance/quality control sample protocol utilizing prepared standards and blanks. All samples undergo standard fire assay analysis for gold and ICP-OES (inductively coupled plasma optical emission spectroscopy) analysis for 33 additional elements. For samples that initially return a grade greater than five g/t gold, additional screen-metallic gold analysis is carried out, which provides a weighted average gold grade from fire assay analysis of the entire plus 75 micron fraction and three 30-gram samples of the minus 75 micron fraction from a 500-gram sample.

Erdene’s drill core sampling protocol consisted of collection of samples over one or two m intervals (depending on the lithology and style of mineralization) over the entire length of the drill hole, excluding minor postmineral lithologies and unmineralized granitoids. Sample intervals were based on metreage, not geological controls or mineralization. All drill core was cut in half with a diamond saw, with half of the core placed in sample bags and the remaining half securely retained in core boxes at Erdene’s Bayan Khundii exploration camp. All samples were organized into batches of 30 including a commercially prepared standard, blank and either a field duplicate, consisting of two quarter-core intervals, or a laboratory duplicate. Sample batches were periodically shipped directly to SGS in Ulaanbaatar through Erdene’s logistical contractor, Monrud Co. Ltd.

Industry interest generated from previous announcements necessitate agreement

On Jan. 15, 2020, the companies announced proof-of-concept testing demonstrating capacity to produce spherical nanopowders and nanowires from silicon needed by the lithium-ion battery market. That announcement was followed by an announcement on Feb. 11, 2020, stating the companies were developing a nanosilicon reactor for low-cost manufacturing of spherical silicon nanopowders and nanowires for next-generation lithium-ion batteries.

As a result of these two announcements, strong and increasing industry interest in the companies’ project, even at this early stage of development, dictates that HPQ and PyroGenesis take this next step.

Interest in Purevap NSiR’s game-changing low-cost potential

Research indicates that replacing graphite with nanosilicon powders could allow the manufacturing of high performance lithium-ion batteries to deliver an almost-10-fold increase in anode capacity, inducing a 20-per-cent to 40-per-cent gain in the energy density of the next generation of lithium-ion batteries. Silicon nanomaterial potential to meet energy storage demand of the future is undeniable and is generating massive investments.

Despite the strong research and investment in silicon nanomaterial, current manufacturing processes to make nanosilicon powders are not scalable or commercially viable. HPQ and Pyrogenesis, through this agreement, are developing a process to address both the scalability and cost hurdles required by the industry.

“The Purevap NSiR process was conceived and is being developed so that HPQ Nano can deliver to advanced materials companies and battery manufacturers a cost-competitive, tailor-made product that can replace graphite in batteries and thereby allow the deployment of truly powerful next generation lithium-ion batteries. Industry interest in our project is strong, even at this early stage of our development,” said Bernard Tourillon, president and chief executive officer of HPQ Silicon. “This agreement allows us to devote all our efforts in a dedicated entity focused on starting, as soon as possible, the Purevap NSiR and shipping samples of our silicon nanomaterials. Once the Purevap NSiR process is operational, expected to be in Q4 of 2020, HPQ Nano will implement the steps required to take full advantage of this unique multibillion-dollar business opportunity.”

“This agreement represents another significant milestone in our relationship with HPQ. Battery storage is the future and it is indeed exciting for us to now be using our plasma expertise in addressing the challenges facing the lithium battery market,” said P. Peter Pascali, president and chief executive officer of PyroGenesis Canada. “This milestone is also a testament to what can be achieved when two companies and their boards work together with a common purpose and a clear understanding of the many unforeseen challenges in bringing such product lines to fruition.”

Process validation and improvement, nanosilicon production, and demonstrating scalability

The key areas covered by the agreement between HPQ Nano and PyroGenesis are:

1. Purevap NSiR process development program, schedule and cost assumed by HPQ Nano;
2. Acquisition of the Purevap NSiR intellectual property as it relates to the manufacturing of nanosilicon powders and nanowires by HPQ Nano;
3. Revenue distribution between HPQ Nano and PyroGenesis from the sales of nanosilicon materials made with the Purevap NSiR.

The Purevap NSiR process development program is made of two distinct and complementary phases, each with their own goals, timelines and milestones.

Phase 1 — validating and improving the process, making samples by end of the fourth quarter of 2020

The main goal of phase 1 is modifying the existing Gen2 Purevap QRR reactor into the Gen1 NSiR for the purpose of producing nanosilicon materials. The resulting new Gen1 NSiR will be a batch process system with a design production capacity of 30 kilograms per month of nanosilicon powders. In order to meet the aggressive phase 1 timeline agreed by the parties, HPQ Nano will pay $200,000 to PyroGenesis over the next 15 weeks needed to complete the process engineering, mechanical engineering, fabrication and system commissioning.

Once the Gen1 NSiR is operational, a series of test runs will be done in order to produce nanosilicon materials. In addition to producing samples for potential customers, the nanosilicon material produced will be analyzed and characterized in order to define important process parameters, fine-tune operating parameters and assess the performance of all the components of the systems. HPQ Nano and PyroGenesis have agreed that each series of 10 tests would cost HPQ Nano $132,000.

Phase 2 — validating commercial scalability, delivering nanosilicon materials

The main objective of phase 2 is validating the commercial scalability of the Purevap NSiR. Using data collected during Gen1 NSiR testing phase, a completely new Gen2 NSiR system will be designed and built. Thirty-five weeks will be needed to complete the process engineering, mechanical engineering, fabrication and system commissioning, and HPQ Nano will pay $210,000 to PyroGenesis for this phase.

The Gen2 NSiR will be a semi-continuous process system with a design production capacity of 300 kilograms per month (or about 3.5 metric tonnes per year) of nanosilicon powders or nanowires, giving HPQ Nano a large-enough production capacity to be able to start selling nanosilicon materials. In addition to producing nanosilicon material, a series of Gen2 NSiR tests will be done to define the important process parameters and operating parameters required to allow the process and the systems to be scaled up to a commercial production capacity of about 2,500 metric tonnes of nanosilicon powders per year.

Purevap NSiR intellectual property as it relates to nanosilicon materials

The agreement also covers HPQ Nano’s acquisition of the intellectual property rights to the Purevap nanosilicon reactor process as it relates exclusively to the production of micron-size and nano-size silicon powders and silicon nanowires from PyroGenesis. The acquisition cost of the Purevap NSiR intellectual property is $2.4-million and HPQ Nano has 30 days from the effective date of the agreement to make the payment to PyroGenesis.

PyroGenesis will retain a royalty-free, exclusive, irrevocable worldwide licence to use the process for purposes other than the production of micron-size and nano-size silicon powders and silicon nanowires. Should PyroGenesis be approached by any other parties for any research and development or commercial purposes outside of the field, HPQ Nano shall have a right of first refusal, provided that, however, HPQ Nano exercise its right of first refusal within 30 days of PyroGenesis receiving a bona fide offer.

NSiR revenues split between HPQ Nano and PyroGenesis from sales of nanosilicon materials

HPQ and PyroGenesis evaluated the short-term and long-term advantages of forming, at the start, a stand-alone joint venture responsible for manufacturing and selling nanoscale silicon powders.

A gradual approach was deemed more efficient, therefore HPQ Silicon created a fully own subsidiary, HPQ Nano Silicon Powders, to be the stand-alone corporation that would finance the research and development programs and manage the future commercialization of nanoscale silicon materials made with the Purevap NSiR, with PyroGenesis being granted the right to convert, at any time and at its sole discretion, it royalty into a 50-per-cent equity stake in HPQ Nano.

As a result of this, HPQ Nano agrees to pay PyroGenesis, on an annual basis, and until conversion, the following minimum royalty on the gross sales of nanomaterials produced with the Purevap NSiR process and systems:

• For 2021, the greater of 10 per cent of HPQ Nano gross sales or $50,000;
• For 2022, the greater of 10 per cent of HPQ Nano gross sales or $100,000;
• For 2023, the greater of 10 per cent of HPQ Nano gross sales or $150,000;
• For 2024 and beyond, the greater of 10 per cent of HPQ Nano gross sales or $200,000.

The Special Meeting is being called to enable the Company’s shareholders to approve two related party transactions that will significantly strengthen the Company’s financial position as it responds to the challenges posed by the COVID-19 pandemic. An information circular with detailed information about the Special Meeting will be mailed to shareholders.

At the Special Meeting, the Company will seek approval for the assignment (the “Assignment”) from the existing lenders to Dermot Desmond, or a related company, of the Company’s indebtedness of US$25,000,000 under its senior secured revolving credit facility (the “Existing Credit Facility”).

In connection with the Assignment, certain amendments will be made to the Existing Credit Facility, including, among other things, adjusting the interest rate to a fixed 5% per annum, payable monthly, and removing certain financial maintenance covenants under a one-year term. The effect of the Assignment is that Mr. Desmond will provide a refinancing and extension of the existing US$25,000,000 credit facility.

The Company will also seek approval at the Special Meeting for an increase from US$50,000,000 to US$100,000,000 in the sales capacity under the previously announced diamond sales agreement between the Company, certain of its subsidiaries and Dunebridge Worldwide Ltd. (the “Sales Capacity Increase”). This will allow the Company to continue selling its run of mine diamonds (below 10.8 carats) at the prevailing market price, and potentially share in the future upside should the traditional sales channels for rough diamonds remain closed or subdued.

Dunebridge is controlled by Dermot Desmond, an insider and related party of Mountain Province. The Sales Capacity Increase and the Assignment (together the “Transactions”) therefore each constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 {ณ –} Protection of Minority Shareholders in Special Transactions (“MI 61-101”). Mountain Province is relying on the exemption from the formal valuation requirement of MI 61-101 contained in Section 5.5(g) on the basis of financial hardship. The terms of the Transactions were unanimously approved by the independent members of Mountain Province’s board of directors.

An ad hoc committee of independent directors of Mountain Province, all of whom are independent of management and Mr. Desmond, the major shareholder of Mountain Province (the “Independent Committee”), undertook a deliberate and full consideration of the Transactions and various alternatives and financing options available to Mountain Province and concluded that the Transactions are reasonable and represent the best options for Mountain Province in the circumstances, having regard to the best interests of Mountain Province and its stakeholders. The Independent Committee unanimously recommended the Transactions to the board of directors of the Company (the “Board”). The Board has received the recommendations and findings of the Independent Committee, and Mr. Jonathan Comerford and Mr. Brett Desmond having declared conflicts of interest and not attending any part of any meeting where the Transactions were discussed and not voting on the Transactions, has unanimously found that the Company is in serious financial difficulty, that the Transactions designed to improve the financial position of the issuer, that Section 5.5(f) of National Instrument 61-101 is not applicable, and approved the Transactions.

In addition to shareholder approval, the Transactions are subject to approval by the Toronto Stock Exchange.

Stuart Brown, the Company’s President and CEO, commented:

“The impact of the COVID-19 pandemic on the diamond industry and in turn the Company has been profound. The support shown by Mr. Desmond and the subsequent finalisation of the Transactions will be a substantial positive step in stabilising the Company and brings more certainty to its future. In particular, the US$50,000,000 increase of the sales agreement allows the Company the flexibility to sell its diamonds under the agreement or through the traditional sales channels as they begin to open after the summer holidays.”

“As previously announced, the Company is planning to hold its first sale since the start of the pandemic in September.” ****

Steve Regoci, president and chief executive officer, commented: “No words can console the pain for bereaved family who have lost their loved one to this tragic event or express the deep sadness of losing a friend and co-worker. On behalf of Garibaldi management and the entire exploration team of professionals and camp personnel, we offer our support, our prayers and our deepest sympathies to family members.”

The company is fully co-operating with authorities and investigators to determine the cause of this tragic incident.

The TSX Venture Exchange has been advised that the arrangement was completed on Aug. 18, 2020. Renaissance shareholders will receive 1.2448 common shares of Orogen for each common share of the company held. In connection with the closing of the arrangement, an aggregate of 86,808,513 common shares of Orogen were issued to acquire Renaissance. In addition, each Renaissance warrant and option will become exercisable for Orogen common shares, as adjusted in accordance with the exchange ratio.

For further information, please refer to Renaissance’s information circular dated July 8, 2020, and news releases dated June 10, 2020, to Aug. 18, 2020, and Evrim’s information circular dated July 8, 2020, and news releases dated June 10, 2020, to Aug. 18, 2020, which are available under the companies’ respective profiles on SEDAR.

American Manganese is partnered with the U.S. Department of Energy and Critical Materials Institute in a project to advance the economic recovery of lithium-ion battery materials from electric vehicles and other consumer goods.

American Manganese has developed the patented RecycLiCo process that offers a closed-loop and environmentally friendly solution for the recycling of cathode materials from battery manufacturing waste (preconsumer) and end-of-life lithium-ion batteries (postconsumer). The process achieves up to 100-per-cent recovery and high purity of materials, such as lithium, cobalt, nickel, manganese and aluminum. The RecycLiCo process was designed with the goal to produce recycled battery products that could be seamlessly integrated into the remanufacturing of battery cathodes using minimal processing steps.

This is a public webinar hosted on Aug. 19, 2020, at 12 p.m. in Mountain Time (United States and Canada).

We seek Safe Harbor.

Number of shares:  20 million shares

Purchase price:  40 cents per share

Warrants:  10 million share purchase warrants to purchase 10 million shares

Warrant initial exercise price:  60 cents

Warrant term to expiry:  two years

Number of placees:  90 placees

Insiders:  Gregory Johnson, 400,000; A. Milne Consulting Corp. (Alicia Milne), 12,500; 2176423 Ontario Ltd. (Eric Sprott), 3.5 million; Scott Petsel, 12,500; Rebecca Moriarty, 12,500

Agents’ fees:  Canaccord Genuity Corp,. $282,750 cash and 706,875 warrants; Mackie Research Capital Corp., $65,250 cash and 163,125 warrants; other, $87,000 cash and 217,500 warrants

Agent’s warrant initial exercise price:  40 cents

Agent’s warrant term to expiry:  Each warrant is exercisable into one common share at a price of 40 cents per share for 24 months.

Note that in certain circumstances the exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.

The exchange has been advised that the offering closed on Aug. 6, 2020, for aggregate gross proceeds of $15,053,500 (including the exercise of the overallotment option).

Underwriter:  BMO Nesbitt Burns Inc.

Offering:  11.9 million units (Each unit consists of one common share and one-half of one common share purchase warrant.)

Offering price:  $1.10 per unit

Warrant exercise price/term:  Each whole warrant entitles the holder to acquire one common share at a price of $1.60 per common share for a period of 18 months.

Underwriter’s fee:  $903,210

Overallotment option:  The overallotment option may be exercised by the underwriter to acquire: (i) additional units at the offering price; or (ii) additional unit shares at a price of $1.06 per additional unit share; or (iii) additional warrants at a price of eight cents per additional warrant; or (iv) any combination of additional units, additional unit shares and additional warrants, so long as the aggregate number of additional unit shares and additional warrants that may be issued under the overallotment option does not exceed 1,785,000 additional unit shares and 892,500 additional warrants, respectively. The overallotment option has been fully exercised.

For further information, refer to the company’s short form prospectus dated July 31, 2020, filed on SEDAR.

Grid soil sampling at the Idaho property has outlined anomalous gold, silver, lead, arsenic and zinc soil values in four main targets. The anomalous areas are up to 1,200 by 600 metres in size and produced soil geochemical values ranging up to 6,550 parts per billion gold, 122 parts per million silver, 6,180 ppm lead, 2,620 ppm arsenic, 2,300 ppm zinc and 1,110 ppm antimony.

Property option terms

Makara can acquire a 100-per-cent interest in the Idaho Creek property by making aggregate cash payments of $150,000 and issuing Atac an aggregate of 750,000 shares by July 1, 2024, and completing $2-million in work expenditures by Dec. 1, 2024. A one-time milestone payment of $1 per gold equivalent ounce will be paid to Atac if a mineral resource is identified on the property. Atac will also retain a 2-per-cent net smelter return on the property, one-half of which can be purchased by Makara for $1-million.

Quality assurance/quality control

The technical information in this news release has been approved by Adam Coulter, MSc, PGeo, project geologist for Atac and a qualified person for the purposes of National Instrument 43-101.

About Atac Resources Ltd.

Atac is a Vancouver-based exploration company focused on advancing Yukon’s premier precious and base metal district and grassroots exploration in Nevada. Work on its about 1,700-square-kilometre Rackla gold property in Yukon has resulted in the Osiris project inferred mineral resource of 1,685,000 ounces of gold at an average grade of 4.23 grams per tonne (in 12.4 million tonnes), a positive preliminary economic assessment for the Tiger gold deposit (pretax net present value of $118.2-million and internal rate of return of 54.5 per cent), and numerous early-stage gold and base metal discoveries. Atac is well financed with approximately $10-million in working capital.

Craig Parry, IsoEnergy’s chief executive officer, commented: “It is with great pleasure that we welcome Queen’s Road Capital as a strategic investor of IsoEnergy and we look forward to working with Warren Gilman and his team as we continue with advanced exploration and resource delineation at Hurricane. Summer drilling at Hurricane is scheduled to commence very soon, and the company is now fully funded with over $14.5-million in the treasury.”

The debenture will be convertible at the holder’s option at a conversion price of 88 cents into a maximum of 9,206,311 common shares of the company (with the exact number of common shares to be issued to be based on the exchange rate at the time of conversion).

The company will be entitled, on or after the third anniversary of the date of issuance of the debenture, at any time the 20-day volume-weighted average price on the TSX Venture Exchange exceeds 130 per cent of the conversion price, to redeem the debenture at par plus accrued and unpaid interest.

The debenture will carry an 8.5-per-cent coupon (over a five-year term and will be convertible at the holder’s option into common shares of the company at a conversion price of 88 cents, which price will be converted to U.S. dollars at the time of conversion). The interest is payable semi-annually with 6 per cent payable in cash and 2.5 per cent payable in common shares of the company, subject to TSX Venture Exchange approval, at a price equal to the market price of the company’s common shares on the TSX-V on the day prior to the date such interest is due.

The interest can be reduced to 7.5 per cent per annum on the public dissemination by the company of an economically positive preliminary economic assessment study, at which point the cash component of the interest will be reduced to 5 per cent per annum.

In connection with the issuance of the debenture, the company has issued 219,689 common shares to Queen’s Road as an establishment fee. All securities issued in connection with this financing will have a four-month hold period expiring on Dec. 18, 2020.

Including the proceeds from the recently closed non-brokered private placement, IsoEnergy will have approximately $14.5-million in the treasury. Proceeds from the non-brokered private placement and the debenture will be used for exploration of the company’s properties in the Athabasca basin, Saskatchewan, and for general working capital purposes.

Elmer Stewart, president and chief executive officer of Copper Fox, stated: “Updating of the 2015 PEA is essential to determine the effects of the positive changes in resource classification and the substantial increase in soluble copper content that was reported in the 2020 updated resource estimate. The robust geological and updated copper recovery models combined with higher long-term copper pricing are expected to have a significant impact on both project economics and mine life, indicating that the Van Dyke project continues to prove itself as a serious competitor in the ISCR sector in Arizona.”

Rationale for the updated PEA

In May, 2020, Copper Fox filed the “NI 43-101 Technical Report and Updated Resource Estimate for the Van Dyke Copper Project,” effective date Jan. 9, 2020, with S. Bird, PEng, and R. Lane, PGeo, as qualified persons. The key highlights of the report included a portion of the resource classification being upgraded from inferred to indicated, an increase in the soluble copper content by 50 per cent and the projected soluble copper recovery to 90 per cent. The associated tables show the comparison and changes between the 2020 and the 2015 resource estimates for the Van Dyke project.

                                   2020 RESOURCE ESTIMATE

Class          Tonnes     TCu    ASCu     CNCu     RecCu   Recovery     Soluble Cu    Total Cu
               (000s)     (%)     (%)      (%)       (%)        (%)          (mlb)       (mlb)

Indicated      97,637    0.33    0.23     0.04      0.24         90            517         717
Inferred      168,026    0.27    0.17     0.04      0.19         90            699       1,007
  

TCu equals total copper.
Soluble Cu equals estimated pounds of recoverable copper. 
Mlb equals million pounds.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.

    2015 INFERRED MINERAL RESOURCE ESTIMATE WITHIN POTENTIALLY ECONOMIC CONFINING SHAPE

Zone      Cut-off -- TCu     Tonnes      TCu     ASCu   ASCu/TCu     Total Cu        Oxide Cu
                     (%)     (000s)      (%)      (%)                   (mlb)           (mlb)

Oxide               0.05    113,143    0.434    0.284      0.676        1,083             704
Mixed               0.05     69,918    0.167    0.060      0.403          245              93
Total               0.05    183,061    0.332    0.198      0.598        1,328             797
    
TCu equals total copper.
Soluble Cu equals estimated pounds of recoverable copper. 
Mlb equals million pounds.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Not only will the updated PEA take into consideration the positive results of the 2020 updated resource estimate, it will also include the most up-to-date technical improvements for the ISCR process with the objective of reducing both the project’s capital and operating costs. A summary of the base case economic results for the 2015 preliminary economic assessment on the Van Dyke project based on 797 million pounds of soluble copper content is shown in the associated table.

                  2015 PEA HIGHLIGHTS: VAN DYKE -- PROJECT
                                                                Unit        Base case

Life of mine (LOM)                                             years               11
Copper cathode sold                                       million lb            456.9
Copper price                                                  $US/lb            $3.00
Gross revenue                                                      $    1,370,000,000
Royalties                                                          $       31,500,000
Operating costs (includes LOM sustaining costs)                    $      619,800,000
LOM direct operating cost ($/pound recovered copper)     $/lb copper             0.60
All-in sustaining cost ($/pound recovered copper)        $/lb copper             1.44
Initial capital costs (includes 30% contingency)                   $      204,400,000
Taxes                                                              $      110,900,000
NPV and IRR (base case)
Discount rate                                                      %               8%
Pretax net free cash flow                                        $US      453,100,000
Pretax NPV                                                       $US      213,100,000
Pretax IRR                                                         %            35.5%
Payback                                                        years              3.3
Posttax net free cash flow                                       $US      342,200,000
Posttax NPV                                                      $US      149,500,000
Posttax IRR                                                        %            27.9%
Payback                                                        years              3.9

The results of the 2015 PEA are preliminary in nature as they include an inferred mineral resource, which is considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability

Mr. Stewart is the company’s non-independent, nominated qualified person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.

Due to the Company’s inability to obtain financing to date, the Company's inadequate cash to continue operations past the third quarter of 2020, the impact of the COVID-19 pandemic on capital markets during the second quarter of 2020, and the decrease in the current and forecasted price of molybdenum, among other factors, the Company recognized a non-cash impairment charge reducing the carrying value of the Mt. Hope molybdenum project by $260.6 million as of June 30, 2020. The carrying value of Mt. Hope Project assets now totals $66.8 million. The impairment charge does not alter the Company's ownership of its underlying assets or rights.

After accounting for the non-cash write-down of $260.6 million and a $57,000 gain from the sale of non-core property in Nevada, consolidated net loss for 2Q 2020 was $262.9 million (-$1.39 per share), compared with a consolidated net loss of $2.5 million (-$0.02 per share) in the second quarter of 2019 ("2Q 2019"). The Company had $2.5 million in cash and equivalents on June 30, 2020.

The Company's current working capital is negative. Based on the Company's current operating forecast, which takes into consideration the fact that the Company currently does not generate any revenue, the Company's existing capital resources are only adequate to sustain its operations through September 30, 2020. In particular, the Company has insufficient cash to make required interest payments on its outstanding Exchange Notes and Supplemental Notes through the remainder of 2020. These conditions raise substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to find an additional source of funding before the end of September 2020, the Company will be forced to cease operations and pursue restructuring or liquidation alternatives, including the filing for bankruptcy protection, in which event the Company's common stock would likely become worthless and investors would likely lose their entire investment in the Company. In addition, holders of the Company's outstanding convertible preferred stock and senior notes would likely receive significantly less than the principal amount of their claims and possibly, no recovery at all. As of the date of this news release, the Company has no commitments for additional funding and there can be no assurance that the Company will be successful in obtaining the financing required to complete the Mt. Hope Project, or in raising additional financing in the future on terms acceptable to the Company, or at all.

The Mt. Hope Project, near Eureka, Nevada, is owned 80% by General Moly and 20% by POS-Minerals Corporation ("POS-Minerals") through their membership in EMLLC, which operates the Mt. Hope Project. At June 30, 2020, EMLLC had a restricted cash balance of $2.8 million (100% basis) in a reserve account, sufficient to remain self-funded into the third quarter of 2021, based on current estimated care and maintenance expenses.

General and administrative expenses were $1.7 million in 2Q 2020, 13% lower year over year due to executive salary reductions implemented in the first quarter. Exploration and evaluation expenses of $132,000 in 2Q 2020 compared with $102,000. Interest expense was $367,000 in 2Q 2020 compared with $387,000 in 2Q 2019. Other expense in 2Q 2020 of $215,000 was related to fair value non-cash adjustments on the warrants issued to the Company's largest shareholder AMER International Group in late 2019.

Financial Summary
($ and Shares in 000, Except Per Share)
                                                                                  2Q 2020 2Q 2019    1H 2020 1H 2019 
Exploration & evaluation expenses                                             $      132$    102 $      305$    206 
General and administrative expenses, 
including non-cash stock compensation                                              1,699   1,962      3,191   3,260 
Loss on impairment charge                                                        260,553       -    260,553       - 
(Gain) on sale of non-core properties                                               (57)       -      (604)       - 
Total Operating Expenses                                                         262,327   2,064    263,445   3,466 
Interest expense                                                                   (367)    (387)   (1,126)    (442)
Other income/(expense)                                                             (215)       -        537       - 
Consolidated Net Loss                                                         $(262,909)$ (2,451)$(264,034)$ (3,908)
Less: Net loss attributable toContingently 
Redeemable Non-controlling Interest                                           $   51,697$    (25)$   51,622$     11 
Net Loss attributable to General Moly                                         $(211,212)$ (2,476)$(212,412)$ (3,897)
Net Loss Per Share                                                            $   (1.39)$  (0.02)$   (1.39)$  (0.03)
                                                                                                                  

The Company's financial advisors, XMS Capital Partners, Headwall Partners, and Odinbrook Global Advisors, continue to be engaged by the Board of Directors to assist the Company with securing incremental financing and evaluating other strategic alternatives, including the potential addition of new Mt. Hope Project partners, additional corporate strategic investors, merger opportunities, and/or the possible sale or privatization of the Company. There is no assurance that the Company will be successful in securing additional funding to be able to continue as a going concern.

In other matters, the Company's Form S-3 Registration Statement was approved as effective by the U.S. Securities and Exchange Commission ("SEC") in May 2020.

At the Annual Meeting of Stockholders on July 17, 2020, all proposals were approved by the stockholders, including the proposal regarding an amendment to the Company's certificate of incorporation providing the Board of Directors the flexibility to effect a reverse stock split of the Company's common stock. More information is described in the Company's news releases of July 20, and March 17, 2020.

Mt. Hope Project

Engineering remains approximately 65% complete at the fully permitted and construction ready Mt. Hope Project. Currently, there is no ongoing engineering and procurement effort. Through June 30, 2020, the LLC has made deposits and/or final payments of $88.0 million on equipment, mostly for the mill. The Mt. Hope Project, which is construction ready and fully permitted, is positioned as the largest moly reserve asset in the Western World.

Moly Market

The moly oxide daily global spot price per pound is currently at $7.93/lb compared with $9.20 at yearend 2019 and $11.88 at yearend 2018, according to Platts. The moly price ranged from a low of $7.33/lb to a high of $9.10/lb during the second quarter of 2020. The moly price reached a low of $7.00/lb on July 20, 2020 and breached the $8 mark on August 14, 2020.

Beginning in 2020 through mid-February, moly prices rose to nearly $11/lb. Later in February 2020, prices pulled back to the $9-range and below $9 in mid-March upon the global economic slowdown. Moly rebounded to just above $9 at the end of April but weakened below $8 in mid-June and traded in the $7-range for approximately two months.

The moly price has declined from softened demand due to the global economic contraction caused by the COVID-19 pandemic and the weakness in oil and gas industry impacting molybdenum-strengthened steel consumption. The International Molybdenum Association ("IMOA") recently reported that global moly consumption in the first quarter of 2020 at 123.6 million pounds, decreased 13% year over year. China, the largest user of moly in the world, consumed 40.3 million pounds, 18% less moly in the first quarter compared with a year ago.

The IMOA also reported that global production decreased 8% year over year to 139.2 million pounds in the first quarter of 2020. China, the largest producer of moly, saw a 6% decrease year over year to 47.7 million pounds of molybdenum output related to the shutdown. The IMOA figures translate to a first quarter surplus of 15.6 million pounds, equating to 13% of first quarter demand.

Stainless steel represents the largest use of moly, accounting for 21% of all moly consumption, according to the CPM Group ("CPM"). The International Stainless Steel Federation ("ISSF") reported an 8% drop year-over-year in global stainless steel output for the first quarter of 2020. The widespread business and industry shutdown around the globe to curb the coronavirus spread resulted in stainless steel production declines in all regions, including the largest stainless steel manufacturer China with a 9% year-over-year decrease, an 11% drop in United States of America, and a 6% decline in Europe.

On a promising note, China appears to be rebounding quickly as its cities and provinces reopen from the lockdown to curb the coronavirus spread. China's second quarter Gross Domestic Production showed a 3.2% increase year over year compared with a minus 6.8% contraction in the first quarter from the prior year, according to BMO Metals Brief. Furthermore, China's industrial production was up 4.8% year over year in June, which was the third consecutive month of growth, reported BMO.

China, the largest producer of stainless steel in the world, has been ramping up stainless steel production over the second quarter, according to CPM. China showed just a 2.7% decrease year over year ("YOY") for June 2020 in the three most popular types of stainless steel, series 200, 300, and 400, compared with the record monthly high of 2.4 million metric tons in August 2019, noted CPM. An additional positive factor for moly is that China also showed a 5.8% YOY production growth for 2Q 2020 in the series 300 stainless steel, which contains higher moly and nickel compared with series 200 steel, stated CPM.Chart 1: Moly Weekly Spot Price (1/6/2011 – 8/14/2020) Image: https://www.accesswire.com/users/newswire/images/602354/genmoly.PNG

1. Twin a portion of historical drill holes within the known mineralized material. This is intended to confirm historical data and allow the use of over 355 historical drill holes in a National Instrument resource estimate. Some of the historical drill hole results are detailed in the associated table and include results such as 1.80 grams per tonne gold over 193 metres, 3.94 g/t Au over 56 metres and 1.81 g/t Au over 179.83 metres.
2. Infill drilling within the known mineralized orebody to increase confidence and maximize the ounce count.
3. Drill results will be used to complete a maiden National Instrument 43-101 resource estimate for Lemhi, scheduled to be released after the completion of the drill program.
4. Groundwork is to consist of geophysics, including technologies designed to identify possible high-grade feeder zones, soil geochemistry, mapping and prospecting. The groundwork will use results from the known mineralized areas to identify further satellite deposits along strike within the 30-square-kilometre package.

Will Randall, president and chief executive officer of Freeman Gold, commented: “We intend to commence drilling during the first week of September with the goal of completing the twin and infill program by November, 2020, and the maiden resource estimate before year-end. We are looking forward to drilling off this near-surface, primarily oxide portion of the known mineralization, in what is our first phase of work at Lemhi. Subsequent work programs will focus on expanding the mineralization both on strike and at depth, which remain open in most directions.

“We are pleased to provide investors with a recap of the Lemhi gold project below, including historic drilling highlights from previous operators in the [19]80s and [19]90s, now that Freeman is embarking on its first drill program. We hope this will help investors follow our progress over the coming months as we release drill results to the market,” added Mr. Randall.

The Lemhi gold project

The Lemhi gold project is located in Lemhi county, Idaho, within the Salmon River Mountains, a part of the Bitterroot Range, which forms the Idaho-Montana border. The property is approximately 40 km (25 miles) north of the town of Salmon and six km (3.7 miles) west of Gibbonsville, Idaho. Freeman has assembled a significant land package including 11 patented mining claims and 322 unpatented mining claims totalling more than 7,000 acres. The mineralization on the property is hosted in structurally controlled quartz vein swarms and quartz-flooded zones and occurs in close association with low-angle faulting.

Previous operators of the project, FMC Gold Company and American Gold Resources (AGR), conducted exploration and development activities between 1984 and 1996. Collectively, these companies completed geologic mapping; rock, soil and vegetation sampling; geophysical surveys; reverse circulation (RC) and core drilling; environmental and baselines studies; and initial mine permitting work over the property. The FMC and AGR drilling delineated extensive gold mineralization covering an area roughly 600 m east-west by 450 m north-south. In 2011 the Lemhi Gold Trust (LGT), a joint venture between Idaho State Gold Co. and Northern Vertex Capital, acquired claims in the area of the current property. LGT completed an aggressive predevelopment program consisting of historical data compilation and review, core and RC drilling, baseline environmental studies, and geotechnical work. Drilling included 7,860 metres in 40 core holes and 2,672 metres in 15 holes of RC drilling. LGT also completed terrestrial vegetation and wetland delineation studies, a petrographical analysis, and additional metallurgical work, as well as readdressed cultural resources, fisheries, wildlife resources, water rights and right of way. The project has not seen any work since the 2011/2012 campaigns by LGT.

A few of the noteworthy historical drill intercepts from these campaigns are listed in the associated table.

                   SELECT HISTORIC DRILL INTERCEPTS -- LEMHI PROJECT        
          
Hole ID          Year      Type of drilling         From        To     Interval**         Au
                                                     (m)       (m)            (m)      (g/t)

85007            1985   reverse circulation         3.05    152.40         149.35       1.06
86035            1986   reverse circulation         3.05    190.50         187.45       0.96
including        1986   reverse circulation       106.68    126.49          19.81       6.90
86064            1986   reverse circulation        28.96     50.29          21.34       4.79
87036            1987   reverse circulation         9.14    152.40         143.26       1.09
93002            1993   reverse circulation         1.52    181.36         179.83       1.81
including        1993   reverse circulation        28.96     45.72          16.76       4.07
including        1993   reverse circulation        59.44    117.35          57.91       4.09
93004            1993   reverse circulation         3.05    196.60         193.55       1.80
including        1993   reverse circulation        80.77    155.45          74.68       3.20
93007            1993   reverse circulation        73.15    129.54          56.39       3.94
including        1993   reverse circulation        76.20     89.92          13.72      15.19
93012            1993   reverse circulation         1.52     10.67           9.14       6.53
95011            1995   reverse circulation        59.44     76.20          16.76       4.04
95046            1995   reverse circulation        89.92    102.11          12.19       4.57
95048            1995   reverse circulation       150.88    167.64          16.76       4.66
95060            1995   reverse circulation       153.92    172.21          18.29       4.92
93005            1995   reverse circulation        18.29    117.35          99.06       1.73
LGT12-011C       2012                  core         6.86    159.72         152.86       1.06
LGT12-011C       2012                  core        37.80     48.46          10.67       8.41
LGT12-014C       2012                  core        61.57     71.93          10.36       3.46
including        2012                  core        67.67     71.93           4.27       7.24

** Intervals are core length.  True width is estimated between 70 and 90 per cent of 
core length.

The bulk of the drilling completed by FMC and AGR consisted of vertical reverse circulation drill holes targeting primarily oxide and transition zones within the patented claims. Many of the drill holes end in high-grade gold mineralization, leaving this deposit open at depth. A small number of holes were drilled off the main zone on strike and the majority intersected meaningful lengths of gold mineralization, including high-grade intercepts. The project is therefore open in most directions beyond the historically defined mineralization. As stated herein, the foregoing results are historical in nature and are provided here for context as to the comprehensive validation drill program contemplated by the company. The historical data have not been verified by a qualified person, including sampling, analytical and test data underlying the drilling information. The current work program will include comprehensive data validation by internal and independent qualified persons.

To obtain approval for the dewatering of the pits, Troilus submitted an environmental impact assessment (EIA) on Nov. 19, 2019, which was subject to a thorough review by MELCC. Troilus also engaged in community consultations with impacted families on the Troilus property and the local communities of Mistissini and Chibougamau to keep them informed of the dewatering proposal and integrate the feedback of stakeholders.

The former Troilus mine operated from 1996 to 2010, producing more than two million ounces of gold and 70,000 tons of copper. After operations ceased in 2010, the Z87 and J4 pits gradually filled up with water from rain and snow melt. Over the last 2-1/2 years, Troilus has completed over 80,000 metres of drilling, the majority of which has occurred around the existing pits. An estimated mineral resource estimate of 4.96 million ounces gold equivalent (177 million t with an average grade of 0.87 g/t AuEq) and the total estimated inferred mineral resource has increased to 3.15 million oz AuEq (116.7 million t with an average grade of 0.84 g/t AuEq) (see press release dated July 28, 2020). Dewatering of the pits will assist with additional exploration efforts.

Justin Reid, chief executive officer and director of Troilus, commented: “Obtaining the certificate of authorization from MELCC to dewater the J4 and Z87 pits is an important milestone for the company. Our environmental team carefully studied the physical surroundings and engaged with the local community to develop a dewatering plan that will leave minimal impact on the surrounding environment and once complete, allow our technical team to safely engage in further drilling in the area. We appreciate the consideration and feedback from MELCC in evaluating our EIA and granting the authorization to move forward with dewatering.”

Infrastructure to support the dewatering, such as a water treatment and pumping facility, have been installed at site.

For a copy of the EIA (full copy in French, summary in English), please visit the company’s website.

As reported Aug. 5, 2020, Troilus was the first company to obtain the UL 2723: ECOLOGO certification program for mineral exploration companies, a standard launched by the Quebec Mineral Exploration Association (QMEA) in November, 2019, to recognize and promote environmental, social and economic best practices: the first certification of its kind for mineral exploration companies. Troilus is committed to ensuring responsible environmental stewardship.

Qualified person

The technical and scientific information in this press release has been reviewed and approved by Bertrand Brassard, MSc, PGeo, senior project geologist, who is a qualified person as defined by NI 43-101. Mr. Brassard has verified the technical data contained in this press release using industry accepted standards. Mr. Brassard is an employee of Troilus and is not independent of the company under National Instrument 43-101.

Over the last 80 years artisanal miners have discovered over 80 high grade gold veins hosted by a diorite intrusion and hornfels in adjacent sedimentary rocks within the project area. Recently, company geologists have discovered additional veins, a zone of replacement mineralization, and indications of potential porphyry-style mineralization on FenixOro’s land package. The veins, many of which assay over 20 grams per tonne gold and as high as 146 grams per tonne gold, are meters to tens of meters apart and occur in east-west and northwest trending families. In several areas, gold-bearing stockwork mineralization crops out between the veins indicating potential for significant widths of mineralization.

A property-wide program of soil sampling on a 25 by 100 meter grid is being carried out to search for additional, non-outcropping mineralization in areas of vegetation and soil cover. Results from the first phase of the program in the Southeast Vein Area were reported in a press release dated July 23, 2020. That program delineated numerous new areas of vein potential and led to increased expectations for the soils program in the Main Vein Zone in the northwestern part of the property.

Figure 1 summarizes the geology and all soil results to date in the Main Vein Zone. The area has always been considered to be the highest priority drill target given the number, density, and high grade of the known veins. As seen in the Figure, the vein outcrop areas are characterized by multi-point soil anomalies of 100-1000+ parts per billion gold. The newly received soil results illustrate the fact that most areas in between the vein families are also characterized by anomalies of similar magnitude. To date nineteen such areas with no previously known veins have been delineated with soil anomalies which are very similar to those developed over known veins.

FenixOro VP Exploration Stuart Moller stated “We anticipated strong soil results over the known veins that could be used as a baseline for interpreting soil results in virgin areas. The major new anomalies between and adjacent to the known veins were a tremendous surprise and as a result we now see greatly enhanced potential for the vein/stockwork model.”

The planned holes were designed to be drilled at 45-60 degree angles from the surface, with each intersecting multiple known veins and areas of intervening stockwork mineralization. An analysis of vein outcrops, mine dumps, tailings, etc. along with topography indicates that very few of the new soil anomalies are likely to be the products of soil contamination. Therefore, most of the nineteen are considered to be newly discovered areas of near-surface mineralization, probably additional vein and/or stockwork zones.

The drill program will not have to be modified significantly to test the best of the new areas as most are immediately adjacent to known veins. The impact will be in the number of veins intersected by each hole and the total width of the mineralized corridors, two of which now appear to be in excess of 300 meters. Additional areas of potential will be addressed with the 20% of the program samples yet to be received from the laboratory and future expansions to the soil grid.Figure 1To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/6188/62104_fenix2.jpg

About FenixOro Gold Corp.

FenixOro Gold Corp is a Canadian company focused on acquiring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is located 15 km west of Continental Gold’s Buritica project in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are very similar. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. Abriaqui has not yet been drilled but surface and underground geological mapping and sampling as well as a preliminary magnetometry survey have been completed. The property is drill-ready pending finalization of the government permitting process.

Technical Information

The comparison between Abriaqui and the nearby Buritica project is meant only to indicate the similarities between the two in terms of geological setting. FenixOro does not imply that exploration results and/or economic characteristics of a potential future mine at Abriaqui will be similar to those seen at Buritica. The sampling done at Abriaqui is in the form of rock chip and channel samples on surface and in shallow underground workings on vein exposures. The samples were prepared and analyzed at ALS laboratories in Medellin and Lima respectively. Samples were taken, prepared, shipped and analyzed following, industry standard QA/QC protocols and were submitted with certified reference standards.

Stuart A Moller, P. Geol. (British Colombia) Vice President of Exploration of FenixOro and a Qualified Person for the purposes of National Instrument 43-101, has reviewed and approved the technical information contained within this press release. Mr, Moller is a geologist with over 40 years of experience in world-wide mineral exploration including 10 years in Colombia.

Highlights:

• The initial 5,000-metre core drilling program with Boart Longyear Ltd. at Beartrack-Arnett has been expanded to 10,000 metres and now includes four target areas.
• Drilling in the Haidee area at Arnett will include 3,000 metres (10 to 15 holes) of resource expansion drilling along strike from the existing Arnett mineral resource and an additional 2,000 metres (eight to 10 holes) of infill drilling to expand and upgrade the inferred resource at Haidee.
• Drilling in the previously untested Rabbit area will help establish the scale of the mineralized system at Beartrack beyond its current 5.6-kilometre strike with approximately 2,000 metres (two to four holes) of drilling. Targets are located two and three kilometres south and on trend of the existing Beartrack mineral resource.
• Drilling in the Joss area will follow up on prior high-grade gold intercepts in drill hole BT18-211 and test the area between the North pit and South pit areas with a total of approximately 3,000 metres (four to six holes).
• In addition to expanding the planned drilling campaign, Revival Gold has expanded its planned geophysics program to 21 line kilometres of gradient array induced polarization resistivity (IP-RES) at Haidee, 13 line kilometres of gradient array IP-RES at Joss and five line kilometres of dipole-dipole IP-RES at Rabbit.

“Revival Gold has ramped up to complete the biggest exploration program to be undertaken at Beartrack-Arnett since the 1990s,” said Hugh Agro, president and chief executive officer. “We will spend approximately $6-million on exploration and we will test several potential game-changing targets on the project. At the same time, we expect to deliver a preliminary economic assessment on the existing open-pit heap leachable resource before year-end and will advance other technical study work on both heap leach and mill material as recommended in the company’s February, 2020, technical report.”

Expanded 2020 exploration program

Last month Revival Gold mobilized Boart Longyear Ltd. for an initial 5,000-metre core drilling program at Beartrack-Arnett. Subsequently, following the close of the company’s recent $15-million equity financing, Revival Gold’s board of directors approved an expanded program of 10,000 metres of core drilling.

The 10,000-metre 2020 drilling program is intended to expand the leachable resource in the Haidee area at Arnett along strike in both directions, upgrade the 2020 inferred resource at Haidee to an indicated category and continue to build the scale of the known gold system at Beartrack beyond its current 5.6-kilometre known strike with drilling in three locations. The program will consist of approximately 5,000 metres of drilling at Arnett and 5,000 metres at Beartrack. An overview of all planned 2020 drill hole collar locations is depicted in an image on the company’s website.

Of the 5,000 metres of core drilling planned for Arnett, an estimated 3,000 metres (10 to 15 holes) are designated for resource expansion. Resource expansion drilling will be completed along strike in both directions and updip of the current resource in the Haidee area. Resource expansion drill holes will be drilled to an approximate depth of 150 metres on 60-metre spacing.

The remainder of the planned Arnett drilling (approximately 2,000 metres in eight to 10 holes) is infill drilling intended to upgrade the 2020 inferred resource at Haidee to the indicated category. Resource upgrade infill drill holes will be drilled to an approximate depth of 150 metres on 30-metre spacing. All planned 2020 Arnett drill holes in the Haidee area are approved for drilling.

In addition to drilling at Arnett, Revival Gold’s 2020 drill program will include 5,000 metres of core drilling targeted to continue to build on the scale of mineralization at Beartrack. The current targets of greatest exploration interest at Beartrack are in the Rabbit area, the southern end of the Joss area, and between the North and South pit. An image on the company’s website illustrates the planned program at Beartrack in the Rabbit and Joss areas.

The Rabbit area has been targeted by Revival Gold based on an airborne magnetics anomaly and property-wide mapping. This undrilled target area is located beneath post-mineralization cover and represents a high-value opportunity given its position within, or proximity to, the Panther Creek shear zone (PCSZ) and its intersection with interpreted cross-faulting structures such as the Coiner fault. Structural intersections represent attractive exploration targets because they are areas of increased rock fracturing, which is favourable for the flow of hydrothermal fluids that can deposit minerals such as gold. Approximately 2,000 metres (two to four holes) are planned in the Rabbit area.

The target area between the North and South pits lies along the PCSZ between two mineralized bodies and has largely been untested by drilling at depth.

In the Joss area drilling has been planned to continue to test the southern extension of the existing mineral resource and to follow up several intriguing high-grade gold intersections encountered east of the PCSZ in core hole BT18-211D.

                          BT18-211D INTERSECTIONS EAST OF THE PCSZ
  
Hole No.        From      To    Drilled width  Est. true width (1)    Fire assay gold grade
                 (m)     (m)              (m)                  (m)                    (g/t)

BT18-211D      102.7   103.9              1.2                  0.7                     9.29
               158.3   159.8              1.5                  0.9                     6.98
               188.5   190.0              1.5                  0.9                     7.87
               198.4   200.9              2.4                  1.3                     7.48
incl.          198.4   199.7              1.3                  0.7                     10.3
               217.9   222.1              4.2                  2.4                     5.37
incl.          217.9   219.2              1.2                  0.7                    12.35
incl.          220.7   221.2              1.4                  0.8                     4.91
               237.1   241.4              4.3                  2.4                     5.13
incl.          238.7   239.6              0.9                  0.5                    12.85

(1) True width estimates are based on a vertically dipping mineral zone. Drill holes 
typically steepen during drilling so the inclination of the drill hole at depth may not 
be the same as the inclination in the mineralized zone.

The intervals in the associated table were previously reported in 2018 (press release dated Dec. 4, 2018) within broader mineralized intervals but individual high-grade gold intercepts outside the PCSZ are, at present, poorly understood. Drilling and geophysics (details below) this year are intended to clarify the relationship of these intervals with respect to the PCSZ.

Approximately 3,000 metres (four to six holes) are planned in the Joss area between the North pit and South pit. These drill holes are all approved for drilling.

In addition to core drilling, Revival Gold is planning a ground geophysical program to follow up airborne magnetics and soil sampling completed in 2019. The geophysics have been contracted to Geofisica TMC SA de CV under the direction of Revival Gold’s consulting geophysicist, Dr. Craig Beasley PhD, Wave Geophysics LLC.

At Arnett, two square kilometres (21 line kilometres) of gradient array IP-RES are proposed for the Haidee area. The geophysical grid will cover the Haidee resource area, extending to the southeast into an area known as the Midlands. Much of the area to be covered by the gradient array IP-RES at Arnett is at least partially covered by postmineral deposits that obscure surface indications of mineralization. Gold anomalies identified during Revival Gold’s 2019 soil sampling program suggest that the mineralized structure at Haidee, and/or structures parallel to it, may continue under the postmineral cover. The gradient array IP-RES is intended to identify structures in these covered areas.

At Beartrack, one square kilometre (13 line kilometres) of gradient array IP-RES is planned for the southern end of the Joss resource area. The intention is to identify secondary structures that could be controlling mineralization at Joss, specifically the higher-grade intersections encountered in hole BT18-211D east of the PCSZ.

Two dipole-dipole IP-RES lines (five line kilometers) are planned over the magnetic low on the Coiner fault in the Rabbit area. Dipole-dipole IP-RES lines at Rabbit are intended to identify possible mineralization at depth and to help estimate the depth to the geophysical target.

Revival Gold has a robust health and safety program, which includes a strong policy with respect to COVID-19. The policy is designed to keep Revival Gold employees and contractors safe as well as to protect the local community. Revival Gold’s COVID-19 policy includes plans to prevent infection, to limit the spread of infection should a team member become infected and a contingency plan should a temporary shutdown be necessary.

Steven T. Priesmeyer, CPG, vice-president, exploration, Revival Gold, is the company’s designated qualified person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and approved its scientific and technical content.

Surface trench NB-4490N returned 42.0 metres (“m”) at 1.93 grams per tonne (“gpt”) gold (“Au”) and 25.7 gpt silver (“Ag”).  Based on area mapping, trench NB-4490N has an 18.0 m estimated true width (“etw”). This trench included a 9.0 m interval (4.0 m etw) with 7.46 gpt Au and 98.1 gpt Ag.  Sampling started in mineralization and crews are extending the trench to ensure the full width of the zone is tested.  These results show that grades and widths of the mineralized structure at the south end of Noche Buena are consistent with subsurface historic drilling results. Noche Buena remains open along southeast strike.

Prime Mining’s COO Gregory Liller said, “Our initial resource estimate for Noche Buena did not have the benefit of any surface trench sampling.  The eight Los Reyes zones contain historic drilling but, prior to our work, had little or no outcrop surface sampling.  Prime’s sampling program is generating high-grade gold and silver results over potentially mineable intervals inside the current pit-constrained resource model boundaries.  With these excellent results, we are confident that the gold and silver mineralized material is already expanding as we prepare for our drilling program in the coming weeks.”

Noche Buena is currently modeled as an oxide open-pit estimated to contain Measured and Indicated mineral resources of 2,239,000 tonnes containing 62,000 ounces (“oz”) Au at 0.86 gpt and 1,554,000 oz Ag at 21.59 gpt, plus a pit-constrained Inferred resource of 1,123,000 tonnes containing 26,000 oz Au at 0.73 gpt plus 626,000 oz Ag at 17.34 gpt.  Noche Buena is one of the eight areas that make up the current Los Reyes Measured and Indicated pit-constrained mineral resource of 19,752,000 tonnes containing 633,000 oz Au at 1.00 gpt Au, plus 16,604,000 oz Ag at 26.2 gpt an Inferred pit-constrained mineral resource of 7,094,000 tonnes with 179,000 oz Au at 0.78 gpt plus 6,831,000 oz Ag at 30.0 gpt.  (See Prime’s April 2, 2020 news release).

Noche Buena is the southernmost zone along the San Miguel West – San Miguel – Noche Buena trend.  The mineralized structure at Noche Buena strikes 140° and dips between 50°-60° to the southwest. The zone has a drill-tested strike length of approximately 560 metres and a true width of between 10 and 40 metres within the current resource model.  The zone has been traced intermittently for approximately 1.1 kilometres between Upper Sequence rhyolite in the southeast and its intersection with the San Miguel vein in the northwest.

Sampling Highlights

Rock chip sampling at Noche Buena is confirming the true area and grade of gold and silver mineralization outcropping at surface and is expected to result in an increase in the overall resource size. Surface trench NB-4490N cuts at an angle across the structure and returned 42.0 m (18.0 m etw) at 1.93 gpt Au and 25.7 gpt Ag, including a 9.0 m (4.0 m etw) interval with 7.46 gpt Au and 98.1 gpt Ag.

Other results include: Trench NB-4660N that returned 52.5 m at 0.9 gpt Au and 13.4gpt Ag, including 1.5 m at 9.84 gpt Au and 18.4 gpt Ag as well as Trench NB-4700N that returned 33.0 m at 1.0 gpt Au and 19.7 gpt Ag, including 1.5 m at 6.17 gpt Au and 81.1 gpt Ag.

Table 1 highlights results from the current trench rock chip channel sampling program at Noche Buena.

Table 1 – Noche Buena Surface Trench Rock Chip Sampling Results

Several roadcut outcrop channel samples have been collected at Noche Buena including along a road that is parallel to the structure. Roadcut NB-RS-2 returned 24 m at 0.48 gpt Au and 24.5 gpt Ag, including 1.5 m at 15.2 gpt Au and 146.1 gpt Ag.

Table 2 summarizes roadcut outcrop rock chip channel sample results at Noche Buena.

Table 2 – Noche Buena Roadcut Outcrop Rock Chip Sampling Results

Readers are encouraged to refer to Los Reyes – Surface Sampling Progress Figures 20, 21, 22, and 23 for all the trench sample results and graphic representation of each trench location at: https://primeminingcorp.ca/maps-technical-data. Photos of the project area and current sampling operations are available at https://primeminingcorp.ca/gallery.  

The Los Reyes project is a low sulphidation, gold-silver epithermal system with eight adjacent areas currently included in the resource model.  The surface bedrock sampling program continues to provide additional valuable information for planning expanded exploration and future mining. Presently, field crews are continuing the collection of surface and subsurface samples from several areas of the project. To date, 4,946 trench, road-cut and underground samples have been submitted for assay. Assay results range from below detection to 48.30 gpt Au and 1,250.0 gpt Ag. Composite intervals use a cut-off grade of 0.2 gpt Au.

QA/QC Protocols and Sampling Procedures

Surface sampling is targeting wide outcropping zones of hard quartz bearing altered bedrock.  In hand dug trenches, local shallow overburden is removed to expose the mineralized bedrock material.  Sample collection consists of crews, using hammers and chisels, chipping continuous 1.5 m channels to produce approximately 8 to 10 kilograms of material for each 1.5 m sample interval.  The larger rocks within the collected material is then broken with a hammer to homogenize them to a standard size. On a canvas mat the collected material mixed, divided, and bagged.  The bagged samples are then trucked to a lab for prep and assay.  Similar samples are also collected from exposed road cuts and from open underground adit areas across mapped and unmapped structures. Estimated true widths of mineralized zones have not been calculated from the surface sampling program except where specified.

Quality control of the sampling program includes the insertion of reference standards and blanks as well as reject duplicate analysis to monitor the integrity of assay results. All samples are stored until picked up by Bureau Veritas Minerals and transported to its laboratory in Durango, Mexico. Samples are then dried, crushed, split and pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption spectroscopy (AAS) finish, and silver plus 34 other elements by multi-acid digestion and ICP finish, over-limits by fire assay and gravimetric finish. Bureau Veritas is an ISO/IEC accredited laboratory.

Bruce Kienlen, P.Geo. Vice President of Exploration, a qualified person for the purposes of National Instrument 43-101, has reviewed and approved the technical content in this news release.

Los Reyes Gold and Silver Project

The Los Reyes Gold-Silver Project is district scale epithermal gold-silver project in a prolific mining region of Mexico. Mineralization in the Los Reyes area is typical of low sulfidation epithermal gold/silver systems. Over $20 million in exploration and engineering has already been spent on the project over 2.5 decades. Previous operators completed various prefeasibility studies and plans yet held back from development due to declining gold prices. While work completed has provided sufficient understanding of resources to fast-track Los Reyes to production, the bulk of work at Los Reyes has been conducted over less than 40% of the known structures leaving significant opportunity to expand known resources.

About Prime Mining Corp (TSX.V: PRYM) (OTCQB: PRMNF)

Prime is an ideal mix of successful capital markets and mining executives and experienced local exploration personnel who are expanding the exploration initiative at the historically productive 100% owned Los Reyes gold and silver project in Sinaloa, Mexico. Current Measured and Indicated pit-constrained oxide mineral resources for the Property include 19.8 million tonnes containing 633,000 oz Au at 1.0 gram per tonne and 16,604,000 oz Ag at 26.2 grams per tonne.  Los Reyes holds substantial resource upside based on open extensions of known resources, ten kilometres of undrilled strike length and at least eight additional exploration targets. Prime Mining has a well-planned capital structure with significant management and insider ownership.

For more information please visit www.primeminingcorp.ca and follow us on Twitter, Facebook or LinkedIn.

ON BEHALF OF THE BOARD OF DIRECTORS

Daniel Kunz
Chief Executive Officer
For further information, please contact:

Daniel Kunz
Chief Executive Officer and Director
Prime Mining Corp.
1307 S. Colorado Ave.
Boise, Idaho 83706
Telephone: 1-208-926-6379 office
Email: dan@dkunzassoc.com

Andrew Bowering
Executive Vice President and Director
Prime Mining Corp.
1507 – 1030 West Georgia Street
Vancouver, BC, V6E 2Y3
Telephone: (604) 428-6128
Facsimile: (604) 428-6430
Email: andy@primeminingcorp.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Information set forth in this document may include forward-looking statements. While these statements reflect management’s current plans, projections and intents, by their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of the Company.  Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. There is no assurance the transactions noted above will be completed on the terms as contemplated, or at all.  The Company’s actual results, programs, activities and financial position could differ materially from those expressed in or implied by these forward-looking statements.