The second-year option payment consists of $100,000 in cash and $325,000 in Excellon stock (see Globex’s press release dated Sept. 24, 2019, for agreement details). Excellon has recently consolidated its stock on a one-for-five basis in order to facilitate listing on the New York Stock Exchange.

Excellon is currently drilling on a variety of target areas both for proof of concept in certain areas and to test for mineralization in areas of historical production. The current program consists of 15 drill holes with an additional 12-hole follow-up should drilling intersect anticipated veining and mineralization. Excellon is currently undertaking planning of the year 2 phase of exploration on the Silver City project.

Globex is looking forward to the first series of drill results from both the proof-of-concept holes and the holes exploring in areas of historical mining.

The Silver City project area has a 750-year history of pick-and-shovel mining. Globex and now Excellon are the first to do modern exploration in the area, which covers approximately 164 square kilometres and numerous areas of historical mining and mineralization. Visit Excellon’s website for more in-depth understanding of the project and its potential.

This press release was written by Jack Stoch, Geo, president and chief executive officer of Globex in his capacity as a qualified person under National Instrument 43-101.

Initial drilling is focused on an area within a one-kilometre radius adjacent to, and upstream of, the single underground crosscut that yielded 173.4 ounces of placer gold. The drill program follows initial exploration consisting of airborne geophysics, rock sampling and soil geochemical analysis conducted by Stephen Kocsis and Axiom Exploration Group’s geological team.

Omineca’s lode gold exploration program targets several northwest-striking faults where they intersect northeast-trending faults identified in the magnetic survey completed in 2018. This structural control pattern is indicative of Riedel-style strike-slip deformation known to produce subvertical ore shoots at Osisko Gold Royalties’ Cariboo gold project, located 25 kilometres to the east. The Wingdam and Cariboo gold projects share similar lithology and structure, two of the main ingredients for mineralization in the gold-producing Barkerville terrane.

The 2020 drilling campaign began on Jan. 6, 2020, and was suspended on March 17, 2020, due to the COVID-19 pandemic. This campaign resumed on July 23, 2020, with two drills currently in operation, one on a barge on Lac Limpide and the other on dry land near the Barry deposit.

From Jan. 6 to March 17, 2020, 26 drill holes were drilled for a total of 10,662 m. Analyses were pending for several drill holes. Some of the results of those holes were announced in a press release dated April 1, 2020, but were incomplete.

Since July 23, 2020, the company has drilled 20 additional holes representing a total of 6,400 m. Results from seven holes are complete, some results from eight drill holes are still pending and drill core samples from five drill holes have yet to be analyzed.

This release presents the results from the drill holes not released prior or with pending results prior to the suspension of drilling related to the COVID-19 pandemic as well as the drill holes of the current campaign analyzed to date.

Pascal Hamelin, interim chief executive officer and vice-president of operations, commented: “I am very pleased to see these very encouraging results to the west of the Barry deposit this early in the drilling campaign. It bodes well for the rest of the campaign and ultimately for the potential to add mineral resources in the next resource update.”

The 20,000 m drilling campaign on the Barry project is designed to:

1. Develop the western and eastern extensions of the Barry deposit on land;
2. Perform infill drilling between intervals greater than 100 m around the deposit, as outlined by the 2019 resource estimate;
3. Explore a magnetic anomaly under Lac Limpide west and north of the deposit.

The included table shows the significant intersections of the drill holes.

Hole ID    From (m)  To (m)  Length (m)  (Au g/t)  Zones                      Purpose          
MB-20-257     303.9  307.6          3.7       1.2                     Infill resource      
              310.8  311.3          0.5       2.1                                   
              319.4  320.0          0.6       1.6                                   
              364.0  379.8         15.8       3.4                                   
including     364.8  373.6          8.8       5.3                                   
              416.2  421.0          4.8       2.1                                   
MB-20-260     199.5  202.9          3.4       1.1     H1            Western extension     
              400.3  400.8          0.5       2.3                                   
MB-20-261     339.9  340.5          0.6       1.5                     Infill resource      
MB-20-262     199.5  200.0          0.5       1.0                   Western extension     
MB-20-263      21.4   22.3          0.9       1.0         Extension under Lac Limpide
              214.2  217.3          3.1       3.3     H2                             
              216.0  217.3          1.3       7.4                                   
MB-20-265     203.9  205.0          1.1       1.9                   Western extension     
              344.7  347.5          2.8       1.1                                   
MB-20-266      51.0   52.0          1.0       2.1                     Infill resource      
               61.5   62.3          0.8       4.3    950                            
               70.2   71.3          1.1       2.5                                   
               78.2   82.0          3.8       1.2                                   
MB-20-267     155.3  158.1          2.8       1.2     H1  Extension under Lac Limpide
MB-20-268      26.2   26.9          0.7       1.3                     Infill resource      
               39.3   40.7          1.4       1.0    800                            
               78.0   79.5          1.5       2.4                                   
              146.6  148.7          2.1       1.7                                   
              206.9  208.0          1.1       5.4   1000                            
MB-20-269     181.1  182.3          1.2       3.5                   Western extension     
              242.8  246.8          4.0       5.6     H2                             
including     244.3  245.7          1.4      14.0                                  
              382.0  386.3          4.3       2.3    H15                            
MB-20-270                          No significant values  Extension under Lac Limpide
MB-20-271     161.7  165.9          4.2       4.3                   Western extension     
              198.2  199.0          0.8       2.8                                   
              273.3  274.8          1.5       1.1                                   
              367.7  368.2          0.5       8.9    H15                            
MB-20-272      93.2   95.1          1.9       2.3     H1            Western extension     
              114.8  115.3          0.5       1.1                                   
              173.6  174.1          0.5       2.2                                   
MB-20-273      86.2   87.7          1.5       4.0     H1            Western extension     
               92.4   94.4          2.0       3.3                                   
MB-20-274      59.5   61.7          2.2       1.9     H1  Extension under Lac Limpide
              245.4  246.1          0.7       1.1    H15                            
MB-20-275      75.1   76.1          1.0       1.6     H1            Western extension     
              155.5  157.3          1.0       6.0     H2                             
including     156.5  157.3          0.8      12.8                                  
              314.3  315.5          1.2       2.2    H15                            
MB-20-276                                                              Pending assays
MB-20-277                          No significant values  Extension under Lac Limpide
MB-20-278     239.6  241.1          1.5       1.8                     Infill resource            
              294.7  295.2          0.5       1.0                                  
              337.6  338.2          0.6       3.8                                  

Notes:

1. The meterage represents the length of the drilled lengths.
2. True widths are estimated to be greater than 85 per cent of the drill intersection length.
3. The mineralized intervals use a one g/t Au cut-off grade with not more than 0.5 m of internal dilution.

Eight drill holes (MB-20-260, 262, 265, 269, 271 to 273 and 275) were drilled in the western part of the Barry deposit, in the area of hole MB-20-250 (7.35 g/t Au over 8.35 m) to determine the extent of the zones of the deposit to the west of the deposit. The results of these drill holes indicate that the zones extend to the west at least an additional 500 m. These holes have made it possible to verify the continuity of zones H1, H2 and H15.

Five drill holes (MB-20-263, 267, 270, 274 and 277) were drilled on Lac Limpide from an ice drill pad (263, 267 and 270) and on a barge for drill holes 274 and 277. Hole MB-20-270 had to be abandoned following suspension of drilling due to the COVID-19 pandemic. However, holes MB-20-267 and 274 have confirmed the continuity of the H1 zone.

Five holes (MB-20-257, 261, 266, 268 and 278) were drilled for infill purposes between the 2019 inferred resource. Two holes (266 and 268) are located northwest of the 2019 resource and the other three holes (257, 261 and 278) are located to the south of the resource.

Hole MB-20-266 has intercepted zone 950 with a value of 4.31 g/t Au over 0.8 m. Drill hole MB-20-268 confirmed the continuity of zone 1000 with 5.41 g/t Au over 1.1 m.

The three holes south of the Barry deposit intercepted zones between the H1 and 800 zones in porphyry intrusions and often in basalt shear zones in contact with these intrusions. Significant drill intersections include MB-20-257 with 2.1 g/t Au over 4.8 m and MB-20-278 with 3.8 g/t Au over 0.6 m.

Numerous shallow drill holes were completed on the property over the years (205 holes totalling 12,247 metres), with the majority of this work concentrated on four of the showings when the project was managed by its partners. Sirios reacquired full ownership of Aquilon in 2016, at which point it initiated and continues to revise the exploration strategy on this property, which is ranked internally as having an excellent discovery potential.

Moman/Fleur de lys area

Drill hole No. 108 intersected 4.65 grams per tonne Au over 6.9 m, including 10.3 g/t Au over 2.9 m, extending the Moman showing for more than 175 m laterally to the area of the Fleur de lys showing. This drill hole allows for the first time to spatially connect these two showings, each composed of a main high-grade gold vein and gold halos encompassing others veins and veinlets. An intercept of 4.36 g/t Au over 1.2 m in hole No. 105 is related to a zone located approximately 15 m above the Moman vein.

Lingo area

The Lingo-3 West vein with visible gold was intersected at depth by drill hole No. 106, which assayed 1.43 g/t Au over one m. This extends the vein by 60 m, for a total length of approximately 300 m down plunge from surface along the mineralization axis.

Other exploration targets

In addition to lode-type mineralization (quartz veins) intersected in the Moman/Fleur de lys and Lingo showing areas, gold mineralization was also associated with semi-massive to disseminated sulphides, similar to the surface SLD showing, and observed in drill hole No. 109. The drill hole intersected an interval of disseminated sulphides, which assayed 4.63 g/t Au over one m, as well as another anomalous zone of 0.16 g/t Au over 21.4 m hosted in a tonalite containing less than 5 per cent of disseminated sulphides (pyrite, pyrrhotite).

The compilation of historical data, with results of the new drill holes, shows that the vein-type gold mineralization is persistent along a 30-degree dip to the north-northeast with frequent occurrence of visible gold. Drill hole No. 108 defines a significant lateral extension of the Moman showing outside of the high-grade shoot (cylindrical shape) that had previously been followed for over 100 m along its plunge trend.

“We are very encouraged by these results, with only a few drill holes we were able to, for the first time on Aquilon, connect two high-grade gold showings laterally over a significant distance of more than 175 m. The results more than warrant further exploration efforts on this property, including additional drill holes to confirm both the lateral and depth continuity of these showings. Furthermore, the presence of gold mineralization associated with disseminated sulphides, close to a gold-rich hydrothermal system, demonstrates the additional potential to discover a deposit associated with sulphides bearing volcano-plutonic rocks,” stated Dominique Doucet, founder and president of Sirios.

Next steps

The results of this drilling campaign have improved the company’s understanding of the gold mineralization model. Compilation work continues with reinterpretation of the historical data, supplemented by the new drilling results, in order to generate new exploration targets. In addition, 643 soil samples (humus) collected this summer in the central area of the property are currently being assayed. The results of this survey could develop new targets.

Finally, the seven drill holes of this campaign, totalling 1,414 m, were the first phase of a larger 10,000 m program that could be completed in the future.

                              AQUILON -- 2020 SIGNIFICANT DIAMOND DRILLING RESULTS
 
Drill hole No. AQ20-          Area   From     To  Length (m)*  Grade (g/t Au)                      Interpretation

105                          Moman  115.0  120.0          5.0            1.19           Zone above the Moman vein
including                           115.8  117.0          1.2            4.36                             
                                    224.8  227.2          2.4            1.21           Zone below the Moman vein
106                          Lingo   77.4   81.4          4.0            0.86       Extension of the Lingo-2 vein
                                    125.0  126.0          1.0          **1.43  Extension of the Lingo-3 West vein
                                                                                      Extension of the Moman zone
108                   Fleur-de-lys   82.5   89.4          6.9            4.65                     to Fleur de lys
including                            86.5   89.4          2.9         **10.30                                    
                                                                                              Gold mineralization
109                            SLD   31.3   32.3          1.0            4.63           in disseminated sulphides
                                                                                   Anomalous gold zone associated
                                     78.5   99.9         21.4            0.16         with disseminated sulphides

* Length of the drill hole, true width not determined

** Visible gold observed

Drill holes No. 107, 110 and 111 did not yield significant results.

Assay quality control

All drill core was logged and split in half by Sirios personnel on the Aquilon property. One-half of the drill core was then sent to a certified commercial laboratory in the Rouyn-Noranda region for assaying and the other half was kept for future reference. A strict quality assurance/quality control program is in place by integrating blanks and certified reference standards to the core sample sequence. The samples were assayed for gold by fire assay with an atomic absorption finish by Actlabs. Samples assaying greater than two g/t Au, as well as drill core samples with visible gold, were assayed by fire assay with metallic sieve on a one-kilogram sample.

Highlights:

• With simple adjustments, the shaft on the Chimo mine property could extract 1.7 million metric tonnes per year (4,921 metric tonnes per day).
• This study is one of four engineering studies carried out in tandem with a preparatory study for a new mineral resource estimate on the Chimo mine property to reveal its full value.

The study reveals that the components of the internal shaft structure could be used to hoist skips with a loading capacity of 20 metric tonnes each, travelling at a cruising speed of 2,200 feet per minute (40 kilometres per hour). This hoisting rate would raise 492 metric tonnes per hour of rock to the surface for a total of 4,921 metric tonnes per day in 10 hours of hoisting operations per 24-hour day, or 1.7 million metric tonnes year.

To date, two internal engineering studies have been completed with positive findings, including the study that is the subject of this press release. Two other internal engineering studies are still under way, as well as an internal preparatory study for a new mineral resource estimate, on the Chimo mine property.

No preliminary economic assessment, prefeasibility study or feasibility study has been completed and disclosure of results from this internal study does not support or imply the technical feasibility and/or economic viability of the project. In addition, while current mineral resource estimates have been completed on separate zones on the property, mineral resources that are not mineral reserves do not have demonstrated economic viability.

An attached table shows the current and future features of the shaft infrastructure on the Chimo mine property.

About the Chimo mine project

Cartier holds a 100-per-cent interest in the property for which a 1-per-cent net smelter return royalty was granted to Iamgold Corp. No right of first refusal (buyback) was granted.

The most recent mineral resource estimate for the Chimo mine property, detailed in an attached table, uses a gold price of $1,300 (U.S.) per ounce and a cut-off grade of 2.5 grams per tonne gold.

Fourteen gold zones were mined by three producers between 1964 and 1997 for a production of 376,217 ounces of gold (MERN DV 85-05 to DV-97-01).

The mining infrastructure consists of a network of seven kilometres of drifts on 19 levels, connected by a shaft with a depth of 914 metres. The bridge and surface facilities were dismantled in 2008 but the 25-kilovolt power line and sandpit are still in place.

Cartier’s drilling programs to date on the Chimo mine property amount to 124 drill holes for 58,054 metres and 21,867 gold samples collected.

Evergold Corp. has completed the first tranche of its previously announced (see news release dated Aug. 28) non-brokered private placement, which was primarily targeted at hard-dollar investors, and exceeded its targeted sale of hard-dollar units. Because most institutional flow-through funds have depleted their capital by September and several of these funds have indicated a desire to invest in the company upon replenishing their reserves in early October, the company intends to complete a second tranche involving several of these funds, thereafter. Prior to completing this second tranche, the company will first receive back from the lab, evaluate and then release assay results for the recently completed phase 1 drill program at the company’s Golden Lion project and any remaining significant assay results from its recently completed phase 1 drill program at the company’s Snoball project.

The first tranche targeted the sale of a minimum $1-million in hard-dollar units. It closed with the sale of 2,173,600 hard-dollar units to a fund and retail investors for gross hard-dollar proceeds of $1,086,800, plus the sale of 325,000 flow-through shares, all to retail investors, for gross flow-through proceeds of $195,000. Gross proceeds, hard dollars and flow through combined, amounted to $1,281,800. It is expected that the second and final tranche will close in the near future.

“We are pleased to have exceeded our hard-dollar objectives and to have received guidance from several major funds that they wish to invest in our second tranche, subject to terms,” said Kevin Keough, president and chief executive officer. “In the near term we will focus on the exciting work of assessing and releasing assay results from drilling at our GL1 Main prospect. On Sept. 9 we completed an extensive induced polarization (IP) geophysical survey over the target area, which defined a resistivity and chargeability anomaly encompassing hundreds of metres of strike length, broad widths and untested down-dip potential. The significance of these geophysical results is that the target is now considerably larger than previously understood, and drilling to date appears to be only testing its edge. We look forward to integrating the pending drill assay results with the new geophysical data as we plan for a phase 2 follow-up drill program in the next (2020) field season.”

Investors may view a video presentation by the CEO, presented to the Metals Investor Forum on Sept. 10, on the company’s website. The latter half of this presentation deals specifically with the aforementioned geophysical anomaly and its spatial relationship to drilling.

All securities issued and issuable pursuant to the offering will be subject to a hold period of four months and one day from the date of issuance. Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including approval of the TSX Venture Exchange and applicable securities regulatory authorities. In connection with the first tranche, the company has agreed to pay a commission of an aggregate of 89,852 warrants and $46,801 to eligible finders in accordance with the policies of the exchange.

The shares were acquired through the facilities of the exchange. The current holdings of the acquiror, together with Carrelton, consist of 6,974,300 shares of Allegiant, 200,000 warrants, 500,000 options and 950,000 restricted share units (RSUs), which holdings represent 11.64 per cent of the outstanding shares of Allegiant, assuming exercise of the warrants, options and RSUs. The holdings of securities of Allegiant by the acquiror and Carrelton are for investment purposes, and the acquiror and Carrelton may increase or decrease their investment in Allegiant at any time, depending on market conditions or any other relevant factor.

A copy of the acquiror’s early warning report will appear on Allegiant’s profile on SEDAR and may also be obtained by contacting Peter Gianulis at 1-775-981-0012.

The BCSC has informed the company that it has identified a number of examples where the Dome report does not comply with the requirements of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (NI 43-101) and the requirements of Form 43-101F1 technical report. As a result, the company’s preliminary economic assessment is not supported by a compliant NI 43-101 technical report, and the company has determined to hereby retract its technical disclosure relating to project economics, as originally announced in the company’s news release of May 19, 2020, and as disclosed in the Dome report.

The company is working with the independent authors of the report to prepare and file a current technical report to support the mineral resource disclosed in its May 19, 2020, news release. The company currently expects to file an updated current technical report in draft with the BCSC within the next two weeks and subject to clearing comments of the BCSC on SEDAR thereafter. As a result, investors should not rely on the results disclosed in the Dome report pending a compliant technical report being filed.

Election of directors

Detailed results from the election of directors are set out in the associated table.

Nominee                   Votes for        Per cent for   Votes withheld     Per cent withheld

Batjargal Zamba          22,465,025              81.83%        4,986,875                18.17%
Batkhuu Budnyam          22,474,025              81.87%        4,977,875                18.13%
Jargalan Sereenen        22,474,025              81.87%        4,977,875                18.13%
Patrick Michaels         27,434,225              99.94%           17,675                 0.06%
Bataa Tumur-Ochir        22,474,025              81.87%        4,977,875                18.13%
Aneel Waraich            21,414,125              78.00%        6,037,775                22.00%
Matthew Wood             21,409,825              77.99%        6,042,075                22.01%
Steve Haggarty           22,474,025              81.87%        4,977,875                18.13%

Complete voting results are available on SEDAR.

Appointment of auditor

MNP LLP was reappointed to serve as the independent auditor of the company for the ensuing year.

About Steppe Gold Ltd.

Steppe Gold is Mongolia’s premier precious metals company.

A total of 80,500 metres of drilling since 2018 (see Figure 2) has delivered a total estimated indicated mineral resource of 4.96 Moz AuEq (177 Mt with an average grade of 0.87 g/t AuEq) and total estimated inferred mineral resource of 3.15 Moz AuEq (116.7 Mt with an average grade of 0.84 g/t AuEq) (see press release dated July 28, 2020), the majority of which is derived from 72,000 metres of drilling proximal to the Z87/Z87 South and the J Zones. Drilling at these zones will target upgrading the inferred mineral resources within current open pit constraining shells to support the planned prefeasibility study, as well as expand and extend near-surface mineralization to support the open-pit mine development scenario.

The Southwest Zone is located 3.5 kilometres southwest of Z87, parallel and directly adjacent to the access road to the Troilus mine site. The Southwest Zone is characterized by the same dioritic host rock as Z87, but having a more intense level of alteration and mineralization. An 8,500 metre drill program undertaken in late 2019 and early 2020 delivered some of the best results ever drilled at the Troilus property, including 1.56 g/t AuEq over 73 metres in hole TLG-ZSW20-189 (see press release dated April 21, 2020), and outlined a more than 500 metre mineralized trend that remains open along strike. The SWZ contributed 583,000 AuEq open pit inferred ounces (22.6 Mt with an average grade of 0.80 g/t AuEq) to the overall estimated mineral resources (see press release dated July 28, 2020). Management believes successful drilling at the SWZ has the potential to outline more near surface, higher grade material that could have a significant impact on future engineering studies and production scenarios.

Justin Reid, Chief Executive Officer of Troilus Gold Corp., commented, “The drills are currently turning. We anticipate that our team will be able to complete a minimum of 20,000 meters before the end of the year. It is our expectation that drilling will aggressively continue through 2021 as well. Over the last three years, our technical team has consistently delivered positive results by refining our structural model and understanding of the Troilus deposit and controls on gold emplacement. This has resulted in a 142% increase to estimated indicated mineral resources and a 350% increase to estimated inferred resources since we acquired Troilus in 2017, thereby solidifying management’s belief that this project has the potential to emerge as a long-life, open pit gold producer of scale located in one of the most favorable mining jurisdictions on the globe.”

“The recent Preliminary Economic Assessment (“PEA”)* results confirm that the Troilus project, based on the current estimated mineral resources, has the potential to deliver an after-tax IRR of 22.9% and NPV5% of $576 million based on $1,475/oz gold increasing to 32.2% and $915 million at $1,750/oz gold and 38.3% and $1,156 million at $1,950/oz spot gold prices over the course of a 22-year mine life with production averaging 35,000 tonnes per day (see press release dated August 31, 2020). It is our expectation that with more drilling we have the potential to identify additional resources that could further contribute to the economic forecast of the future mine in terms of life of mine and/or daily production capacity.”

* Assuming a US$:C$ exchange of $0.74. All figures reported in US$ unless stated otherwise

Troilus remains underexplored and highly prospective. Extensive field exploration work undertaken this summer across the +107,000 hectare Troilus property is currently being compiled to identify new prospective targets. Assays of samples collected in the field are pending and will be updated in due course.

The Company has engaged the services of drilling company Forages Chibougamau Ltee. and 3 drills have been mobilized on site.

Altus Strategies PLC begins trading today on OTCQX under the symbol “ALTUF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on http://www.otcmarkets.com.

Upgrading to the OTCQX Market is an important step for companies seeking to provide transparent trading for their U.S. investors. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.

Steven Poulton, Chief Executive of Altus, commented: “Altus is a precious metal focused royalty generator with a number of notable institutional and retail shareholders who are based in the US. OTCQX is the highest tier of the OTC Market and we are delighted to be admitted to trading as a means of increasing our visibility to prospective investors and provide them with the opportunity to participate in our continued progress.”

MCAP LLC acted as the company’s OTCQX sponsor.

Highlights

Airborne magnetic and gravity survey will cover seven separate nickel-bearing target structures with more than 30 kilometres of total strike length and ranging from 150 to 600 metres wide. Survey provides same data that was successfully utilized in the discovery and subsequent delineation of its Crawford Nickel-Cobalt Sulphide Project

Historic drilling yielded nickel-bearing intersections on all of the target structures, including:

Kingsmill {೩ –} 0.30% Ni over core length of 503 metres from 118 metres in historic hole KML-12-02 (2012) and 0.31% Ni over 302 metres core length from 20 metres in historic hole 27090 (1966)

Nesbitt-North {ශ –} 0.28% Ni over core length of 163 metres from 233 metres in historic hole 27083 (1966)

Mahaffy-Aubin {฿ –} 0.23% Ni over core length of 127 metres from 82 metres in historic hole 31901 (1966) and core length of 276 metres of serpentinized ultramafic mineralization (similar host mineralization at Crawford) in historic hole T2-80-2 (1980) with no assays provided

“This airborne survey is the critical next step in unlocking the nickel-cobalt sulphide potential of the overall land package we have assembled in addition to our Crawford project: seven different structures ranging in size from 2.2 kilometres long by 375-600 metres wide (Kingsmill), to 8 kilometres long by 200-500 metres wide (Mahaffy-Aubin). Each structure has yielded historical drill intersections indicating that the geophysical targets identified are nickel-bearing,” said Mark Selby, Chair and CEO of Canada Nickel.

“With our recently announced $13 million financing and this airborne survey underway, we look forward to building on the large resource we have already defined at our Crawford nickel-cobalt project and beginning to unlock the district scale nickel-cobalt potential we believe this region holds over the coming autumn and winter seasons.”

Airborne survey and drilling results from the Crawford Main and East Zones showed a strong correlation between specific magnetic and gravity signatures and nickel mineralization. This unique geophysical signature was successfully utilized for ranking drill targets at Crawford.

The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.

Airborne Survey

The airborne survey, flown by CGG Canada Services Ltd. using the Falcontrademark system, will include measurements of the total magnetic intensity and the vertical gravity gradient made along flight lines oriented north-south and spaced 100 m apart. The current survey totals 2,731 l-km and adds to the previously acquired 2,000 l-km to completely cover Crawford and Carnegie Townships as well as the Nesbitt-North, Kingsmill, MacDiarmid and Mahaffy exploration targets. See Figure 1 below.

Overview of Option Properties (Previously released on July 13, 2020)

Kingsmill

The Kingsmill target is a large serpentinized ultramafic intrusion which is 2.2 km long and between 375-600 metres wide. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

Initial review of historical drilling results has yielded both significant nickel and PGM intersections and the north side of the structure appears to have the same PGE enrichment as Crawford Main and East Zones: 1.0 g/t PGM over 2 metres from 96 metres within 0.3 g/t PGM over 30 metres from 69 metres in historic hole KML-12-11, 0.8 g/t PGM over 5 metres from 523 metres within 0.5 g/t PGM over 24 metres in historic hole KML-12-07.

The Company believes that the initial review points to several large portions of the structure which remain highly prospective for nickel-cobalt-PGM mineralization:

The two sections were 1.3 km apart leaving a large portion of the overall structure completely untested

There are several intersections which points to the potential for relatively higher quantities of recoverable minerals

Holes KML-12-06, KML-12-11, KML-12-12 on the Eastern section all contained intersections with significant nickel and sulphur content (which is necessary for formation of nickel sulphide minerals) across wide intersections (see Table 1 below)

Hole KML-12-03, yielding 0.26% nickel and 0.03% sulphur over 130 metres, was the only hole (of four holes on the Western section) drilled on the northern half of the structure, which has yielded the best mineralized portions of the Crawford Main and East Zones

Historic hole 27090, also drilled on north side of the structure in 1966, yielded 0.31% nickel over 302 metres (sulphur was not assayed)

The understanding of the mineralogy of these deposits has evolved significantly since the Kingsmill drilling was completed eight years ago, particularly the controls and the deportment of potentially recoverable nickel minerals across a deposit. Initial mineralogy results from Kingsmill in 2012 were inconclusive as the test was conducted on one master sample compiled from all drill cores across a distance of 2 km {⠙ –} not taking into account the significant variability in mineralogy between rock types, and that some ultramafic rock will have low amounts of potentially recoverable nickel minerals.

See Tables 1a and 1b and Figure 2 for results. See below caution regarding Historical Information.

Table 1a {⦶ –} Kingsmill Selected Historical Drilling Key Nickel Intersections {⨁ –} Holes 6, 11, 12 (Eastern), 3 (Western), Kingsmill Township, Ontario

   
  
  
   DDH ID  From  To  Length Ni  Co   Pd   Pt   S   Fe 
          (m)  (m)  (m)  (%)  (%) (g/t)(g/t)(%) (%) 
KML-12-02117.1620.6503.5 0.300.0120.0030.0030.015.36
                                                    
KML-12-03134.0264.4130.4 0.260.0120.0220.0220.036.51
including134.0169.0 35.0 0.240.0130.0420.0550.017.59
Including235.0264.4 29.4 0.270.0110.0080.0030.065.94
                                                    
KML-12-0654.7 550.0495.3 0.210.0110.0060.0050.055.89
including57.0 324.0267.0 0.260.0110.0080.0060.035.88
                                                    
KML-12-11112.0304.0192.0 0.240.0110.0090.0060.036.11
including181.0303.0122.0 0.270.0120.0080.0050.026.25
                                                    
KML-12-12175.0272.0 97.0 0.180.0110.0180.0100.105.98


  

Note: the lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it. True widths will be less than the core lengths by a number of factors. The drill hole orientations are reported in Table 2. See below caution regarding Historical Information.

Table 1b {⿦ –} Kingsmill Selected Historical Drilling Key PGM Intersections {〮 –} Holes 6, 11, 12 (Eastern), 3 (Western), Kingsmill Township, Ontario

   
  
  
   DDH ID  From  To  LengthPd+Pt Pd   Pt   Ni  Co  
          (m)  (m)  (m)  (g/t)(g/t)(g/t)(%)  (%) 
KML-12-07522.0546.2 24.2  0.4  0.2  0.2 0.060.008
including523.0528.0 5.0   0.8  0.5  0.3 0.020.005
                                                 
KML-12-1169.0 99.0  30.0  0.3  0.1  0.1 0.010.004
including96.0 98.0  2.0   1.0  0.3  0.7 0.010.005
                                                 
KML-12-12153.0157.0 4.0   0.4  0.2  0.3 0.020.005


  

Note: the lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it. True widths will be less than the core lengths by a number of factors. The drill hole orientations are reported in Table 2. See below caution regarding Historical Information.

For details on Noble Mineral Exploration Inc.’s (“Noble”) 2012 drilling program, please see Noble’s press release dated March 15, 2018 that is filed on http://www.sedar.com.

Once the resource update for Crawford is complete, the historic drilling will be re-logged based on our understanding of the geology, and mineralogical samples will be selected to understand the deportment of potentially recoverable nickel minerals (pentlandite, heazlewoodite, awaruite).

Crawford-Nesbitt-Aubin

Two targets have been identified in Crawford-Nesbitt-Aubin Township, consisting of two ultramafic units 6 km long and 150-200 metres wide containing serpentinized peridotite, much of it was not assayed. Inco drilling in 1964-66 yielded highlights including narrow intervals of up to 0.35% Ni which tested the edges of the geophysical target. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

See Figure 3 for results. See below caution regarding Historical Information.

Nesbitt North

Two ultramafic units 3.7 km long by 150-300 metres wide with significant nickel intersections were identified in Nesbitt township. Inco 1966 drilling highlights included 0.28% Ni over 163 m in historic hole 27083. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

See Figure 4 for results. See below caution regarding Historical Information.

MacDiarmid

A target of 3 km by 150-600 metres wide ultramafic intrusion with serpentinized peridotite has been identified, much of it was not assayed. Highlights include historic hole 18127 which intersected 142 m of mineralized peridotite which was not assayed, and narrow intervals of up to 0.22% Ni over 1.5 m in NRK-65-7 (1965). For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

See Figure 5 for results. See below caution regarding Historical Information.

Note: Property continues beyond map boundary.

Mahaffy-Aubin

A target of 8 km by 200-500 metres wide interpreted ultramafic intrusion has been identified, much of it was not assayed. Highlights include historic hole 31901 (1966) which intersected 0.23% Ni over 127 m, and hole T2-80-2 (1980) which intersected 277 m of serpentinized ultramafic rock with no assays reported. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

See Figure 6 for results. See below caution regarding Historical Information.

Option Terms:

As detailed in its March 4, 2020 and May 22, 2020 news releases, Canada Nickel acquired the Crawford Annex property and the option to earn up to an 80% interest in 5 additional nickel targets within the Project 81 land package. The Crawford Annex comprises 4,909 hectares in Crawford and Lucas township and the 5 option areas (Crawford-Nesbitt-Aubin, Nesbitt North, Aubin-Mahaffy, Kingsmill-Aubin, and MacDiarmid) (“Option Properties”) range in size of 903 to 5,543 hectares. See Figure 1 for a map of property locations.

Canada Nickel has the option to earn up to an 80% interest in each of the Option Properties on the following terms and conditions.

Canada Nickel can initially earn a 60% interest in each of the Option Properties within 2 years by:

funding at least $500,000 of exploration and development expenditures on each option property

paying all property maintenance costs for each option property, including all applicable mining land taxes

making a payment to Noble of $250,000 in cash or, at Noble’s election, Canada Nickel common shares.

Canada Nickel has the right to then increase their interest to 80% in each of the Option Properties within 3 years by funding an additional $1,000,000 of exploration and development expenditures on each option property (for a total of $1,500,000 per option property)

If the conditions to earn a 60% interest or 80% interest have been satisfied, a joint venture would be formed on that basis and a 2% net smelter return royalty (NSR) would be granted to Noble on the portion of the property which are mining claims and currently do not have any royalty on them. (The overall result would be a total 2% NSR on each property.)

Cautionary Statement Concerning Historical Information

The historical information referenced in this press release is based primarily on drilling results reported by Inco Ltd. and Noble Mineral Exploration Inc. A majority of the holes were drilled more than forty years ago, only tested the periphery of the target structures, and did not traverse entire width of the mineralized targets. This historical information has been filed with the Ontario Government and is available on-line though the Mining Lands Administration System (MLAS) website.

The company believes this information is relevant, as it was completed by reputable companies using drilling and sampling practices that were industry standard at the time. The company or its “qualified person” (for the purposes of National Instrument 43-101 {嵡 –} Standards of Disclosure for Mineral Projects) has reviewed the information to confirm it has been correctly reproduced from the public MLAS database, but given the company’s and its qualified person’s inability to access the underlying data, the company or its qualified person has not done sufficient work to verify the historical information contained in this news release.

Pursuant to the Transaction, the Company, among other things, cancelled the inter-company debt owed by the Company’s subsidiary, Hudson Greenland A/S (“Hudson Greenland‘), to the Company and converted approximately US$13.7M, of the existing debt of US$43M owed to the Lenders pursuant to existing loan facilities, into preferred shares of Hudson Greenland, thereby reducing the Company’s interest payments substantially. Hudson Greenland also issued a convertible debenture in the amount of US$10M (the “Debenture”) to the Lenders, to provide funding directly into Hudson Greenland to ensure sufficient working capital to get the White Mountain anorthosite mine back into operation. The Debenture has a maturity date of five years from the date of issuance, and will be convertible into preferred shares in the capital of Hudson Greenland. The Debenture will not bear interest and will not confer voting rights on the Lenders until conversion of the Debenture, in accordance with its terms.

Hudson Greenland will use the proceeds of the Debenture for working capital to put the White Mountain mine back into production and general corporate purposes, as approved by Hudson Greenland’s board of directors. The Company notes that the new structure and capital injection does not dilute the number of shares in Hudson Resources. The Company retains the right to buy back 100% of the White Mountain mine for the next five years.

In accordance with the policies of the TSX Venture Exchange (the “Exchange”), and as a condition to completing the Transaction, the Company obtained written shareholder approval of more than 50% of the holders of the Company’s common shares to complete the Transaction.

The Mineral License and Safety Authority of Greenland has also approved the debt transaction as it relates to a change of control in the license which holds the White Mountain mine.

Jim Cambon, President commented: “We are pleased to have concluded the debt restructuring which will allow operations at the White Mountain mine to move forward so we can ship product to customers. The team on site has recommenced operations and we have already shipped a 26 tonne sample which will be utilized for commercial trials for potential paints and coatings customers in North America and Europe.”

The Company now owns approximately 31% of the White Mountain anorthosite mine through its subsidiary, Hudson Greenland A/S. This percentage may decrease to approximately 21% should the Debenture be converted into preferred shares of Hudson Greenland.

The Company also holds the Sarfartoq rare earth element (REE) and niobium/tantalum exploration license in Greenland. Activities have commenced on the high-grade niobium project which the Company will provide an update on shortly.

Mr. Tremblay, a seasoned mining professional with over 30 years of mine building and mine operations experience, and is currently the Chief Operating Officer with Dalradian Resources Inc. He previously held the role of General Manager at Canadian Malartic, Canada’s largest open pit gold mine. He was responsible for building the operations team, establishing operating procedures and standards, expanding stakeholder engagement and subsequently managing an internal team of 700 employees. Mr. Tremblay was also the General Manager at IAMGOLD’s Westwood Project, where he participated in closure of the Doyon Mine and construction of the Westwood Project, completing the permitting, scoping study, feasibility study, surface construction and underground development at Westwood. Previous positions include, Underground Superintendent at Cambior’s Mouska Mine, Underground Captain/Project and Engineer/Senior Supervisor over a seven-year period at Cambior and Barrick’s Doyon Mine, where he was involved in mine-planning, construction, development and production. During his studies and afterwards he worked on various underground mines and projects, including Musselwhite. Mr. Tremblay graduated from Laval University with a B.Sc. in mining engineering and mineral processing.

Morris Prychidny, Chairman of the Board commented, “Eric brings exceptional mine building and mine optimization experience to the board, with a background in mining engineering and mineral processing. His track record for optimizing operations and stakeholder outreach are valuable assets as we embark on preliminary engineering studies at the flagship Colomac Gold Project. On behalf of the board of directors, it is my pleasure to welcome Eric, who joins our diversified team which includes, capital markets, geology, mining engineering and M&A expertise.”

“Listing on the NYSE American furthers our aims of improving liquidity for our shareholders while broadening access for prospective retail and institutional investors,” stated Brendan Cahill, president and chief executive officer. “We are delighted to join our silver-producing and exploring peers on the NYSE American and look forward to delivering returns to shareholders from the ongoing precious metals bull market.”

Highlights:The Kitami Metallogenic Province of northeast Hokkaido is host to numerous historic gold mines, including the Konomai Mine, Japan’s third largest gold mine (2.35Moz @ 6.4g/t gold)The 40 new applications cover 7 historic gold mines and workings with limited development and production prior to 1942, locally high-grades reported in these mines indicate further investigation is warranted

The Kanehana Project

Located on the west side of the Ikutahara Project, the Kanehana Project covers favorable Miocene-age rhyolite and associated graben-fill volcanics and sediments. The Kanehana and Ikutahara Projects combined, cover a 25-kilometer strike-zone along the eastern edge of the Monbetsu-Rubeshibe Graben where the intersection of deep-seated graben-margin and cross-cutting faults provide the pathways for ascending gold-bearing hydrothermal fluids. The majority of mines and workings within the projects, occur close to these structural intersections, seven within Kanehana and twenty within Ikutahara. These mines include the Region’s third largest gold producer, the Kitano-o Mine where in excess of 96,000 ounces of gold at a grade of 5.9 g/t1 were mined at Kitano-o prior to 1943, gold was won largely from shallow open-pits in gold-bearing eluvium.

Included within the Kanehana Project are the historic, Muka, Jindai, Jomon, Hokushin, Kokka, Hyakuhan and Souryu gold mines and workings (Figure 2).

Muka Mine

Small scale exploitation at the Muka Mine was conducted by Sumitomo Metal Mining Co. Ltd between 1939-42 with 12,473 tonnes of ore mined at an average grade of 7.09g/t Au and 20.8 g/t Ag2. Two types of mineralization are described at Muka; a quartz vein event with more than ten north-south and east-west oriented veins, with dimensions between 0.2 to 1.0 meters wide and up to 100m in strike length; and a network-breccia like body formed around the veins with lateral dimensions of 80 by 40 meters and up to 130 meters vertical extent2. It is reported that the highest grades occur at vein intersections with grades up to 500g/t gold and 2,000g/t silver; the breccia is also gold bearing and described as having a clay matrix hosting silicified fragments; surficial-elluvial gold mineralization is also reported2. It is unclear based on the historic description what the chronology of mineralizing events are but the presence of superimposed gold bearing vein and breccia events is a strong vector for deeper exploration.

Jindai Mine

Underground mining between 1938-42 focussed on narrow (0.5-1.0 m width) gold-bearing epithermal quartz veins and veinlets. Small-scale exploitation reported average grades of 11.8 g/t gold and 90.8 g/t silver in the rhyolite hosted veins.

Exploration completed after the second world war reports shallow tunneling on so-called residual elluvial workings and up to 50 shallow drill holes which intersected two major veins. Based on this work it was reported that a full-scale exploration program was proposed for the deeper levels but no additional information is available on this work as it may not have been funded.

Jomon Mine

Information on mining is limited but sampling of numerous quartz boulders in the small open pit report grades averaging 25 g/t gold and 50 g/t silver2. In 1933 an underground cross-cut was excavated to locate the source of the high-grade boulders but results are unknown.

The Hokushin, Kokka, Hyakuhan and Souryu workings published on the 1:50,000 Japanese Geological Survey maps show these as gold-silver occurrences, but limited data on the workings has been sourced by the Company to date.

The Kitami Metallogenic Province

The Kitami Metallogenic Province of Northern Hokkaido is characterized by rhyolite geology associated with epithermal-gold mineralization, localized along two major north-south trending grabens. Numerous gold mines hosted within these two grabens were developed in the region up to 1943 including the Konomai Mine, Japan’s third largest gold mine, which produced 2.35 million ounces of gold at an average grade of 6.4 g/t and 40 million ounces of silver prior to closure in 1974, the Kanehana Project is located 25 kilometers south of the Konomai Mine, Figure 1.

References

1Garwin, Hall, Watanabe, (2005). Tectonic Setting, Geology, and Gold and Copper Mineralization in Cenozoic Magmatic Arcs of Southeast Asia and the West Pacific. Economic Geology 100th Anniversary Volume, pp. 891-930.2Gold Mines of Japan, 1989. The Mining & Materials Processing Institute of Japan.

Qualified Person

The technical information in this news release has been reviewed and approved by Japan Gold’s Vice President of Exploration, Andrew Rowe, BAppSc, FAusIMM, FSEG, who is a Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Japan Gold Corp.

“John Proust”Chairman & CEO

Shareholders will consider the following seven items at the meeting, which will not be followed by a corporate presentation or update:

• financial statements
• number of directors
• election of directors
• re-appointment of auditor
• re-approval of the stock option plan
• approval of restricted share unit plan
• approval of Share issuance and new Control Person.

Management is nominating the following individuals for election as director: David Birkett, David Laing, Lawrence Lepard, Michael Mutchler, Rostislav Raykov, Antenor Silva, and Rowland Uloth. Stephen Stow and Colin Sutherland will not be standing for re-election.

“I’d like to thank Mr. Stow and Mr. Sutherland for their service on the board,” said Rowland Uloth, Amarillo’s Chairman. “I also look forward to welcoming Mr. Laing and Mr. Silva to the board. Their guidance will be invaluable as we move into the construction phase for the Posse Gold Project at our Mara Rosa Property in Brazil.”

Mr. Laing and Mr. Silva bring extensive experience in building mines in Brazil to the board. Mr. Laing is a mining executive and engineer with 40 years of experience in mine operations and construction. He was most recently the Chief Operating Officer of Equinox Gold, where he rebuilt the Aurizona project. Mr. Silva has over 50 years of mining experience. He was a co-founder of Yamana Gold, where he was the Chief Operating Officer and President until he retired in 2009. He is based in Brazil.