Highlights

• Drilling expanded the Central Outlaw zone by 164 metres strike for a new total of 600 metres of continuous near-surface mineralized gold-silver horizon;
• Discovery of mineralization at the West Outlaw zone returned one metre of 8.7 grams per tonne gold, 33.8 g/t silver or 9.2 g/t gold equivalent;
• THN20-172 returned 12.4 m of 1.4 g/t AuEq, including five metres of 3.1 g/t AuEq; and
• THN20-176 returned 27 m of 0.8 g/t AuEq, including 6.9 m of 2.3 g/t AuEq, including one metre of 5.9 g/t AuEq.

Chairman and chief executive officer of Brixton, Gary R. Thompson, stated: “We are encouraged as drilling at Outlaw target continues to confirm the scale potential of this large gold anomaly. Additionally, we are excited by the results at West Outlaw zone, which returned higher grades. The Thorn project remains a district-scale project with multiple styles of mineralization and we expect to resuming drilling at Outlaw, a sediment-hosted gold deposit, in 2021 to continue growing the gold-silver trend, which remains open in several directions. We are also looking forward to assay results from other 2020 drilling completed at our Camp Creek Cu-Au porphyry target at the Thorn project.”

Gold mineralization at the Central Outlaw zone has been interpreted as a main, sediment-hosted gold-bearing horizon of east-west- to northwest-orientation gently dipping to the north.

Several surface-rock samples collected earlier this season located between 90 metres to 180 metres north-northwest of holes THN20-172/173 returned one to three g/t Au. Hole THN20-173 was drilled with a 350-degree azimuth and minus-60-degree dip for a maximum depth of 258 metres. The hole successfully extended gold mineralization by 75 metres to the north by returning 13.5 m of 1.1 g/t AuEq (0.9 g/t Au, 11.4 g/t Ag). Further drilling should be conducted to the north and northwest of hole THN20-173 as the Central Outlaw zone remains open in several directions.

Drill hole THN20-179 was terminated early due to difficult drilling conditions and possible faulting at this location; however, the hole ended in mineralization of 2.5 m of 0.7 g/t AuEq (0.6 g/t Au, 11.2 g/t Ag).

Drill hole THN20-178 did not intercept notable mineralization and it is suspected that it may have not been drilled deep enough as the collar was set at a 72-metre-higher elevation than hole THN20-177 and about 200 metres to the EW to NE from collar THN20-177. The other plausible theory is that a fault offset gold mineralization at this location. Difficult drilling conditions were encountered in both holes THN20-178 and 179.

Intervals are drilled lengths and true widths of the mineralization have not been determined at this time. Results are weighted average grades.

Gold mineralization at the Central Outlaw zone is associated with disseminated to semimassive pyrrhotite and pyrite mineralization hosted in Trassic clastic sediments with weak to moderate alteration.

Gold mineralization at the Central Outlaw zone was expanded to 600 metres in strike, 100 metres to 200 metres in width and 20 metres to 60 metres in thickness based on 13 holes drilled in 2020. The four-kilometre-long gold-in-soils anomaly at the Outlaw target remains largely untested and gold mineralization in sediment-hosted horizons remains open in several directions.

Drill hole THN20-177 is now eastern extent of the continuous Central Outlaw gold horizon which is about 1,000 metres west from THN19-159 (East Outlaw area) drilled in 2019 that returned 37.8 m of 1.2 g/t Au, including 12 m of 3.5 g/t Au. No drilling has been conducted between these Central and East Outlaw areas.

The 2020 season was the first-time that drilling has been done in the West Outlaw zone. The best gold-silver intervals were in hole THN20-169 that returned 8.7 g/t Au, 33.2 g/t Ag or 9.2 g/t AuEq from 18-metre depth and hole THN20-164 that retuned 1.9 m of three g/t Au, 6.5 g/t Ag from 41.1-metre depth and from THN20-165 that returned 5.1 m of 1.1 g/t Au.

Drilling at the Outlaw west zone targeted multiple high-grade gold in rock samples and soil anomalies. Steep terrain conditions made it difficult to construct drill pads at preferred locations. Eight holes were drilled from three pads spaced between 230 metres and 300 metres.

Gold mineralization at the West Outlaw zone is associated with pyrite veining and patches hosted in an oxidized rhyolite dykes cutting Triassic Stuhini mafic volcanics and clastic sediments.

Quality assurance and quality control protocols for drill core sampling were developed by Brixton Metals. Blank, duplicate and certified reference materials were inserted into the sample stream for at least every 20 drill core samples. The certified reference materials (standards) were acquired from CDN Resource Laboratories Ltd. of Langley, B.C., and the standards inserted varied — depending on the type and abundance of mineralization visually observed in the primary sample. Blank material used consisted of non-mineralized siliceous river/landscaping rock. Samples were zipped locked and sent directly to ALS’s prep-lab in Whitehorse, Yukon.

Drill core samples were submitted to ALS Minerals preparation facility in Whitehorse, Yukon, and analyzed at ALS Geochemistry Laboratory Facilities in North Vancouver, B.C. Samples were initially analyzed for gold by fire assay with an atomic absorption finish, whereas overlimits for silver, lead, copper and zinc and 48 additional elements were analyzed using four-acid digestion with an ICP-MS finish. Select samples that returned values greater than one g/t Au were then resubmitted for total metallic screening where the oversized fraction was analyzed by fire assay with an atomic absorption finish.

The company has organized all necessary local logistics and support and has mobilized a well-known high-performance drilling rig to undertake the first two drill holes, phase one of Alpha’s three-phase drilling program.

Phase one is being drilled by Andina Perforaciones SRL, utilizing a rig that has been consistently deployed in neighboring Hombre Muerto for many months. The rig has performed extremely well for POSCO in Hombre Muerto and utilizes a crew that has worked together, on this rig, for many years. To limit unnecessary downtime, and the resulting time and cost consequences, the company considers crew and equipment reliability as particularly important factors in rig selection.

Company chief executive officer, Brad Nichol, notes: “We are tremendously excited to be kicking off our inaugural drilling program at a time when global uncertainty abounds. Although phase-one targets are not expected to be as prolific as future phases, we have made the decision to move ahead with these wells first because we have licences in hand. Other drilling licences expired during COVID-induced government shutdowns and the company had no ability to file the simple extension documents. Government offices have reopened, and those extension applications have been submitted.” Mr. Nichol added, “From previous efforts and brine studies on the Tolillar Salar, we have high confidence in the presence of a low-impurity, lithium-bearing brine; thus, we will utilize rotary drilling to bring large volumes of brine to surface.”

The first two holes are planned to reach relatively shallow depths of approximately 50 metres and 100 metres, respectively (see press release dated Nov. 10, 2020). The rotary drilling techniques being used provides wellbores that (i) are capable of production in the future and (ii) can immediately produce brine for detailed chemical analysis and provide information regarding formation deliverability.

The company’s new chemical process engineering team members (see press release dated Nov. 18, 2020) intend to fully analyze brine samples and deliverability data in an effort towards optimizing specific DLE processes.

Mr. Nichol concludes: “Our team in Argentina has proven again that they are able to consistently deliver results, even while facing formidable logistical challenges such as operating remotely at over 4,000 metres above sea level, high-altitude weather, COVID restrictions and government shutdowns. We fully expect to have the drilling licence extensions in-hand for phase two before phase one is completed, and we expect to move seamlessly to the next level of drilling. We have high hopes for phase one, as our geophysics identified large, thick, contiguous targets that we’re now investigating. Starting a drilling program, only nine months after starting the company, is a considerable achievement for the entire Alpha team, and especially our shareholders.”

Further to the company’s press releases of Oct. 28, 2020, and Nov. 10, 2020, Alpha is currently launching phase one of its drilling program at the Tolillar Salar project to better understand the quantity and concentration of lithium available for extraction, thereby allowing the company to assess the economic feasibility of the project prior to undertaking production decisions. Alpha encourages its supporters to continue to monitor its news releases and other continuous disclosure filings — available on the company’s website and at SEDAR — in order to learn more about the lithium development and exploration opportunities under way on the increasingly exciting Tolillar Salar.

Seven hundred and fifty-nine metres were drilled in three holes on the Knutson portion of the property where historical trenching returned 0.42 ounce per ton Au over an average width of 5.3 feet for a length of 160 feet on vein No. 1 and 0.25 ounce per ton Au over an average width of 5.9 feet for a length of 90 feet (see Globex press release dated Sept. 17, 2020).

The three holes each intersected three zones of intense alteration, shearing and mineralization, principally disseminated pyrite corresponding to the downward projection of the mineralized zones. Despite the obvious visual indicators in the core, the assays did not match those from surface sampling and are listed herein

Hole No.       Zone name  Gold (g/t Au)  True width (m)

LK-20-01   Knutson No. 2       0.66 g/t          2.83 m    
Including                      1.28 g/t          1.16 m    
LK-20-01    Knutson East       1.10 g/t          5.66 m    
Including                      6.96 g/t          0.46 m    
LK-20-2    Knutson No. 2       0.56 g/t          8.25 m    
Including                      1.53 g/t          1.54 m    
LK-20-3    Knutson No. 2       0.64 g/t         11.05 m    
Including                      1.74 g/t          1.87 m    

While the three drill holes did not return assays comparable with those reported on surface and encountered in grab sampling by Globex, the fact that the zones do project to depth as displayed by the intense alteration, shearing and sulphide mineralization is a positive outcome, which suggests more work is warranted.

Two drill holes, LK-20-04 and LK-20-05, totalling 422.7 m, were targeted as potential extensions to the north of the Laguerre gold zone. Neither drill holes intersected a projection of the hosting rock unit. Several areas of weak sulphide mineralization were observed in the drill holes but did not return significant gold assays. The drill holes will be added to the database to see if the added geological information can give the company a clue as to other target areas for the projection of the host unit.

Neither the Raven River gold zone east of the Laguerre/Knutson gold zones was tested nor were two new target areas defined by a detailed aeromagnetic survey undertaken earlier this year by Globex.

Delivery and sample preparation

All samples were delivered to Expert Laboratories Inc., located at 750-A rue Saguenay, Rouyn-Noranda, Que. The laboratory conducted all aspects of the sample preparation. Samples were dried and crushed to 90 per cent passing a minus 10 mesh screen. A 300-gram subsample was taken for pulverization to a nominal 90 per cent passing minus 200 mesh with the remaining crushed rejects being retained.

Gold assaying

A 29.166-gram subsample of this pulp (one assay-ton) was taken and was fused following the standard procedures used in a fire assay method. The gold content of all samples was determined using atomic absorption spectroscopy (method code: Au FA-GEO, lower detection limit of five parts per billion). Any samples found to contain greater than one g/t Au were subjected to a reassay, whereby the gold content was determined using a gravimetric fire assay method.

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.

In addition, Troilus has closed its previously announced bought deal private placement pursuant to which it has issued 9,100,000 common shares (the “Common Shares”) of the Company, at a price of C$1.10 per Common Share for gross proceeds of C$10,010,000.

The Common Shares and the Flow-Through Shares are collectively referred to herein as the “Offered Shares”. The aggregate gross proceeds of the two offerings are approximately C$22.1 million. The offerings were led by Cormark Securities Inc., on behalf of a syndicate of underwriters including Stifel GMP, Haywood Securities Inc., Canaccord Genuity Corp., Scotia Capital Inc., BMO Nesbitt Burns Inc., Laurentian Bank Securities Inc. and Red Cloud Securities Inc. (collectively, the “Underwriters”).

On November 9, 2020, concurrently with the announcement of the offerings, the Company announced entering into an agreement pursuant to which it has repurchased and cancelled the sliding 2.5% Net Smelter Royalty (“NSR”) from First Quantum Minerals Ltd. (“FQML”) attached to the 81 mineral claims and one surveyed mining lease known as the Troilus Mine, for cash consideration of C$20 million. The buy-back transaction was completed shortly after its announcement. The net proceeds from the offerings will serve to replenish the Company’s balance sheet following the utilisation of cash on hand for the buy-back of the FQML NSR.

The proceeds of the sale of the Flow-Through Shares will be used on exploration expenses on the Troilus Gold Project as permitted under the Income Tax Act (Canada) and the Taxation Act (Quebec) to qualify as “Canadian exploration expenses”, “flow-through mining expenditures” and, for eligible investors, for the two 10% enhancements under section 726.4.9 and section 726.4.17.1 of the Taxation Act (Quebec). The proceeds of the sale of the Common Shares will be used for the Company’s previously planned development program for the Troilus Gold Project and for general and administrative expenses.

The Flow-Through Shares were qualified for distribution by way of short form prospectus in each of the provinces of Canada, pursuant to National Instrument 44-101 {ຕ –} Short Form Prospectus Distributions. The Common Shares were offered on a private placement basis solely in the United States pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and internationally, as permitted. All the Common Shares purchased in the private placement were acquired by two funds associated with a large, value focused, US institution.

The Offered Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Highlights:The first drill hole, OTD20-001 was drilled beneath the Urushi Mine workings and completed on November 10th at a depth of 602.0 metersDifficult drilling conditions, including clay rich shear zones, slowed down drilling in the upper portion of OTD20-001. Following easing of border restrictions, Company drill team members were able to re-enter Japan to take over drilling operations in October; promptly completing the drill holeOTD20-002 commenced on November 25th at the Ohra Mine and is targeting extensions to the high-grade ore shoot mined prior to the government closure in 1943 Historic records report high-grade production including: 21,000 ounces of gold mined at grades greater than 20 g/t at the Ohra Mine1Both drill holes are targeting the down-dip extensions of high-grade mineralization mined in shallowly developed workings at the Urushi and Ohra Mines coincident with geochemical and geophysical anomalies defined earlier this year

Ohra-Takamine Drilling Program:

Drill holes OTD20-001 and 002 have been positioned along the open ended, 3.5 km corridor of alteration and epithermal mineralization defined by the Ohra, Takamine and Urushi historic mines, where mining was halted in 1943 by the government-imposed moratorium, Figure 1. Historic production records indicate the presence of high-grade mineralization at the Ohra and Urushi Mines, including 21,000 ounces mined at grades greater than 20 g/t gold at Ohra, and an ore shoot in the number 2 vein in the Urushi Mine which carried grades between 50 to 100 g/t1.

Drill hole OTD20-001 targeted extensions of quartz veins mined at Urushi and intersected several zones of quartz vein, quartz-vein stockwork and brecciated quartz vein along its length. An initial batch of samples from the upper part of the drill hole were dispatched in mid-October and the remaining samples have now also been dispatched. Currently heavy sample volumes are being experienced by ALS labs in Canada, and final results of OTD20-001 are not expected until early in 2021.

Difficult drilling conditions, including clay rich shear zones, slowed down drilling in the upper portion of OTD20-001. Following easing of border restrictions, Company drill team members were able to re-enter Japan to take over drilling operations in October; promptly completing the drill hole.

OTD20-002 received the required government approvals on November 25th and drilling commenced within hours of receiving this notification. OTD20-002 is targeting the down-dip continuation of the ore shoot mined at Ohra prior to 1943, and is expected to drill to a depth of approximately 550m.

Work programs completed earlier this year within the project show historically mined quartz vein mineralization coincides with gold and pathfinder element in soil anomalies, linear vertically-extensive CSAMT resistivity anomalies, and northeast and northwest structural intersections inferred from processed gravity data. The planned drill holes are targeting the down-dip extensions of high-grade mineralization mined in shallowly developed workings coincident with the geochemical and geophysical anomalies.

For more information on geochemical and geophysical anomalies generated within the project, refer to the Company’s news release dated 11th June, 2020.

Drilling results will be released as available.

Canyon Shares issued pursuant to the Agreement are subject to a 12-month voluntary escrow agreement from the date of issue. Altus currently holds 16,100,000 Canyon Shares, representing an approximate 2.6% interest in Canyon on an undiluted basis. Canyon Shares currently trade at approximately A$0.11 per share.

“We are honoured to have Ramin join Ynvisible’s board of directors. With a background of over 30 years in developing breakthrough flexible technologies into high-volume business and the critical insight that it takes to launch innovations at scale, Ramin provides valuable insights to guide our operations and our strategic decision making. This perspective is key as we focus our short-term growth objectives, expressly in the area of smart labels, and aim to accelerate revenue growth,” said Jani-Mikael Kuusisto, chief executive officer of Ynvisible. “We’re equally excited about Michael’s recent transition full time into Ynvisible Interactive as COO to head operations with a focus on increased operational excellence.”

Subsequently, the pregnant leach solution (PLS) from the successfully leached lithium-nickel-manganese-cobalt oxide (NMC) cathode scrap material will be prepared for the technical feasibility project, formally known as synthesis of cathode material precursors from recycled battery scrap. The prepared PLS is to be integrated with the company’s recently acquired and specialized cathode precursor precipitation reactor. The reactor uses modern cathode manufacturing technology to produce the highest-value cathode precursor product with specific chemical composition, purity, particle shape, particle size and uniformity. This technical feasibility project received support and funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).

American Manganese’s successfully leached lithium-nickel-cobalt-aluminum oxide (NCA), announced in the Oct. 6, 2020, press release, will also be prepared and integrated into the technical feasibility project. The final cathode precursor products will be sent to third parties for independent validation of product quality.

“Minimal recycling processing steps, coupled with modern cathode manufacturing equipment, strategically positions the RecycLiCo patented process to offer a truly circular supply chain solution for lithium-ion battery manufacturing waste,” said Larry Reaugh, president and chief executive officer of American Manganese.

While we had expected to release the results of some locked cycle tests today, some lab changes that were made in order to simplify executing this specific set of tests had an unintended impact and require the tests to be re-run. Based on lab availability and timing, these results are expected to be available by the end of December,” said Mark Selby, chair and chief executive officer of Canada Nickel.

Exploration Update

A third drill rig has arrived at the Crawford Project site to begin exploration drilling on a fourth target structure: the North anomaly. This anomaly possesses a similar coincident geophysics signature to the Main Zone. It is approximately 1 kilometre long by 300 metres wide and is located adjacent to Highway 655 approximately 3 kilometres north of the Main Zone. The other two drill rigs continue to explore the recently announced West Zone discovery, extensions of the Higher Grade Core of the Main Zone, infill and extensions to the East Zone, and extensions to the PGM Zone. Assay results have slowed with the overall level of exploration activity in the Timmins region, but will be released as they become available.

The Company will run three drill rigs through the winter to continue exploring the existing targets at Crawford and begin drilling targets identified through the recently completed airborne geophysics program. Two significant targets with coincident magnetic and gravity anomalies have already been identified and additional targets are expected to be generated once the interpretation is completed later this month. More specific details will be provided on these targets before year-end.

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.

The company is currently waiting to receive the reasons for this judgment to plan next steps. In the meantime, the original concessions provide Almaden with the same exploration and mining rights over the company’s Ixtaca project as the reduced concessions would, with the exception that Almaden’s mineral rights in the area are 7,000 hectares larger than they would otherwise be. Almaden may not access the surface land of the Ejido Tecoltemi, which constitutes 330 hectares at the extreme southeast edge of the original claim block in an area which the company had sought to drop from its reduced mineral claims. These claims over the Ejido lands are subject to the Amparo lawsuit as fully described in the Feb. 27, 2020, press release. The Ejido lands do not overlap the Ixtaca project or its environmental or social area of impact. The Ejido lands are in a different drainage basin from the Ixtaca project, and the company does not need to travel though the Ejido lands to access the Ixtaca project.

As previously reported in the Feb. 27, 2020, press release, the company has initiated two administrative challenges against the Mexican mining authorities for revoking the company’s lawfully reduced mineral claims. These challenges are based in part on Mexican legal advice that the company cannot be forced to own mineral rights that it does not wish to own. Almaden continues to file taxes and assessment reports on the reduced concessions, which have been accepted by the Mexican mining authorities, and Almaden has not received any notifications from the Mexican mining authorities regarding taxes on the original concessions.

J. Duane Poliquin, chairman of Almaden, stated: “We were hoping to be able to reduce our mineral claims in order to demonstrate that we have no interest in any mining or exploration activity in the area of the Ejido Tecoltemi. However, the agents of the Ejido have to date prevented us from doing so, in order to allow them to continue with a case against the government of Mexico. This case is seeking to reform the current system of mining concessions by provoking third party litigation involving mineral titles legally granted to companies such as Almaden. While we continue to study and understand the reasons for this judgment, we are also working to advance the project through ongoing permitting and exploration efforts.”

Further background on this matter is available in the company’s Feb. 27, 2020, press release.

The optionors will retain a 2-per-cent net smelter return (NSR) royalty related to mineral products from any and all conventional mining carried out in or under the property and a 5-per-cent NSR royalty related to mineral products from any and all high-grade mining at, in or under the property. The company will have the right of first refusal to purchase all or any part of the other 50 per cent of the royalties subject to further exchange review and acceptance.

Juan Gavidia, CEO of Orvana Minerals Corp. stated: “We are pleased to be resuming Fiscal 2021 annual guidance now that pandemic consequences are better understood and mitigation efforts are in place. While Fiscal 2020 was challenging for the mining industry, we are satisfied to report consistent and stable results. We are also looking forward to Fiscal 2021 as the incoming NI 43-101 Reports on our properties will boost our growth strategies in Spain, Argentina, and Bolivia, indicating where the value creation in Orvana lies”.

The audited consolidated financial statements for Fiscal 2020 (“2020 Financials”) and Management’s Discussion and Analysis related thereto (“2020 MD&A”) are available on SEDAR and on the Company’s website at http://www.orvana.com.

Fiscal 2020 Highlights:

• Orovalle, Spain:
  • Gold production of 51,104 ounces, 21% lower than the previous year. Production decrease was due to a combination of 17% lower head grade and 4% lower throughput.
  • Copper production of 5.6 million pounds, 12% higher than the previous year. Production increase was due to 10% higher head grade and 6% higher recoveries, partially off-set by 4% lower throughput.
  • COC and AISC of $1,151 and $1,385 respectively.
  • 23,031 meters drilled in Fiscal 2020; 20,664 meters in El Valle Boinas and 2,367 meters in Carles.
  • As part of the Spanish national program to mitigate economic impacts caused by the COVID-19 pandemic, the Spanish Government offered guarantee lines to the Spanish banking sector through the Official Credit Institute “ICO”, to facilitate companies to access funding. In the second half of Fiscal 2020 Orovalle obtained several loans and revolving facilities for an amount of 5.6 million euros.
• EMIPA, Bolivia:
  • In the first quarter of Fiscal 2020 the Company suspended mining operations at Las Tojas due to higher than expected mining dilution. A care and maintenance program was implemented at the end of first quarter of Fiscal 2020. Critical areas of the program are: site security, environmental control, power generators maintenance, preventive maintenance of process plant, mine equipment and maintenance of camp facilities.
  • Workforce restructuring program started in November 2019, with a reduction of 182 employees during Fiscal 2020.
  • In February 2020, EMIPA entered into a $3.0 million short term financing facility with BISA Bank in Bolivia, the proceeds of which were used to pay severances regarding the restructuring process.
  • VAT reimbursement: $7.4 million in cash received in Fiscal 2020 from outstanding VAT reimbursements related to previous years.
  • Oxides Stockpile Project (OSP): During Fiscal 2020, EMIPA achieved the following advancements in the development of the oxides stockpile project to treat the oxides stockpile that has accumulated from past mining activities at Don Mario:
    • After the evaluation of different metallurgical alternatives to process the stockpile, the Company concluded that a sulphidization circuit would maximize the value of the stockpile.
    • The results of metallurgical studies performed in Fiscal 2020 validate the Company’s preliminary recovery assumptions.
    • During Fiscal 2020, BISA approved a $7.8 million facility to fund OSP; no draw down has been made yet.
• Taguas, Argentina:
  • As a result of the completion of an artificial intelligence-assisted data analysis, the Company identified in Fiscal 2020 a total of 17 new high probability gold targets at Taguas, Argentina, consisting of 9 new areas and 8 extended areas of previous known mineralization. All of the newly identified targets are based on a 96% level of similarity to the known gold mineralization. These results suggest that there is an enhanced probability of increasing the potential of the property’s oxides and sulphides resources. The potential of the new gold targets remains subject to additional fieldwork in the first half of fiscal 2021, including opening new access points, surface mapping and soil and rock sampling.

                   Selected Consolidated Operational and Financial Information
  
                                                             Q4 2020     Q3 2020     Q4 2019     FY 2020     FY 2019
Operating Performance
Gold
Grade (g/t)                                                     2.70        2.43        2.17        2.56        2.34
Recovery (%)                                                    93.3        94.1        89.9        93.1        92.6
Production (oz)                                               13,422      12,046      21,985      53,421      97,259
Sales (oz)                                                    14,784       9,681      20,987      55,344      96,540
Average realized price / oz                                   $1,891      $1,699      $1,464      $1,647      $1,313
Copper
Grade (%)                                                       0.58        0.51        0.40        0.45        0.45
Recovery (%)                                                    83.4        81.8        73.5        80.8        76.3
Production ('000 lbs)                                          1,780       1,517       1,128       5,611       5,015
Sales ('000 lbs)                                               1,971       1,077       1,089       5,512       5,073
Average realized price / lb                                     2.93        2.36        2.65        2.68        2.77
                                                            --------    --------    --------    --------    --------
Financial Performance
(in 000s, except per share amounts)
Revenue                                                      $32,587     $19,143     $33,674    $101,994    $136,400
Mining costs                                                 $22,392     $15,187     $27,147     $82,240    $113,558
Gross margin                                                  $3,290         $33     ($2,326)    ($2,114)      ($528)
Net income (loss)                                             $8,640     ($4,711)    ($3,626)    ($1,592)    ($5,266)
Net income (loss) per share (basic/diluted)                    $0.06      ($0.03)     ($0.03)     ($0.01)     ($0.04)
EBITDA (1)                                                    $7,255       ($914)     $4,811      $9,544     $18,065
Operating cash flows before non-cash working
capital changes                                               $4,304      $1,163      $4,091      $8,959     $18,312
Operating cash flows                                         $13,392       ($822)     $4,974     $11,435     $14,444
Free Cash Flow (1)                                              $602        $826      $2,309        $278      $8,349
Ending cash and cash equivalents                             $15,572      $8,046     $12,351     $15,572     $12,351
Capital expenditures (2)                                      $3,702        $337      $1,782      $8,681      $9,963
                                                            --------    --------    --------    --------    --------
Cash operating costs (by-product) ($/oz) gold (1)             $1,241      $1,367      $1,206      $1,278      $1,094
All-in sustaining costs (by-product) ($/oz) gold (1)(2)       $1,609      $1,719      $1,358      $1,582      $1,253
All-in costs (by-product) ($/oz) gold (1)(2)                  $1,643      $1,800      $1,402      $1,614      $1,288
                                                            --------    --------    --------    --------    --------

(1)Earnings before interest, taxes, depreciation and amortization ("EBITDA"), 
free cash flow, cash operating costs ("COC"), all-in sustaining costs ("AISC")
and all-in costs ("AIC") are non-IFRS performance measures.  
(2)These amounts are presented in the consolidated cash flows in the Q4 
Financials on a cash basis. Each reported period excludes capital expenditures
 incurred in the period which will be paid in subsequent periods and includes 
capital expenditures incurred in prior periods and paid for in the applicable 
reporting period.  The calculation of all-in sustaining costs ("AISC") and 
all-in costs ("AIC") includes capex incurred (paid and unpaid) during the 
period.

Fiscal 2021 Primary Objectives:

• Orovalle:
  • The Company’s main overall priority is to maintain stable production, and continuing a high level of safety and productivity, notwithstanding the COVID-19 situation in Spain and the related challenges to its global supply chain.
  • Ongoing brownfield and infill drilling in and around the El Valle and Carles mines are expected to continue strong conversion of resources into reserves and adding new resources to the ore bodies, extending the current mine life.
  • Mineral Resource and Mineral Reserve estimates and the life-of-mine plan for El Valle and Carles gold-copper mines in northern Spain are being updated in accordance with CIM Definition Standards (2014) and in compliance with the Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) by Roscoe Postle Associates Inc., now part of SLR Consulting Ltd., an independent consulting firm. The Company expects to complete the work in December 2020.
  • The Company has aggressive greenfield exploration programs for Lidia and Ortosa-Godan totaling 10,000 meters of DDH drilling, starting with Lidia in November 2020.
• EMIPA:
  • The Company plans to complete the final evaluation of the Oxides Stockpile Project (OSP) by the end of the third quarter of fiscal 2021. Subject to the favorable completion of technical, economic and funding analysis, the OSP is expected to require approximately twelve months of development to start commercial production.
  • Mineral Resource and Mineral Reserve estimates for the Oxides Stockpile Project are being updated in accordance with CIM Definition Standards (2014) and in compliance with the Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) by DGCS SA, an independent consulting firm. The Company expects to complete the work in December 2020.
  • The main exploration goal for fiscal 2021 is to define and prioritize targets inside the 58,325 hectares available in the Don Mario Complex. Based on the interpretation of historical geophysical data in the first quarter of fiscal 2021, the Company will define exploration targets and activities for the remaining fiscal year. Prioritizing targets will be based on: i) potential identified from the data reinterpretation process, ii) permitting and environmental evaluation and iii) distance to the current infrastructure.
  • An evaluation of re-processing tailings is in progress to determine the viability of recovering gold from material deposited in the tailings impoundment since the commencement of production at Don Mario. The Company is targeting the completion of the scoping study by the end of fiscal 2021.
• Taguas:
  • Mineral Resource estimate for the Taguas Property is being updated in accordance with CIM Definition Standards (2014) and in compliance with the Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) by Geosim Services Inc, an independent consulting firm. The Company expects to complete the work in January 2021.
  • Mineral Resource estimate update will be based on drilling information available as of today. The Company expects to increase the resource estimate, combining oxides and sulphides resources.
  • The information obtained from the fieldwork campaign in progress in the first quarter of fiscal 2021 will provide key data to define exploration activities for the second and third quarters.

Fiscal 2021 Guidance:

The Company is pleased to provide Fiscal 2020 results and fiscal 2021 guidance:

                                                     FY 2020 Actual   FY 2021 Guidance (1)
El Valle Production                                                                       
Gold (oz)                                                    51,104         50,000-55,000
Copper (million lbs)                                            5.6               7.0-8.5
                                                         ----------      ----------------
Capital Expenditures                                                                      
El Valle                                                     $9,720       $14,000-$15,000
Consolidated                                                $10,479       $14,000-$15,000
                                                         ----------      ----------------
Cash operating costs (by-product) ($/oz) gold (1)                                         
El Valle                                                     $1,151         $1,050-$1,150
Consolidated                                                 $1,278         $1,200-$1,300
                                                         ----------      ----------------
All-in sustaining costs (by-product) ($/oz) gold (1)                                      
El Valle                                                     $1,385         $1,350-$1,450
Consolidated                                                 $1,582         $1,500-$1,600
                                                         ----------      ----------------

(1)Fiscal 2021 guidance assumptions for COC and AISC include by-product 
commodity prices of $2.90 per pound of copper and an average Euro to US
Dollar exchange of 1.16.

The optionor will retain a 1-per-cent net smelter return (NSR) royalty related to mineral products from any and all conventional mining carried out in or under the property and a 10-per-cent NSR royalty related to mineral products from any and all high-grade mining at, in or under the property. The company will have the right to purchase 100 per cent of the conventional royalty for $250,000 subject to further exchange review and acceptance.

Private placement

Number of warrants:  5,330,600

Original expiry date of warrants:  Dec. 5, 2020

New expiry date of warrants:  June 5, 2021

Exercise price of warrants:  40 cents (unchanged)

These warrants were issued pursuant to a private placement of 5,330,600 shares with 5,330,600 share purchase warrants attached, which was accepted for filing by the exchange effective Dec. 23, 2019.

MMV lost a member of the technical team as Dr. Robert Brozdowski has moved on but we have gained a new member, Jeff Hrncir, as MMV’s Chief Geologist.  Jeff brings an in-depth view of the Black Hills geology as his Masters thesis in 2016 was entitled “Tectonic Evolution of the Black Hills, South Dakota” and his father was the former head of the South Dakota School of Mines so the gold in those hills is in his mind’s eye.

Jeff Hrncir, Chief Geologist M.Sc., Mr. Hrncir has over 15 years of diverse mineral exploration experience, with an extensive background in the Black Hills of South Dakota. Jeff’s major focus has been on the Precambrian tectonic history as it relates to mineralization. (The gold in MMV’s projects are all contained within the Precambrian rocks of South Dakota). He has consulted to several mining companies in this gold province and published numerous papers on the gold district of the Black Hills and its controlling geologic features. He is currently furthering his Black Hills work with a PHD thesis. A poster of his doctorate work at the University of New Mexico entitled “Origins of the Black Hills Terrane in the Eastern Wyoming Craton” has been posted on our website. Jeff will work closely with Curt Hogge our Exploration Manager and Kevin Leonard our Operations Officer.

Curt E. Hogge, Exploration Manager M.Sc., CPG. Mr. Hogge has over 40 years of diverse mineral exploration experience, with an extensive background in iron formation-hosted gold deposits including the Proterozoic rocks in the Black Hills, South Dakota and the Archean-type in the Wyoming Province of Montana and Wyoming. Curt was Country manager for East Asia Minerals – Mongolia and Project manager for Starfield Resources – Montana. In South Dakota he managed Noranda’s Rochford Gold District project, and worked later with Naneco Resources Ltd., Genesis Gold Ltd. and BHB Partners.  Curt is capable of generating NI 43-101 reports.

Kevin W. Leonard, Operations Officer B.Sc., P. Geo., Kevin has over 43 years diversified mineral exploration experience in gold and base metal projects globally. Royal Oak Mines (US) as manager with global property acquisitions and economic evaluations for: LAC Minerals, American Barrick, St. Joe Canada, HudBay Exploration, and Urangesellschaft Canada. Since 2012, Kevin has been the Project Manager for Mineral Mountain, including in the Keystone Gold District about 35 km south of the Rochford Gold Project, where he managed a US $6.9M drill program for iron formation-hosted gold  in the Holy Terror Project. Kevin has dual US and Canadian citizenship and coupled with his leadership skills this makes him an ideal on-site ambassador.

MMV following the collaboration of Jeff, Curt and Kevin now has a much clearer understanding of the Standby project geology and has advanced beyond the exploratory stage to a gold reserves definition stage.

Over the next three (3) weeks, MMV will be populating its website with current updates so it is recommended that shareholders check the site often.

The Mayflower property consists of 64 claims covering the historic Mayflower gold mine workings in the emerging Rainy River – Atikokan gold district. Historic work between 1899 and 1928 resulted in the sinking of a 30 metre shaft and approximately 50 metres of underground workings on two levels. Grab samples collected by the Ontario Department of Mines in 1981 returned values ranging from nil up to 0.95 oz/t gold and 5.17 oz/t silver. Additional historic exploration included about 1,000 metres of near-surface drilling in 12 holes. The Mayflower has seen little modern exploration and has excellent infrastructure, located close to the former iron ore mining town of Atikokan, some 200 km west of Thunder Bay, Ontario as shown in Figure 1 below.

Anthony Roodenburg, CEO of Greencastle commented, “We are excited to add another strategic gold project to our mineral portfolio in Ontario and Nevada. The Mayflower has seen limited modern exploration for a variety of reasons. The Property’s location in the prolific Rainy River – Atikokan region suggests there may be tremendous exploration upside.”

Several large gold deposits are located in the Atikokan – Rainy River region. The Hammond Reef gold deposit, situated 55 km northeast of the Mayflower property, contains NI 43-101 Measured and Indicated resources of 4.5 million ounces of gold contained in 208 million tonnes grading 0.67 g/t Au and Inferred resources of 12,000 ounces of gold (0.5 million tonnes grading 0.74 g/t Au.), using a cut-off gold grade of 0.32 g/t, as of December 31, 2019 (as per www.agnicoeagle.com). The Rainy River producing mine, located about 140 km to the west of the Mayflower property, has NI 43-101 Reserves of 2.6 million ounces gold and 6.3 million ounces silver, and Resources of 1.9 million ounces gold and 5.1 million ounces silver (as per www.newgold.com)

The terms of the agreement call for Greencastle to pay the vendors a total of $100,000 cash, issue a total of 600,000 shares of Greencastle subject to TSX Venture Exchange approval, and complete a total of $250,000 in Exploration Expenditures to earn a 100% interest in the Property, subject to a 2% Net Smelter Return (NSR) Royalty. Greencastle retains the option to purchase sole rights to half of the 2% NSR Royalty from the vendors for a payment of $1,000,000.

The Offering is being conducted in connection with the previously announced merger transaction between Serengeti and Sun Metals to create a premier Canadian multi-asset copper-gold developer (the “Transaction”) whereby Serengeti will acquire all of the shares of Sun Metals on the basis of 0.43 common shares of Serengeti (on a pre-consolidation basis) for each share of Sun Metals held (the “Exchange Ratio”).

In addition, Sun Metals has granted the Underwriters an option to purchase up to an additional 10,800,000 Subscription Receipts at the Issue Price, for additional gross proceeds of up to $1,350,000, exercisable in whole or in part at any time prior to the closing date of the Offering.

The Subscription Receipts will be issued pursuant to a subscription receipt agreement (the “Subscription Receipt Agreement”) to be entered into by Sun Metals, the Underwriters, and a licensed Canadian trust company as subscription receipt agent to be agreed upon. Pursuant to the Subscription Receipt Agreement, the gross proceeds of the Offering (less 50% of the Underwriters’ cash commission and all of the Underwriters’ expenses) (the “Escrowed Funds”) will be held in escrow pending satisfaction of certain conditions, including, amongst others, (a) the satisfaction or waiver of each of the conditions precedent to the Transaction; and (b) the receipt of all required shareholder and regulatory approvals in connection with the Transaction and the Offering, including the condition approval of the TSX Venture Exchange (the “Escrow Release Conditions”). If the Escrow Release Conditions have not been satisfied on or prior to March 31, 2021, the holders of Subscription Receipts will be returned a cash amount equal to the Issue Price of the Subscription Receipts and any interest that has been earned on the Escrowed Funds.

Upon the satisfaction of the Escrow Release Conditions, each Subscription Receipt will automatically convert into one unit of Sun Metals (each a “Unit”) which shall be exchanged or adjusted into securities of Serengeti at the Exchange Ratio upon completion of the Transaction, (on a post-Serengeti share consolidation basis as previously announced). Each Unit will consist of one common share of Sun Metals (each a “Common Share”) and one-half of one common share purchase warrant (each a “Warrant“). Each Warrant will be exercisable to acquire one common share of Sun Metals (each a “Warrant Share”) for a period of 24 months from the closing of the Offering, at an exercise price of $0.18, subject to acceleration in the event that the volume weighted average trading price of the common shares of Sun Metals on the TSX Venture Exchange is equal to or greater than $0.30 for 20 consecutive trading days, all as to be adjusted by the Exchange Ratio upon completion of the Transaction.

Proceeds from the issue and sale of the Subscription Receipts will be used by Sun Metals and Serengeti to advance their collective portfolio of copper-gold exploration and development assets in British Columbia, and for general working capital purposes. The closing of the Offering is expected to occur on or around December 17, 2020.

The Subscription Receipts to be issued under the Offering will be offered by way of a private placement in all the provinces of Canada and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”). The Subscription Receipts and the Common Shares, Warrants and Warrant Shares underlying the Subscription Receipts, will be subject to a statutory four-month hold period in accordance with Canadian securities legislation, or until such securities are exchanged or adjusted pursuant to the Arrangement. The Offering is subject to approval of the TSX Venture Exchange.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the Subscription Receipts in the United States. The Subscription Receipts and the Common Shares, Warrants and Warrant Shares have not been and will not be registered under the U.S. Securities Act, or any state securities laws and may not be offered or sold within the United States except pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Highlights include:

• An overall increase of 53 % of the resources in the Indicated category
• An ov erall increase of 10 0% of the resources in the I nferred category
• A first undergroun d resource of 140,600 o z @ 4.52 g/t Au, demonstrating the underground potential of the project {ߨ –} opening up a target zone between 350 m and 1,000m depth
• A new geological model with strong er control of the mineralized envelop e s

“The QMX exploration team continues to build on its successes, not only report ing more than a 50% increase in resources in the indicated category and 100% increase in the inferred category, in this interim update at Bonnefond , but also demonstrat ed the underground resource potential below the pit shell,” states Brad Humphrey President and CEO of QMX Gold, “Drilling in 2020 set out considerable upside potential down to 1,000 metre depth and, I believe, our team will continue to build out the underground potential for some time to come.”

“We are very happy to have moved so many ounces from the inferred category into the indicated categor y, ” comments Dr. Andreas Rompel , Vice President Exploration. “Furthermore we added a huge amount of resources for a potential underground mine as a result of the highly successful drilling campaign within the shear zones cross-cutting the tonalite intrusive . We are very confident about the Bonnefond deposit and will continue to build on this estimate during the next drill campaigns.”

Indicated and Inferred Mineral Resource Estimate
                                     Cut-off grade
Area          Mining method             Au        Tonnage         Grade Au         Ounces Au
                                        (g/t)       (t)            (g/t)       

Indicated       open pit                0.60      7,418,000         1.67           397,100
               underground          2.70-3.40          -             -                -
                 total                             7,418,000        1.67           397,100
Inferred         open pit             0.60          2,368,000        1.97          150,200
                underground           2.70-3.40    967,000            4.52         140,600
                 total                              3,335,000          2.71         290,800

Notes to Table 1:

The independent qualified persons for the 2020 MRE, as defined by NI 43-101 guidelines, are Charlotte Athurion, P,Geo., and Pierre-Luc Richard, P. Geo., both of BBA Inc. The effective date of the estimate is October 31, 2020. These mineral resources are not mineral reserves as they have not demonstrated economic viability. The quantity and grade of reported Inferred resources in this MRE are uncertain in nature and there has been insufficient exploration to define these Inferred and Indicated resources as Measured; however, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. The cut-off grade used for the Mineral Resource Estimate was 0.60 g/t Au for the open pit material, 2.70g/t for the underground material inside the V2 unit (where the mineralized orebody has a dip greater than 40degree) and 3.4 g/t for the underground material outside the V2 unit (where the mineralized ore body has a dip lower than 40degree). The cut-off grade was calculated using the following parameters (amongst others): Gold price = USD 1,450, CAD:USD exchange rate = 1.32, Mining cost = $110-150/t for underground and $3.50/t for open-pit, Processing cost = $26.50/t processed, G&A = $4.00/t processed for open-pit and $15.00/t for underground, Transportation cost = $5.00/t processed. The cut-off grade will be re-evaluated in light of future prevailing market conditions and costs. Resources are presented as undiluted and in situ for an open-pit and underground scenario and are considered to have reasonable prospects for economic extraction. The openpit resources are constrained within a pit shell that was developed via a pit optimization analysis using Hexagon’s MinePlan 3D software version 15.70. The pit optimization analysis was carried out using overall pit slopes of 50degree in rock and 26.5degree in overburden. A mining dilution of 5% and a mining recovery of 95% were considered. The pit shell that was selected for the Mineral Resource Estimate was the one that was run at a Revenue Factor (RF) equal to 1.2. Other parameters are the same as those that were used for the cut-off grade (see above). The openpit has a stripping ratio of 8.5 to 1. In order to determine the quantity of mineralization that shows a “reasonable prospect for eventual economic extraction” using underground mining methods, a series of clipping boundaries were created manually in longitudinal and 3D views to isolate potential mineable volume of blocks above the cut-off grades. When blocks below the cut-off grades were contained inside those volumes, they were included in the Mineral Resource estimate as internal dilution material. Isolated blocks or groups of blocks with not enough continuity to be considered as minable shapes were then removed from the mineral resource estimate. The MRE was prepared using Geoviatrademark GEMS 6.8.3 and is based on 266 surface drillholes, of which 181 intercepted the block model limits, with a total of 30,639 assays. The resource database was validated before proceeding to the resource estimation. Grade model resource estimation was calculated from drillhole data using an OK interpolation method in a block model using blocks measuring 5 m x 5 m x 5 m in size. The cut-off date for drillhole assays was October 15, 2020. The model comprises 16 mineralized shear zones (which have a minimum thickness of 3 m), and two mineralized units (Tonalite and Diorite), each defined by individual wireframes. High-grade capping was done on the composited assay data and established on a per unit basis. Capping grades used are 1.5 g/t Au for the Diorite unit, 6 g/t Au for the Tonalite unit, and ranging from 2 g/t Au to 35 g/t Au for the shear zones. A value of zero grade was applied in cases of core not assayed. Fixed density values were established on a per unit and per mineralization type basis, corresponding to the median of the SG data of each unit ranging from 2.67 to 2.84. A fixed density of 2.00 g/cm3 was assigned to the overburden. The MRE presented herein is categorized as an Inferred and Indicated resource. The Inferred mineral resource category is defined for blocks that are informed by a minimum of two drillholes where drill spacing is less than 100 m. Indicated Mineral Resources were defined for the mineralization contained in the constraining pit shell only where blocks have been informed by a minimum of three drillholes and where drill hole spacing is less than 50 m. No indicated resource was defined for the underground resources. Where needed, some material has been either upgraded or downgraded to avoid isolated blocks. The number of metric tons (tonnes) was rounded to the nearest thousand. CIM definitions and guidelines for Mineral Resource Estimates have been followed. The authors are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issues not reported in this Technical Report that could materially affect the Mineral Resource Estimate.

The Bonnefond deposit comprises an intrusive body and series of shear zones transecting the intrusive. The intrusive body has an elliptical shape on plan view, measuring approximately 250m by 95m and dipping at 70degree to the north-east. The northern part of the intrusion is tonalitic body of 250m by 60m while the southern part of the intrusive is more dioritic in its mineral composition. The gold values are associated with free visible gold and disseminated pyrite mineralization; tension and shear quartz-tourmaline veins and stockwork

From a structural point of view, the Bonnefond deposit is characterized by an east-west shear system transitioning from less competent ductile volcanic facies to more competent facies within the intrusive. A series of mineralized shear zones dipping at 45degree to the north transects the intrusive body being shallow on the southern side and deeper on the northern side of the intrusive. They extend through the dioritic part of the Bonnefond intrusive and display shallower dips inside the intrusive. As the tonalitic part of the intrusion is more competent, it suggests that it cracked under the pressure during the active structural phases, creating large flat enriched areas with abundant quartz tourmaline veins and veinlets and intense alteration.

QMX Gold started drilling on the Bonnefond intrusive in 2017 and realized its first major drilling program on the project in 2018. An initial openpit constrained resource was released in 2019 (Press release, July 30, 2019).

In order to build the 2020 MRE, QMX conducted 27,000 m of drilling to the Bonnefond deposit. 7,700 m of drilling was dedicated to definition drilling to convert resources in the inferred category to the indicated category in the open-pit and 19,300 m to explore under the 2019 conceptual open pit.

The successful drilling campaigns allowed the QMX team to substantially improve the geological and structural model of the deposit, particularly within the tonalite. The tighter drilling pattern allowed for a better definition of the mineralized envelope in the intrusive. Also, it was established that the shear zone extends through the tonalite, creating large shallow dipping mineralized envelopes within the intrusive (Fig 3). This better control of the mineralization inside the intrusive allowed the definition of continuous zones with higher grades. The extensive exploration drilling successful ly demonstrat ed the presence of mineralization in several parts of the shear zones in the volcanic lithologies south of the intrusive , opening up a substantial target zone between 350 m and 1,000 m at depth.

Drilling on the Bonnefond property is still ongoing with three drill rigs. A 10,000 m exploration program was recently completed in the northern part of the property and results are pending. An additional exploration program is focused on the deep exploration on the intrusive and the shear zones following up on the results of DDH 121 (Press Release, August 18, 2020) and DDH 105A (Press Release, May 21, 2020) to increase the underground resources of the project. Another 5,500 m exploration program is ongoing south of the Bonnefond deposit to test for western extensions of the New Louvre deposit (Figure 1).

The technical report related to the 2020 MRE will be filed on SEDAR at http://www.SEDAR.com within 45 days in accordance with the timelines set forth in 43-101.

2021 Winter Drilling Campaign {䠨 –} East Zone

Preparation and planning is underway for the 2021 winter drilling campaign. The campaign will focus largely on the East Zone, between the Bonnefond deposit and the past producing Bevcon Mine, on wet ground areas accessible only during the winter months. Weather dependent, QMX currently plans to utilize up to seven drill rigs for a total of 35,000 m over the winter months.

A large portion of the winter program will be on and around the Bevcon intrusive in order to follow up on the successful results from the 2019 drilling campaign. Highlights from the Bevcon Target include (Press Release September 24, 2019):

DDH 17311-18-015 returned 84.8 g/t Au over 6.0 m, including 137.5 g/t Au over 3.7 m and DDH 17311-18-017 returned 10.8 g/t Au over 4.3 m.

This exploration program will also test a number of prospective exploration targets to the east of the Bonnefond intrusive.

Highlights:

JV-financed 6,300m RC drilling programme (44 holes) at Tabakorole, southern MaliFT Prospect at Tabakorole hosts a mineral deposit for which a Mineral Resource Estimate ("MRE") has been generated comprising:16,600,000 tonnes at 1.2 g/t Au for 620,000 ounces in the Inferred category7,300,000 tonnes at 1.2 g/t Au for 290,000 ounces in the Indicated category43% of the MRE is situated within 100m of surfaceMRE is in accordance with the JORC Code, an acceptable foreign code for the purposes of NI 43-101Drilling undertaken by Marvel Gold to test potential strike extensions and infill the MREAltus has recently announced 20,000m of drilling across three gold projects in MaliAltus holds a 2.5% Net Smelter Return ("NSR") gold production royalty on Tabakorole

Steven Poulton, Chief Executive of Altus, commented:

"Few companies provide as much exposure to the ‘drill bit’ and discovery upside for their shareholders as we currently do at Altus. We have recently announced almost 20,000m of drilling across three separate gold projects, being undertaken almost simultaneously. The commencement of this 6,300m programme at Tabakorole in southern Mali, by our JV partner Marvel Gold, follows the recent completion of an initial 3,880m JV-funded programme at Lakanfla in western Mali and the commencement of a 10,000m programme by Altus at our 100% owned Diba gold project located close to Lakanfla and the world famous Sadiola gold mine.

This programme at Tabakorole is designed to test the potential strike extension of the deposit as well as infill the current MRE. We look forward to updating shareholders on progress from Tabakorole as results are received."

Tabakorole Resource Expansion Potential

The Company announced the MRE on the Tabakorole deposit on 30 September 2020 in its news release entitled "Substantial Increase in Gold Resource at Tabakorole Project, Southern Mali".

Recent air-core ("AC") and diamond drilling ("DD") undertaken by Marvel as part of the JV Stage 1 earn-in at Tabakorole confirmed that gold mineralisation continues for at least 600m to the north-west along strike of the 2.9km long FT Prospect. The deposit also remains open at depth.

There are areas throughout the deposit for which the existing MRE was generated that are constrained due to a lack of drilling data, with 43% of the ounces in the MRE located within approximately 100m of surface. Mineralisation in the south-eastern segment of the deposit appears more consistent than in the north-western segment and is considered to represent a significant resource expansion target.

Summary of Joint Venture with Marvel Gold

Marvel have the right to earn up to an 80% interest in Tabakorole by sole funding four stages of exploration, culminating in a definitive feasibility study, and by making certain cash (or cash plus Marvel equity) payments to Altus. Thereafter, Altus has the right to co-fund or dilute its 20% interest in the Project. Altus will retain a 2.5% NSR royalty on the Project and Marvel will have the right to reduce the NSR to 1.0% for a payment to Altus of between US$9.99M and US$15.00M (subject to the size of the resource at Tabakorole).

The following figures have been prepared and relate to the disclosures in this announcement and are visible in the version of this announcement on the Company's website (www.altus-strategies.com) or in PDF format by following this link: https://altus-strategies.com/site/assets/files/4950/altus_nr_-_tbk_drilling_nov_2020.pdfLocation of Tabakorole and Altus' other projects in Mali is shown in Figure 1.Location of Tabakorole in southern Mali is shown in Figure 2.Planned drilling programme at Tabakoroleis shown in Figure 3.

Tabakorole Project: Location

The 100km2 Tabakorole gold project is located in southern Mali, approximately 280km south of the capital city of Bamako. The Project sits on the Massagui Belt which hosts the Morila gold mine (operated by Firefinch Limited, ASX: FFX), located approximately 100km to the north. The Project is 125km southeast of the Yanfolila gold mine (operated by Hummingbird Resources Plc, AIM: HUM) and 100km east of the Kalana gold project (operated by Endeavour Mining Corporation, TSX: EDV). Mineralisation hosted on these properties is not necessarily indicative of mineralisation hosted at Tabakorole.

Tabakorole Project: Geology

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

PEA Highlights:

Robust economics with after-tax Net Present Value (5% discount rate) (“NPV5%”) of $120 million and an after-tax Internal Rate of Return (“IRR”) of 35% at $2,150 per ounce of gold (US$1,505 per ounce) Low capital intensity project with only $82 million pre-production capital cost net of $22 million of pre-production revenue Average production of 60,000 ounces gold per year over six years for 357,000 ounces of total production Low life-of-mine (“LOM”) All-In Sustaining Cost (“AISC”) of US$863 per ounce gold Technically simple project based on a push-back of the existing Plutonic Main Pit utilising existing processing and other existing infrastructure Significant leverage to gold price: $265 million NPV5% at recent spot price of $2,850 per ounce of gold (US$2,000 per ounce) Value enhancement potential available through removing open pit constraints, resource expansion and exploration drilling Proceeding to a PFS expected to be completed in the first half of 2022

Updated Mineral Resource Highlights:

Updated Measured and Indicated Mineral Resources of 1.89 million ounces of gold (16.26 million tonnes at a 3.6 g/t Au grade) Updated Inferred Mineral Resources of 3.07 million ounces of gold (30.55 million tonnes at a 3.1 g/t Au grade)

Tamara Brown, Interim CEO of Superior Gold stated: “The Plutonic Main Pit push-back project starts to unlock the significant value sitting within the Plutonic Gold Operations. It is a technically simple, high-return, brownfield gold project in one of the most favourable mining jurisdictions in the world, with all necessary infrastructure already in place. The PEA defines robust project economics based on reasonable capital expenditures. This low capital intensity derives from leveraging the existing Plutonic infrastructure and the simplicity of the project which will utilize conventional open pit mining techniques and proven existing processing operations.

We are extremely pleased to present the results of a PEA on the Plutonic Main Pit project which in management’s view clearly demonstrates the potential of significantly increasing production at the Plutonic Gold Operations. The project shows robust economics with an after-tax IRR of 35%, a payback of 2.6 years and an NPV5% of $120 million at a $2,150 per ounce gold price. The PEA supports a 3,300 tonnes per day open pit operation with production spanning six years, with very attractive cash costs, AISC and low capital intensity as we are able to leverage off our existing infrastructure. The production from the open pit operations of an average of 60,000 ounces per year for six years, peaking at 78,000 ounces in year three, will supplement our existing production from the Plutonic underground operations, potentially significantly boosting our annual production levels. Importantly, the project provides a steady base load of feed supply for our primary mill, repositioning the Plutonic Gold Operations for long-term success.”

Cautionary Statement: The reader is advised that the PEA summarized in this news release is preliminary in nature and is intended to provide an initial, high-level review of the Plutonic Main Pit’s economic potential and design options.

The PEA is preliminary in nature, includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

There are no Mineral Reserves contained in the PEA.

PEA Summary

The PEA was prepared by RPM Advisory Services Pty Limited (“RPM Global”), based on an updated Mineral Resource estimate prepared by the Company, all in accordance with National Instrument 43-101 (“NI 43-101”). The updated Mineral Resource estimate and PEA were completed under the supervision of Stephen Hyland, FAusIMM who is a “qualified person” as defined by NI 43-101 and is independent of the Company.

This news release contains information from a preliminary economic assessment, which is a conceptual study, and other forward-looking information about potential future results and events. Please refer to the cautionary statements in the footnotes below and the cautionary statements located at the end of this news release, which include associated assumptions, risks, uncertainties and other factors.

Table 1: Plutonic Main Pit Project PEA Economics(1)
   
  
  
   Economics                                                             Pre-TaxPost-Tax
Net present value (NPV5%)                            $ millions       177    120     
Net present value (NPV5%)                            US$ millions     124    84      
Internal rate of return (IRR)                        %                45     35      
Payback (undiscounted)                               years            2.5    2.6     
LOM avg. annual cash flow after capital              $ millions       55.1   43.0    
Total cash flow (undiscounted)                       $ millions       242    169     
Forecasts                                                                            
Gold price assumption                                US$/oz           1,505          
A$ to US$ assumption                                 A$/US$           0.70           
Production                                                                           
Average annual gold production                       ounces/yr        60,000         
Total LOM recovered gold (excl. pre-production)      ounces           357,000        
Mine life(2)                                         years            6              
Average annual mining rate                           million tonnes/yr11.6           
LOM strip ratio                                      waste:ore        10.3           
Average mill grade                                   g/t gold         2.1            
Average recoveries                                   %                86.4           
Capital Expenditures                                                                 
Initial capital costs (net of pre-production revenue)$ millions       82.5           
LOM sustaining capital costs                         $ millions       5.6            
Costs                                                                                
Mining cost                                          $/tonne mined    3.89           
Processing cost                                      $/tonne milled   19.38          
G&A cost                                             $/tonne milled   4.15           
Royalty                                              %                2.5%           
Total cash cost(3)                                   US$/oz           852            
AISC(3)                                              US$/oz           863            


  
  

NOTES: 1.The PEA is preliminary in nature, includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There are no Mineral Reserves contained in the PEA. 2.LOM calculation and “Mine Life” is defined as the duration of mining operations of six years after the first year of pre-stripping and capital spend. 3.This is a non-IFRS financial measure. Please refer to “Non-IFRS Performance Measures” at the end of this news release for a description of these non-IFRS performance measures and to the Non-IFRS Performance Measures disclosure included in the Company’s MD&A for a description and calculation of these measures.

The Plutonic Main Pit push-back project is part of the Plutonic Gold Operations located 800 kilometres north-east of Perth in Western Australia. The Plutonic Main Pit was first put into production in 1990 and produced 2.1 million ounces of gold, along with other satellite pits, between 1990 and 2005 when production in respect of the Plutonic Main Pit ceased. The Plutonic Main Pit is situated directly above the existing underground operations and located directly adjacent to the Company’s milling facilities which consist of a 1.8 million tonne per annum (“Mtpa”) primary processing plant (“PP1”) and a 1.2 Mtpa secondary processing plant (“PP2”) which is currently on care and maintenance. Existing tonnage from the underground mine supplies approximately 800,000 tonnes per annum to PP1. Therefore, PP1 has capacity for open pit sources of feed.

The PEA considers a push-back of the past producing Plutonic Main Pit utilizing contractor operated conventional open pit mining methods. Drill and blasting of rock will be followed by conventional truck and shovel operations within the open pit for the movement of plant feed and waste with on-site treatment of mine material by conventional milling and gravity recovery through PP1. The PEA also contemplates the expansion of PP1 from 1.8 Mtpa to 2.0 Mtpa with only minor modifications to the existing processing flowsheet. Tailings from the Carbon in Leach (“CIL”) circuit will be deposited in the existing on-site paddock style tailings storage facility (“TSF”) and the already permitted TSF paddocks 4 and 5 to be constructed starting in late 2021.

The push-back of the Plutonic Main Pit encounters a number of potential surface constraints impacting the pit size, including the location of processing plant infrastructure and heritage sites. The PEA base case has been completed conservatively assuming no relocation of any of these open pit constraints. Future work will need to be completed to assess the viability of removing one or more of these pit size constraints.

Gold Price Sensitivities

The following table demonstrates the after-tax sensitivities of NPV and IRR to gold price per ounce. The base case, highlighted in the table below, assumes $2,150 per ounce of gold (US$1,505 per ounce):

Table 2: Sensitivity Table
  
  
   Economic Sensitivities to Gold Prices (post-tax)
Per ounce of gold   (NPV5%) $ millions   IRR%   
US$1,300            59 M                 20%    
US$1,350            74 M                 24%    
US$1,505 ($2,150)   120 M                35%    
US$1,800            206 M                57%    
US$1,900            236 M                64%    
US$2,000            265 M                72%    


  

Opportunities

Several opportunities to potentially improve the economics of the Plutonic Main Pit project contemplated under the PEA have been identified. Examples include, but are not limited to:

Investigate the potential removal of one or more surface constraints currently limiting the size of the open pit; Complete infill drilling to convert Inferred Mineral Resources to Measured and Indicated Resources; Complete on-strike step-out drilling to potentially expand Inferred Mineral Resources (Figure 5); Investigate existing targets south east of the Plutonic Main Pit (Figure 5); Geotechnical drilling to confirm opportunities to steepen current pit walls; Further optimize mining strategy resulting in operating cost savings; Further optimize mine designs and scheduling resulting in fully-utilized contractor fleet; Investigate interaction with the underground operations to identify optimization opportunities at the overall operation; and Utilize Australian tax losses of approximately $36 million (as of December 31, 2019).

Mineral Resources Estimate

As part of the PEA, the Company completed an updated Mineral Resource estimate for the Plutonic Gold Operations as at December 31, 2019. The updated Mineral Resource is estimated from a drill hole database containing 35,784 drill holes consisting of 2.9 million metres of drilling.

Mineral Reserves for the Plutonic Gold Operations as at December 31, 2019 did not change and there are no Mineral Reserves contained in the PEA. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources as at December 31, 2019 were estimated using a long-term gold price of $2,150 per ounce (US$1,505 per ounce). Cut off grades for the Mineral Resource estimates were 1.50 g/t Au for underground and 0.40 g/t Au for open pit.

Table 3: Updated Measured and Indicated Mineral Resources
  
  
   December 31, 2019                                December 31, 2019 (Updated)                      
           Tonnes  (millions)Grade   (g/t Au)Oz Au   (000's)Tonnes  (millions)Grade   (g/t Au)Oz Au   (000's)
Underground                                                                                                  
Measured   3.69              5.50            650            3.45              5.5             590            
Indicated  5.54              4.60            820            5.15              4.6             750            
Total      9.23              5.00            1,470          8.61              5.0             1,330          
                                                                                                             
Open Pit                                                                                                     
Measured   -                 -               -              1.64              3.9             210            
Indicated  2.69              1.40            120            6.02              1.8             350            
Total      2.69              1.40            120            7.66              2.3             560            
                                                                                                             
Stockpiles                                                                                                   
Measured   -                 -               -              -                 -               -              
                                                                                                             
Grand Total11.92             4.20            1,590          16.26             3.6             1,890          


  
  

NOTES: 1.Mineral Resources are quoted inclusive and not additional to those Mineral Resources converted to Mineral Reserves. 2.The reporting standard adopted for the reporting of the Mineral Resource estimate uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves as required by NI 43-101. 3.Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive subtotals, totals and weighted averages. 4.Mineral Resources are estimated at a cut-off grade of 1.50 g/t Au for the Plutonic underground gold mine. 5.Plutonic Underground Resources based on Deswik Mining Stope Optimizations using generalized Reserve MSO input parameters and/ or restricted ‘grade shell’ reported Resources. Plutonic Main Pit Resources based on pit optimization parameters derived by the PEA. 6.Plutonic Open Pit Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au. 7.Mineral Resources are estimated using an average gold price of $2,150 per troy ounce (~US$1,505 per ounce). 8.Rounding errors exist in this table and numbers may not add correctly.

Table 4: Updated Inferred Mineral Resources
  
  
   December 31, 2019                                December 31, 2019 (Updated)                     
           Tonnes  (millions)Grade   (g/t Au)Oz Au   (000's)Tonnes (millions)Grade   (g/t Au)Oz Au   (000's)
Underground                                                                                                 
Inferred   19.45             4.20            2,640          18.15            4.2             2,400          
                                                                                                            
Open Pit                                                                                                    
Inferred   4.73              1.20            180            12.40            1.7             670            
                                                                                                            
Grand Total24.19             3.60            2,820          30.55            3.1             3,070          


  

NOTES: 1.Mineral Resources are quoted inclusive and not additional to those Mineral Resources converted to Mineral Reserves. 2.The reporting standard adopted for the reporting of the Mineral Resource estimate uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves as required by NI 43-101. 3.Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive subtotals, totals and weighted averages. 4.Mineral Resources are estimated at a cut-off grade of 1.50 g/t Au for the Plutonic underground gold mine. 5.Plutonic Underground Resources based on Deswik Mining Stope Optimizations using generalized Reserve MSO input parameters and/ or restricted ‘grade shell’ reported Resources. Plutonic Main Pit Resources based on pit optimization parameters derived by the PEA. 6.Plutonic Open Pit Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au. 7.Mineral Resources are estimated using an average gold price of $2,150 per troy ounce (~US$1,505 per ounce). 8.Rounding errors exist in this table and numbers may not add correctly.

Next Steps

The results of the PEA indicate that the proposed Plutonic Main Pit push-back project has technical and financial merit using the base case assumptions. It has also identified additional upside opportunities to remove pit constraints with trade-off studies and analysis required.

In 2021, the Company expects to move forward with enhancing the project through exploration and further drilling. Superior Gold will drill resource expansion targets, high-priority Caspian and Carribean exploration targets and several infill holes to improve confidence in geo-tech, metallurgy and resource estimation data. The Company will also continue to generate additional drill targets.

The Company expects to commence permitting activities which will include the commencement of heritage surveys for the project The results of the surveys and the engineering work completed for the PEA will be used to initiate the permitting process for the Plutonic Main Pit push-back project in the second half of 2021.

Conference Call

Management will host a conference call and webcast on Wednesday December 2, 2020 at 8:30AM ET to discuss the results of the PEA.

Conference Call and Webcast Date: Wednesday December 2, 2020 8:30AM ET Toll-free North America: (888) 231-8191 Local or International: (647) 427-7450 Webcast: https://produceredition.webcasts.com/starthere.jsp?ei=1410025&tp_key=c5b5ab31d1 Conference Call Replay Toll-free North America: (855) 859-2056 Local or International: (416) 849-0833 Passcode: 3448578

The conference call replay will be available from 1:00PM ET on December 2, 2020 until 23:59PM ET on December 16, 2020.

The presentation will be available on the Company’s website at http://www.superior-gold.com.

Filing of Technical Report

A technical report prepared in accordance with NI 43-101 will include the results of the PEA discussed in this news release together with an updated Mineral Resource estimate for the Plutonic Gold Operations will be filed on SEDAR at http://www.sedar.com under the Company’s profile within 45 days in accordance with NI 43-101.

Highlights of the Acquisition Include:

• Defiance’s Zacatecas District landholding interests increased from 1,600 Ha to over 4,300 Ha, including more than 10 known veins that returned drill results including 3.25m of 325 g/t Ag and 1.25m of 775 g/t Ag (Figure 1).
• Acquired the on-strike extension of Zacatecas Silver Corporation’s 19 million ounce Ag-Equivalent Panuco Deposit (see full disclosure below).
• Lucita hosts the undrilled Palenque vein structure, a 12 metre wide structure that has a 4km strike length and has return historical in situ grab and dump samples ranging from 25g/t Ag to over 700g/t Ag (Figure 2).
• Other priority high-grade vein structures also exist on the southern license area.

Chris Wright, Executive Chairman & CEO, commented: “Our exploration team has continued to advance our district exploration model, as it has yielded favorable targets throughout the Zacatecas Camp. The Lucita option represents a key milestone for Defiance Silver in establishing a district-scale land package at our Zacatecas projects and furthering our exploration thesis and strategy in the district. Not only does this project contain historical high-grade drill results with demonstrable exploration targets at depth and on-strike, it also has discovery potential at the multi-kilometre long Palenque structure.”

Figure 1 – Defiance’s Zacatecas District Land Position

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2950/69340_9c3b210f6468286e_001full.jpg

Property Overview

The 2,674 Ha Lucita project is characterized as a low to intermediate sulphidation Ag-Au vein, breccia and stockwork system with historical high-grade drill results and drill ready exploration targets. There are at least 10 known mineralized structures over a strike length of more than 4km, including the on-strike extension of the Panuco Deposit, currently being explored by Zacatecas Silver Corp. The veins in the northern license area have a continuous length of 4km and have widths from 0.20 m to 4 m. Historical drilling of these veins from 20 holes completed by Pan American in 2011-2012 returned encouraging results, including 3.35m of 325 g/t Ag from hole LU11-16 and 1.25m of 775 g/t Ag from hole LU11-9 (Figure 3). The composition of the epithermal veins at Lucita is quartz, calcite and occasionally minor barite, where colloform and crustiform banded textures can be seen, belonging to various mineralization events. The company believes the previously drilled structures intersected high-level epithermal mineralization, as mineral zonation at surface suggests that the top of the hydrothermal system is still present at the on-strike Panuco deposit.

Pan American Silver has carried out geological mapping, sampling, and two drilling campaigns in the northern license area (Figure 3). Phase I drilling in 1996 comprised 10 holes and 1,409.85 metres of drilling. Phase II drilling was carried out in late 2011 and early 2012, comprising 20 drill holes with 3,693.41 metres drilled. Both drill campaigns intersected mineralized veining typical of a high-level epithermal system.

Central and Southern License Areas (Palenque)

A key undrilled structure located on these licenses, adjacent to portion of the Defiance licenses that host the Tahures Vein, is the Palenque vein system. The Palenque system has an alteration zone up to 12 m wide at surface and numerous, high-grade rock chip, grab, and dump samples over a 4km strike length with historical chip, grab, and dump samples ranging from 25g/t Ag to >700 g/t Ag (Figure 2). The structure is characterized by high-level alteration assemblages that may be related to deeper “boiling zone” epithermal mineralization. The Palenque vein is a near-term drill target, and Defiance will be actively advancing the understanding of the mineral system in order to drill Palenque in 2021.

Figure 2 – Central Area with rock samples taken from Palenque and other unnamed structures. Recently acquired licenses in Blue and current Defiance Licenses in White. Third-party licenses are in Grey.

To view an enhanced version of Figure 2, please visit:
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Northern Licenses (Panuco/Los Tajos)

The northern claim block hosts the on-strike extension, most specifically the Panuco Central and the Tres Cruces veins, of the Panuco deposit under option to Zacatecas Silver Corp. Using a cut-off value of 100.0 g/t AgEq for the Panuco deposit, the current Inferred mineral resource estimate results in 3,954,729 tonnes grading 136.00 g/t Ag, 0.14 g/t Au, 0.012% Pb and 0.110% Zn or 153.20 g/t AgEq. This equates to 19,472,901 ounces of AgEq (2016 Mineral Resource Estimate, Panuco Deposit, Zacatecas Mexico for SantaCruz Silver Mining by V. Bui and G. Giroux). Defiance Silver’s qualified person and technical team have been unable to verify this information, and that the information is not necessarily indicative of the mineralization on the Lucita property.

Figure 3 – Historical Drilling in Northern (Panuco) Area

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Hole	From	To	Interval (m)	Ag g/t	Au g/t	Pb %	Zn %	Cu %	Vein
LU11-3	136.2	133.1	0.5	289	1.2	0.01	0.01	0.01	San Fransisco
	181.8	182.55	0.75	93	0.47	0	0.01	0.01	Los Tajos
LU11-4	125.35	126.55	1.2	213	0.1	0.19	0.59	0.02	Penafiel
including	125.35	125.9	0.55	264	0.11	0.21	0.78	0.02
	129.75	131.1	1.35	219	0.31	0.58	2.14	0.03	Penafiel
including	129.75	130.1	0.35	455	0.6	2.1	7.93	0.1
LU11-6	130	130.8	0.8	248	0.69	0.87	2.47	0.1	Santa Rosa
LU11-7	124.85	126.1	1.25	208	0.12	0.21	0.47	0.01	Lucero
including	124.85	125.45	0.6	369	0.23	0.4	0.89	0.01
LU11-8	109.4	109.85	0.45	469	0.39	0.31	0.45	0.02	Lucero
	112.15	112.85	0.7	97	0.6	0.28	0.27	0.01	Lucero
	114.2	114.9	0.7	444	0.08	1.25	1.21	0.05	Lucero
	132.8	133.3	0.5	154	0.07	1.1	1.09	0.03	Unnamed Vein
LU11-9	180.1	181.35	1.25	779	0.08	0.77	0.8	0.07	San Andres
LU11-11	30.6	30.75	0.15	240	0.42	0.01	0.04	0.01	San Fransisco
LU11-12	18.3	18.75	0.45	98	0.02	0.01	0.01	0.01	San Fransisco
LU11-14	170.8	172.85	2.05	123	0.12	0.06	0.46	0.03	Penafiel
including	171.8	172.85	1.05	200	0.15	0.13	0.89	0.06
LU11-16	125.2	128.55	3.35	325	0.07	0.35	2.75	0.06	Lucero splay ?
including	125.2	125.7	0.5	668	0.23	0.73	2.19	0.08
	127.5	128.55	1.05	548	0.07	0.55	5.15	0.1
	148.9	149.45	0.55	143	0.1	0.08	0.05	0.01	Lucero
	164.2	164.7	0.5	155	0.15	0.24	0.07	0	Unnamed Vein
LU11-20	152.2	152.6	0.4	655	0.07	0.41	0.74	0.04	San Andres

Table 1 – 2011-2012 historical results at the Northern (Panuco) License

Exploration Strategy

Defiance is planning an aggressive exploration program to adequately test the mineral potential at Lucita. The upcoming exploration program is being planned as detailed surface mapping, surface geochemistry, surface geophysics (Mag, IP, CSAMT), and surface drilling. The company anticipates starting this exploration program immediately and in conjunction with the ongoing surface and underground exploration programs at San Acacio and Lagartos.

Terms of Agreement

Defiance has the option to acquire 100% ownership of the Lucita Property, while Pan American Silver will retain a 2% NSR. The option terms include an initial payment of US$100,000 upon signing; US$100,000 on or before the first year anniversary; US$500,000 on or before the second year anniversary; and a final payment of US$800,000 on or before the third year anniversary.

“The next few months are going to be exciting. Artificial intelligence technology has brought us to the point where we’ve got a highly detailed 3D model of the different lobes of sediments that were stacked together to create the CDS deposit. Our team of site geologists and external consultants has begun working with this model, refining it with new drilling information, so that we can use it to confidently target well-mineralized lobes.” says Nick Appleyard, TriStar’s President and CEO. “When drilling resumed, the first holes we were able to drill were in Esperança East, to extend the known resource there. Since then, we’ve been drilling new targets, including the areas identified as part of the CDS Deeps program that focuses on remobilized gold at depth. The results will now be flowing consistently well into next year”.

Results from the first holes are in line with expectations, with all holes that reached target depth encountering significant intersections of gold mineralization. Drillhole RC-20-534 in the ‘valley area’ adjacent to Esperança South had to be abandoned at only 49m and will be completed at a later date. This then required that the RC rig moved to drier ground at Esperança East until a larger compressor could be mobilized to site.

Hole	From	To	Intersection
RC-20-535	41	42	1.0m @ 0.5g/t
RC-20-536	72	73	1.0m @ 0.6g/t
RC-20-537	64	97	33.0m @ 0.6g/t
Incl.	87	90	3.0m @ 1.2g/t
RC-20-538	44	45	1.0m @ 0.8g/t
	69	73	4.0m @ 0.7g/t
RC-20-539	0	13	13.0m @ 0.5g/t
Incl.	0	3	3.0m @ 1.6g/t
	25	28	3.0m @ 0.4g/t
	55	56	1.0m @ 0.7g/t
	63	65	2.0m @ 0.5g/t
	73	83	10.0m @ 0.4g/t
	92	93	1.0m @ 0.4g/t

Table 1, Significant intersections from first 6 holes of current program. All holes were completed to 120m and drilled vertically. Hole RC-20-534 had to be abandoned at 49m, no significant intersections were encountered but the target depth of 120m was not reached.

Figure 1, Locations of the drill holes with red collars are disclosed in this press release. Planned holes shown are green for the conglomerate hosted targets and light blue for the CDS Deeps target

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/4509/69307_2d3cf957a431fb3d_002full.jpg

Artificial intelligence and exploration targeting

Evaluation of the multi-element geochemistry has led to a breakthrough in stratigraphic mapping at Castelo de Sonhos. Artificial intelligence algorithms have been able to identify stratigraphically continuous clusters that appear to represent distinct depositional phases of the original alluvial fan that brought the gold into the deposit. The resulting surface map can be seen in Figure 2. and the complete 3D model for Esperança South will be used both for additional exploration and for completing the prefeasibility study. The map and the 3D interpretation will be continually improved with information from new holes.

All drill holes are analyzed for gold and then every second sample is analyzed for multi-element geochemistry, allowing each new drill hole to be used as a vector to the most promising reefs in the system. The multi-element geochemistry from these for 5 completed holes will be analyzed to refine the next round of drill targets.

Figure 2. Surface map of sedimentary lobes and erosional surfaces developed using artificial intelligence, airborne geophysics and multi-element geochemistry from drilling.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/4509/69307_2d3cf957a431fb3d_003full.jpg