Drilling has continued to validate the 2019 litho-structural model (announced in February, 2019) while demonstrating the potential for resource growth at depth and along strike. Drilling so far has been focused on an approximately one-kilometre strike length to the east of the old O’Brien mine, historically considered the highest-grade gold mine in Quebec (production of 587,121 ounces gold grading 15.25 g/t gold from 1926 to 1957). With the acquisition of the New Alger project (August, 2020), Radisson now controls approximately 5.2 km of highly prospective strike along the Cadillac break, including 2.5 km to the east and west of the main shaft at the old O’Brien mine.

Key highlights:

• Resource expansion potential to the west of the first mineralized trend, OB-20-168:
  • 14.90 grams per tonne gold over 8.00 metres (including 22.24 g/t Au over 2.30 m and 33.94 g/t Au over 2.00 m) approximately 60 m west of the current resource boundary;
• Resource expansion potential to the east of the first mineralized trend (multiple intercepts approximately 40 m east of the current resource boundary):
  • OB-20-164: 41.04 g/t Au over 2.30 m (including 170.50 g/t Au over 0.55 m) and 10.46 g/t Au over 2.05 m (including 36.40 g/t Au over 0.50 m);
  • OB-20-170: multiple intercepts including 5.27 g/t Au over 7.40 m and 5.73 g/t Au over 9.20 m (including 13.45 g/t Au over 1.90 m and 12.15 g/t Au over 2.00 m);
• Continuing drill program (commenced August, 2019) expanded by 70,000 m for a total of 130,000 m since completion of the last National Instrument 43-101 resource estimate (July, 2019):
  • 57,154 m completed to the end of 2020 with results pending for 10,790 m;
• Cash balance of approximately $15-million following the November, 2020, equity financing;
• Corporate updates:
  • Kenneth Williamson appointed senior adviser, geology;
  • Nicolas Guivarch promoted to manager, exploration;
  • Richard Nieminen has stepped down as director, exploration.

                                  NOTABLE DRILL RESULTS

Hole                        From              To           Core length               Au uncut
                             (m)             (m)                   (m)                  (g/t)
OB-20-160
                           32.65           34.45                  1.80                   7.45
including                  32.65           33.45                  0.80                  16.60
OB-20-163
                           67.20           69.10                  1.90                   5.61
including                  68.10           69.10                  1.00                  10.40
OB-20-164
                          196.25          198.55                  2.30                  41.04
including                 198.00          198.55                  0.55                 170.50
and                       493.85          495.90                  2.05                  10.46
including                 493.85          494.35                  0.50                  36.40
and                       503.25          505.00                  1.75                   5.84
including                 503.25          503.75                  0.50                  19.65
OB-20-168
                          591.00          599.00                  8.00                  14.90
including                 591.00          593.30                  2.30                  22.24
which includes            591.00          592.30                  1.30                  39.00
and                       597.00          599.00                  2.00                  33.94
which includes            598.00          599.00                  1.00                  67.50
OB-20-170
                          213.50          215.50                  2.00                   8.43
including                 214.50          215.50                  1.00                  16.80
and                       562.60          570.00                  7.40                   5.27
including                 562.60          567.40                  4.80                   6.82
which includes            565.40          567.40                  2.00                   9.83
and                       576.00          578.00                  2.00                   4.02
including                 577.00          578.00                  1.00                   6.15
and                       593.10          602.30                  9.20                   5.73
including                 593.10          595.00                  1.90                  13.45
which includes            594.00          595.00                  1.00                  25.30
and                       600.30          602.30                  2.00                  12.15
which includes            601.30          602.30                  1.00                  23.20

Resource expansion potential to the east of the first mineralized trend (300 m east of the old O’Brien mine):

• Hole OB-20-164 returned multiple mineralized intercepts approximately 38 m to the east of currently modelled resources in the first trend including:
  • 41.04 g/t Au over 2.30 m core length (vertical depth of 185 m) including 170.50 g/t Au over 0.55 m, including visible gold showings;
  • Additional high-grade intercepts 280 m vertically below the above intercept, including:
    • 10.46 g/t Au over 2.05 m core length including 36.40 g/t Au over 0.50 m;
    • 5.84 g/t Au over 1.75 m core length including 19.65 g/t Au over 0.50 m;
    • These intercepts were obtained:
      • Approximately 150 m vertically above and 50 m to the west of the previously released intercept of 110.97 g/t Au over 2.50 m from hole OB-20-167;
      • Approximately 150 m vertically above and 55 m to the west of a historical intercept of 1,920 g/t Au over 0.21 m (U-1328).
• Hole OB-20-170 returned multiple mineralized intercepts approximately 25 m to the east of currently modelled resources in the first trend (and approximately 110 m below and 75 m farther east of the high-grade intercepts in OB-20-164) including:
  • 8.43 g/t Au over 2.00 m core length (vertical depth of 205 m) including 16.80 g/t Au over 1.00 m;
  • Additional high-grade intercepts 335 m vertically below the above intercept, including:
    • 5.27 g/t Au over 7.40 m core length including 9.83 g/t Au over 2.00 m;
    • 4.02 g/t Au over 2.00 m core length including 6.15 g/t Au over 1.00 m;
  • 5.73 g/t Au over 9.20 m core length (vertical depth of 570 m) including:
    • 13.45 g/t Au over 1.90 m core length including 25.30 g/t Au over 1.00 m;
    • 12.15 g/t Au over 2.00 m core length including 23.20 g/t Au over 1.00 m OB-20-164.
• OB-20-167 and OB-20-170 highlight the potential for resource expansion to the east of the current resource boundary, between 465 m and 615 m vertical depth.

Resource expansion to the west of the first mineralized trend (300 m east of the old O’Brien mine) near the lower boundary of current resources:

• Hole OB-20-168 returned 14.90 g/t Au over 8.00 m (vertical depth of 475 m) approximately 60 m to the west of currently modelled resources in the first trend. This broader mineralized zone includes:
  • 22.24 g/t Au over 2.30 m core length, including 39.00 g/t Au over 1.30 m, including visible gold showings;
  • 33.94 g/t Au over 2.00 m core length, including 67.50 g/t Au over 1.00 m.
• The high-grade intercept was obtained 330 m below previously reported intercept of 92.89 g/t Au over 2.60 m (from OB-20-153), and approximately 55 m and 145 m, respectively, above historical intercepts of 21.46 g/t Au over 1.70 m (OB-17-23) and 124.57 g/t Au over 0.82 m (ST-1029).
• Both intercepts were obtained within multiple mineralized structures appearing to align with the dip of the first mineralized trend, highlighted by historical drilling and stepout drilling completed below current resources.
• The high-grade intercepts are both located outside and to the east of the current resource boundary.
• OB-20-168, OB-20-159, OB-20-158 and OB-20-153 and other historical intercepts highlight the potential for resource expansion by up to 60 m to the west of the current resource boundary, starting close to surface down to 475 m vertical depth. In addition to hole OB-20-168, hole OB-20-160 and OB-20-163 returned high-grade intercepts of, respectively, 7.45 g/t Au over 1.80 m and 5.61 g/t Au over 1.90 m in the Pontiac sediments, suggesting the presence and continuity of east-northeast mineralized zones within this geological unit.

Drilling at O’Brien continues to validate the litho-structural model while highlighting resource growth potential laterally and at depth:

• Drilling to date has continued to define and expand three high-grade mineralized trends, located approximately 300 m, 600 m and 900 m, respectively, to the east of the old O’Brien mine.
• Assays are pending from stepout drill holes completed on all three trends.
• Mineralized trends identified bear similarities with structures previously mined at O’Brien down to a depth of 1,100 m (historical production of 587,000 ounces grading 15.25 g/t Au).
• Drilling so far has demonstrated continuity of mineralization well below the boundary of defined resources in all three trends, which remain open for expansion laterally and at depth. In the first trend, drilling has highlighted continuity of mineralization down to a vertical depth of 950 m, approximately 350 m below the boundary of resources that are limited to a vertical depth of 600 m. In the second trend, drilling has highlighted continuity of mineralization down to a vertical depth of 770 m, approximately 300 m below the boundary of resources that are mostly within 400 m from surface. In the third trend, drilling has traced mineralization down to 500 m vertical depth from surface. Current resources are mostly confined to between surface and 240 m vertical depth.
• Almost all drilling conducted as part of the continuing campaign has been within a strike length of approximately one km to the east of the old O’Brien mine, representing only a small portion of more than five km of prospective strike that Radisson controls along the Cadillac break.

57,743 m of drilling completed to date with assays pending for approximately 10,790 m:

• This release represents approximately 4,979 m of drilling.
• With approximately $15-million in treasury, the company is now financed to expand the program to over 130,000 m through 2021.
• Released results to date (since the commencement of drilling in August, 2019) represent only 36 per cent of approximately 130,000 m envisioned to be complete by the end of 2021.

Corporate updates:

• Mr. Williamson appointed senior adviser, geology;
• Mr. Guivarch promoted to manager, exploration;
• Mr. Nieminen has stepped down as director, exploration.

Radisson is pleased to announce that it has entered to an arrangement with 3DGeo Solution Inc., whereby Mr. Williamson has been appointed senior adviser, geology. Mr. Williamson, currently president of 3DGeo Solution Inc., is a professional geologist with close to 20 years of experience in the gold mining industry. He graduated with a master’s degree in structural geology from Laval University in 2002. His prior experience includes key technical roles with corporates such as Goldcorp, Rubicon Minerals and Premier Gold in addition to consulting roles with InnovExplo and MRB & Associates. Mr. Williamson has been involved with the company and the O’Brien project since 2018. He was responsible for the development of the current litho-structural model and the ensuing National Instrument 43-101 mineral resource estimate in 2019. In collaboration with the company management and the technical team, Mr. Williamson will assist with the planning and execution of the exploration programs well as maintain his key role in the geological interpretation and 3-D modelling efforts deployed by the company.

In addition, Mr. Guivarch has been promoted to exploration manager. Mr. Guivarch, who joined Radisson in August, 2019, is a professional geologist with close to 10 years of experience in mineral exploration. His prior experience includes roles with Areva, InnovExplo, Metanor Resources and MRB & Associates. He graduated with a master’s degree in exploration and mineral resource management from the University of Orleans in 2009. Mr. Guivarch has been an integral part of the exploration team since August, 2019, and has since been involved with all aspects of the exploration program at O’Brien. His management role within the Radisson team will ensure the smooth execution of the exploration program.

Mr. Nieminen has stepped down from the position of director of exploration, effective Dec. 31, 2020. The company would like to thank him for his valuable contribution over the last two years and wishes him the best of success in his future endeavours.

In addition, in order to fulfill new professional duties, which would place him in conflict with current board position at Radisson, Tony Brisson has stepped down from the position of director on the company’s board of directors, effective Jan. 15, 2021. The company would like to thank him for his valuable contribution and wishes him the best of success in his future endeavours.

Part assay results for holes TRDD011 and TRDD012 at the Trundle Park prospect return significant mineralized intervals with high grade copper and gold zones

TRDD011 assay results for the first 102m of 332m: 74 metres @ 0.40% copper and 0.37 g/t gold from surface including:

42 meters @ 0.64% copper and 0.58 g/t gold from 32 metres including:

14 meters @ 1.69% copper and 1.39 g/t gold from 58 metres including:

4 metres @ 4.98% copper and 3.36 g/t gold from 68 metres

TRDD012 assay results for the first 220m of 581m: 29 metres @ 0.10% copper and 0.18 g/t gold from 191 metres including:

2 metres @ 0.87% copper and 0.05 g/t gold from 195 metres; and,

1 meter @ 0.09% copper and 1.17 g/t gold from 204 metres

Broad and multiple skarn horizons intersected within TRDD012 provide encouragement for expanding the footprint size potential of the at/near surface skarn system along strike and to depth

Primary bornite, chalcopyrite, molybdenum and observations of discrete monzodiorite intrusions in TRDD012 provide encouragement for vectoring towards the interpreted causative porphyry system intrusive target and the current working geological model for the central Trundle Park prospect

Two rigs operational at the Trundle Park prospect

John Holliday, Technical Committee chair, and Peter Leaman, Senior VP of Exploration, commented: “Ore grade assay results received for the upper sections of TRDD011 and the skarn alteration intersected in TRDD012 support our continuing exploration of the central Trundle Park prospect area. TRDD011 provides further confirmation of the grade potential at or near surface within the skarn system. TRDD011 and TRDD012 are providing vectors towards the intrusive source of the skarn, which may be strong porphyry mineralisation, similar to what drives skarn mineralisation at such famous porphyry systems as Cadia, Grasberg and Ok Tedi.

The focus of the current two-rig program is to expand the scale of the near surface ore grade skarn mineralisation by stepping out along strike. As well the drilling will be testing for the causative porphyry intrusive source of the mineralisation in the skarn. The results announced today provide key learnings and encouragement for this drilling strategy.”

Trundle Park prospect

As outlined in the December 21 st 2020 release, hole TRDD011 intersected intense structurally controlled mineralization hosted within near surface skarn alteration with further positive visual indications reported from TRDD012, a step back to the south-east from TRDD011.

Assay results from nearer surface intervals for TRDD011 (to 102 metres of 332m – see Table 1) and TRDD012 (to 202 metres of 581m – see Table 2) have been received. Highlights include:

TRDD011: 74 metres @ 0.40% copper and 0.37 g/t gold from surface including:

42 meters @ 0.64% copper and 0.58 g/t gold from 32 metres including:

14 meters @ 1.69% copper and 1.39 g/t gold from 58 metres including:

4 metres @ 4.98% copper and 3.36 g/t gold from 68 metres

TRDD012: 29 metres @ 0.10% copper and 0.18 g/t gold from 191 metres including:

2 metres @ 0.87% copper and 0.05 g/t gold from 195 metres; and,

1 meter @ 0.09% copper and 1.17 g/t gold from 204 metres;

TRDD011 extended the mineralised skarn horizon to the northwest of TRDD001 (previously reported 51 metres @ 0.54% copper and 1.17g/t gold from 39 metres) and TRDD012 was a 50-metre step out to the south from TRDD001 (Figure 3). TRDD012 has provided encouragement and vectors for the targeted causative porphyry intrusion system source with observations of:

primary bornite and chalcopyrite within quartz veins occurring in an interval of volcaniclastic rocks from 160m to 210m down hole which are the best primary bornite and chalcopyrite veining intersected to date at the Trundle project (Figure 3);

observations of discrete monzodiorite intrusions from 275m to 340m down hole depth, and coarse primary molybdenum within a quartz vein at 314m down hole depth (assay results pending); and,

four well developed and broad skarn horizons identified commencing from the surface (noting dilution in reported intervals from core loss) and extending deep down hole (assay results pending) – Figure 4.

Recent drilling in the central Trundle Park prospect area is providing significant encouragement to the lateral and thickness potential of the skarn horizons and vectors for both the skarn mineralised system but also towards targeting a large and potentially related porphyry intrusion system.

Hole TRDD015 has recently commenced to the southeast along the fence of TRDD001, TRDD011 and TRDD012 seeking to test both the skarn and interpreted causative intrusive targets and the current working geological model outlined in Figure 4.

The average depth of prior explorer drilling at the Trundle Park prospect is 28 metres, with only two diamond core drill holes completed to moderate depths. Our deeper diamond core drilling activities are resulting in a significantly improved understanding of the bedding direction hosting the skarn horizons, along with key structures/faulting and the identified multiple phases of mineralization within the skarn, all supporting a substantial mineralizing event and provide further vectors to the targeted causative intrusion system.

These recent drill results, relogging of core and review of geophysical inversions have provided the confidence to mobilize a second drill rig, concurrent with operations re-commencing after a short holiday break over the holiday season on January 4 th, 2021.

Table 1: Trundle Park target hole TRDD011 - Anomalous results for part assays available
  
  
   Hole ID  From (m)To (m)Interval (m) Au (g/t)Cu (%)Mo (ppm)Dilution (%)
TRDD011  0.0     74.0  74.0        *0.37    0.40  0.20    20%         
including0.0     22.0  22.0        *0.12    0.09  0.10    23%         
including32.0    74.0  42.0         0.58    0.64  0.30    10%         
including38.0    50.0  12.0         0.26    0.14  0.17    0%          
including58.0    72.0  14.0         1.39    1.69  0.76    0%          
including68.0    72.0  4.0          3.36    4.98  1.91    0%          


  

Reported assay results from surface to 102 metres depth with 88.9% core recovery over this interval and 83.1% over the first 50 metres. End of hole (EOH): 332m.

Table 2: Trundle Park target hole TRDD012 - Anomalous results for part assays available
  
  
   Hole ID  From (m)To (m)Interval (m) Au (g/t)Cu (%)Mo (ppm)Dilution (%)
TRDD012  86.0    99.0  13.0        *0.07    0.06  0.27    27%         
including97.0    99.0  2.0          0.11    0.05  0.50    0%          
and      117.7   123.4 5.7         *0.09    0.03  0.29    36%         
and      191.0   220.0 29.0         0.18    0.10  3.59    31%         
including191.0   193.0 2.0          0.22    0.17  3.50    0%          
including195.0   197.0 2.0          0.05    0.87  1.00    0%          
including204.0   220.0 16.0         0.26    0.05  5.75    13%         
including204.0   205.0 1.0          1.17    0.09  1.00    0%          


  

Reported assay results from surface to 220 metres depth with 75.2% core recovery over this interval and 55% over the first 50 metres. EOH: 581m.

Table 3: Trundle Park target hole TRDD008 - Anomalous results for full assays available
  
  
   Hole ID  From (m)To (m)Interval (m) Au (g/t)Cu (%)Mo (ppm)Dilution (%)
TRDD008  0.0     87.7  87.7        *0.65    0.19  1.11    16%         
including0.0     16.4  16.4        *1.51    0.19  0.34    4%          
including0.0     6.0   6.0          3.73    0.25  0.67    0%          
including34.0    40.0  6.0          0.60    0.43  0.67    0%          
including52.0    87.7  35.7        *0.69    0.24  0.17    3%          
including66.0    74.0  8.0         *1.63    0.57  0.00    13%         
and      134.0   142.0 8.0          0.26    0.12  2.25    0%          
and      172.0   178.0 6.0          0.01    0.06  0.67    0%          
and      262.0   272.0 10.0         0.21    0.15  0.80    0%          
and      305.0   332.0 27.0         0.10    0.07  0.56    26%         
and      379.0   384.0 5.0          0.18    0.02  0.00    20%         
and      379.0   407.0 28.0         0.33    0.15  0.61    14%         
including394.0   398.0 4.0          0.94    0.57  1.50    0%          
and      422.0   424.0 2.0          0.16    0.02  1.00    0%          


  

Part assay results previously announced for TRDD008 on November 30th, 2020.

Note for Tables 1-3: Interpreted near surface skarn gold and copper intercepts are calculated using a lower cut of 0.20g/t and 0.10% respectively. Porphyry gold and copper intercepts are calculated using a lower cut of 0.10g/t and 0.05% respectively. Internal dilution is below cut off; and, * Dilutions related with Core loss

For further details, including QAQC procedures, please refer to the following press releases: 1. July 6, 2020 – Kincora announces high-grade gold-copper results from first hole at Trundle 2. July 23, 2020 – Kincora reports further strong encouragement at Trundle 3. September 3, 2020 – Kincora provides update on expanded drilling program at Trundle 4. November 30, 2020 – Kincora intersects broad mineralized zones at Trundle 5. January 20, 2021 – Kincora intersects further shallow mineralization at Trundle

Upcoming Events:

26-29 January 2021 Mines and Money Connect Precious Metals Online (Global)

17-19 March 2021 121 Mining Investment APAC Online

Further details available at: http://www.kincoracopper.com/investors/events

The Trundle project

Kincora’s Trundle project is the only brownfield porphyry copper-gold project held by a listed junior in Australia’s foremost porphyry belt, within the same mineralized complex as Australia’s second largest porphyry mine. Trundle is located west of the China Molybdenum Company Limited (CMOC) operated Northparkes copper-gold mine/mill operation, within the same Northparkes Igneous Complex.

Previous explorer drilling has been extensive at Trundle with the completion of 2208 holes for 61,146 metres, but deeper drilling utilising modern exploration knowledge has been very limited. Over 92% of prior drilling has been completed to less than 50 metres depth and is considered to be too shallow, with just 11 holes beyond 300 metres (0.5% of holes drilled).

Following positive initial drilling results from Kincora’s maiden drilling program in August 2020, the Company completed an oversubscribed $5.33 million equity raising, with proceeds primarily to be used to expand the initial six hole program to over twenty drill holes with an additional 11,000 metres of drilling. Kincora’s primary targets, Mordialloc and Trundle Park, lie 8.5km apart and have not been drill tested since the industry leading HPX proprietary Typhoon IP system and detailed magnetic surveys were completed.

Drilling, Assaying, Logging and QA/QC Procedures

Sampling and QA/QC procedures are carried out by Kincora Copper Limited, and its contractors, using the Company’s protocols as per industry best practise.

All samples have been assayed at ALS Minerals Laboratories, delivered to Orange, NSW, Australia. In addition to internal checks by ALS, the Company incorporates a QA/QC sample protocol utilizing prepared standards and blanks for 5% of all assayed samples.

Diamond drilling was undertaken by DrillIt Consulting Pty Ltd, from Parkes, under the supervision of our field geologists. All drill core was logged to best industry standard by well-trained geologists and Kincora’s drill core sampling protocol consisted a collection of samples over all of the logged core.

Sample interval selection was based on geological controls or mineralization or metre intervals, and/or guidance from the Technical Committee provided subsequent to daily drill and logging reports. Sample intervals are cut by the Company and delivered by the Company direct to ALS.

All reported assay results are performed by ALS and widths reported are drill core lengths. There is insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths.,

True widths are not known at this stage.

Significant mineralised intervals are reported based upon two different cut off grade criteria:

Interpreted near surface skarn gold and copper intercepts are calculated using a lower cut of 0.20g/t and 0.10% respectively; and,

Porphyry intrusion system gold and copper intercepts are calculated using a lower cut of 0.10g/t and 0.05% respectively.

Significant mineralised intervals are reported with dilution on the basis of:

Internal dilution is below the aforementioned respective cut off’s; and,

Dilutions related with core loss as flagged by a “*”.

The following assay techniques have been adopted:

Gold: Au-AA24 (Fire assay), reported.

Multiple elements: ME-ICP61 (4 acid digestion with ICP-AES analysis for 33 elements) and ME-MS61 (4 acid digestion with ICP-AES & ICP-MS analysis for 48 elements), the latter report for TRDD001 and former reported for holes TRDD002-TRDD012.

Copper oxides and selected intervals with native copper: ME-ICP44 (Aqua regia digestion with ICP-AES analysis) has been assayed, but not reported.

Assay results >10g/t gold and/or 1% copper are re-assayed.

Qualified Person

The scientific and technical information in this news release was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was reviewed, verified and compiled by Kincora’s geological staff under the supervision of Peter Leaman (M.Sc. Mineral Exploration, FAusIMM), Senior Vice-President of Exploration of Kincora, and John Holliday (BSc Hons, BEc, member of the Australian Institute of Geoscientists), Non-Executive Director and Technical Committee Chairman, who are the Qualified Persons for the purpose of NI 43-101.

The review and verification process for the information disclosed herein for the Trundle project has included the receipt of all material exploration data, results and sampling procedures of previous operators and review of such information by Kincora’s geological staff using standard verification procedures.

About Kincora Copper Limited

Kincora Copper is an active explorer and project generator focused on world-class copper-gold discoveries.

The Company is currently drilling the only brownfield project (Trundle) held by a listed junior in Australia’s foremost porphyry belt (the Macquarie Arc, in NSW), with district scale project pipeline, and seeking to confirm its position as the leading pure play porphyry explorer in Australia.

The Company has assembled an industry leading technical team who have made multiple Tier 1 copper discoveries, who have “skin in the game” equity ownership and who are backed by a strong institutional shareholder base.

Our exploration model applies a robust systematic approach utilising modern exploration techniques supporting high-impact, value add programs underpinned by targets with strong indications for world-class scale potential.

We have corporate offices in Vancouver and Melbourne. Kincora is listed on the TSX Venture Exchange under the ticker symbol KCC and is seeking a listing on the ASX for early in 2021 (subject to market conditions).

The Rose property (where the Rose Lithium-Tantalum Project is proposed) is located in northern Quebec’s administrative region, on the territory of Eeyou Istchee James Bay. It is located on Category III land, on the Traditional Lands of the Cree Nation of Eastmain.

"The economy of tomorrow will be driven by strategic sectors, like the electric vehicles and batteries sectors. This vision aligns perfectly with our vision to become a large responsible supplier of lithium to the flourishing electric vehicle and energy storage systems industries. We represent perfectly sustainable development with our project that is, not only good for the environment, but that is good for the development of local communities," stated Jean-Sebastien Lavallee, Critical Elements' Chief Executive Officer.

Critical Elements' President, Dr. Steffen Haber, noted that: "Our Rose Project features one of the purest lithium deposits globally. Quebec is strategically well-positioned regarding the critical transitioning energy and e-mobility markets in Europe and the United States and boasts excellent infrastructure and human capital. Our cooperative relationship with the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), and the Cree Nation Government has been formalized through the Pikhuutaau Agreement signed in July 2019. We are excited by the anticipated receipt of Provincial and Federal Phase 1 permitting, detailed engineering and financing for the construction of the Rose mine and concentrator, and the delivery of engineering studies for Phase II (a chemical plant for conversion of Rose spodumene concentrate to high quality lithium hydroxide for use in lithium-ion batteries")."

All the securities issued pursuant to the debt conversion will be subject to a four-month hold period. Completion of the debt conversion is subject to receipt of all required regulatory and other approvals, including acceptance by the TSX Venture Exchange.

The terms of the private shareholder loan are described in the company’s news release dated March 25, 2019. The debt conversion constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, as the private shareholder is a related party of FPX Nickel given his greater than 10 per cent beneficial shareholding in the company. Pursuant to Section 5.5(a) and 5.7(1)(a) of MI 61-101, the company is exempt from obtaining a formal valuation and minority approval of the company’s shareholders in respect of the debt conversion due to the fair market value of the debt conversion being below 25 per cent of the company’s market capitalization.

The 2021 tax assessment is comprised of four items, of which Kincora strongly refutes the merit of three including the very vast majority of the liability sought relating to the 2016 merger with IBEX (the agreed liability owed is 16.2 million MNT or approximately US$5,700).

The 2016 IBEX merger required a tax assessment (“2016 tax assessment”), which followed an audit of the IBEX’s entity’s prior year periods and the on and off-shore agreements to the merger (IBEX and parent entity’s). The 2016 tax assessment was a condition precedent to close the merger with any adverse liability enabling both counterparties to walk away from the merger. In the Company’s view, supported by three independent external legal opinions, the 2021 tax assessment’s retrospective liability is not in-line with the 2016 tax assessment and Mongolian law, and there is no basis for a different determination.

Shortly after the IBEX merger closed, in mid 2017, a tax audit commenced on the merged entity to validate that the merger transaction completed as it was presented to the Mongolian authorities in 2016. This review has only recently completed, with a fourth audit review team, including a team member from the original 2016 review, delivering the 2021 tax assessment. A statute of limitation for the MTA to review and retrospectively enable a contradictory tax act expires on February 10 th, 2021.

Kincora notes that the exploration licenses included in the IBEX merger, and the core focus of the 2021 tax assessment, have been thoroughly explored, and subsequently all have been properly relinquished back to the State. The basis of the tax liability sought is referenced to the historical invested capital of the IBEX entity counterparty to the 2016 merger, all of which has since been written off.

Sam Spring, President and CEO, commented: “Kincora recognizes that the MTA, similar to many other countries’ designated tax administrators, has the right to conduct a periodic audit of tax returns filed by companies within its jurisdiction to ensure the proper application of domestic tax laws and that resolution processes are in place for any disputed tax rulings.

However, Kincora strongly refutes the merit of three of the four findings of the 2021 tax assessment, including the very vast majority of the liability now being sought relating to the 2016 merger with IBEX which in our view, and of three separate legal counsels views, unfortunately seeks to move the goal posts that were relied upon for a commercial transaction to close and is without legal basis.

The Company is seeking to proactively engage with the MTA, defend the 2016 tax assessment and come to a conclusion in line with Mongolian law, which was relied upon for the 2016 IBEX merger”.

In the Company’s view the 2021 tax assessment, if upheld and enforced, would create confusion for investors, as tax is now being imposed, retrospectively, on:

• Invested capital;
• Non-cash transactions where no profit was made or will ever be made;
• Exploration tenure that is now held by the State; and,
• A different basis to the binding 2016 assessment that was relied upon by both Kincora and the Mongolian authorities to allow for closure of the 2016 IBEX merger.

Kincora remains in active discussions with Resilience Mining Mongolia Pty Ltd (“RMM”). On December 14 th, 2020, the Company executed a binding Option and Acquisition Agreement (“Agreement”) with RMM relating to Kincora’s Mongolian portfolio and subsidiaries. The Company has provided RMM a standstill for any RMM obligations relating to this Agreement as the Company engages with the MTA, seeking to defend the 2016 tax assessment.

The Company notes, limited recourse to Kincora’s Australian and Canadian assets and operations from the 2021 tax assessment. Assets held within GGI primarily include the Tourmaline Hills project exploration license (the western of the two adjacent licenses that make up the wider Bronze Fox projects) and Red Well exploration license.

Kincora will continue to inform the market of any material developments relating to the 2021 tax assessment and RMM agreement.

“On behalf of the Board, the management team, and the staff, I would like to thank Alex for his thoughtfulness and leadership, especially during the extraordinary circumstances we’ve faced this past two years. He has been instrumental in the advancement of the Falchani project to a PEA and his work to promote the project has brought Falchani recognition on an international stage,” Plateau’s Chair of the Board, Alan Ferry, commented. “We are pleased to have Alex continue to play a role as a strategic advisor while remaining an active member of the Board as the Company continues to advance its two critical energy metals projects, Macusani Uranium and Falchani Lithium, in Peru.”

Alex Holmes stated: “I would like to thank all stakeholders for their support over the past couple of years through particularly challenging times, including our strong management team inside and outside Peru. We have achieved many great things in a short and volatile period. I continue to believe both projects offer great value and have many strategic merits in our world focused on greener, cleaner energy consumption and storage. I am pursuing a new opportunity one step downstream of battery raw materials and thus my ongoing role as strategic advisor and Director of Plateau will enable me to offer strategic insight into a highly connected supply chain.”

Dr. Stefan commented: “There is no doubt that we are living in very exciting times for the green and renewable energy sectors and Plateau is well positioned to capitalize on both with our Macusani Uranium and Falchani Lithium projects. We continue to advance the development of both projects and intend to release the results of further exploration and processing work that took place in the last quarter of 2020, both in the field and laboratory. In addition, the Company is pursuing additional test work, started in April 2020, to demonstrate the by-product potential of Caesium, Rubidium and SOP extraction from Falchani rock. All of these initiatives demonstrate the unique potential of the Macusani plateau and the Company’s ongoing commitment to realize this for the people of Peru and all stakeholders.”

Kabaya — DD (diamond) plus RC (reverse circulation) drilling highlights:

• 10.6 g/t gold over three m from drill hole DDDBS20-003 from 84.6 m:
  • Including 24.6 g/t gold over one m from 84.6 m;
  • And 1.64 g/t gold over nine m from drill hole DDDBS20-003 from 57.8 m;
• 3.09 g/t gold over 9.3 m from drill hole DDDBS20-015 from zero m:
  • Including 8.73 g/t gold over two m from 4.3 m;
• 2.96 g/t gold over 30 m from drill hole DDDBS20-008 from zero m:
  • Including 11.7 g/t gold over two m from 26 m;
  • And 1.54 g/t gold over 15 m from drill hole DDDBS20-008 from 34 m;
• 2.66 g/t gold over 17 m from drill hole DDDBS20-006 from 166.2 m:
  • Including 7.45 g/t gold over two m from 171.2 m;
  • And 1.07 g/t gold over 15 m from drill hole DDDBS20-006 from 143.2 m;
• 2.38 g/t gold over 20 m from drill hole DDDBS20-009 from 46 m:
  • Including 11.9 g/t gold over one m from 64 m;
• 1.93 g/t gold over seven m from drill hole DDDBS20-014 from 233.2 m;
• 1.71 g/t gold over 13 m from drill hole DDDBS20-010 from zero m;
• 1.65 g/t gold over nine m from drill hole RCDBS20-06 from 74 m;
• 1.47 g/t gold over 21 m from drill hole RCDBS20-005 from 109 m:
  • And 0.79 g/t gold over 16 m from drill hole RCDBS20-005 from 90 m;
• 1.28 g/t gold over 18 m from drill hole RCDBS20-002 from 141 m.

Since acquiring Kabaya in June, 2020, all 23 holes drilled intersected gold mineralization, which reflects a 100-per-cent drill success rate. The Kayaba deposit has a pit-constrained mineral resource to a depth of 58 m, which contains 105,000 ounces of indicated resource and 35,000 ounces of inferred resource. The company has now established mineralization to a depth of 196 m, which remains open.

Classification   Tonnage         Au      Ounces 
                    (mt)      (g/t)       (koz)
 
Indicated           3.17       1.03         105     
Inferred            0.96       1.14          35     

Pit constraint mineral resource:

1. Effective date for resources is Jan. 7, 2019.
2. The independent qualified person for this resources estimate is Yann Camus, Eng, SGS Canada Inc.
3. The mineral resources are presented at a 0.4 g/t Au cut-off grade in pits.
4. The resources are presented without dilution.
5. Whittle pits have been utilized based on a gold value of $1,350 (U.S.)/ounce.
6. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
7. No economic evaluation of the resources has been produced.
8. This resource estimate has been prepared in accordance with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definitions (2014).
9. Density used is 1.7 based on measurements and similar projects.
10. Capping grade is of 30 g/t Au on original assays.

Based on the disclosure of National Instrument 43-101, Section 2.4:

1. The source is Komet’s NI 43-101 that is effective Jan. 7, 2019.
2. The company considers the reliably and relevance to be reasonable.
3. The key assumptions are listed above.
4. The categories are similar.
5. There are no recent estimates.

Exciting results from hole DDDBS20-014, which intersected 1.93 g/t gold over seven m from 233.2 m and ended in gold mineralization at 247.2 m, has reinforced the need for even deeper drilling. The recent addition of the company’s sixth rig, which has a maximum depth drilling capability of 1,400 m, will greatly facilitate this deeper drilling (see news release dated Jan. 5, 2021). The Kabaya deposit remains open at depth and along strike and has become another priority target for follow-up drilling in 2021.

Roscan believes that the Kabaya deposit is part of a significant structural corridor which spans from Oklo Resources discoveries of Seko and Disse, to the northeast of the company’s land package and then extends for 22 kilometres on the company’s property, from Kabaya to the company’s recent Kandiole North discovery (KN2) and onto the company’s recently acquired Mankouke West land package, which shows a strong magnetic signature similar to the other discoveries on this corridor. Much of this 22 km corridor has yet to be tested and thus Roscan feels that the potential for new discoveries in this corridor is excellent and connecting these multiple targets via stepout drilling will be a key priority in 2021.

Nana Sangmuah, president and chief executive officer, stated: “These are very exciting times for the company as we continue our success rate with additional positive results at Kabaya. These results demonstrate the potential of the magnetic structure in the corridor that extends for 22 km from Kabaya to our newly acquired Mankouke West target. This is one of five major trends of gold mineralization on our property and we will continue to aggressively drill to build ounces on these targets in 2021.

“Since acquiring Kabaya in 2020, we have extended the average depth of mineralization from 58 m to a vertical depth of 196 metres. Importantly, hole DDDBS20-014 our deepest intercept to date, ended in gold mineralization and remains open. This projected depth potential in gold mineralization and fresh rock will be another high priority for the company. The drilling results, to date, have shown the potential to significantly increase the size of the gold occurrence at Kabaya.”

The gold mineralization at Kabaya is associated with albite-dolomite-pyrite alteration in greywackes and diamictites of the Kofi formation. The alteration observed in the core indicates a strong hydrothermal system commonly associated with gold deposits in this area.

Drilling contract and analytical protocol

The drilling was performed by Geodrill, which employs multipurpose (AC/RC/DD) rigs and AC rigs at the Kandiole project. The AC drilling is mainly focused on drilling exploration targets.

The diamond core and RC samples are sent for preparation to Bureau Veritas Mineral Laboratories in Bamako, Mali, and assayed at its analytical facilities in Bamako and in Abidjan, Ivory Coast, with fire assay with atomic absorption finish and by gravimetric finish for grades above 10 g/t Au.

Roscan applied industry-standard QA/QC procedures to the program. Certified reference materials, blanks and field duplicates are inserted at appropriate intervals.

          DRILL HOLE HIGHLIGHTS AT KABAYA DEPOSIT (JAN. 18, 2021)

Hole ID                 From             To       Interval             Au
                         (m)            (m)            (m)          (g/t)

DDDBS20-001                5              8              3           0.84
                          88             89              1           0.75
                         193            194              1           1.97
DDDBS20-002               40             43              3           3.95
                          47             50              3           1.02
                          58             59              1           0.51
                          66             69              3           1.36
                          72             76              4           0.73
                          79             81              2           1.00
                          92             94              2           1.58
                         121            122              1           6.02
                         133            135              2           2.71
                         154            169             15           0.79
DDDBS20-003                0            0.8            0.8           1.25
                        57.8           66.8              9           1.64
                        70.8           72.8              2           0.90
                        76.6           78.6              2           0.78
                        84.6           87.6              3           10.6
including               84.6           85.6              1           24.6
                        91.6           92.6              1           0.53
                        96.6           98.6              2           1.96
                       104.6          108.6              4           0.78
                       123.6          124.6              1           0.59
RCDBS20-001                0              6              6           0.57
                          64             78             14           0.99
RCDBS20-002              127            129              2           3.20
                         133            138              5           1.57
                         141            159             18           1.28
RCDBS20-003               66             69              3           0.65
                         125            126              1           0.58
                         128            132              4           0.56
DDDBS20-004            118.3          119.3              1           0.55
                       141.3          142.3              1           0.62
                       146.3          147.3              1           0.57
DDDBS20-005            106.3          109.3              3           0.79
                       126.3          127.3              1           0.81
                       137.3          143.3              6           0.57
                       150.3          151.3              1           0.74
                       160.3          171.3             11           1.22
                       175.3          176.3              1           1.01
                       183.3          191.3              8           1.11
                       196.3          203.3              7           1.71
DDDBS20-006             53.2           56.2              3           1.02
                        59.2           60.2              1           0.67
                       116.2          118.2              2           1.22
                       122.2          124.2              2           0.80
                       143.2          158.2             15           1.07
                       162.2          163.2              1           2.28
                       166.2          183.2             17           2.66
including              171.2          173.2              2           7.45
                       199.2          200.2              1           0.76
DDDBS20-007               17             19              2           1.37
                          29             32              3           0.65
                          40             41              1           0.89
                          51             52              1           0.50
                          55             61              6           1.03
                          66             70              4           1.14
                          75             78              3           0.65
                          84             86              2           8.26
                        89.8           96.8              7           0.77
DDDBS20-008                0             30             30           2.96
including                 26             28              2           11.7
                          34             49             15           1.54
                          58             62              4           0.72
                          66             67              1           1.26
                        93.8           95.8              2           2.20
                       118.8          119.8              1           0.74
DDDBS20-009                0              4              4           0.68
                          20             29              9           1.68
                          33             36              3           1.56
                          42             43              1           0.98
                          46             66             20           2.38
including                 64             65              1           11.9
                        69.5           70.5              1           0.59
                        74.5           79.5              5           0.78
                       106.5          107.5              1           1.03
                       110.5          112.5              2           1.67
DDDBS20-010                0             13             13           1.71
                          18             21              3           2.16
                          24             25              1           0.90
                          38             39              1           0.64
DDDBS20-011                0              1              1           1.14
                          48             50              2           1.03
                          53             54              1           0.94
                          86             87              1           0.95
RCDBS20-004               41             42              1           3.83
                          60             63              3           1.01
                          78             79              1           2.89
RCDBS20-005               58             59              1           0.54
                          75             79              4           0.63
                          82             83              1           1.12
                          90            106             16           0.79
                         109            130             21           1.47
                         134            135              1           2.14
DDDBS20-012            139.4          140.9            1.5           0.52
                       157.1          158.1              1           0.52
                       181.1          182.1              1           1.10
                       205.1          206.3            1.2           0.92
DDDBS20-013            113.3          114.3              1           0.71
                       127.3          128.3              1           2.83
                       139.3          145.3              6           0.77
                       148.3          151.3              3           0.83
DDDBS20-014            151.2          152.2              1           0.51
                       160.2          170.2             10           1.19
                       173.2          174.2              1           0.60
                       180.2          185.2              5           0.87
                       188.2          195.2              7           0.69
                       207.2          211.2              4           0.63
                       215.2          222.2              7           0.84
                       225.2          229.2              4           0.68
                       233.2          240.2              7           1.93
                       245.2          247.2              2           0.70
DDDBS20-015                0            9.3            9.3           3.09
including                4.3            6.3              2           8.73
                        38.3           44.3              6           0.80
RCDBS20-06                38             39              1           0.63
                          42             44              2           1.29
                          47             54              7           0.85
                          57             58              1           0.72
                          67             71              4           1.00
                          74             83              9           1.65
RCDBS20-07                76             81              5           0.77
                          84             92              8           0.87
                         103            104              1           1.52
                         107            111              4           0.99
                         115            120              5           0.94
RCDBS20-08               100            101              1           1.72

Results from the most recent drilling, comprising 2,148.2 metres from 15 diamond drill holes, all reflect near-surface targets (greater than 175 vertical metres) at both the West Goldbrook gold system and the Boston Richardson gold system. The drilling was focused on shallow levels of the deposit to further evaluate the opportunity for an expanded open-pit mining scenario, as identified through the continuing feasibility study. The results demonstrate continuity of mineralization within the infill drill areas at both the WG and BR gold systems in areas explored. A total of eight visible gold occurrences were observed in these drill holes.

Selected composited highlights (core length) from the drill program include:

• 1.86 grams per tonne gold over 14.5 metres (55.5 to 70.0 metres) and 2.78 g/t gold over 4.5 metres (44.0 to 48.5 metres) and 1.31 g/t gold over 5.5 metres (19.0 to 24.5 metres) in hole BR-20-221;
• 1.37 g/t gold over 21.5 metres (72.0 to 93.5 metres) including 26.80 g/t gold over 0.5 metre in hole BR-20-219;
• 2.08 g/t gold over 9.0 metres (130.0 to 139.0 metres) including 12.20 g/t gold over 1.0 metre in hole BR-20-216;
• 8.56 g/t gold over 2.0 metres (39.0 to 41.0 metres) including 16.70 g/t gold over 1.0 metre in hole BR-20-224;
• 2.66 g/t gold over 5.6 metres (121.2 to 126.8 metres) including 9.72 g/t gold over 0.8 metre in hole BR-20-210.

“Anaconda’s extensive infill drill program at its Goldboro gold project was very successful in infilling areas of priority inferred mineralization at shallow levels of the deposit. Importantly this was achieved while maintaining strong safety protocols given the ongoing impact of the global pandemic. Based on the positive drill results from this program, we are confident as we progress towards the announcement of a mineral resource update in Q1 2021, which, together with advanced metallurgical work, will allow us to complete detailed pit design to support a potential expanded surface mining operation using conventional open-pit mining methods. In addition, as part of the ongoing mineral resource evaluation, we have recognized additional opportunity, within the central portions of the deposit, to convert further inferred mineral resources to indicated and measured categories, potentially further expanding surface mining potential at Goldboro. We plan further drilling in the near term to unlock the value recognized in these specific areas of the deposit once we have completed the full evaluation of the results from our recent program,” said Kevin Bullock, president and chief executive officer, Anaconda Mining.

To date, a total of 17,941.7 metres in 121 drill holes (BR-20-105 to BR-20-224) have been completed under the drill program, with assays from drill holes BR-20-105 to BR-20-215 previously reported in news releases dated Sept. 3, 2020, Oct. 5, 2020, Nov. 11, 2020, Nov. 19, 2020, and Jan. 5, 2020. This release outlines the results for 2,148.2 metres in 15 diamond drill holes, including BR-20-202, 207, 210 to 211, 213 and from BR-20-216 to BR-20-224 including BR-20-222a, which was abandoned at 46 metres and redrilled in BR-20-222. Drill holes BR-20-133, -157, -163, -167, -169 and -171, totalling 639 metres, were drilled for metallurgical purposes and any assay data for these holes will be reported in the future as results become available.

The drill program is financed using existing flow-through funds but has also benefited from a grant received from the government of Nova Scotia through a mineral resources development fund, shared funding exploration grant MRDF-2020-SF-035.

The company has critically considered logistical matters given the continuing COVID-19 pandemic, to ensure that this drill program and any other programs are executed in a way that ensures the absolute health and safety of the company’s personnel, contractors and the communities where the company operates.

  SELECTED COMPOSITE HIGHLIGHTS WITHIN THIS NEWS RELEASE FROM THE DRILL PROGRAM

Hole ID                  From               To        Interval*             Gold
                          (m)              (m)              (m)            (g/t)

BR-20-202                 119            119.5              0.5             1.51
BR-20-207               159.5              160              0.5             1.43
and                     200.7              203              2.3             2.96
including               200.7            201.2              0.5             11.8
and                       230            231.5              1.5             1.53
and                     235.8            236.3              0.5             14.5
and                       270            272.5              2.5             1.42
including                 270            270.5              0.5             4.55
and                       294              295              1.0             3.81
and                       298            298.5              0.5             2.12
and                     300.5            301.5              1.0             1.88
and                       309            309.5              0.5             4.99
BR-20-210                  52             52.7              0.7             0.51
and                      74.4             74.9              0.5             20.3
and                       107            110.2              3.2             0.67
and                     121.2            126.8              5.6             2.66
including                 125            125.8              0.8             9.72
and                     126.3            126.8              0.5             6.66
and                     216.4            217.2              0.8             3.54
BR-20-211               105.8            106.8              1.0             2.62
and                       157            157.5              0.5             5.26
and                       175              176              1.0             0.84
BR-20-213               137.5              138              0.5             1.19
and                     173.5            174.5              1.0             0.68
and                       184              185              1.0             0.54
and                     224.7            225.2              0.5             0.64
and                     238.8            239.8              1.0             1.13
and                     244.7            245.5              0.8             2.66
and                     247.5            248.5              1.0             0.83
and                     259.5              260              0.5             1.93
and                       263            263.7              0.7             0.66
and                     272.9            273.5              0.6             1.57
BR-20-216                  91               92              1.0             0.68
and                       104              105              1.0             4.51
and                       123            123.5              0.5             0.89
and                       130              139              9.0             2.08
including               133.5            134.5              1.0             12.2
and                     144.5              145              0.5             3.91
BR-20-217                  84             84.5              0.5             17.5
and                        98               99              1.0             1.61
and                       110              111              1.0             2.03
and                       119              122              3.0              0.9
and                       126              127              1.0             0.63
and                       132              133              1.0             0.69
BR-20-218                  67             67.5              0.5              0.8
and                      88.7             89.2              0.5              5.7
and                        94               95              1.0             0.88
and                      98.7             99.2              0.5             1.47
and                       108            111.5              3.5             1.66
and                       126              128              2.0             1.19
BR-20-219                15.5             16.5              1.0             1.46
and                        21               22              1.0             0.72
and                        34             35.5              1.5             0.89
and                      59.5             61.5              2.0             2.13
and                      68.5             69.5              1.0             0.79
and                        72             93.5             21.5             1.37
including                  87             87.5              0.5             26.8
BR-20-220**                43               44              1.0             0.94
BR-20-221                  19             24.5              5.5             1.31
including                20.5               21              0.5             9.16
and                        44             48.5              4.5             2.78
and                      51.5               52              0.5             1.62
and                      55.5               70             14.5             1.86
including                  61             61.5              0.5             6.08
and                      91.5             93.5              2.0             0.63
and                        97            100.5              3.5             1.78
and                       120              121              1.0             1.65
BR-20-223**                13               17              4.0             2.68
and                        24               29              5.0             1.01
and                        38               41              3.0             1.22
and                        45               55             10.0             2.74
including                  51               52              1.0             14.7
and                        63               66              3.0              1.1
BR-20-224**              21.6               25              3.4             1.01
and                        33               34              1.0             1.23
and                        39               41              2.0             8.56
including                  40               41              1.0             16.7
and                        59             59.5              0.5             1.18
and                        71               73              2.0             0.59

* Intervals are reported as core length only. Please refer to notes regarding 
true width.
** Eleven of the drill holes (BR-20-202, -207, -210, -213 and -219 to 224) were 
drilled off section resulting in broader drill core intercepts that 
overemphasize apparent mineralized width. The true widths of these drill 
intercepts range between 70 and 100 per cent except for holes BR-20-220, -223 
and -224, which have true widths estimated at 60 per cent, 30 per cent and 50
per cent of core length, respectively. These holes were drilled off section 
due to issues with access due to location of wetlands.

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president, exploration, with Anaconda Mining, a qualified person, under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

All samples and the resultant composites referred to in this release are collected using quality assurance/quality control protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. All samples quoted in this release were analyzed at Eastern Analytical Ltd. in Springdale, Nfld., for Au by fire assay (30 g) with an AA (atomic absorption) finish.

All assays in this press release are reported as fire assays only. For samples analyzing greater than 0.5 g/t Au via 30 g fire assay, these samples will be reanalyzed at Eastern Analytical via total pulp metallics. For the total pulp metallics analysis, the entire sample is crushed to minus-10 mesh and pulverized to 95 per cent minus 150 mesh. The total sample is then weighed and screened to 150 mesh. The plus-150-mesh fraction is fire assayed for Au, and a 30 g subsample of the minus-150-mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade. Total pulp metallics assays for drill holes sited within this press release will be updated in a future news release.

Will Randall, President & CEO, commented, “We have a very strong foundation of metallurgical test work from previous operators of the Lemhi project which indicate excellent recoveries using conventional leach technologies. This body of work has saved us considerable time and money in designing a metallurgical program that will provide an optimal process and recovery parameters at Lemhi. As part of our 2020 drill campaign, we completed a large diameter diamond drill hole providing us valuable material for the testing program which will be conducted at SGS Canada.”

A review of metallurgical evaluations by previous owners of Lemhi has shown that gold recoveries respond well to conventional processing techniques. Past engineering studies has also shown that Lemhi has the potential to be developed into an open pit, heap and/or tank leach operation.

Historical test work focused primarily on cyanide leaching, most recently in the mid-1990s, by Kappes Cassiday & Associates (“KPA”) of Reno, NV. Column leach tests by KPA to evaluate heap leach potential showed gold recovery ranged from the seventy to ninety percent range, with best results obtained using a crush size of 80 percent minus 8 mesh (2.4 mm). Additional work by KPA included bottle roll testing to simulate tank leaching response that typically resulted in optimized gold recoveries in the mid-ninety percent range. The results vary based on the head grade and lithology of the samples, along with test conditions used, most notably particle size and leach retention time. In general, the historic metallurgical information shows good to excellent leach response over wide spatial areas and depth of the known gold mineralization.

In order to advance process development at Lemhi, a 2021 metallurgical testing program is to be conducted at SGS Canada Inc., Burnaby, BC, under the direction of Frank Wright, P.Eng. This study will continue to focus on leach response, as well as investigate optional procedures, including froth flotation, primarily for deeper less oxidized material, and for establishing design and operating parameters for crushing, grinding, and leaching circuits.

The technical content of this release has been reviewed and approved by Dean Besserer, P. Geo., VP Exploration for the Company and a Qualified Person as defined by the National Instrument 43-101.

“We are very pleased to welcome Damien to our board of directors. His extensive industry experience, operational expertise and being located in Western Australian will be a great asset to Superior Gold and will complement the skill set and experience of our existing board members,” commented Superior Gold’s chairman, Mark Wellings.

Mr. Marantelli is an experienced mining engineer with extensive operational and leadership experience across a variety of commodities and brings 40 years of international mining industry experience to the company. Mr. Marantelli’s most recent roles have been chief executive officer and director of Metals X; chief operating officer of Primero Mining; and senior management positions with First Quantum Minerals, Inmet Mining and WMC Resources. Previously, Mr. Marantelli held the role of general manager of the Sentinel copper mine in development by First Quantum Minerals, where he was responsible for leading approximately 3,500 employees through the final stages of commissioning and ramp-up of open-pit and processing operations. He was also the managing director of First Quantum Minerals’ (previously Inmet Mining’s) Las Cruces copper mine and the managing director of the Cayeli underground copper and zinc mine. Prior to this, Mr. Marantelli was the general manager of BHP Billiton’s (previously WMC Resources’) Mount Keith operations and oversaw the expansion of annual capacity from 18 million to 40 million bank cubic metres per year over a two-year period.

The company will grant Mr. Marantelli, subject to the terms and conditions of the company’s stock option plan and the receipt of regulatory approval, options to purchase 200,000 common shares of the company with a five-year term.

The drilling licenses replaced the previous licenses that had expired and could not be renewed during government COVID shutdowns. These licenses allow the company to initiate Phase Two of the Company’s three-phase drilling program (see press release January 12, 2021) for a complete summary of the three-phase drilling program) and drill at least two deeper wells on the eastern and southern portions of the salar.

Drilling of Phase Two is expected to commence immediately after Phase One is complete, in the coming weeks.

The Company started drilling its six-well, three-phase drilling program at the start of December (see press release December 1, 2020). All planned drilling operations on the first well are complete and the crew has now moved on to the second well in the program.

The Company’s 27,500-hectare Tolillar Salar is one of the largest untested salars in Argentina and is 100% owned by Alpha Lithium. Previous drilling and sampling of the salar has established the presence of lithium across the tremendous arial extent of the Tolillar Salar and the current drill program is an additional step towards the completion of a 43-101 Resource Estimate.

Alpha recently added a renowned group of lithium chemistry experts to its team (see press release November 18, 2020) for the purpose of examining and evaluating different Direct Lithium Extraction (“DLE”) techniques that have been shown to economically extract lithium at concentrations as low as 100 mg/L.

Brad Nichol, Chief Executive of Alpha, commented, “While the news of receiving our Phase Two drilling licenses was expected, it is still very exciting to be readying ourselves for drilling to greater depths and defining the extent of the Tolillar Salar. All wells in this drilling program are being drilled as production wells, not just core holes. Previous campaigns and tests have provided us with the evidence of lithium and confidence to drill producible wells so that our internal lithium chemistry experts can begin the sampling and testing of different DLE technologies on our exact brine. This will allow us to move very quickly into the production phase at the Tolillar Salar. To that end, we have made significant progress with several DLE technology companies and hope to have news of that progress in the future.”

Number of shares:  1.85 million flow-through shares

Purchase price:  $2 per flow-through share

Number of placees:  17 placees

Total pro group involvement:  87,500 (two placees)

Finder’s fee:  Cormark Securities Inc., $180,000 cash

Number of shares:  4,120,250 shares

Purchase price:  48 cents per share

Warrants:  2,065,125 share purchase warrants to purchase 2,065,125 shares

Warrant exercise price:  58 cents for a two-year period

Number of placees:  10 placees

Insider:  Robert Wares, 1.25 million

La propriété Rose lithium-tantale (où est proposé le Projet Rose lithium-tantale) est située dans la région administrative du nord du Québec, sur le territoire de la Baie-James Eeyou Istchee, sur des terres de catégorie III, sur les terres traditionnelles de la Nation crie d’Eastmain.

La Société a été informée par le président du Comité d’examen des répercussions sur l’environnement et le milieu social (« COMEX ») que les audiences publiques se tiendront en après-midi les 15 février 2021 à Matagami, 16 février 2021 à Eastmain et 18 février 2021 à Nemaska. Considérant le contexte actuel de la pandémie de la COVID-19, les audiences publiques seront tenues en format virtuel, via l’application Zoom, et seront diffusées en direct via Facebook et LiveStream. Le COMEX a prévu qu’une salle sera réservée dans chacune des communautés afin que les personnes qui désirent se réunir sur place puissent le faire, le tout dans le respect des normes sanitaires en vigueur. Le COMEX a pour mission de contribuer à la protection de la santé et de l’environnement ainsi qu’au bien-être économique et social des populations habitant le territoire défini par la Convention de la Baie-James et du Nord québécois (CBJNQ), situé au sud du 55^e parallèle. Une fois la procédure d’évaluation et d’examen des impacts sur l’environnement et le milieu social du Projet complétée, le COMEX transmettra sa recommandation quant à l’autorisation du Projet par les autorités provinciales.

« Nous sommes très heureux du début des audiences publiques sur notre Projet minier Rose lithium-tantale. Cette étape importante en vue de l’obtention des autorisations gouvernementales pour aller de l’avant avec le Projet nous permettra d’entendre, une fois de plus, le point de vue des citoyens. Depuis le début du Projet, nous travaillons en étroite collaboration avec les communautés locales et en particulier avec la Nation crie d’Eastmain et ce, dans le but d’avoir un projet bien implanté dans son milieu », explique Jean-Sébastien Lavallée, chef de la direction de Critical Éléments.

Dès 2012, Critical Éléments a conclu une entente de pré-développement avec le Grand Conseil des Cris (Eeyou Istchee), le Gouvernement de la Nation crie (alors l’Administration régionale crie) et la Nation crie d’Eastmain, qui a jeté les bases d’une relation de coopération et de respect mutuel entre les parties et a mené à la signature de l’Entente Pikhuuutaau (une entente sur les répercussions et les avantages) en juillet 2019. Au cours des dernières années, Critical Éléments a participé à plusieurs rencontres avec le Chef et le conseil de la Nation crie d’Eastmain, ainsi qu’à plusieurs rencontres et séances d’information dans la communauté.

Le Projet minier Rose lithium-tantale s’inscrit parfaitement dans les orientations gouvernementales que l’on retrouve dans le Plan québécois pour la valorisation des minéraux critiques et stratégiques 2020-2025 et le Plan pour une économie verte 2030. En effet, le lithium et le tantale sont très prisés mondialement dans les secteurs industriels, incluant pour le marché des voitures hybrides et électriques, à cette époque d’intérêt grandissant pour la transition énergétique.

« L’économie de demain devra miser sur des filières stratégiques, tel le domaine des véhicules électriques et des batteries. Cela correspond en tous points à notre vision qui est de devenir un important fournisseur responsable de lithium pour les industries florissantes des véhicules électriques et des systèmes de stockage d’énergie. Nous représentons parfaitement le développement durable avec un projet non seulement bon pour l’environnement, mais bon pour le développement des communautés locales », conclut Jean-Sébastien Lavallée.

À propos de Corporation Lithium Éléments Critiques

Le Groupe Primero a récemment complété la première phase du contrat d’implication anticipée de l’entrepreneur intervenue avec la Société et a fourni un prix maximum garanti pour l’ingénierie, l’approvisionnement et la construction du projet Rose lithium-tantale détenu à 100 % par la Société. Ce coût forfaitaire est dans le même ordre de grandeur que les coûts estimés dans l’étude de faisabilité publiée le 29 novembre 2017 et basée sur des prédictions de prix de 750 $ US/tonne de concentré de lithium de qualité chimique (5 % Li₂O), de 1 500 $ US/tonne de concentré de lithium de qualité technique (6 % Li₂O), et de 130 $ US/kg pour le Ta₂O₅ contenu dans le concentré de tantalite et un taux de change de 0,75 $ US/$ CA. Le taux de rendement interne (« TRI ») du projet Rose lithium-tantale est estimé à 34,9 % après impôts et la valeur actualisée nette (« VAN ») à 726 millions $ CA à un taux d’escompte de 8 %. La période de recouvrement est estimée à 2,8 ans. Le TRI avant impôts du projet Rose lithium-tantale est estimé à 48,2 % et la VAN avant impôts à 1 257 millions $ CA à un taux d’escompte de 8 % (voir communiqué du 6 septembre 2017). L’analyse financière repose sur les ressources minérales indiquées. Une ressource minérale indiquée est la partie d’une ressource minérale dont la quantité, la teneur ou la qualité, les densités, la forme et les caractéristiques physiques peuvent être estimées avec un niveau de confiance suffisant pour permettre l’application appropriée des paramètres techniques et économiques, la planification minière et l’évaluation de la viabilité économique du dépôt. Le plan de minage prévoit l’extraction de 220,2 Mt de matériel composé de 26,8 Mt de minerai, 182,4 Mt de stériles et 11,0 Mt de morts-terrains. Le ratio de décapage moyen est de 7,2 tonnes de stériles par tonne de minerai. Le taux de production nominal a été estimé à 4 600 tonnes par jour, pour 350 jours d’exploitation par année. Le plan d’exploitation à ciel ouvert permet une durée de vie de la mine de 17 ans. La mine produira un total de 26,8 millions de tonnes de minerai ayant une teneur diluée moyenne de 0,85 % de Li₂O et 133 ppm de Ta₂O₅. L’usine traitera 1,61 million de tonnes de minerai par année, pour une production annuelle moyenne de 236 532 tonnes de concentré de spodumène de qualité technique et chimique et 429 tonnes de concentré de tantalite.

Fourth quarter highlights:

• Recorded zero incidences of COVID-19 infection for a fourth consecutive quarter;
• Production of 15,838 ounces, in line with the company’s internal plan with sales of 15,855 ounces;
• Stope grade increased by a further 5 per cent to 3.1 grams per tonne gold, representing an improvement for a second consecutive quarter and in line with the company’s near-term goal of targeting higher-grade, higher-margin ounces;
• Strengthened the company’s financial position with the completion of a $17.3-million (Canadian) equity financing;
• Completed an accretive transaction through the repurchase of the 2-per-cent net smelter royalty for $6.5-million (Australian);
• Announced positive results for the Plutonic Main pit pushback preliminary economic assessment (PEA) with an after-tax net present value (5-per-cent discount rate) of $120-million (Australian) and an after-tax internal rate of return of 35 per cent at a gold price of $1,505 per ounce;
• Updated measured and indicated mineral resources at the Plutonic gold operations of 1.89 million ounces of gold (16.3 million tonnes at a 3.6 g/t Au grade);
• Updated inferred mineral resources at the Plutonic gold operations of 3.07 million ounces of gold (30.6 million tonnes at a 3.1 g/t Au grade);
• Arrival of new underground mobile equipment resulting in significant increase in productivities and equipment availability in the latter part of the fourth quarter;
• Arrival of a third underground drill late in the fourth quarter, which is dedicated to exploring for new mining fronts.

Full-year highlights:

• Safely operated through the global pandemic with zero incidences of COVID-19;
• Achieved full-year revised guidance with production of 63,065 ounces and sold 63,732 ounces;
• Repaid $8.0-million of the Auramet gold loan, with the remaining $4.4-million scheduled to be fully repaid by June 30, 2021;
• Exited the year with a strong financial position of $17.3-million in cash and cash equivalents after the repurchase of the 2-per-cent net smelter royalty, delivery into hedges as part of the Auramet gold loan, and capital expenditures necessary to improve performance and accelerate underground development.

Tamara Brown, interim chief executive officer of Superior Gold, stated: “We are very pleased to have achieved our revised 2020 production guidance while also advancing the strategic projects necessary to reposition Plutonic for sustainable, long-term success. The operational initiatives that we put in place in mid-2020 have begun to have a positive impact. Our productivities improved during the fourth quarter with the arrival of new mining equipment and our underground stope grade increased for a second consecutive quarter, improving by 9 per cent in the second half of the year over the first half, highlighting our renewed focus on profitability.

“During the quarter, we invested in upgrading our underground fleet, completing a raise at the TSF, upgrading our airstrip and announced the PEA results for the Plutonic Main pit pushback project. This project has the potential to provide a steady open-pit feed supply for six years, which we believe starts to unlock the significant value sitting within the Plutonic gold operations (refer to the press release dated Dec. 2, 2020). 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. Looking forward, we will continue our work to further enhance the economics of the project through the removal of open-pit constraints, resource expansion and exploration drilling.

“Our 2021 guidance reflects additional investment to open new underground mining fronts plus the commencement of open-pit mining midyear, resulting in an expected improvement in our grade profile due to less mineralized waste being processed. These investments will ensure that a fully optimized underground operation, combined with the addition of new sources of open-pit feed and the repayment of our gold loan by mid-2021, will result in a significant improvement in our overall profitability over the course of 2021 and beyond.”

The company will be releasing its complete financial and operating results for the fourth quarter and full year 2020 in March, 2021.

                          FOURTH QUARTER AND FULL-YEAR 2020 PRODUCTION DETAILS
  
Operating parameters                    Three months ended Dec. 31, 2020      12 months ended Dec. 31, 2020

Stope material mined (tonnes)                                    139,159                            600,625
Stope grade mined (g/t Au)                                          3.12                               2.90
Development material mined (tonnes)                               56,952                            243,093
Development grade mined (g/t Au)                                    1.75                               1.93
Surface material milled (tonnes)                                 167,501                            681,227
Surface material grade (g/t Au)                                     0.34                               0.31
Total material milled (tonnes)                                   365,520                          1,505,350
Grade milled (g/t Au)                                               1.61                               1.58
Gold recovery (%)                                                     84                                 83
Gold produced (ounces)                                            15,838                             63,065
Gold sold (ounces)                                                15,855                             63,732
Cash and cash equivalents ($ million)                              $17.3                              $17.3

(1) Numbers may not add due to rounding.
(2) Surface material milled in Q4 and full year 2020 is primarily the processing of low-grade stockpile.
  

2021 guidance

Details of production, cost and capital expenditure guidance for 2021 are summarized in the associated table. It is anticipated that the first quarter will be the weakest, but progressively improve as the company commences open-pit mining midyear and continue to build up developed underground inventory.

Operating parameters                                    Low       High

Production (oz of gold)                              65,000     75,000
Cash costs ($/oz)                                    $1,350     $1,450
All-in sustaining costs ($/oz)                       $1,500     $1,600
Exploration expenditure ($ million)                        $3.5M-$6.5M
Sustaining capital expenditures ($ million)                $4.0M-$4.5M
Non-sustaining capital expenditures ($ million)            $3.0M-$5.0M

Open-pit production in 2021

Detailed work is continuing to optimize several potential open-pit sources and to finalize resources and scheduling. These pits comprise the Plutonic East, Perch and Salmon pits on the Plutonic mine property, along with the Hermes and Hermes South pits to the southwest. It is anticipated that production from the Plutonic East pit will commence in mid-2021, as final mining permits have already been received. The company aims to utilize the production from these open pits plus the Main pit pushback, along with operational improvements from the underground, to return the Plutonic gold operations to a state of significant free cash flow generation.

Highlights from the report include:

An overall increase of 53% of the resources in the indicated category

An overall increase of 100% of the resources in the inferred category

A first underground resource of 140,600 oz @ 4.52 g/t Au, demonstrating the underground potential of the project {ݾ –} opening up a target zone between 350m and 1,000m depth

A new geological model with stronger control of the mineralized envelopes

“We are extremely pleased to have completed another chapter in the success of the Bonnefond deposit,” comments Brad Humphrey, Chief Executive Officer of QMX. “The Technical Report demonstrates the open pit and underground potential of this very robust resource model. The rapid increase in ounces over a very short period of time, is both a testament to our strong team and the quality of our property.”

The report is available on SEDAR (https://www.sedar.com) and QMX website (www.qmxgold.ca). The report supports the interim update of its mineral resource estimate announced by the Company on December 2, 2020 (News release, December 2, 2020).

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5e46bf21-3019-46c9-8653-74bb4ed7017b

Notes to Table 1:

The independent qualified persons for the Technical Report, 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 mineral resource estimate in the Technical Report (the “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 MRE was 0.60 g/t Au for the open pit material, 2.70 g/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: vs. 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. All costs are represented in Canadian dollars unless otherwise stated.

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 open-pit 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 MRE 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 open-pit 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 MRE 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 5m x 5m x 5m 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 3m), 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 100m. 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 50m. 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 MRE 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 MRE.

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 geology 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 started drilling on the Bonnefond intrusive in 2017 and realized its first major drilling program on the project in 2018. An initial open pit constrained resource was released in 2019 (News release, July 30, 2019).

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

The successful drilling campaigns allowed QMX 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 (Figure 3). This better control of the mineralization inside the intrusive allowed the definition of continuous zones with higher grades. The extensive exploration drilling successfully demonstrated 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 350m and 1,000m at depth.

This winter, QMX plans to drill approximately 8,000m to explore the Bonnefond intrusive further at depth with the objective of expanding the current underground resource. In parallel, QMX is conducting a broader 8,000m exploration program testing prospective targets to the east of the Bonnefond deposit.

Previous drilling at Bonnefond intersected 6.48 g/t Au over 73.2m, and 35.56g/t Au over 4.0m at 1,050m in DDH 17215-20-121 (News Release, August 18, 2020) and intersected 185.0m of 2.16 g/t Au in-pit and 11.2m of 10.88 g/t Au at depth in DDH 17315-20-149 (News Release, January 5, 2021).

Photos accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7cd30392-bd29-41d4-ae3a-630cb9eb54e0

Highlights

Broad, low-grade intrusion-hosted gold mineralization was sampled at the Sunrise prospect, West Pogo block. Continuous rock sampling in a road cut leading to the adjacent Aurora prospect area returned:

o 93.0 meters @ 0.29 grams per tonne (“g/t”) gold including

o 27.0 meters @ 0.53 g/t gold with a maximum 1.0 meter interval @ 1.89 g/t gold. Partner Resolution minerals indicates its plans to test the new Sunrise prospect with a Rotary Air Blast (“RAB”) drill in March 2021. Drilling of two holes at the Aurora prospect in November / December 2020 did not result in any significant gold intercepts. Trenching and rock sampling completed at the Eagle prospect in late 2020 returned zones of low grade gold mineralization:

o 12.0 meters @ 0.20 g/t gold including 3.0 meters @ 0.56 g/t gold in Trench ID: 20E1004; and

o 26.0 meters @ 0.10 g/t Au in Trench ID: 20E1002

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3c475439-3a2e-435f-aba0-32b658be7e15

Aurora Prospect, West Pogo Block

The final two diamond drill holes (20AU08 and 20AU09) of the 2020 drilling program intersected multiple quartz veins following up on the 7.0 meter-thick quartz vein in hole 20AU07 previously reported. No significant assays were encountered on these last three holes for 2020, despite the technical success. A comprehensive review of the structural data and assays results from the 2020 West Pogo drilling program is underway to determine the next steps for the Aurora, Echo, and Reflection Prospects.

E1 Prospect, Eagle Block

Four trenches totaling 716 meters in length were excavated across the highest priority structures at this prospect. The trenches intersected numerous zones of gold mineralization consistent with intrusion-related-intrusion-hosted style gold mineralization. Trenching and rock sampling completed at the Eagle prospect in late 2020 returned zones of low-grade gold mineralization:

12.0 meters @ 0.20 g/t Au including 3.0 meters @ 0.56 g/t gold in Trench ID: 20E1004; and

26.0 meters @ 0.10 g/t Au in Trench ID: 20E1002

The trenches are located within a large gold geochemical anomaly that measures 10 square kilometers. Resolution indicates it plans to do further work to develop drill targets in 2021 at this prospect.

Sunrise Prospect, West Pogo Block

A previously constructed drill road that runs from the Pogo Mine road to Millrock’s Aurora prospect crosses the Sunrise prospect. Bedrock was exposed over significant lengths in road cuts when the road was constructed. Continuous rock sampling along the road cut has identified a broad zone of low-grade intrusion-hosted gold mineralization. The results are:

93.0 meters @ 0.29 grams per tonne (“g/t”) gold including 27.0 meters @ 0.53 g/t gold with a maximum 1.0 meter interval @ 1.89 g/t gold.

The Sunrise prospect lies just to the south of the Aurora prospect and is approximately four kilometers from Northern Star’s Pogo Mine. The prospect is underlain by a quartz-felspar-biotite granite intrusion crosscut by sheeted quartz veins that contain gold. This style of mineralization is a distinguishing feature of intrusion hosted gold systems. The granite body is overburden-covered, except for a few small outcroppings. A large zone measuring 400 meters by 1,100 meters of anomalous soil sample results overlies the inferred position of the granite body.

Resolution indicates that it is planning a 3,000-meter RAB drilling program with approximately 25 holes to be drilled. The drilling will be done along the existing drill trail leading from the Pogo Mine road to the Aurora prospect. Resolution reports it intends to commence drilling in March 2021.

Quality Control and Quality Assurance

Millrock adheres to stringent Quality Assurance {&#5348; &#150;} Quality Control (“QA/QC”) standards. Drill core was transported to Millrock’s operation base in Fairbanks, Alaska where it was logged, cut and sampled. Drill core and samples were kept in a secure location at all times. For the results presented here, the representative half-core samples and rock samples underwent sample preparation at the Bureau Veritas laboratory in Fairbanks, Alaska, (preparation method code PRP70-250) using 70% to <2 mm Crush and Pulverize 85% to <75 um. Appropriate high, medium and low gold and base metal standards were used by Millrock on a 1:20 basis (5%). Blanks were inserted on a 1:50 basis (2%). The Bureau Veritas laboratory introduces QAQC samples and completes duplicate check assays on a routine basis. Following preparation in Fairbanks the samples were subsequently analyzed at the Bureau Veritas laboratory in Reno, Nevada. Gold was analyzed by Fire Assay (code FA430/AA) with an AAS finish using a 30 gram nominal sample weight. No multi-element analysis was completed on the samples. Inspection of QAQC information indicates that all sample results are within tolerance.

The Rose property (where the Rose Lithium-Tantalum Project is proposed) is located in northern Quebec’s administrative region, on the territory of Eeyou Istchee James Bay. It is located on Category III land, on the Traditional Lands of the Cree Nation of Eastmain.

The Corporation has been informed by the Chairman of the Environmental and Social Impact Review Committee (&quot;COMEX&quot;) that public hearing sessions will be held in the afternoon of February 15, 2021 in Matagami, February 16, 2021 in Eastmain and February 18, 2021 in Nemaska. Considering the current context of the COVID-19 pandemic, the public hearings will be held virtually, via the Zoom application, and will be broadcast live via Facebook and LiveStream. The COMEX has planned that a room will be made available in each of the communities so that people who wish to gather in person can do so in compliance with current health standards. The COMEX&#39;s mission is to contribute to the protection of human health and the environment and the economic and social well-being of the peoples inhabiting the territory governed by the James Bay and Northern Quebec Agreement (JBNQA) that lies south of the 55th parallel. Once the environmental and social impact assessment and review procedure is completed, the COMEX will make a recommendation in respect of the authorization of the Project by provincial authorities.

&quot;We are very happy that public hearings on our Rose Lithium-Tantalum Project are starting. This significant step towards obtaining the governmental authorizations for the go ahead of our Project will, once again, give us the opportunity of hearing the citizens point of view. Since the beginning of our Project, we have worked closely with the communities, particularly the Cree Nation of Eastmain, in order to have a project that is part of the local environment,&quot; stated Jean-Sebastien Lavallee, Critical Elements&#39; Chief Executive Officer.

As early as 2012, Critical Elements entered into a pre-development agreement with the Grand Council of the Crees (Eeyou Istchee), the Cree Nation Government (then the Cree Regional Authority) and the Cree Nation of Eastmain, which laid out the basis for the building of a cooperative and mutually respectful relationship between the parties and led to the signing of the Pikhuutaau Agreement (an impact and benefit agreement) in July 2019. Over the years, Critical Elements has participated in multiple meetings with the leadership of the Cree Nation of Eastmain, and in various community meetings and information sessions in Eastmain.

The Rose Lithium-Tantalum Project is in direct line with the governmental orientations contained in the Quebec Plan for the Development of Critical and Strategic Minerals 2020-2025 and the 2030 Plan for a Green Economy. Lithium and tantalum are world renowned in manufacturing and automotive industrial sectors, including for, among others, the market of hybrid and electric cars in this era of increasing interest for energy transition.

&quot;The economy of tomorrow will be driven by strategic sectors, like the electric vehicles and batteries sectors. This vision aligns perfectly with our vision to become a large responsible supplier of lithium to the flourishing electric vehicle and energy storage systems industries. We represent perfectly sustainable development with our project that is, not only good for the environment, but that is good for the development of local communities,&quot; concludes Jean-Sebastien Lavallee.

The Amended Technical Report can be found under the Company’s profile at http://www.sedar.com. The Amended Technical Report has been filed further to a review by staff of the Ontario Securities Commission (the “OSC”). The OSC review is now complete.

The Amended Technical Report includes a conceptual pit envelope constraint in order to demonstrate reasonable prospects for eventual economic extraction and updated mineral resource tables. Prior mineral resource estimates, as previously disclosed in the December 4, 2020 Technical Report, were not constrained by conceptual pit envelopes. The addition of a pit constraint resulted in no change to the Measured & Indicated resource in the Higher Grade Core of the Main Zone, a 1.5 kt reduction in contained nickel in the overall Measured and Indicated resource to 1,690 kt, and a 335 kt reduction in contained nickel from the original Inferred resource to 1,183 kt. 90% of the overall reduction in Inferred resources occurred at depths below 300 metres.

In addition, the gram per tonne (g/t) assay values for Palladium (Pd), Platinum (Pt), and Palladium + Platinum (Pd + Pt) included in Table 10-2 of the Amended Technical Report have been corrected for holes CR19-05 to CR19-13.

Disclosure of explorations targets for the Main Zone Pd + Pt reef, two East Zone Pd + Pt reefs and the East Zone nickel domains was also revised to comply with subsection 2.3(2) of NI 43-101.

Amended Total Mineral Resource Estimate for the Crawford Nickel-Cobalt Sulphide Project, Ontario
   
  
  
   Mineral Resource Estimate                                          Contained              
        DOMAIN          CLASS  TONNES (Mt)Ni (%)Co (%)Fe (%)S (%)Pd (g/t)Pt (g/t)Ni (kt)Co (kt)Fe (Mt)Pd (koz)Pt (koz)
MAIN HIGHER GRADE ZONEMeasured    151.7    0.32 0.013  6.25 0.20  0.029   0.012   482.2  19.9    9.5    141      57   
                      Indicated   128.6    0.30 0.013  6.37 0.16  0.027   0.013   391.8  16.5    8.2    111      52   
                       Mea+Ind    280.2    0.31 0.013  6.31 0.18  0.028   0.012   873.9  36.4   17.7    252     108   
                      Inferred    109.9    0.29 0.013  6.66 0.09  0.026   0.013   315.0  14.0    7.3     93      47   
MAIN LOWER GRADE ZONE Measured    62.5     0.22 0.013  6.83 0.05                  135.1   8.2    4.3                  
                      Indicated   263.2    0.21 0.013  6.90 0.04                  557.0  34.6   18.2                  
                       Mea+Ind    325.6    0.21 0.013  6.89 0.04                  692.1  42.9   22.4                  
                      Inferred    210.2    0.21 0.013  6.87 0.06                  444.9  27.1   14.4                  
      EAST ZONE       Measured    25.8     0.26 0.012  6.02 0.04                  67.4    3.2    1.6                  
                      Indicated   21.8     0.26 0.013  6.20 0.04                  56.2    2.7    1.3                  
                       Mea+Ind    47.5     0.26 0.013  6.11 0.04                  123.6   6.0    2.9                  
                      Inferred    176.7    0.24 0.013  6.63 0.04                  423.5  22.6   11.7                  
        TOTAL          Mea+Ind     653     0.26 0.013  6.58 0.10  0.028   0.012  1,689.6 85.2   43.0    252     108   
                      Inferred     497     0.24 0.013  6.74 0.06  0.026   0.013  1,183.3 63.8   33.5     93      47   

1. The independent Qualified Person for the Mineral Resource Estimate, as defined by NI 43-101, is Dr. Scott Jobin-Bevans (P.Geo., APGO #0183), of Caracle Creek International Consulting Inc. and Atticus Chile S.A. The effective date of the Mineral Resource Estimate is December 11, 2020.

2. These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred Resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured, however it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

3. A cut-off grade of 0.15% Ni was used for the low-grade domains (Main and East zones) and cut-off grades of 0.25% Ni (Main Zone) and 0.21% Ni (East Zone) were used for the high-grade domains. Cut-offs were determined on the basis of core assay geostatistics and drill core lithologies for the deposit, and by comparison to analogous deposit types. Given the current stage of the Project, the mineral resources contained within the Main and East zone deposits have not been constrained by open pit optimization. The Company is planning to complete open pit optimization and present pit-constrained mineral resources as part of its Preliminary Economic Assessment (“PEA”) scheduled to be completed by the end of the first quarter, 2021.

4. Geological and block models for the Mineral Resource Estimate used data from a total of 62 surface drill holes (51 in the Main Zone and 11 in the East Zone), completed by Spruce Ridge Resources (4 holes in 2018) and Noble Mineral Exploration and Canada Nickel Company (58 holes in 2019-2020). The drill database was validated prior to resource estimation and QA/QC checks were made using industry-standard control charts for blanks, core duplicates and commercial certified reference material inserted into assay batches by CNC and by comparison of umpire assays performed at a second laboratory.

5. Estimates in Table 1 have been rounded to two significant figures.

6. The mineral resource estimates have also been revised in the Amended Technical Report to include a conceptual pit envelope constraint that was developed using the optimization parameters included in the Amended Technical Report. Metal prices used (US$) were $7.75/lb nickel, $15/lb cobalt, $90/tonne magnetite $1,600/oz Pd, and $800/oz Pt. Different pit slopes were used for each layer (in degrees): 9.5 in clay, 21.8 in gravel and 45 in rock. Exchange rate utilized was US$/C$ of $0.75. Mining costs utilized different values for overburden (clay, gravel), selective mining and bulk mining ranging from C$1.75 to C$3.15/t mined. Processing costs and G&A for 100ktpd operation were C$6.18/t. Based on the range of grade and ratio of sulphur to nickel at Crawford, recovery could be expected to range from 10% – 60%. It has also been assumed that 30 {&#12802; &#150;} 40% of total iron would be recovered to a saleable magnetite concentrate.

7. The Mineral Resource Estimate was prepared following the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (November 29, 2019).

MAIN ZONE:

8. The geological model as applied to the Mineral Resource Estimate for the Main Zone comprises three mineralized domains hosted by variably serpentinized ultramafic rocks: a relatively high-grade core (largely dunite) and two northern and southern lower grade envelopes (combination of dunite and peridotite). Individual wireframes were created for each domain.

9. The block model was prepared using Micromine 2020. A 12 m x 12 m x 9 m block model was created and samples were composited at 4.5 m intervals. Grade estimation from drill hole data was carried out for Ni, Co, Fe, S, Pd and Pt using the Ordinary Kriging interpolation method.

10.Grade estimation was validated by comparison of input and output statistics (nearest neighbour and inverse distance cubed), swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.

11.Density estimation was carried out for the mineralized domains using the Ordinary Kriging interpolation method, on the basis of 3,270 specific gravity measurements collected during the core logging process, using the same block model parameters of the grade estimation. As a reference, the average estimated density value within the high-grade is 2.64 g/cm3 (t/m3), while low-grade domains of the resource model yielded averages of 2.63 g/cm3 (t/m3) in the north and 2.71 g/cm3 (t/m3) in the south.

EAST ZONE:

12.The geological model as applied to the Mineral Resource Estimate for the East Zone comprises three mineralized domains hosted by variably serpentinized ultramafic rocks: a relatively high-grade core (largely dunite) and two northern and southern lower grade envelopes (largely peridotite). Individual wireframes were created for each domain.

13.The block model was prepared using Micromine 2020. A 20 m x 20 m x 15 m block model was created and samples were composited at 3 m intervals. Grade estimation from drill hole data was carried out for Ni, Co, Fe and S using the Inverse Distance Squared method.

14.Grade estimation was validated by comparison of input and output statistics (nearest neighbour), swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.

15.An average bulk density value for each mineralized domain was calculated on the basis of 244 specific gravity measurements collected during the core logging process. Blocks within the high-grade were assigned a single bulk density value of 2.62 g/cm3 (t/m3), while low-grade domains of the resource model were assigned single bulk density values of 2.66 g/cm3 (t/m3) in the north and 2.72 g/cm3 (t/m3) in the south.

Assays, Quality Assurance/Quality Control and Drilling and Assay Procedures

William E. MacRae, MSc, P.Geo., a Qualified Person as defined by NI 43-101, is responsible for the on-going drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths and cut with a diamond blade saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025 accredited lab. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples making a batch of 35 samples that are submitted for analysis.

Highlights:

• Hole THN20-181 intercepted porphyry style mineralization returning 439.42m of 0.34% CuEq including, 278.42m of 0.43% CuEq, including 105.42m of 0.60% CuEq
• Hole THN20-181 bottomed in higher grade mineralization with the last 6.22m returning 2.27% CuEq
• An IP chargeability anomaly of 3km by 2km was outlined around Camp Creek to 600-700m depth

Chairman and CEO of Brixton Metals, Gary R. Thompson stated, “We believe that hole 181 is confirmation of a new porphyry discovery at the Camp Creek Target. It’s evident from both this hole and the completed IP that most of the previous drilling was not deep enough to effectively test this porphyry target. With our 2021 exploration program at Thorn, we plan on drilling additional deep holes with the goal of locating the center of a potentially very large Cu-Au-Ag-Mo porphyry.”

                          2020 DRILL RESULTS FROM CAMP CREEK

Hole       From (m)  To (m)  Interval (m)  Cu (ppm)  Au (g/t)  Ag (g/t  )Mo (ppm)  CuEq (%)

THN20-180    349.00  576.79        227.79    712.85      0.05      0.96     50.40      0.15  
Including    555.00  576.79         21.79  1,059.75      0.07      1.06     89.73      0.22  
THN20-181    518.00  957.42        439.42  1,889.60      0.07      2.41    139.83      0.34  
Including    679.00  957.42        278.42  2,347.42      0.09      2.57    195.83      0.43  
Including    852.00  957.42        105.42  3,201.80      0.11      3.75    335.41      0.60  
Including    951.20  957.42          6.22   7745.34      0.21      7.62  2,934.77      2.27  
THN20-182    387.00  861.00        474.00  1,060.84      0.05      0.93     72.67      0.19  
Including    530.98  642.00        111.02  1,382.82      0.07      1.31    105.00      0.26  
Including    570.00  590.00         20.00  2,535.95      0.12      2.09    113.47      0.44  

Copper Equivalent (CuEq_ppm) = [(($Cu/g * Cu ppm) + ($Au/g * Au ppm) + ($Ag/g * Ag ppm) + ($Mo/g * Mo ppm))] / $Cu/g

Using the following metal prices (average daily prices during last 12 months) of Cu US$2.70/lb, Au $1759/oz, Ag $19.60/oz, Mo $11.20/lb.

The three deep Camp Creek holes drilled in 2020 display fairly consistent downhole patterns of mineralization and alteration (please refer to strip log THN20-181 in Figure 3). In the upper sections of the holes (to depths of approximately 300-400 metres), mineralized intervals are thin, reflecting polymetallic veins that are typically rich in pyrite, commonly with galena and sphalerite and the copper-bearing sulphosalt minerals tetrahedrite/tennantite. Only minor quartz veins are present, and chalcopyrite and molybdenite are largely absent. Sericitic alteration dominates the upper parts of the holes, with potassic (biotitic and K-feldspathic) assemblages gradually increasing downhole. Below about 300-400 metres depths, the holes are more consistently mineralized with copper, gold, silver, and molybdenum. The dominant copper mineral is chalcopyrite, not tetrahedrite/tennantite. Quartz veins are ubiquitous; potassic and locally silicic alteration predominate at depth. The overall patterns observed in the Camp Creek holes are consistent with those in a number of porphyry deposits worldwide that are exposed at a level above a “blind” copper-(gold-molybdenum) ore zones. The well mineralized 6.22m interval of 2.27 CuEq at the bottom of hole THN20-181 is dominated by pyrite and chalcopyrite hosted in a hydrothermal breccia, please see Figure 7 below at 953.11m depth.

The Mineral Deposits Research Unit (MDRU) Porphyry Index or MPIx is a porphyry geochemical vector index developed by the MDRU at the University of British Columbia. It ratios elements proximal to known porphyry deposits versus more distal elements. The equation is MPIx = [Cu/10 +Mo+(10*W)=(20*Sn)] / [(5*Sb)+(20*Tl)+Ag+AS+Li] (after Bouzari et al., 2019).

A total of six IP geophysical survey lines were completed between 2020 and 2019. The survey lines were approximately 3km long and 300m apart and cut across Camp Creek. A high chargeability anomaly was identified to about 600-700m depth (maximum range of survey only) across most of the survey area of 25-38 mV and remains open in several directions, see video link above and IP and drilling section in Figure 5 below.

Juan Gavidia, CEO of Orvana Minerals stated: “The Company has started fiscal 2021 with a strong first quarter, both at the operational and exploration levels. Orvana remains on target to deliver on our production guidance, plus, more strategically, advancing exploration and developmental initiatives at our three business units in Spain, Argentina and Bolivia.”

Gold-equivalent production of 18,398 ounces; a 10% increase from Q4 Fiscal Year 2020.

Continuing brownfield and greenfield exploration at Orovalle, Spain.

Fieldwork exploration in progress at Taguas, Argentina.

Quality Assurance Testing Planning for the Oxides Stockpile Project (OSP) at EMIPA, Bolivia.

OroValle

Quarterly 14,127 ounces of gold production, 5% higher than previous quarter due to higher throughput, partially off-set by lower ore grade.

Copper production was 2.0 million pounds, 15% higher than previous quarter.

Lidia Project Exploration Program commenced on schedule.

Permitting for Ortosa Godan is in progress. Drilling expected to start in March 2021.

Taguas

Fieldwork exploration campaign completed in December 2020, including new access points, geological mapping and soil and rock sampling.

Preparations are underway for a drilling campaign to start in February 2021.

A new Mineral Resource Estimate is being updated in compliance with Canadian National Instrument 43-101, by Geosim Services Inc, an independent consulting firm, by February 2021.

EMIPA

As a result of latest metallurgical testing showing positive results for the Oxides Stockpile Project (OSP), a pilot program is being developed, with final conclusions expected in late fiscal 2021.

New reprocessing and interpretation of historical geological data was completed in December 2020. Areas of interest will be subject to non-drilling exploration fieldwork during the next three quarters of fiscal 2021. The goal is to develop drilling targets for fiscal 2022 within the most prospective areas of the Don Mario Complex.

    Production Results
   
  
  
   Q1 2021                  Q4 2020                 Q1 2020         
                    El ValleDon  Mario Total El ValleDon Mario Total El ValleDon  Mario Total 
                                                                                              
Ore milled (tones)   180,380    -     180,380 166,047    -    166,047 155,662    64,875220,537
Gold Equivalent (oz)  18,398    -      18,398  16,742    -     16,742  15,654     2,132 17,786
Gold                                                                                          
Grade (g/t)             2.60    -        2.60    2.70    -       2.70    2.98      1.07   2.42
Recovery (%)            93.6    -        93.6    93.3    -       93.3   92.20      84.4   92.2
Production (oz)       14,127    -      14,127  13,422    -     13,422  13,722     2,093 15,815
Copper                                                                                        
Grade (%)               0.63    -        0.63    0.58    -       0.58    0.36    -        0.36
Recovery (%)            81.6    -        81.6    83.4    -       83.4    71.5    -        71.5
Production (K lbs)     2,044    -       2,044   1,780    -      1,780     892    -         892


  

ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana’s assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, and the Don Mario gold-silver property in Bolivia, currently in care and maintenance. Orvana is in the process of closing the acquisition of Taguas, Argentina. Additional information is available at Orvana’s website (www.orvana.com).

Highlights:

• Victory originally announced on December 7, 2020, that it intended to complete the Private Placement for a minimum of $8 million.
• Victory announced on December 22, 2020, an increase in the size of the Private Placement to approximately $17.5 million to accommodate significant excess demand.
• The first tranche of $15,163,336 in gross proceeds closed on December 23, 2020.
• The second tranche has now closed with Crescat Capital LLC, a Denver-based hedge fund, providing the lead order.

Financing Summary:

The completion of the Private Placement by Victory represents the satisfaction of one closing condition to the previously announced a merger of equals transaction (the “Merger”) between Victory and Nevada King Mining Ltd. (” Nevada King “) under which Victory will acquire all the issued and outstanding shares of Nevada King for common shares of Victory (the “Victory Shares”).

The proceeds of the Private Placement will be used to advance Victory’s development and exploration stage assets and for other general corporate purposes.

The Subscription Receipts were issued pursuant to a subscription receipt agreement entered into between Victory and Alliance Trust Company, the subscription receipt agent, dated December 23, 2020. Each Subscription Receipt entitles the holder to receive one post-Merger Victory Share immediately after closing of the Merger, subject to other standard conditions, without further action on the part of the holder and without payment of additional consideration. The Subscription Receipts issued pursuant to the second and final tranche of the Private Placement, and the underlying Victory Shares issuable upon conversion thereof, are subject to a hold period under applicable Canadian securities law expiring on May 16, 2021.

In connection with the Private Placement as a whole, cash finder’s fees in an aggregate amount of $662,487.53 were paid to certain finders on a portion of the Private Placement, subject to compliance with TSX-V policies and applicable securities legislation, are applicable.

The completion of the Merger, and the automatic conversion of the Subscription Receipts thereafter, remains subject to customary closing conditions including approval of the TSX-V, shareholders, and the court. The proceeds of the Private Placement will be held in escrow pending the completion of the Merger. Victory expects to complete the Merger in the first quarter of 2021. If the Merger is not completed before April 16, 2021, the Subscription Receipts will be deemed to be cancelled and the holders of Subscription Receipts will receive a cash amount equal to the aggregate Subscription Price of their Subscription Receipts and any interest that was earned on the Subscription Price.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

&quot;With nearly $6 million in treasury and no debt, our exploration team is laser focused on rapidly moving the 2021 drill program forward and increase shareholder value on this highly prospective large land package of nearly 19,000 hectares, 90% of which has yet to be explored,&quot; said Rana Vig, President and CEO of Blue Lagoon Resources. &quot;We’re also very encouraged with the fantastic numbers returned from the rock sample program that will serve to prioritize our 2021 drill targets at Freegold, Forks, and the 9800 zone,&quot; he added.

HIGHLIGHTS OF NEW ROCK SAMPLE DATASample 74653(Freegold Vein)Returned 5.07 g/t Au and 31.3 g/t Ag

Sample 74501(Freegold Vein)Returned 56.2 g/t Au and 136 g/t Ag

Sample 74502(9800 Zone) Returned 26.5 g/t Au and 322 g/t Ag

Sample 74503(Forks Vein) Returned 47 g/t Au and 287 g/t Ag

Sample 74505(Freegold Vein)Returned 53.2 g/t Au and 59 g/t Ag

Sample 74506(Freegold Vein)Returned 14.1 g/t Au and 61.5 g/t Ag

Sample 74507(Freegold Vein)Returned 90.6 g/t Au and 129 g/t Ag

PHASE ONE DRILLING

The first drill rig is located on the Noranda 1 pad which drilled hole DM-20-139 during the recently completed 2020 drill program and hit 17.69 g/t Au and 70.40 g/t Ag (including 0.65 meters running 48.4 g/t Au and 95 g/t Ag) over 3.13 meters at a downhole depth of 338 meters. This hole was a vertical hole. The current drilling from this pad will drill at -60, -70- and -80-degrees inclination to follow the high-grade gold mineralization in the Boulder Vein up to the recently defined gold resource lower limit. Close spaced drilling will allow for this mineralization to be included in a resource category when the next 43-101 resource is completed. Once this drilling from the Noranda 1 pad is completed, this rig will move south and target deeper mineralization in the Boulder Vein.

The Company&#39;s newly added second drill rig is placed on Pad 26 and will follow-up on the high-grade results drilled in hole DM-20-114 during the 2020 drill program. DM-20-114 hit 107 g/t Au and 278.5 g/t Ag over 1.42 meters (including 165.3 g/t Au and 398 g/t Ag over 0.71 meters) at a depth of 69.13 meters from a hole with an inclination of -73 degrees. Hole DM-21-141 will be drilled at a steeper inclination to target continued down dip high grade gold mineralization from the 69.13-meter intercept in hole DM-20-114.

ROCK SAMPLE RESULTS

Rock samples gathered during the soil sampling program completed in the fall of 2020 returned anomalous values in gold and silver. Bedrock exposure on the Dome Mountain project is very limited and overburden is almost completely covering the project area and ranges from 0 to over 30 meters thick as defined by drilling.

Of particular interest was sample 74653 that was collected east of the known vein at Freegold from newly discovered outcrop containing visible quartz veins. Outcrop exposure here is limited but one sample ran 5.07 g/t Au and 31.3 g/t Ag. Another sample (74658) contained 0.014 g/t Au and 85.5 g/t Ag. The Company will focus on this area in its 2021 exploration program to further prospect for more outcrop and define a potential drill target.

Sample 74501 was collected from an outcropping quartz vein on the Freegold showing.

Sample 74502 is a highly anomalous bedrock sample collected from the 9800 Zone in an area of historic trenching. This sample comes from a flat lying quartz vein with semi massive sulfide and runs 56.2 g/t Au and 136 g/t Ag.

Sample 74503 came from an old mine dump at Forks and ran 47 g/t Au and 287 g/t Ag. The quartz vein sample is part of the old underground workings at Forks and the historic Noranda resource of 20,000 tonnes at 23.6 g/t Au. (BCGS Geological Fieldwork 1986, Paper 1987-1, Page 212, Babine Project; BC Minefile# 093L 280).

Samples 74505, 74506 and 74507 all came from outcropping quartz veins at Freegold. These samples ran (in order) 53.2, 14.1 and 90.6 g/t Au and 59, 61.5 and 129 g/t Ag. These veins are part of the high-grade Freegold showing and will be a high priority drill target in 2021.

QUALITY ASSURANCE AND CONTROL

All rock samples were sent to ALS in Vancouver and lab methods include fire assay gold and ME-MS61. QA/QC includes inserted lab standards, blanks and field duplicates. All samples were kept in secure storage. Chain of custody protocol was maintained by onsite QP. Delivery to ALS in Vancouver was via secure shipping.

The scientific and technical data contained in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.

RIGHTS OFFERING

The shareholders of the Company were issued rights to acquire common shares as of December 18, 2020. The rights are currently trading on the TSX under the symbol “ELR.RT” and the JSE under the symbol “EPSN”.

The Company is beginning to obtain confirmations of rights exercise and the Company confirms the rights offering will close on January 22, 2021.

A copy of the Notice of Rights Offering and the Rights Offering Circular are available under the Company’s profile on SEDAR at http://www.sedar.com and on the Company’s website http://www.eastplats.com/investors-2/rights-offering.

CAPITAL PROJECTS

As a result of some initial confirmations of rights exercise, the Company has begun the detailed planning regarding the intended reconfiguring and procurement initiatives on both the small-scale PGM circuit (previously the scavenger plant circuit) (“PGM Circuit D”) and the existing main PGM facility (“PGM Circuit 1”). This work will allow quicker procurement upon the closing of the rights offering. The optimization of the PGM Circuit D and the refurbishment of the PGM Circuit 1 are intended to stabilize existing production and increase the capacity of the PGM recovery and sales.

Diana Hu, the President and CEO of Eastplats, stated that, “the initial confirmation of exercises of the rights offering has allowed the Company to allocate time and begin the planning work on the PGM Circuit D and PGM Circuit 1. These projects expand Eastplats PGM processing capacity and potential revenue sources. The Company looks forward to the completion and closing of the rights offering and to then continue the development of opportunities in South Africa for its shareholders.”

2020 OPERATIONS

The Company is pleased to confirm that Barplats produced 987,003 tons of chrome concentrate during 2020 and was able to deliver 960,776 tons under the offtake agreement with Union Goal Offshore Solutions Inc. The Company is very pleased to have successfully operated the Chrome Retreatment Project for 309 days in 2020. Non-operating days include planned shutdowns, adverse weather, and South African lockdowns and closures related to COVID-19.

COVID-19

South Africa remains at alert level 3 regarding COVID-19 cases. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company’s business, operations, liquidity and cashflows.

As previously disclosed, the company received notice from the NYSE American on Aug. 19, 2019, that it was not in compliance with Section 1003(a)(iii) of the company guide when it reported stockholders’ equity of less than $6.0-million as of June 30, 2019.

The company has regained compliance by meeting the requirements of the $50-million market capitalization exemption in Section 1003(a) of the company guide from the stockholders’ equity requirement. As of Jan. 15, 2021, the below compliance (.BC) indicator was no longer disseminated and the company was removed from the list of NYSE American noncompliant issuers on the NYSE American’s website.

Q4 2020 production (compared with Q4 2019):

• Silver equivalent (AgEq) production increased by 18 per cent to 556,332 AgEq ounces (Q4 2019 — 469,707 AgEq oz), including:
  • Silver production increased by 37 per cent to 355,581 oz (Q4 2019 — 259,282 oz), exceeding Q3 2020 as the strongest quarter of silver production since Q2 2014.
  • Lead production increased by 32 per cent to 2.2 million pounds (Q4 2019 — 1.7 million lb).
  • Zinc production increased by 19 per cent to 2.5 million lb (Q4 2019 — 2.1 million lb).
• Continued improvements demonstrate positive impact of continuing optimizations.
• Record productivity was achieved in the second half of 2020, following restart in late Q2.

“Our Platosa mine continued to deliver strong production in Q4 2020 after our restart of operations in late Q2, with another quarter of near-record mined and milled tonnage,” stated Brendan Cahill, president and chief executive officer. “The numerous improvements we have made to the operation are bearing fruit and we continue to identify additional areas for optimization. Our Miguel Auza mill realized excellent performance throughout 2020 and continues to deliver strong and improving recoveries. Our metal production for 2020 was not far off 2019, despite losing almost an entire quarter of production due to the pandemic — a testament to the resilience and perseverance of our operational teams. We thank them for their dedication as we look forward to a strong 2021 and yet higher silver prices to come.”

                               PRODUCTION RESULTS

                                 Q4 2020      Q4 2019         2020         2019

Tonnes mined from Platosa         21,455       19,622       66,501       74,876
Tonnes of ore processed           22,626       19,828       65,567       73,797
Tonnes of historical
stockpile processed                    -            -            -        1,450
Tonnes milled                     22,626       19,828       65,567       75,247
Ore grades
Silver (g/t)                         536          435          519          497
Lead (%)                            5.42         4.84         5.37         4.82
Zinc (%)                            6.12         6.39         6.57         6.93
Recoveries
Silver (%)                          91.2         91.7         91.4         89.9
Lead (%)                            82.9         80.2         83.7         79.2
Zinc (%)                            80.1         76.5         78.9         77.7
Metal production (2)
Silver (oz)                      355,581      259,282      997,690    1,054,029
Lead (lb)                      2,223,465    1,690,610    6,470,637    6,134,888
Zinc (lb)                      2,452,728    2,062,018    7,488,825    8,425,221
AgEq (oz) (3)                    556,332      469,707    1,639,310    2,002,036
Average realized prices
Silver ($)                         24.46        17.12        21.59        16.07
Lead ($)                            0.87         0.87         0.83         0.88
Zinc ($)                            1.21         1.04         1.08         1.12
Tonnes of ore processed -- San 
Sebastian                              -        6,398        4,785       14,231   

(1) Production during 2020 was impacted by the COVID-19-related suspension 
mandated by the government of Mexico from April 2 to June 1.        
(2) This si subject to adjustment following settlement with concentrate 
purchaser.   
(3) AgEq ounces established using average realized metal prices during 
the period indicated applied to the recovered metal content of concentrates.

Platosa continued to outperform 2019 productivity, while reducing operating costs, improving safety performance and managing the continuing threat posed by COVID-19. Recoveries at Miguel Auza improved on an annual basis, while plant reliability has substantially increased. During 2020, the operation realized improvements in shift scheduling, mining method, offtake arrangements and electricity costs, while completing the phase 2 tailings dam lift and strengthening the management and technical teams. In the continuing strong metal price environment, Excellon’s Mexican operations are positioned to continue the performance achieved in the second half of 2020.

Highlights (grades are uncut; length is measured along the hole):

• 1.78 grams per tonne gold over 196.6 metres, including 5.46 g/t Au over 33.5 m, within the 2020 mineral resource estimate conceptual pit shell;
• 3.30 g/t Au over 9.5 m, including 10.42 g/t Au over 2.0 m at 380 m;
• 20.90 g/t Au over 1.7 m at 520 m;
• 5.57 g/t Au over 3.1 m at 550 m.

DDH 17315-20-155 confirms the previous results from DDH 121 (news release dated Aug. 18, 2020) and DDH 149 (news release date Jan. 5, 2021) and the potential of the Bonnefond deposit below the 2020 mineral resource estimate (MRE) conceptual pit shell (new release dated Dec. 2, 2020).

“We continue to develop a better mineralization model with every hole drilled at Bonnefond,” said Dr. Andreas Rompel, vice-president, exploration. “And we gain more knowledge about the mineralization at depth. After having drilled several successful deep holes, it is clear that the mineralization continues down plunge including several high-grade intervals.”

The Bonnefond deposit comprises an intrusive body and series of shear zones transecting the intrusive and the surrounding volcanic series. The main part of the mineralization is hosted in the shear zones and is associated with quartz tourmaline veins, pyrite and strong sericite-albite-fuchsite alteration. In the tonalite, mineralized veins and veinlets extend outside of the shear envelops.

Drill hole 17315-20-155 was drilled down plunge close to the western contact of the Bonnefond tonalite, 50 m to west of DDH 121 to test the continuity of the enriched mineralization zones along the intrusive and below the resource pit. The drill hole remained within the mineralized tonalite from the bedrock to 560 m and ended at 625 m in the diorite. Along its entire course, the diamond drill hole intersected multiple enriched zones. These intervals are listed in the associated table. The intersection angle of the drill hole with the mineralized zones is almost perpendicular, rendering the intersection length close to the true width.

Within the 2020 MRE pit shell, DDH 155 intersected 1.78 g/t Au over 196.6 m including 5.46 g/t Au over 33.5 m and several narrower enriched intervals varying from 4.03 g/t Au over 1.6 m to 9.00 g/t Au over 1.5 m. Those enriched intervals are related to higher density of quartz tourmaline veins and visible gold is often observed.

Below the pit shell, the hole intersected several mineralized intervals such as 3.30 g/t Au over 9.5 m, including 10.42 g/t Au over 2.0 m at 380 m; 20.90 g/t Au over 1.7 m at 520 m and 5.57 g/t Au over 3.1 m at 550 m. Based on the current interpretation of the project, the continuity of several of these intervals can be traced in nearby drill holes demonstrating potential for continuous underground sustainable mineralized zones at depth.

Combined with the success of the 2020 MRE at building a first inferred underground resource on the Bonnefond deposit, the results of DDH 155, DDH 121 and DDH 149 builds on the underground potential of the project.

              RESULTS FROM DDH 155 -- BONNEFOND DEPOSIT
 
Hole No.             Hole        From         To     Length*          Au**
                   length     (metre)    (metre)     (metre)         (g/t)

17315-20-155          625
                                 79.2       80.7         1.5          3.17
                                126.3      128.1         1.8         16.53
                                136.4      333.0       196.6          1.78
                    incl.       148.5      150.0         1.5          9.00
                    incl.       180.4      213.9        33.5          5.46
                    incl.       226.5      233.5         7.0          3.29
                    incl.       232.0      233.5         1.5         10.53
                    incl.       262.0      263.6         1.6          4.03
                    incl.       294.1      296.1         2.0          6.89
                                347.5      349.0         1.5          4.69
                                373.5      383.0         9.5          3.30
                    incl.       375.5      377.5         2.0         10.42
                                502.7      505.7         3.0          2.99
                                521.0      522.7         1.7         20.90
                                544.8      546.3         1.5          4.99
                                554.7      557.8         3.1          5.57

* Reported length is measured along the hole.
** Au is uncut.
  

Current exploration drilling

QMX currently has four drill rigs operating on its Val d’Or property, all on and around the Bonnefond property. QMX expects to mobilize additional drill rigs as soon as the field conditions allow it to start drilling at the Bevcon and the New Louvre targets (news release dated Jan. 12, 2021).

The company has now completed approximately 6,000 metres of the planned 7,500-metre drill program in the resource expansion program. Many of the completed holes have targeted zinc-silver mineralization in the area between West and South Ayawilca, an area that has not been well drill tested. Two rigs are operational and are expected to remain at site until February, 2021. So far, 16 diamond drill holes have been completed (A20-169 to A21-184). Results for 11 of these holes are pending.

Drill highlights

Hole A20-170 (South Ayawilca):

• 38.8 metres at 9.3 per cent zinc and 14 grams per tonne silver from 282.6 m to 321.4 m depth, including:
  • 13.7 metres at 15.9 per cent zinc and 26 g/t silver from 282.6 m depth;
• The wider intersection is an extension of the mineralized interval reported on Nov. 30, 2020, to a depth of 309 metres only;
• 4.5 metres at 14.5 per cent zinc and 31 g/t silver from 340.1 m depth;
• 5.0 metres at 5.2 per cent zinc, 0.6 per cent lead and 16 g/t silver from 352.4 m depth.

Hole A20-173 (West Ayawilca):

• 18.7 metres at 7.2 per cent zinc and 11 g/t silver from 187.3 m depth, including:
  • 7.3 metres at 11.8 per cent zinc and 21 g/t silver from 196.0 m depth;
• 23.9 metres at 6.2 per cent zinc and eight g/t silver from 252.1 m depth;
• 2.8 metres at 15.0 per cent zinc and six g/t silver from 284.0 m depth.

Hole A20-175 (West Ayawilca):

• 1.2 metres at 43.6 per cent zinc, 0.5 per cent lead and 212 g/t silver from 136.5 m depth;
• 14.3 metres at 5.0 per cent zinc and nine g/t silver from 235.7 m depth.

Hole A20-171 (West Ayawilca — vein style):

• 0.4 metre at 19.6 per cent zinc and 99 g/t silver from 110.0 m depth.

Mineralization in holes A20-170, A20-173 and A20-175 is associated with gently-dipping sulphide-rich mantos hosted in limestones. True thicknesses of the mantos are estimated to be at least 90 per cent of the downhole thicknesses. Mineralization in hole A20-171 is vein style hosted by sandstones, which has an unknown true thickness.

President and chief executive officer of Tinka, Dr. Graham Carman, stated: “Ayawilca continues to produce strong zinc results with significant silver credits. Hole A20-170 is expected to expand our indicated resources at South Ayawilca, with mineralization still open to the southeast. Holes A20-173 and A20-175 have improved our geological model of the central portion of West Ayawilca with good grades also intersected in these holes.

“We await with much anticipation the assay results for the 11 pending drill holes, and we still have a handful more holes to drill. The receipt of results from the lab continues to be slow due to coronavirus pandemic protocols in Peru. Drilling will continue for the next few weeks, focusing on expanding our high-grade indicated resources at South Ayawilca that will be reflected in an updated preliminary economic assessment (PEA) planned for mid-2021.

“Ayawilca contains one of the higher-grade zinc resources anywhere in the world, and we are very excited to see zinc prices reflect the lack of significant new supply. We strongly believe that Ayawilca is perfectly positioned to take advantage of current positive market sentiment towards base metals.”

About Ayawilca

The Ayawilca zinc zone (sulphide) contains an estimated 1.8 billion pounds zinc and 5.8 million ounces silver in the indicated category, and 5.6 billion pounds zinc and 25.2 million ounces silver in the inferred category (see news release dated Nov. 26, 2018). The Colqui silver zone (oxide) contains an estimated 14.3 million ounces silver in the indicated category and 13.2 million ounces silver in the inferred category, with mineralization starting from surface.

       SUMMARY OF NEW RESULTS FROM THE 2020-2021 DRILL PROGRAM AT AYAWILCA

Drill hole       From          To     Interval       Zn       Pb       Ag          In
                  (m)         (m)          (m)      (%)      (%)    (ppm)       (ppm)

A20-170        202.85      215.00        12.15     4.11     1.23       60          12
incl.          202.85      205.00         2.15    10.20     2.53      121          20
and            243.20      246.90         3.70     6.50     0.12       13          60
and            282.60      321.40        38.80     9.33     0.03       14         197
incl.          282.60      296.25        13.65    15.93     0.02       26         503
and            340.10      344.60         4.50    14.53     0.06       31         296
and            352.40      357.40         5.00     5.19     0.55       16          30
A20-171        110.00      110.40         0.40    19.60     0.19       99           1
A20-173        187.30      206.00        18.70     7.16     0.03       11          15
incl           196.00      203.25         7.25    11.77     0.04       21          15
and            252.10      276.00        23.90     6.19     0.01        8         131
and            284.00      286.80         2.80    14.98     0.01        6          62
A20-175        136.50      137.70         1.20    43.59     0.47      212         745
and            212.20      212.75         0.55    27.10     0.45       29          52
and            235.70      250.00        14.30     5.00     0.03        9          17
and            301.80      304.50         2.70     8.20     0.00       10         838
                                                      

Notes on sampling and assaying

Drill holes are diamond HQ- or NQ-size core holes with recoveries generally above 80 per cent and often close to 100 per cent. The drill core is marked up, logged and photographed on site. The cores are cut in half at the company’s core storage facility, with half cores stored as a future reference. Half core is bagged on average over one- to two-metre composite intervals and sent to ALS laboratories in Lima for assay in batches. Standards and blanks are inserted by Tinka into each batch prior to departure from the core storage facilities. At the laboratory samples are dried, crushed to 100 per cent passing two millimetres, then 500 grams are pulverized for multielement analysis by ICP (inductively coupled plasma) using multiacid digestion. Samples assaying over 1 per cent zinc, lea, or copper and over 100 g/t silver are reassayed using precise ore-grade AAS (atomic absorption spectroscopy) techniques.

“We are excited to be kicking off the 2021 new year with encouraging assay results from our follow-up drilling program. The wide higher-grade intersection from the West zone has the potential to extend the higher-grade core of nickel and cobalt sulphides of the Main zone by 45 per cent or 850 metres to the northwest. Only seven other holes across entire property have intersected greater true widths of 0.30 per cent plus nickel. Additionally, the two other West zone holes reported today have defined a very wide one kilometre of large, low-grade mineralization coincident with the large gravity anomaly on the western part of the West zone. I look forward to the continued results from both the higher-grade and lower-grade zones as additional assays become available,” said Mark Selby, chair and chief executive officer of Canada Nickel.

“Additionally, we are expecting assay results from follow-up holes on the previously reported PGM results from hole CR20-32 and further results from the drilling currently under way on prospective geophysical nickel targets across several kilometres of the Crawford structure.”

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.

West zone drill results — higher-grade zone

Drilling on the West zone was guided by the geophysical signature of low gravity gradient of serpentinized dunite and has continued to intersect consistent nickel mineralization similar to that in the resource areas in the Main and East zones.

Notably, hole CR20-74 intersected 0.30 per cent nickel over core length of 308 metres (estimated true width of 198 metres) starting at 196 metres downhole, including 0.41 per cent nickel over core length of 13 metres at 271.5 metres downhole, and ended with 0.32 per cent nickel over core length of 36 metres. The entire hole CR20-74 returned 0.28 per cent nickel over core length of 453 metres — 850 m northwest of current end of higher-grade core of Main zone mineralization. Hole CR20-77 intersected 0.32 per cent nickel over 90 metres starting at 144 metres downhole, including 0.41 per cent nickel over core length of 12 metres starting at 177 metres downhole, and extends the Main zone higher-grade core by 100 metres to the west.

West zone drilling results — lower-grade zone

Complete assays from the first two holes in the western part of the West zone confirm wide, lower-grade mineralization more than 800 metres wide. Hole 20-69 returned 0.16 per cent nickel over entire core length of 456 metres including 177 metres of 0.21 per cent nickel. Hole 20-70 returned 0.17 per cent nickel over entire core length of 495 metres including 41 metres of 0.21 per cent nickel.

Next steps

An airborne geophysical survey and interpretation work have been completed on regional option properties and will guide a regional drilling program expected to commence this winter. Canada Nickel continues to work with its lead consultant, Ausenco, on assessing utilizing Glencore Canada’s Kidd operations for a start-up scenario. Additional metallurgical recovery work combined with those recently announced locked-cycle test results will be incorporated into a preliminary economic analysis to be completed by the end of first quarter 2021.

        WEST ZONE NICKEL -- DRILLING RESULTS, CRAWFORD NICKEL-COBALT SULPHIDE PROJECT, ONTARIO

                                                  Estimated 
DDH ID        From      To      Length           true width      Ni       Co      Pd      Pt      S      Fe
               (m)     (m)         (m)                  (m)     (%)      (%)   (g/t)   (g/t)    (%)     (%)

higher-grade core
CR20-74       51.4   504.0       452.6                290.9    0.28    0.014   0.016   0.008   0.07    7.55
including    196.5   504.0       307.5                197.7    0.30    0.014   0.016   0.007   0.08    7.73
including    229.5   382.5       153.0                 98.3    0.32    0.015   0.019   0.008   0.09    7.67
including    271.5   285.0        13.5                  8.7    0.41    0.016   0.025   0.010   0.14    7.58
and          468.0   504.0        36.0                 23.1    0.32    0.015   0.015   0.006   0.07    8.85
CR20-77       48.0   405.0       357.0                147.5    0.25    0.013   0.007   0.005   0.04    6.54
including    144.0   234.0        90.0                 37.2    0.32    0.012   0.018   0.005   0.10    6.23
including    177.0   189.0        12.0                  5.0    0.41    0.013   0.032   0.009   0.20    6.49
large lower-grade target
CR20-69       45.0   501.0       456.0                293.1    0.16    0.011   0.014   0.011   0.05    7.50
including     90.0   177.5        87.5                 56.2    0.20    0.013   0.015   0.010   0.04    7.72
and          324.1   501.0       176.9                113.7    0.21    0.014   0.017   0.012   0.03    7.58
CR20-70       46.0   541.0       495.0                318.2    0.17    0.012   0.008   0.009   0.03    7.26
including     46.0   382.0       336.0                216.0    0.20    0.014   0.005   0.007   0.01    7.41
and          500.4   541.0        40.6                 26.1    0.21    0.014   0.024   0.020   0.03    7.64

Note
Holes drilled at a 50-degree or 65-degree inclination. The lengths reported are core lengths and not 
true widths. True widths are estimated based on dip and core lengths but may change once Canada Nickel 
has sufficient information to determine the attitude, either of the ultramafic body or of mineralized 
zones within it.

Assays, quality assurance/quality control and drilling and assay procedures

William E. MacRae, MSc, PGeo, a qualified person as defined by National Instrument 43-101, is responsible for the continuing drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5-metre lengths and cut with a diamond-bladed saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) 17025-accredited lab. Analysis for precious metals (gold, platinum and palladium) is completed by fire assay while analysis for nickel, cobalt, sulphur and 17 other elements is performed using a peroxide fusion and ICP-OES (inductively coupled plasma optical emission spectroscopy) analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples making a batch of 35 samples that are submitted for analysis.

2020 Highlights

Anaconda produced 18,268 ounces of gold in 2020 from its Point Rousse operation, achieving its annual guidance of 18,000 to 19,000 ounces, predominantly from Pine Cove Pit mine production, with the processing of ore from the Argyle Gold Mine commencing in late Q4 2020.Anaconda sold 17,918 ounces of gold in 2020, generating record metal revenue of $41.5 million at an average sales price1 of C$2,316 (US$1,728) per ounce of gold. As at December 31, the Company also had over 525 ounces in gold dore inventory, which was subsequently sold in January.The Pine Cove Mill achieved annual throughput of 459,085 tonnes during 2020, just short of its annual record throughput, representing a 14% increase over 2019, when the mill was impacted by unplanned maintenance.Mine operations moved 512,028 tonnes of ore during the year, including 103,557 tonnes of ore from Argyle in Q4 2020, at an average grade of 1.50 grams per tonne (&quot;g/t&quot;) and at a strip ratio of 3.8 waste tonnes per ore tonne.The Pine Cove Pit has now transitioned to a fully permitted in-pit tailings facility, with over 10 years of capacity at current throughput rates.The Company announced the full exercise of share purchase warrants expiring on January 10, 2021, resulting in proceeds of $3,526,895 and the issuance of 7,837,544 common shares.As of December 31, 2020, the Company had a cash balance of $14.6 million and preliminary working capital1 of $13.8 million. The Company’s current loan balance as of December 31, 2020 was $1.9 million and the non-current portion was $0.8 million.

&quot;While 2020 was an unusual year in so many ways, with all the uncertainty brought with the global pandemic, it ended up being a very strong year for Anaconda Mining and its operations at Point Rousse. Firstly, and above all, I would like to thank all our employees for their hard work and commitment under very challenging circumstances, ensuring the sustainability of the operation while maintaining the highest level of commitment to the health and safety of all members of the community in which we operate. The Company produced 18,268 ounces of gold to meet its annual guidance and achieved record metal revenue of $41.5 million, with excellent performance from the mine and mill operations. We are excited with the commencement of ore processing from our newest mine at Point Rousse, the Argyle Gold Mine, which will provide most of the mill throughput in 2021 as we guide to produce between 18,000 and 19,000 ounces of gold in the upcoming year. With a strong treasury and continued free cash flow generation we begin the year in a robust financial position and with a clear focus on growth.&quot;

~Kevin Bullock, President and CEO, Anaconda Mining Inc.

2021 GuidanceAnaconda is projecting to produce between 18,000 and 19,000 ounces of gold in 2021. Mill feed in 2021 will be predominantly from mining at the Argyle Gold Mine, with supplemental ore feed from Pine Cove and marginal stockpiles, although the Company continues to investigate opportunities to defer marginal ore feed. Operating cash costs per ounce1 for the full year are expected to be between $1,425 and $1,475 per ounce of gold sold (US$1,100 – US$1,145 at an approximate exchange rate of 0.775), reflecting the relatively lower grade profile of Argyle in the earlier part of the mine plan, the impact of processing lower grade marginal ore, and increased trucking costs to the Pine Cove Mill from Argyle. Mine grade will increase significantly towards the end of 2021 and into 2022 at Argyle which, along with a decrease in the stripping ratio, will lead to a marked decrease in operating cash costs per ounce sold. Furthermore, any opportunity to displace marginal ore will positively impact operating costs on a per ounce sold basis.

The Company expects to incur $6,600,000 of sustaining capital expenditures for the mine and mill operations in 2021, which includes approximately $3,800,000 of mine development for pushbacks at the Argyle Gold Mine, which will also support ongoing mining in 2022. Looking further ahead at Point Rousse, the Company continues to infill drill the Stog&#39;er Tight extension and advance baseline permitting activities, given its strong potential to extend the life of mine of the Point Rousse operation.

In addition, milestones and catalysts for growth in 2021 include:Ongoing production and free cash flow generation from Argyle throughout 2021.Infill drilling at Stog&#39;er Tight deposit to complete an updated Mineral Resource.Final drill results from the Goldboro Gold Project (&quot;Goldboro&quot;) infill drill program in Q1 2021.An updated Mineral Resource for the Goldboro Gold Project in Q1 2021.Ongoing initial 10,000 metre drill program at the Tilt Cove Gold Project in Q1 and Q2 2021.Drill Program at the Lower Seal Harbour Property in Nova Scotia, proximal to Goldboro.Completion of the Goldboro Feasibility Study in Q4 2021.

Operating Statistics for the Three Months and Year Ended December 31, 2020During the fourth quarter of 2019, the Company processed a bulk sample for Goldboro (the &quot;Bulk Sample&quot;) at its Pine Cove Mill (see press release dated January 16, 2020). Fourth quarter and annual 2019 mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis.

 
                                   Three months    Three months           Year             Year
                                          ended           ended          ended            ended
                                  Dec. 31, 2020   Dec. 31, 2019  Dec. 31, 2020    Dec. 31, 2019
Mine Statistics
Ore production (tonnes)                 110,455         123,302        512,028          413,139
Waste production (tonnes)               453,859         518,698      1,964,689        1,771,408
Total material moved (tonnes)           564,314         642,000      2,476,717        2,184,547
Waste: Ore ratio                            4.1             4.2            3.8              4.3

Mill Statistics
(including Bulk
Sample in 2019)
Availability (%)                           91.5            97.1           96.3             89.6
Dry tonnes processed                    107,257         110,474        459,085          401,499
Tonnes per day ("tpd")                    1,274           1,236          1,302            1,228
Grade (grams per tonne)                    1.39            1.49           1.42             1.52
Recovery (%)                               86.8            83.1           87.4             82.3
Gold Ounces Recovered                     4,171           4,411         18,268           16,181
Gold Ounces Sold                          3,970           4,209         17,918           17,265

Excluding the operating results from the Bulk Sample, the Pine Cove Mill Statistics specifically for production from the Point Rousse operation are as follows:

Dry tonnes processed   107,257100,689459,085391,714
Tonnes per day ("tpd") 1,274  1,318  1,302  1,248  
Grade (grams per tonne)1.39   1.27   1.42   1.46   
Recovery (%)           86.8   84.0   87.4   82.8   
Gold Ounces Produced   4,171  3,441  18,268 15,211 
Gold Ounces Sold       3,970  3,306  17,918 16,362 

Operations Overview for the Year Ended December 31, 2020Anaconda sold 17,918 ounces of gold in 2020 to generate record metal revenue of $41.5 million at an average realized gold price1 of C$2,316 (US$1,728) per ounce, representing a 41% increase in metal revenue compared to 2019 due to a combination of significantly higher gold prices and higher gold production. During the fourth quarter, the Company sold 3,970 ounces of gold from production from its Point Rousse operations, generating metal revenue of $10.0 million at an average realized gold price1 of C$2,503 per ounce (US$1,921).

The Point Rousse operation produced 18,268 ounces of gold during 2020, achieving annual guidance of 18,000 to 19,000 ounces, and representing a 13% increase over 2019 as a result of higher throughput and stronger recoveries. Production was predominantly from the Pine Cove Pit, where mining ceased in early Q4 2020 and mill production was maintained from the established stockpile of 100,000 tonnes. In 2021, production will be focused exclusively at Argyle, with mill throughput supplemented with marginal ore from the Pine Cove Pit.

Point Rousse Mine Operations – During the fourth quarter, the mine operation produced 110,455 tonnes of ore (of which 103,557 tonnes were from Argyle), a 10% decrease from Q4 2019 when mining was focused exclusively in the Pine Cove Pit. For 2020, the mine operation produced 512,028 tonnes of ore, a significant increase over 2019 when the first half of the year was focused on the lower tonnage profile Stog&#39;er Tight Mine. The strip ratio for 2020 was 3.8 waste tonnes to ore tonnes, a decrease from 4.3 in 2019, as the mine operation completed mining in the Pine Cove Pit throughout 2020 and the tonnes of waste moved decreased accordingly. The strip ratio of 4.1 waste tonnes to ore tonnes in Q4 2020 reflects the impact of the commencement of development at Argyle.

As at December 31, 2020, the mine operation had stockpiled over 102,300 tonnes of ore, which included approximately 72,000 tonnes from Argyle at an average grade of 1.79 g/t. Going forward into 2021, the mine operations will be exclusively focused on production from Argyle, which together with existing stockpiles will contribute approximately 70% of mill throughput in the upcoming year, with Pine Cove and marginal stockpiles providing the balance.

Point Rousse Mill Operations – The Pine Cove Mill processing facility milled 107,257 tonnes during the fourth quarter of 2020, a 3% decrease compared to Q4 2019, the result of lower mill availability due to a planned shutdown for a mill liner change. For the 2020 year, the mill processed 459,085 tonnes of ore, an increase of 14% compared to 2019 due to strong mill availability of 96.3% in the most recent year compared to only 89.6% in 2019. The Pine Cove Mill has returned to consistent and sustainable operations since the challenges encountered in the early half of 2019, when unplanned maintenance of the regrind mill impacted mill availability, which in turn impacted throughput and recovery. Anaconda took the opportunity to accelerate other planned maintenance programs, invest in critical spares, and bolster preventative maintenance programs, the result of which can be seen with the strong performance of the mill in 2020.

Average grade during the fourth quarter was 1.39 g/t, a 7% decrease compared to Q4 2019 due to the impact of the Goldboro Bulk Sample in the comparative period, however a 9% increase when compared to ore milled only from the Point Rousse operation. The fourth quarter of 2020 reflected the impact of processing of 30,324 tonnes of ore from the relatively higher-grade Argyle deposit. Average grade for 2020 was 1.42 g/t, down slightly from 1.46 g/t in 2019 when comparing only to Point Rousse results, as ore feed in the first half of the prior year was mainly from the higher grade Stog&#39;er Tight Mine. The mill achieved an average recovery rate of 86.8% in Q4 2020 and 87.4% for the 2020 year, both representing strong increases over the comparative periods of 2019, further reflecting the strong improvements that have been implemented at the mill operation.

Detailed results are presented in Table 1.

Pascal Hamelin, CEO commented, “Recent assays have expanded both the size of the mineralized system and confirmed the high-grade continuity for the Main and North Zones at Gladiator. Drilling has been mainly focused on expanding the known mineralized envelope and improving confidence. Drilling continues to progress well and is on track to complete the 16,500 m campaign at Gladiator before the upcoming mineral resources estimate update expected to be released this summer.”

Gladiator Deposit Geology

The Gladiator deposit consists of three primary zones; the North, Main and Barbeau Zones. The North and the Main Zone are characterized by felsic dykes hosted mineralized quartz veins within steeply south-southeast dipping shear zones having developed at the contacts between mafic and intermediate volcanics and gabbroic intrusions. The Main Zone includes a secondary sub-parallel vein interpreted as a dislocated fold along the Main Zone structure. The North Corridor and South Zones are a series of mineralized zones spatially correlated with felsic dykes dipping to the south-southeast. These zones are interpreted to be subparallel and similar mineralized trends to the North and Main Zones. Additional “North Dipper” mineralized zones with trends moderately to steeply dipping northward, similar to the Barbeau Zone, are confirmed from the latest drilling (Figures 1 and 4).

Table 1 - Significant mineralized intersections of recent drilling 

Hole ID          From (m)To (m)Length (m)Grade (g/t Au)        Zone        
BA-20-23           39.7   40.5    0.8         1.1      North Dipper (South)
                   77.0   77.5    0.5         0.5                          
                  175.3  176.9    1.6         8.6              Main        
        Including 175.8  176.9    1.1         12.3                         
                  206.0  213.9    7.9         0.8                          
                  217.0  218.0    1.0         2.7                          
                  288.0  290.0    2.0         2.3         North Corridor   
                  297.0  300.0    3.0         2.4         North Corridor   
                  308.0  308.7    0.7         3.5         North Corridor   
                  315.0  317.0    2.0         15.6            North        
        Including 315.5  316.2    0.7         44.2                         
                  342.6  343.1    0.5         2.4         North Corridor   
BA-20-24           67.0   68.0    1.0         0.8          North Dipper    
                  108.0  109.0    1.0         0.6          North Dipper    
BA-20-25           70.0   70.8    0.8         0.6              Main        
                   75.0   76.0    1.0         1.3              Main        
BA-20-26          129.0  137.0    8.0         0.9         North Corridor   
                  151.0  153.0    2.0         0.9         North Corridor   
BA-20-27           55.0   57.0    2.0         1.2                          
                  115.0  115.5    0.5         6.5                          
                  133.8  134.4    0.6         1.2                          
                  146.9  148.5    1.6         0.5              Main        
                  150.0  151.0    1.0         1.2              Main        
                  169.7  170.9    1.2         2.9              Main        
                  230.0  235.6    5.6         0.9              Main        
BA-20-28          113.5  116.9    3.4         0.6         North Corridor   
                  122.2  123.0    0.8         1.0         North Corridor   
BA-20-29          166.3  167.0    0.7         2.3              Main        
                  240.0  245.2    5.2         26.6             Main        
        Including 242.0  243.5    1.5         91.3                         
                  277.5  278.5    1.0         1.1      North Dipper (Main) 
                  316.2  316.9    0.7         1.9          North Dipper    
                  333.0  334.0    1.0         1.1                          
                  352.0  353.0    1.0         0.6          North Dipper    
                  386.0  388.5    2.5         3.4             South        
BA-20-30          187.5  194.0    6.5         1.2              Main        
                  198.0  200.0    2.0         0.6                          
                  212.8  217.0    4.2         0.6                          
                  266.0  268.6    2.6         1.1                          
                  387.1  387.7    0.6         0.5                          

Notes:

1) The meterage represents the length of the drilled lengths.

2) Estimated true widths for the interpreted Main, North, and South Zones range from at least 50% to 90% of the interval core length. The estimated true widths of the North Dipper and North Corridor Zones are unknown.

3) The mineralized intervals listed are above 0.5 g/t Au.

Five holes intersected the Main Zone (BA-20-23; 25; 27; 29 and 30). Highlights include 8.6 g/t Au over 1.6 m including 12.3 g/t Au over 1.1 m in hole BA-20-23 (Figure 2).

Two holes were drilled to target the North Zone (BA-20-23 and 26). Best results included 15.6 g/t Au over 2.0 m including 44.2 g/t Au over 0.7 m in hole BA-20-23 (Figure 3).

The latest drilling has intersected the Main and South Zones of which the best intervals returned: 26.6 g/t Au over 5.2 m including 91.3 g/t Au over 1.5 m and 3.4 g/t Au over 2.5 m respectively in hole BA-20-29 (Figure 4).

Under the terms of the Purchase Agreement, O3 Mining shall receive approximately 150 million common shares of Moneta (“Moneta Shares”). Upon completion of the Transaction, and prior to the financing described below, O3 Mining is expected to own approximately 30% of the outstanding Moneta shares.

Concurrent with the Transaction, Moneta will raise approximately $20 million in equity.

Transaction Highlights:Creation of a leading gold exploration and development company with 3,967,000 ounces (oz) gold (Au) in the indicated category and 4,399,000 oz Au in the inferred category located in the prolific Timmins Gold Camp3,335,000 oz Au open pit indicated gold resources and 2,270,000 oz Au open pit inferred gold resources632,000 oz Au underground indicated gold resources and 2,129,000 oz Au underground inferred gold resourcesAddition of 1,822,000 oz Au in the indicated category and 1,062,000 oz Au in the inferred category to Moneta’s mineral inventory immediately adjacent to the Golden Highway projectSubstantial development and operating synergies through an integrated project Potential for a much larger scale project than originally envisioned for the Preliminary Economic Assessment (“PEA”) on the South West deposit announced in September 2020Potential starter pit at Garrison with outcropping gold resources at higher grades and a lower strip ratio to augment the development of Moneta’s open pit resourcesAddition of 9,269 hectares (ha) (92.69 square kilometres (sq.km)) of adjacent and contiguous prospective ground to Moneta’s claim base in the Timmins Gold CampConcurrent $20 million equity financing to fund an aggressive drill campaignEnhanced capital markets profile and exposurePlatform for further district consolidation

Gary O’Connor, CEO of Moneta, commented; “The acquisition of the Golden Bear assets will transform Moneta into one of the largest gold development companies in North America with a significant resource and land holding in Canada’s most prolific gold mining camp. The Golden Bear assets, including the Garrison Gold deposits, are adjacent to our flagship Golden Highway project and provide significant synergies and multiple options for the development of our gold resources. Moneta will hold 3,967,000 ounces of indicated gold resources and 4,339,000 million ounces of inferred gold resources including both high-grade bulk tonnage underground deposits and near surface open pit resources. With completion of the proposed equity financing, the Company will be well funded to test the expansion potential of the integrated project. The Transaction provides a good endorsement of our project and adds a highly successful project development company as a partner”.

Jose Vizquerra, President and CEO of O3 Mining, commented: “O3 Mining is pleased to unlock value for our shareholders through our investment in, and support of, Moneta, and the possible future development of a large and long-life gold project in Timmins, Ontario – one of Canada’s most productive gold camps. The consolidation of these two historically fractioned mining camps will allow for a more systematic exploration strategy going forward, and unlock value for our shareholders and other Moneta shareholders alike as the project develops. We look forward to partnering with Moneta’s management team, through our board representation, and being part of Moneta’s growth story in the Timmins Mining Camp, in our role as a significant shareholder”.

Benefits to Shareholders

The Transaction is expected to result in the following benefits for our shareholders:One of the largest undeveloped gold mining projects in North America Potential for a much larger scale project than originally envisioned in the PEA studies recently completed on the Golden Highway and Garrison gold projects (The “Tower Gold Project”) with substantial economic benefits to be realized from operational and development synergiesLand position increased by 73% for resource expansion in the prolific Timmins Gold CampPotential starter pit at Garrison containing 1,070,000 oz Au at a grade of 1.04 g/t Au at a low strip ratio (2.7:1) and a cash production cost of US$721/oz of Au with outcropping gold mineralization to augment the development of Moneta’s open pit resourcesSignificant increase of gold resources in the indicated categoryCombined exploration agreements and consolidation of good working relations with the Wahgoshig First Nation Continued resource expansion potential and opportunities

Transaction Details

The Transaction is subject to approval by a simple majority of the votes cast by Moneta shareholders, TSX approval and other closing conditions customary in transactions of this nature.

The Purchase Agreement includes, among other things, mutual non-solicitation provisions, a customary “fiduciary out” provision of Moneta and a right for O3 Mining to match superior proposals and a $1.42 million termination fee payable by Moneta to O3 Mining under certain circumstances.

Concurrent with closing of the Transaction, Moneta and O3 Mining will enter into an investor rights agreement (the “Investor Rights Agreement”) pursuant to which the Moneta board of directors shall be reconstituted to consist of eight individuals with O3 Mining entitled to nominate two directors and one newly appointed independent director to be agreed upon by the parties. Additionally, (i) for so long as O3 Mining holds greater than 25% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate two nominees for election as directors of Moneta; and (ii) for so long as O3 Mining holds greater than 10% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate one nominee for election as a director of Moneta and one nominee to the Technical Committee of the Moneta board of directors to be established following the closing of the Transaction. The Investor Rights Agreement includes, among other things, pre-emptive and top-up rights in favour of O3 Mining, a standstill provision for a period of 2 years and a share transfer restriction provision effective until December 31, 2022.

Moneta appointed a special committee of independent directors to consider and make a recommendation with respect to the Transaction. Based in part on the unanimous recommendation of the special committee of Moneta, the Purchase Agreement has been unanimously approved by the board of directors of Moneta. The Purchase Agreement has also been unanimously approved by the board of directors of O3 Mining. The Moneta board of directors recommends that shareholders vote in favor of the Transaction.

Maxit Capital LP has provided a fairness opinion to the board of directors of Moneta. The fairness opinion stated that, as of the date thereof and, based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the consideration received under the Purchase Agreement is fair, from a financial point of view, to the Moneta shareholders.

Directors of Moneta holding an aggregate of 16.49% of the outstanding shares have entered into customary voting and support agreements with O3 Mining to vote in favour of the Transaction, subject to certain exceptions.

Moneta also intends to consolidate its share capital on a 6 for 1 basis (the “Consolidation”), subject to the receipt of all necessary approvals, following the closing of the Transaction. The Consolidation Resolution requires approval by not less than two-thirds (66 2/3%) of the votes cast by the Moneta shareholders present in person, or represented by proxy, at Moneta shareholder meeting.

Full details of the Transaction and other business of the Moneta shareholder meeting will be included in a Moneta management information circular that is expected to be mailed to Moneta shareholders in February 2021. It is anticipated that the Moneta shareholder meeting and the closing of the Transaction will take place in the second quarter of 2021.

Moneta Financing

The Company has entered into an agreement with Paradigm Capital Inc. (“Paradigm”) and Dundee Goodman Merchant Partners (“Dundee”) on behalf of a syndicate of underwriters (together with Paradigm and Dundee, the “Underwriters”), in connection with a “bought deal” private placement offering (the “Bought Deal Offering”) for aggregate gross proceeds of approximately C$17,000,000. The Bought Deal Offering will consist of 30,435,000 common shares of the Company that qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the “Flow Through Shares”) at a price of C$0.46 per Flow Through Share and 9,375,000 common shares (“Hard Dollar Shares”) at a price of C$0.32 per Hard Dollar Share.

In addition, the Company has granted the Underwriters an option to purchase that number of additional Flow Through Shares and/or Hard Dollar Shares on the terms described above for additional aggregate gross proceeds of up to approximately C$2,550,000, exercisable up to 48 hours prior to the closing of the Bought Deal Offering.

Concurrent with the Bought Deal Offering, Moneta is also undertaking a non-brokered private placement (together with the Bought Deal Offering, the “Offerings”) of subscription receipts (the “Subscription Receipts”) at a price of C$0.32 per Subscription Receipt for gross proceeds of up to C$3,000,000. The proceeds from the sale of the Subscription Receipts are expected to be deposited into escrow pending satisfaction of certain escrow release conditions, including closing of the Transaction. At the time the Transaction closes, each Subscription Receipt will be exchanged for one common share of the Company.

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the Flow Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur or be deemed to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) on future and current properties of the Company or a subsidiary thereof on or before December 31, 2022, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow Through Shares effective on or before December 31, 2021. The proceeds from the sale of the Hard Dollar Shares and Subscription Receipts will be used for exploration and development activities on future and current properties of the Company or a subsidiary thereof and for general corporate purposes.

The Bought Deal Offering is expected to close on or about February 4, 2021. The Offerings are subject to certain closing conditions including the approval of the Toronto Stock Exchange. All securities issued pursuant to the Offerings will have a hold period of four months and one day.

Completion of the Transaction is not contingent on completion of the Offerings and completion of the Bought Deal Offering is not contingent on completion of the Transaction.

Advisors

Moneta has engaged Maxit Capital LP (“Maxit”) as its financial advisor and Stikeman Elliott LLP as its legal counsel. Maxit has provided a fairness opinion to the Board of Directors of Moneta that, subject to the assumptions, limitations, and qualifications set out therein, the consideration paid by Moneta is fair, from a financial point of view to Moneta. O3 Mining has engaged Sprott Capital Partners LP as its financial advisor and Bennett Jones LLP as its legal counsel. Cassels Brock &#38; Blackwell LLP is acting as counsel for the Underwriters.

Webcast Details

Management will host a webcast and conference call to discuss the results of the transaction accompanied by Jose Vizquerra, President and CEO of O3 Mining, on Thursday January 14th, 2021 at 11:00 am (EST).

Conference call numberToll Free Dial-In Number: (833) 772-0367International Dial-In Number: (343) 761-2596

Webcast Linkhttps://onlinexperiences.com/Launch/QReg/ShowUUID=9233F573-2D68-4C1A-9191-A13B5FABEFEF

A replay of the conference call will be available at 2:00 pm on the Company’s website and by calling (800) 585-8367 or (416) 621-4642, Conference ID 9741619.

About the Golden Bear Assets

O3 Mining holds 9,269 ha of prospective land within the Golden Bear project located adjacent to or in near proximity to Moneta’s Golden Highway project, 100 km east of Timmins. O3 Mining completed an updated resource estimate and preliminary economic assessment (PEA) study on the Garrison Gold project within the Golden Bear project in December 2020. The study highlighted a measured and indicated open pit resource of 1,822,000 ounces contained within 66.3 Mt @ 0.86 g/t Au and an inferred open pit resource of 1,062,000 ounces contained within 45.3 Mt @ 0.73 g/t Au at a 0.30 g/t Au cut-off. The PEA study showed an open pit mining operation consisting of a 12-year mine life with an after-tax NPV5% of C$321MM, IRR of 33% and a 2.3 year payback. The project envisaged open pit mining producing 121,000 oz/pa in years 1 to 8 (94,000 oz/pa LOM), at a strip ratio of 2.7:1 at a cash cost of US$721/oz using a gold price of US$1,450/oz and an exchange rate of C US$0.75/C$.

About Moneta

Moneta’s land package in the Timmins Gold Camp covers 12,742 hectares (ha) including six gold projects plus a joint venture with Kirkland Lake Gold Corporation (TSX: KL) covering 4,334 ha. The Company’s flagship project, Golden Highway Gold Project is located 100 km east of Timmins and hosts a total indicated resource of 2,145,000 ounces gold contained within 55.3 Mt @ 1.21 g/t Au and a total of 3,337,000 ounces gold contained within 49.7 Mt @ 2.09 g/t Au in the inferred category at a 2.60 g/t Au at South West, 3.00 g/t Au cut-off for the other underground deposits and 0.30 g/t Au for the open pit deposits. The project includes a total of 1,512,000 ounces of open pit indicated resources contained within 50.5 Mt @ 0.93 g/t Au and 1,207,000 ounces of open pit inferred resources contained within 34.0 Mt @ 1.10 g/t Au. The project also includes 632,000 ounces of indicated underground resources contained within 4.9 Mt @ 4.05 g/t Au and 2,128,000 ounces of inferred underground resources within 15.7 Mt @ 4.21 g/t Au.

A PEA study was completed in September 2020 on the South West underground gold deposit, one of 6 deposits located on the Golden Highway project, and highlighted an underground bulk mining operation consisting of an 11-year mine life with an after-tax NPV5% of C$236MM, IRR of 30% and a 3.4 year payback, generating C$371MM LOM after-tax free cash flow. The project envisaged producing 76,000 oz/pa at a cash cost of US$590/oz at a gold price of US$1,500/oz and an exchange rate of US$0.77/C$. The open pit resources and new underground discoveries have not yet been subjected to a preliminary economic assessment study at Golden Highway.

Table 1: New Moneta; Mineral ResourcesOpen Pit                   Underground         
     Deposit       Tonnes    Grade   Ounces    Tonnes     Grade    Ounces  
                     (t)     (g/t)    (oz)      (t)       (g/t)     (oz)   
South West*                                                                
    Indicated                                4,530,000    4.07     592,000 
    Inferred                                 9,607,000    4.01    1,238,000
Windjammer South*                                                          
    Indicated    40,582,000   0.84  1,100,000  6,000      3.90      1,000  
    Inferred     28,956,000   1.10  1,028,000 143,000     4.06     19,000  
Westaway/West Block*                                                       
    Indicated                                                              
    Inferred                                 4,367,000    4.71     662,000 
55*                                                                        
    Indicated     9,896,000   1.30   413,000                               
    Inferred      5,079,000   1.10   180,000  123,000     4.65     18,000  
Discovery*                                                                 
    Indicated                                 141,000     3.49     16,000  
    Inferred                                  658,000     4.00     85,000  
Windjammer North*                                                          
    Indicated                                 182,000     3.98     23,000  
    Inferred                                  813,000     4.08     107,000 
Garcon**                                                                   
    Indicated    20,923,000   0.82   552,000                               
    Inferred      7,056,000   0.87   197,000                               
903**                                                                      
    Indicated    27,558,000   0.84   747,000                               
    Inferred     30,760,000   0.69   682,000                               
Jonpol**                                                                   
    Indicated    17,786,000   0.91   523,000                               
    Inferred      7,521,000   0.76   183,000                               
 Total Indicated 116,745,000  0.89  3,335,0004,859,000    4.05     632,000 
 Total Inferred  79,372,000   0.89  2,270,00015,711,000   4.21    2,129,000

*Micon International Ltd, December 08, 2020, **Ausenco Engineering Canada Ltd, December 14, 2020Figure 1: Moneta: Timmins Gold Camp ClaimsTo view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/4852/72051_9bd2138cd406699a_002full.jpgFigure 2: Moneta; Mineral Resource Location MapTo view an enhanced version of Figure 2, please visit:https://orders.newsfilecorp.com/files/4852/72051_9bd2138cd406699a_003full.jpg

The strategic consolidation of the Garrison and Golden Highway Projects under Moneta will create a leading gold development company in the prolific Timmins gold mining camp, allowing for their more systematic exploration and combined development in partnership with O3 Mining. This divestiture is part of O3 Mining’s broader corporate strategy to unlock value for its shareholders and maintain exposure to the development potential of the Garrison Project while allowing the Corporation to focus its resources on advancing its core assets. Its core assets are the Marban and Alpha gold properties situated in Quebec, Canada, where it is currently working to expand its gold mineralization through an extensive 150,000-metre drilling campaign with 12 drilling rigs.

Jose Vizquerra, President and CEO of O3 Mining, commented: “O3 Mining is pleased to unlock value for our shareholders through our investment in, and ongoing support of, our new partner, Moneta. This transaction will allow O3 Mining to partner in the future development of a large and long-life gold project situated in one of the world’s most famous gold producing districts through the consolidation of these two projects and their respective land positions. We look forward to partnering with Moneta’s management team, through our board representation and in our role as Moneta’s largest shareholder, and being part of its growth story. O3 Mining aims to be a supportive partner to Moneta as it advances the Garrison and Golden Highway Projects through the formation of a joint technical committee, board representation, and its ability to participate in future financings to maintain its pro-rata ownership position.”

Gary O’Connor, CEO of Moneta, commented: “The partnership with O3 Mining through the acquisition of the Golden Bear assets will transform Moneta into one of the largest gold development companies in North America with a significant resource and landholding in Canada’s most prolific gold mining camp. The Golden Bear assets, including the Garrison Gold deposits, are adjacent to our flagship Golden Highway project and provide significant synergies and multiple options for the development of our gold deposits. Moneta will hold approximately 4.0 million ounces of indicated gold resources and 4.4 million ounces of inferred gold resources including both high-grade bulk tonnage underground deposits and near-surface open pit resources, and access to the technical capabilities of O3 Mining team. With the completion of a proposed concurrent equity financing, Moneta will be well funded to test the expansion potential of the integrated project. We are excited about this transaction; it provides excellent value for the shareholders of both companies.”

Transaction Highlights

• Creation of a leading gold development company with 4.0 million ounces of gold (Au) in the indicated mineral resource category and 4.4 million ounces of Au in the inferred mineral resource category and mineral inventory expansion opportunities on the combined landholdings of over 20,000 hectares in the prolific Timmins gold mining camp in Ontario, Canada
• Partnership between O3 Mining and Moneta under an investor rights agreement and including the formation of a joint technical committee, the right of O3 to nominate two directors for election to the board of directors of Moneta, and the right to participate in future financings to maintain its pro-rata ownership position
• Unlocking substantial developmental and operating synergies by consolidating the Garrison and Golden Highway projects
  • Potential starter pit at Garrison with outcropping gold resources at higher grades and a lower strip ratio
  • The overall footprint of the facilities can be reduced as common buildings, process plant area, and tailings storage areas are combined
• Enhanced capital markets profile and value proposition platform for further district consolidation opportunities
• Creation of a district-scale mining company under Moneta with enhanced critical mass which can command greater financial support from institutions to facilitate the execution of its business plan.

Transaction Terms

The Transaction is subject to the approval of Moneta’s shareholders at a special meeting expected to be held in April 2021. In addition, the Transaction is subject to the receipt of certain regulatory and stock exchange approvals and other customary closing conditions for a transaction of this nature. The Agreement includes, among other things, customary mutual non-solicitation provisions, a “fiduciary out” provision of Moneta, a right to match superior proposals by O3 Mining and a C$1.42 million termination fee payable by Moneta to O3 Mining under certain circumstances.

Concurrent with closing of the Transaction, O3 Mining and Moneta will enter into an investor rights agreement (the “Investor Rights Agreement”) pursuant to which the board of directors of Moneta will be reconstituted to consist of eight individuals, with O3 Mining entitled to nominate two directors and one newly appointed independent director to be agreed upon by the parties. Additionally, for a period of two years, O3 Mining shall have the right to nominate two nominees for election as directors of Moneta and, thereafter, for so long as O3 Mining holds greater than * 25% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate two nominees for election as directors of Moneta, and (y) 10% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate one nominee for election as a director of Moneta. The Investor Rights Agreement includes, among other things, pre-emptive and top-up rights in favour of O3 Mining, a 24-month standstill provision in favour of Moneta, and certain other restrictions in respect of O3 Mining’s dealings in Moneta Shares (including a prohibition from selling the Moneta Shares held by O3 Mining until December 31, 2022).

The directors of Moneta, collectively holding approximately 16.5% of the outstanding Moneta Shares, have entered into voting support agreements and have agreed to vote in favour of the Transaction, subject to certain exceptions. Moneta also intends to consolidate its share capital on a 6:1 basis, subject to the receipt of all necessary approvals, on closing of the Transaction.

Moneta Financing

In connection with the Transaction, Moneta will raise approxiamately C$20 million in equity, including the C$17 million Bought Deal Offering, as further described below.

Moneta entered into an agreement with Paradigm Capital Inc. (“Paradigm”) and Dundee Goodman Merchant Partners (” Dundee “), on behalf of a syndicate of underwriters (collectively, with Paradigm and Dundee, the “Underwriters”), in connection with a “bought deal” private placement offering (the “Bought Deal Offering”) for aggregate gross proceeds of approximately C$17 million. The Bought Deal Offering will consist of 30,435,000 common shares of Moneta that will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the “Flow-Through Shares”) at a price of C$0.46 per Flow-Through Share and 9,375,000 common shares of Moneta (“Hard Dollar Shares”) at a price of C$0.32 per Hard Dollar Share.

In addition, Moneta has granted the Underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing of the Bought Deal Offering, to purchase that number of additional Flow-Through Shares and/or Hard Dollar Shares on the same terms described above for additional aggregate gross proceeds of up to approximately C$2.55 million.

Concurrent with the Bought Deal Offering, Moneta will also undertake a non-brokered private placement (together with the Bought Deal Offering, the “Offerings”) of subscription receipts of Moneta (the “Subscription Receipts”), at a price of C$0.32 per Subscription Receipt, for gross proceeds of up to C$3 million. In conjunction with the closing of the Transaction, each Subscription Receipt will be exchanged for one Moneta Share.

Moneta will use an amount equal to the gross proceeds from the sale of the Flow-Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur or be deemed to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) on future and current properties of Moneta or a subsidiary thereof on or before December 31, 2022, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2021. The proceeds from the sale of the Hard Dollar Shares and Subscription Receipts will be used for exploration and development activities on future and current properties of Moneta or a subsidiary thereof and for general corporate purposes.

Completion of the Transaction is not contingent on completion of the Offerings and completion of the Bought Deal Offering is not contingent on completion of the Transaction.

The Offerings are subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the Toronto Stock Exchange. The securities to be issued under the Offerings will have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.

Advisors

O3 Mining has engaged Sprott Capital Partners LP as its financial advisor and Bennett Jones LLP as its legal counsel. Moneta has engaged Maxit Capital LP as its financial advisor and Stikeman Elliott LLP as its legal counsel.

Conference call

Moneta’s management will host a conference call to discuss the Garrison transaction on Thursday January 14, 2021 at 11:00 a.m. (Eastern time). O3 Mining’s President and CEO, Jose Vizquerra, and Moneta’s CEO, Gary O’Connor, will participate in this conference call.

Conference call number

Toll Free Dial-In Number: (833) 772-0367

International Dial-In Number: (343) 761-2596

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko Group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Quebec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.

O3 Mining is well-capitalized and holds a 100% interest in properties in Quebec (133,557 hectares). The Corporation controls 66,064 hectares in Val-d’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Fault. O3 Mining also has a portfolio of assets in the Chibougamau region of Quebec.

Each Unit will consist of one common share of the Company and one-half common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company for an exercise price of C$1.00 per share for a period of two years from the Closing Date (as hereinafter defined).

‎The Company has agreed to grant Raymond James Ltd. an option (the “Over-Allotment Option”), exercisable in whole or in part at the sole discretion of the Underwriter, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up ‎to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover ‎over-allotments, if any, and for market stabilization purposes.

The net proceeds from the Offering will be used to fund the exploration and development of the Company’s mining properties in British Columbia including Shovelnose, drilling to complete a maiden resource estimate, working capital and general corporate purposes.

The Units will be offered by way of short form prospectus in each of the provinces of Canada (except the Province of Quebec), pursuant to National Instrument 44-101 – Short Form Prospectus Distributions. The Units will not be offered or sold in the United States except under Rule 144A or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.

The Offering is scheduled to close on or before February 4, 2021 (the “Closing Date”) and is subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

Westhaven benefits from the B.C. Mining Exploration Tax Credit (METC) which is a permanent incentive to support investment in mining. The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C. and is worth 30% of qualified mining exploration expenditures.

The securities offered in the Offering 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.

The Private Placement is for 5,882,353 units at a price of CAD$0.17 per unit. Each unit is comprised of one common share of Orea (a “Share”), and a half warrant. Each full warrant entitles the holder, on exercise, to purchase one Share at a price of CAD$0.30, for a period of 18 months from the closing date of the Private Placement.

A finder’s fee of 7 per cent payable in units will be paid in connection with the Private Placement in accordance with the policies of the Toronto Stock Exchange (the “TSX”). The Private Placement is subject to approval by the TSX.

Orea Mining intends to use the proceeds of the Private Placement for general working capital purposes.

MVC produced 56.2 million pounds of copper at a cash cost of $1.76 per pound and 1.4 million lb of molybdenum. All dollar amounts in this news release refer to United States dollars.

Annual copper production results were 1 per cent below the latest guidance provided in the Q3 2020 production results. Annual molybdenum production was 6 per cent higher and annual cash cost was $0.02/lb lower than the company’s latest guidance.

                                                 PRODUCTION RESULTS

                                           2020        Q4 2020         Q3 2020         Q2 2020            Q1 2020
Fresh tailings
Tonnes per day                          123,690        136,011         119,285         119,435            120,037
Operating days                              353             92              92              91                 78
Tonnes processed                     43,662,625     12,512,980      10,974,235      10,868,556          9,306,854
Copper grade                             0.134%         0.135%          0.136%          0.137%             0.125%
Copper recovery                           19.9%          19.3%           20.4%           20.3%              19.9%
Copper produced (million lbs)              25.6           7.17            6.68            6.66               5.13
Cauquenes tailings
Tonnes per day                           47,453         54,541          54,292          35,875             43,763
Operating days                              326             91              79              89                 67
Tonnes processed                     15,488,590      4,985,031       4,362,040       3,164,898          2,976,621
Copper grade                             0.251%         0.247%          0.245%          0.257%             0.261%
Copper recovery                           34.2%          34.2%           34.5%           34.9%              33.4%
Copper produced (M lbs)                   29.31           9.28            8.00            6.31               5.72
Fresh tailings plus cauquenes (M lbs)     54.95          16.45           14.68           12.97              10.85
Slag processing
Tonnes processed                         14,960              -               -               -             14,960
Copper grade                               4.6%              -               -               -               4.6%
Copper recovery                             80%              -               -               -                80%
Copper produced (M lbs)                    1.23              -               -               -               1.23
Copper produced (M lbs)                   56.18          16.45           14.68           12.97              12.08
Copper delivered (M lbs)                  56.34          15.90           14.92           13.70              11.82
Cash cost ($/lb)                           1.76           1.65            1.80            1.72               1.94
Molybdenum produced (M lbs)                1.41           0.50            0.37            0.35               0.19
Molybdenum sold (M lbs)                    1.46           0.50            0.37            0.36               0.23
  

Q4 2020 results

In Q4 2020, MVC produced 16.5 M lbs of copper at a cash cost of $1.65/lb and 0.5 M lbs of molybdenum, which represent production increases of 12% for copper and 35% for molybdenum from Q3-2020.

Copper production was positively impacted by higher tonnage processing from fresh tailings and to a lesser degree from Cauquenes and from more operating days at Cauquenes but was 3% below the latest quarterly guidance due to lower-than-expected recoveries.

In Q4-2020, molybdenum production was 19% over guidance and cash cost was within guidance.

                              Q4 2020 PRODUCTION RESULTS SUMMARIZED

                          October, 2020    November, 2020    December, 2020        Q4 2020  
Fresh tailings                                                             
Tonnes per day                  135,574           136,535           137,627        136,011
Operating days                       31                30                31             92
Tonnes processed              4,170,564         4,096,062         4,246,354     12,512,980
Copper grade                     0.134%            0.134%            0.137%         0.135%
Copper recovery                     19%               19%               19%            19%
Copper produced (M lbs)            2.39              2.31              2.47           7.17
Cauquenes tailings                                                         
Tonnes per day                   53,516            55,271            54,919         54,541
Operating days                       31                30                30             91
Tonnes processed              1,643,851         1,658,130         1,683,050      4,985,031
Copper grade                     0.249%            0.250%            0.243%         0.247%
Copper recovery                     35%               34%               34%            34%
Copper produced (M lbs)            3.12              3.09              3.07           9.28
Copper produced (M lbs)            5.51              5.40              5.54          16.45
Cash cost ($/lb )                  1.61              1.69              1.67           1.65
Molybdenum produced (M lbs)        0.16              0.17              0.17           0.50

Water reserves at Colihues at year end 2020 remained high at 8.5 million cubic meters, which are sufficient for MVC to maintain projected Cauquenes tonnage processing through 2021.

MVC’s operations have continued without any significant disruptions due to Covid-19.

2021 guidance

In 2021, Amerigo expects to produce 61.0 M lbs of copper and 1.5 M lbs of molybdenum at a cash cost of $1.79/lb. The following quarterly production breakdown is currently expected based on MVC’s mine plan, including grade and projected recoveries in each quarter.

                        QUARTERLY PRODUCTION BREAKDOWN

                               Q1 2021    Q2 2021   Q3 2021   Q4 2021    2021

Copper production (M lbs)         15.6       15.6      14.7      15.1    61.0
Molybdenum production (M lbs)      0.4        0.4       0.3       0.4     1.5
Cash cost ($/lb)                  1.83       1.74      1.77      1.81    1.79

Production in H1 is expected to be stronger than in H2 given that MVC and El Teniente’s annual plant shutdown will take place in September and October instead of in Q1, as has been the case historically. MVC anticipates losing 8 production days due to the annual plant maintenance shutdown.

MVC has identified additional plant optimization initiatives together with its technical consultant 911Metallurgy Corp., most of which are expected to be completed by the end of Q2-2021, with some of the work continuing into Q3-2021. The Company’s 2021 production targets do not include any impact from the optimization work underway.

The Company’s 2021 cash cost forecast in this news release assumes a market copper price of $3.50/lb (2020: $2.80/lb), a molybdenum market price of $9.30/lb (2020: $8.8/lb) and an exchange rate of the CLP to the USD of $715 (2020: $792).

The projected 2021 cash cost is currently expected to be slightly higher than in 2020 due to a stronger projected CLP. A 10% change in molybdenum price could have a $0.02/lb impact on cash cost, and a 10% change on the CLP to USD foreign exchange rate could have an impact of $0.06/lb on cash cost.

At these assumed variables, the DET royalty would be $0.90/lb in 2021. The DET royalty is calculated on a sliding scale based on copper prices.

Projected 2021 EBITDA considering these combined variables is expected to be $50 million.

Annual sustaining capital expenditures (“Capex”) in 2021 are expected to be $5.3 million and capitalizable maintenance and strategic spares are expected to be $2.4 million. The most significant 2021 sustaining Capex project will be to further optimize the MVC water thickeners with a target increase in water recovery from 1,560 liters per second to 2,100 liters per second, at a cost of $3.6 million, followed by $0.7 million on miscellaneous plant improvements, $0.5 million on environmental safety and compliance projects and $0.5 million on information technology improvements at MVC.

With respect to MVC’s financial obligations, the Company currently expects the following to occur in 2021:

• a)MVC is expected to repay a $7.2 million loan due to El Teniente, which loan originated in 2020 in connection with price settlement adjustments. The loan will be repaid monthly in equal instalments of $0.6 million plus interest.
• b)MVC also expects to make two semi-annual bank loan payments of $4.7 million each plus interest in March and September. After these payments are made, MVC’s bank debt would be $37.5 million, currently due by September 2023. Under the terms of the loan agreement, MVC can make additional loan prepayments.
• c)Finally, MVC will make payments of approximately $1.3 million in connection with its molybdenum plant lease.

“We would like to thank our Amerigo and MVC employees and partners along with our shareholders for a successful 2020 which I believe is demonstrated in our production results. Despite the COVID-19 pandemic we were able to increase production consistently quarter to quarter. We look forward to 2021 and remain optimistic towards the sector and our industry,” stated Aurora Davidson, president and chief executive officer of Amerigo.

Release of 2020 results on Feb. 18, 2021

The Company will release its 2020 financial results at market open on Thursday, February 18, 2021.

Investor conference call on February 19, 2021

Amerigo’s quarterly investor conference call will take place on Friday, February 19, 2021 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.

To join the call, please dial 1-800-806-5484 (Toll-Free North America) and enter passcode 1259759# to participate in the Amerigo Resources conference call.

The analyst and investment community are welcome to ask questions to management. Media can attend on a listen-only basis.

During 2019, as part of initial testwork for the PFS, a sample from previous testwork that represents the upper zone of the orebody was sent to SGS Minerals facilities for a rougher flotation assessment. The results of this assessment show that copper and molybdenum rougher recoveries, as compared with the 2019 preliminary economic assessment (PEA) formula, were improved by 3 per cent and 6 per cent, respectively. This improvement was achieved by refining the flotation formula: decreasing pH, lowering the solids percentage of the slurry and adding a stronger frother.

The continuing PFS metallurgical testwork in 2020 has confirmed these improvements. A new composite sample from the first 12 years of the mine plan was tested using both the PEA and PFS flotation formulas. The PFS formula shows an improved rougher recovery of 2.8 per cent for copper and 7.8 per cent for molybdenum over the PEA formulas.

Fernando Porcile, executive chairman of Los Andes, commented: “I am pleased that the improved formula results from the current PFS testwork further enhance the project economics of an already robust project.

“The ongoing prefeasibility study for the Vizcachitas project has confirmed the use of HPGR technology and validated the use of dry-stacked tailings. These technologies put the Vizcachitas project at the forefront of the environmentally responsible practices being adopted for the future of sustainable mining globally.”

The company transported the first loads of Rodeo’s gold-containing material by road to its nearby Velardena oxide mill for processing last week. The mill has begun processing the material and anticipates a first pour of gold-silver dore bars within two weeks.

Initially, Rodeo material will be processed at a rate of about 200 tonnes per day, running through the currently operational 10.5-foot-by-13-foot ball mill. Golden is in the process of installing an additional eight-foot-by-22-foot ball mill at Velardena, as previously communicated, which is designed to increase processing throughput by increasing grinding capacity for the silicified material from Rodeo. This second ball mill will operate in series after the primary ball mill. The company estimates the regrind mill will be complete and ready to run near the end of the first quarter 2021, at which point daily mill throughput is expected to increase to about 450 tpd.

Golden Minerals president and chief executive officer Warren Rehn commented: “I’m very pleased to announce that Golden Minerals has officially transitioned to gold-silver producer from exploration company. Despite the COVID-19-related uncertainties of the past year, we’ve been able to develop this project and put it into production ahead of schedule and on budget. Rodeo is expected to generate significant free cash flow for us that will be used, in part, to further work at our larger, silver-gold Velardena properties. Rodeo’s production is the first step toward the company achieving sustainable, long-term profitability.”

PEA Highlights: (Based on $US3.15/lb copper)Base case pre-tax Net Present Value7.5% (“NPV”) of $US798.6 million (“M”), Internal Rate of Return (“IRR”) of 48.4%, and payback period of 2.0 years.Base case post-tax NPV7.5% of $US644.7M, an IRR of 43.4%, and payback period of 2.1 years.Life of mine (“LOM”) copper production of 1.1 billion pounds (“lbs”) with peak production of 85Mlbs annually in years 2-12 inclusive, declining thereafter.Initial capital expenditure of $US290.5M, including a 30% contingency.LOM direct operating cost of $US0.71/lb and sustaining costs of $US0.07/lb.Cumulative net free cash flow of $US1.757 billion pre-tax and $US1.436 billion post-tax.Mine life 17 years.C1 cost per pound copper is $US0.98, AISC per pound copper is $US1.14.

* C1 and AISC are Non-GAAP and IFRS measures, see Note 1 in Life of Mine Comparison table

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

Mr. Elmer Stewart, President and CEO, said, “The significant increase in valuation over that obtained in the 2015 PEA is a function of the 2020 resource estimate, a better understanding of metallurgical and geological characteristics of the deposit and adopting a phased approach to project development. These results combined with the exploration potential suggests that, with positive results from additional drilling and engineering studies, Van Dyke has the potential to become a significant project in the mid-size copper development space. Achieving this milestone is a significant value add to Copper Fox, and is expected to complement the results of the PEA which is currently in progress at Schaft Creek, in determining the strategy to maximize shareholder value.”

Summary of Base Case Economic Results:

Results of the 2020 PEA are summarized below, along with a comparison to the Company’s PEA conducted with respect to the Van Dyke project in 2015 (see News Releases dated November 25, 2015 and December 24, 2015) (the “2015 PEA”):

Life of Mine Comparison between 2015 and 2020 PEAsBase Case    
Production and Cost Summary                     Units    2015 PEA2020 PEA
Life of Mine (LOM)                              years       11      17   
Copper Cathode Sold                         Million lbs.  456.9  1,101.0 
Copper Price                                   $US/lb      3.00    3.15  
Gross Revenue                                   M$US     1,370.0 3,468.3 
Royalties                                       M$US       31.5    82.5  
Total Cash Costs                                M$US      550.2  1,075.8 
Total Cash Costs ($/lb recovered copper)    $US/lb copper  1.20    0.98  
C1 Cash Costs ($/lb recovered copper)*      $US/lb copper  1.08    0.86  
Sustaining Costs ($/lb recovered copper)    $US/lb copper  0.15    0.07  
All In Sustaining Cost (AISC)**             $US/lb copper  1.36    1.14  
Initial Capital Costs (includes contingency)    M$US      204.4   290.5  
Taxes                                           M$US      110.9   321.0  
Cashflow Parameters and Outputs                                          
Discount Rate                                     %        8.0%    7.5%  
Pre-tax Net Free Cash Flow                      M$US      453.1  1,757.3 
Pre-tax NPV                                     M$US      213.1   798.6  
Pre-tax IRR                                       %       35.5%   48.4%  
Pre-tax Payback                                 years      2.3     2.0   
Post-tax Net Free Cash Flow                     M$US      342.2  1,436.3 
Post-tax NPV                                    M$US      149.5   644.7  
Post-tax IRR                                      %       27.9%   43.4%  
Post-tax Payback                                years      2.9     2.1   

* includes Mining, Processing, Site Services, G&#38;A, Transportation, and Royalty Costs ** includes Total Cash Cost, Sustaining Capital, Royalty Costs, Severance Taxes

lbs=pounds, M$US=million United States dollars, numbers are roundedC1 and AISC costs are non-GAAP financial measures which do not have standardized meanings prescribed by International Financial Reporting Standards (IFRS). These measures are meant to provide further information to investors and should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS.

Mineral Resources:

The effective date of the mineral resource used in the PEA is January 9, 2020 (see News Release dated May 5, 2020). The Base Case indicated and inferred mineral resources at a 0.025% recoverable copper (“RecCu”) cut-off are reported within both a 0.025% RecCu grade shell and a “reasonable prospects for eventual economic extraction” shape which includes internal dilution or all “must take” material within the confining shape (see News Release dated March 25, 2020). Because ISCR is a non-selective mining method, grade bins (different cut-off grades) are not considered applicable for the Van Dyke deposit and have not been applied. The Base Case used cut-off is considered appropriate for the extraction of copper by in-situ leaching. There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other factors that could materially affect the resource estimate used in the cash flow analysis.

Mineral Resource Estimate within Potentially Economic Confining Shape (Sue Bird, P.Eng.)
Category Tonnes (000)TCu(%)ASCu(%)CNCu(%)Rec(%)Rec.Cu(%)TCu(Mlbs)Rec.Cu(Mlbs)
Indicated   97,600    0.33  0.23   0.04    90    0.24      717       517     
Inferred   168,026    0.27  0.17   0.04    90    0.17     1,007      699     

TCu=total copper, ASCu=acid soluble copper, CNCu=cyanide soluble copper, Rec.Cu=recoverable copper, (%)=percentage, Mlbs=Million poundsThe reasonable prospects for eventual “economic extraction” shape has been created based on a copper price of $US2.80/lb, employment of in-situ leaching extraction methods, processing costs of $US0.60/lb copper, all in operating and sustaining costs of $US1.25/tonne, a recovery of 90% for total soluble copper and average specific gravity of 2.6t/m3.Approximate drill hole spacing is 80m for indicated resources.The average dip of the deposit within the Indicated and Inferred mineral resource outlines is 20 degrees. Vertical thickness of the mineralized envelope ranges from 40m to over 200m.Numbers may not add due to rounding.

Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

Project Description:

The project consists of 531.5 hectares (1,312.8 acres) of mineral rights and 5.75 hectares (14.02 acres) of surface rights and is subject to a 2.5% gross royalty on revenue. The Miami, Arizona area hosts several heap leach copper mines with road access, electrical power, experienced labour, supply centers and industrial service providers.

Underground Development:

The 2020 PEA confirmed that the most cost-effective method to develop the wellfield is by way of a ramp from surface to the mineralized zone. Stage 1 includes an access ramp to the top of the deposit and a decline following the Gila/Pinal Schist contact to access the higher-grade portions of the deposit. Stage 2 is expected to commence toward the end of Stage 1 to access the lower grade portion of the deposit. The main components of the underground development are shown below.

Excavation Type             QtyLength (m)   Dimensions        Shape      Total Length (m)
Main Access Ramp to Portal                1      1,4564.6m W x 4.6m H Arch (wall 3.1m)           1,456
Vents/ Access from Ramp to Van Dyke shaft 2         153.6m W x 3.6 m H      Flat                    30
Phase 1 Decline                           1      1,1414.6m W x 4.6m H Arch (wall 3.1m)           1,141
Phase 1 Vent/Egress Decline               1        2163.6m W x 3.6 m H      Flat                   216
Vent/Egress Raise                         1        401    3.0m dia          Bore                   401
Galleries                                10         746.1m W x 6.1m H Arch (wall 4.6m)             740
Phase 1 Total Excavation                                                                         3,984
Phase 2 Decline                           1      1,1734.6m W x 4.6m H Arch (wall 3.1m)           1,173
Phase 2 Vent/Egress way                   1         23 2.0 m x 2.0 m        Flat                    23
Galleries                                14         546.1m W x 6.1m H Arch (wall 4.6m)             756
Phase 2 Total Excavation                                                                         1,952
Combined Total Excavation                                                                        5,936

Underground development will be completed using conventional drill and blast tunneling techniques by mining contractors with appropriate ground support as required. Phase 1 of the underground development is contemplated to be completed during the pre-production phase. The mine plan is estimated to produce roughly 190,000 cubic meters of waste rock from the underground development that will be stored in a valley directly adjacent to the portal on land owned by Desert Fox.

Well Field Design/Copper Recovery Plan:

The copper recovery circuit has been designed to establish a closed system for fluid injection and recovery using a fan pattern wellfield array to recover soluble copper. In this configuration, angled wells are advanced from underground galleries with an average well spacing of 21 meters (“m”) between recovery holes within the deposit. The ratio of recovery wells to injection wells is 4:1 per array with an overall ratio of 1:1 with an estimated 1,925 injection and recovery wells required LOM.

Copper Extraction and Acid Consumption:

Chrysocolla, malachite, and azurite (all 100% soluble) are the most abundant copper minerals in the Van Dyke deposit, with secondary copper minerals being chalcocite and native copper. An overall 76% Cu recovery (including Plant Efficiency of 95% and Pre-conditioning of the mineralized zone to ensure a high sweep efficiency) was used in the PEA. Leaching is carried out using a weak (5gram/liter) solution of sulphuric acid over a 5-year period. Acid consumption is estimated to be approximately 1.5lb acid/lb copper produced based on the current testing and historical leach test results.

Forecasted Copper Production:

The Base Case contemplates 85Mlbs/year (similar in scale to Taseko’s Florence ISCR project) of Grade “A” copper cathode production that includes an initial ramp up year (yr. 1) at 60% of production capacity and a three-year (yrs. 14-17) ramp down period with reduced annual production at the end of mine life. Mine life is estimated to be 17 years.

The Pregnant Leach Solution (“PLS”) recovered from the wellfield is pumped to the PLS retention pond on surface and then to the Solvent Extraction Electrowinning (“SX-EW”) facilities for copper recovery. Reagents are added to the solution from the SX-EW plant to bring the solution to required operating concentrations and is then recycled back to the wellfield. No deleterious elements in the PLS were identified during the pressure leach tests conducted by Copper Fox.

Infrastructure:

The project is located within the town limits of Miami, Arizona with sewer, water, communications, and powerlines available. The administration, maintenance, warehouse facilities, the SX-EW facilities and truck scale are sited to take advantage of local topography, accommodate environmental considerations, and ensure efficient operations. The processing facilities include:Solvent extraction plantElectrowinning tank house and tank farm for auxiliary vesselsSolution ponds to handle: PLS, raffinate, process water, emergency pondWater treatment plantAncillary facilities including warehouse and maintenance shopAdministration offices

The ISCR operation is expected to operate with a net water surplus, however, if water is needed to support operations, it will be sourced from groundwater in the alluvium unit which supplied water to historic leach operations.

Cost Estimates:

Initial Capital, Operating and Sustaining Costs are based on comparable projects in Arizona and quotes from suppliers where available. When information from comparable projects or from suppliers was not available; industry standard inflation factors were applied where necessary.

Initial Capital Costs (presented below) are defined as all costs incurred until commencement of copper production, including pre-production operating costs. The Initial Capital Cost estimates are based on new construction costs and consists of direct and indirect cost factors. Factored estimates are used for Codes A, D, E, and all indirect costs. For Codes B and C, detailed estimates are used.

Capital Estimate Summary                    
WBS Code               Description               Cost ($US 000s)
   A    General Site                                      11,440
   B    ISL Well Field                                     6,035
   C    Underground Mining                                49,676
   D    Processing                                        62,225
   E    Buildings and Facilities                           9,750
   PP   Pre-Production Operating Costs*                   22,287
Total Direct Costs                                       161,413
   X    Indirect Costs                                    48,827
   Y    Owner's Costs                                     23,913
Total Indirect Costs                                      72,740
   Z    Contingency (30% of Direct and Indirect))         56,386
Total Capital Cost                                       290,539

*Indirects, Owner’s Costs, or Contingency is not applied to Pre-Production Operating costs.

Contingency is included to cover undefined items of work within the scope of the project and is set at 30% of direct and indirect costs.

Indirect Costs:

Indirect Costs are calculated as a percentage of Initial Capital Costs and captures charges that construction contractors might apply or include in their rates. The factors and estimated Indirect Costs are shown below

Indirect Categories and Factors          
Construction Indirects - % of Direct Costs   15%   
Spares - % of Processing Costs               5%    
Initial Fills - % of Processing Costs        0%    
Freight and Logistic - % of Direct Costs     5%    
Commissioning and Pre-operational Start-upAllowance
EPCM - % of Direct Costs                     10%   
Vendors                                   Allowance
Taxes and Duties                             3%    

Sustaining Capital Costs:

Sustaining Capital Costs are all capital expenditures incurred after commencement of copper production required to maintain annual copper production. Construction of a water treatment facility are included in the LOM Sustaining costs outlined below:

Sustaining Capital Estimate Summary              
        WBS Code              Description       COST ($US 000s)
           A            General Site                          0
           B            ISL Well Field                   46,147
           C            Underground Mining               23,903
           D            Processing                        5,420
           E            Buildings and Facilities              0
Total Sustaining Capital                                 75,470
                                                $US 0.07 /lb Cu

Operating Costs:

The LOM Operating Costs were developed using first principals and comparable estimates from similar scale project in Arizona. Estimated Total Operating Costs and LOM Unit Costs required to produce a pound of copper are summarized below:

Operating Costs       LOM Cost (000's)LOM Unit Cost ($US/lb Cu)
Drilling Cost                         156,417                     0.14
Frac Cost                              88,009                     0.08
Pump Costs                             23,641                     0.02
Drill Electricity                       5,106                     0.00
ISL Well Field Acid Costs              82,579                     0.08
Wellfield Monitoring (KP)               7,540                     0.01
Pumping Electricity Costs             122,466                     0.11
Maintenance Costs                     130,348                     0.12
Processing Costs                      220,210                     0.20
G&A, Offsite Costs                    187,179                     0.17
Water Treatment                        33,150                     0.03
Reclamation and Closure Costs          19,184                     0.02
TOTAL OPEX                          1,075,830                     0.98

* All numbers are rounded following Best Practice Principles.

All In Sustaining Costs:

All In Sustaining Costs include total operating costs, royalties, severance taxes, and sustaining capital costs as outlined below:

Cash Cost Category      Unit Cost ($US/lb)
Total Operating Costs               0.98       
Royalties                           0.07       
Severance Tax                       0.02       
Sustaining Capital Costs            0.07       
All in Sustaining Cost (AISC)       1.14       

Closure and Reclamation:

Closure and reclamation would be in accordance with the requirements set out in the state and federal permits required to develop and operate the project includes the following major activities:Rinse the underground wellfield to restore groundwater quality within the mined area to levels specified in the project permits.Buildings and other infrastructure, including the SX-EW plant would be decommissioned, sold, and removed.Reshape the earth structures and disturbed areas to achieve long term stability and protection against erosion.Reshape the waste rock dump and construct vegetative cover.Excess water, including wellfield rinse water, would be treated, and released for two years following the cessation of commercial operations.Decommission the water management structure.Decommission the water treatment plant.

The estimated Reclamation and Closure Costs are summarized below:

Reclamation and Closure       Cost ($US 000's)
Well Field Decommissioning                $4,434     
Infrastructure Decommissioning            $4,043     
SX-EW Decommissioning                     $3,180     
Water Treatment Plant Decommissioning     $4,054     
Total Reclamation and Closure Costs      $15,711     

Economic Analysis Summary:

The economic analysis of the Van Dyke project has been performed on a 100% basis and derived from input parameters set out below. The pre-tax and post-tax NPV and IRR for the Van Dyke ISCR project at various discount rates are shown below. The 7.5% discount rate has been chosen as the Base Case in line with other Arizona based ISCR projects. The economic analysis includes recovery of capital, operating and sustaining costs, county, state and federal taxes and royalties. Input parameters include 3-year pre-production period, long-term copper price of $US3.15/lb, 17-year mine life and 5 years for reclamation/closure and monitoring. Corporate income taxes are assumed to be 21.0% federal and 4.9% state.

The payback periods are 2.0 years pre-tax and 2.1 years post-tax. The sensitivity of the pre- and post-tax NPV to the discount rate is summarized below:

Rate Pre-Tax NPVPost-Tax NPVPre-Tax IRRPost-Tax IRR
 (%)  $US000's    $US000's      (%)        (%)     
 5.0%$1,030,565   $835,974     48.4%      43.4%    
 7.5% $798,963    $644,667     48.4%      43.4%    
 8.0% $759,934    $612,436     48.4%      43.4%    
10.0% $623,480    $499,781     48.4%      43.4%    
12.0% $513,253    $408,832     48.4%      43.4%    

Net Cash Flow:

The Base Case, Net Free Cash Flow after recovery of all operating, capital and sustaining costs pre-tax is estimated to be $US1.757 billion and $US1.436 billion post-tax.

Project Sensitivities:

The NPV and IRR are most sensitive to copper prices and metallurgical recovery, as illustrated in the figures below:

Qualified Person:

Elmer B. Stewart, MSc., P.Geo., President, is the Company’s designated Qualified Person and has approved the scientific and technical disclosure in this news release.

The PEA has been prepared by Moose Mountain Technical Services. Each of the individuals listed below is an independent Qualified Person for the purposes of NI 43-101. All scientific and technical information in this press release is based upon information prepared by or under the supervision of those individuals, and each has approved the scientific and technical information in this release.Susan C. Bird, MSc., P.Eng., Moose Mountain Technical ServicesBob Lane, P. Geo., Moose Mountain Technical ServicesTracey Meintjes, P.Eng., Moose Mountain Technical ServicesJim Norine, P. E., Ausenco

The Technical Report on the Preliminary Economic Assessment of the Van Dyke project will be filed in accordance with NI 43-101 on SEDAR (www.sedar.com) within the required 45 day statutory period and will be made available on Copper Fox’s website at http://www.copperfoxmetals.com.

Highlights (compared to February 21, 2018)

Measured and Indicated Mineral Resources:

Increase of 60% in silver equivalent ounces, up to 75.9 million ounces

Increase in gold and copper grades by 6% and 11%, up to 0.67 g/t and 0.41%

Increase in silver grade at ET by 3%, up to 63 g/t

Decrease in consolidated silver grades by 10%, to 69 g/t, as a result of depletion at San Gonzalo

Increase in tonnage of 90% overall, totaling 20.3 million metric tonnes

Inferred Mineral Resources:

Decrease of 6% in silver equivalent ounces, down to 21.8 million ounces

  
   Avino Mine Mineral Resources Summary as at October 31, 2020
Measured & Indicated Mineral Resources                                       Grade
                                                 Cut-off
                                                   (AgEq         Metric      AgEq        Ag        Au        Cu
Resource  Category         Deposit                  g/t)         tonnes     (g/t)     (g/t)     (g/t)       (%)
Measured                   Avino - ET                 60      4,760,000       120        74      0.63      0.55
Measured                   San Gonzalo System        130        267,000       356       263      1.36      0.00
Total Measured             All Deposits                       5,027,000       133        84      0.67      0.52
Indicated                  Avino - ET                 60     13,890,000       107        59      0.68      0.41
Indicated                  San Gonzalo System        130        216,000       304       230      1.09      0.00
Indicated                  Oxide Tailings             50      1,120,000       124        89      0.42      0.00
Total Indicated            All Deposits                      15,226,000       111        64      0.67      0.37
Total measured
and indicated              All Deposits                      20,253,000       117        69      0.67      0.41


Measured & Indicated Mineral Resources                                                 Metal Contents
                                           Cut-off                       AgEq          Ag          Au
                                             (AgEq         Metric    (million    (million   (thousand          Cu
Resource  Category Deposit                    g/t)         tonnes      tr oz)      tr oz)      tr oz)      tonnes
Measured           Avino - ET                   60      4,760,000        18.4        11.3          97      26,300
Measured           San Gonzalo System          130        267,000         3.1         2.3          12           0
Total Measured     All Deposits                         5,027,000        21.5        13.6         109      26,300
Indicated          Avino - ET                   60     13,890,000        47.9        26.5         304      56,700
Indicated          San Gonzalo System          130        216,000         2.1         1.6           8           0
Indicated          Oxide Tailings               50      1,120,000         4.5         3.2          15           0
Total Indicated    All Deposits                        15,226,000        54.5        31.3         327      56,700
Total measured
and indicated      All Deposits                        20,253,000        75.9        44.9         436      83,000

Inferred                                  Cut-off                 Grade                          
mineral resources                           (AgEq       Metric     AgEq      Ag      Au        Cu
Resource  Category Deposit                    g/t)       tonnes   (g/t)   (g/t)   (g/t)       (%)

Inferred           Avino - ET                  60    5,230,000       95      51    0.64      0.34
Inferred           San Gonzalo System         130       85,000      298     233    0.96      0.00
Inferred           Oxide Tailings              50    1,230,000      125      85    0.47      0.00
Total Inferred     All Deposits                      6,545,000      103      59    0.61      0.27

                                                                     Metal contents
Inferred                                  Cut-off                    AgEq          Ag           Au
mineral resources                           (AgEq       Metric    (million    (million    (thousand     Cu
Resource  Category Deposit                   g/t)       tonnes       tr oz)      tr oz)       tr oz) tonnes
Inferred           Avino - ET                  60    5,230,000        16.0         8.5          108 17,700
Inferred           San Gonzalo System         130       85,000         0.8         0.6            3      0
Inferred           Oxide Tailings              50    1,230,000         5.0         3.4           19      0
Total Inferred     All Deposits                      6,545,000        21.8        12.5        129.0 17,700

  

Notes:

Figures may not add to totals shown due to rounding.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The Mineral Resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s (CIM) Definition Standards for Mineral Resources and Mineral Reserves incorporated by reference into National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects.

Cut-off grades were calculated using the following consensus metal price assumptions: gold price of US$1,875/oz, silver price of US$24.00/oz, and copper price of US$3.10/lb.

Silver equivalent (AgEQ) ounces are notional, based on the combined value of metals expressed as silver ounces.

Metal Recovery based on operational results and column tests.

The silver equivalent was calculated using the following assumptions:

For ET using the formula: AgEQ = 1 x Ag grade + 65.1 x Au grade + 8.66 x Cu grade

For San Gonzalo using the formula: AgEQ = 1 x Ag grade + 72.54 x Au grade

For Oxide Tailings using the formula: AgEQ = 1 x Ag grade + 84.55 x Au grade

Avino President and CEO, David Wolfin commented: “We are thrilled to have successfully gone over and above replacing mining depletion since the previous report, by adding significant additional measured and indicated resources at the Avino property. The updated mineral resource estimate provides us with a robust long-term outlook. With several areas on the property that have yet to be explored, there is a strong in-situ potential for further potential resource extension. Many thanks to our hard-working operation team in Mexico for their hard work over the years to more fully understand the extent of mineralization at Avino. The drills will be active again during the first quarter and the 2021 exploration program will continue to build on the success of our past operations.”

The indicated mineral resource at Avino’s Elena Tolosa (“ET”) deposit has been significantly increased. As of the date of the previous mineral resource estimate in 2018, the mineralization was estimated to consist of a 10 metre to 30 metre wide footwall zone with a sporadic development of hanging wall stockwork.

Subsequently, the Avino Vein has been fully exposed and sampled in underground development below elevations of 360 metres to 470 metres below surface, and it has been discovered to be consistently and continuously mineralised between the hanging wall and footwall veins over a thickness of up to 45 metres. This broad zone has been proven by underground development and channel sampling down to an elevation of 1,849 metres.

This mineralization was sampled and partially mined before the recent hiatus in operations and it is included in the current mineral resource.

Detailed depletion models for the ET deposit and San Gonzalo have been applied, based on updated 3D models of underground development and stoping excavations.

The western portion of the inferred oxide tailings resource has been reduced, due to

uncertainty of the bedrock topographic profiles under the tailings and

the increased depth of sulphide tailings that was placed above the western portion of the inferred oxide tailings resource.

The total measured and indicated mineral resource tonnage in all deposits totals 20.3 million metric tonnes containing

75.9 million troy ounces of silver equivalent, comprised of 44.9 million troy ounces of silver, 436,000 troy ounces of gold, and 83,000 metric tonnes of copper.

The total inferred mineral resource tonnage in all deposits totals 6.6 million metric tonnes, of 21.8 million troy ounces of silver equivalent comprised of 12.5 million troy ounces of silver, 129,000 troy ounces of gold, and 17,700 metric tonnes of copper.

The mineral resource estimates were prepared by Michael O’Brien P.Geo., Pr.Sci.Nat., of Red Pennant Geoscience who is a “Qualified Person” within the meaning of NI 43-101 and independent of Avino, as defined by Section 1.5 of NI 43-101.

Oxide Tailings

The Oxide Tailings resource has been re-estimated using the same model and data as the previous mineral resource update, however a more conservative approach has been utilized in extrapolating the inferred material.

Method of Calculation

The definitive estimation methods used were substantially the same for all three deposits (Ordinary Kriging), providing a consistent baseline for strategic planning.

Mineral resources were estimated by ordinary kriging, optimized using kriging neighbourhood analysis and verified by means of nearest neighbour and inverse distance methods, swathplot comparisons of estimates and visual inspections. Block models were created for the San Gonzalo and Avino Vein Systems and the Oxide Tailings deposit and estimates were made utilizing blocks of sizes 20 m long x 5 m wide x 10 m high for Avino (ET Mine), sizes 10 m long x 5 m wide x 10 m high for San Gonzalo and 40 m long x 40 m wide x 2 m high for Oxide Tailings.

Fundamental changes since the previous mineral resource estimates are (1) depletion due to mining (over 800 thousand tonnes milled since the beginning of 2018), (2) significant new sampling information (3) changes to cut-off calculations and (4) reclassification of mineral resources in the light of improved confidence in the understanding of the deposits at distances from the underground channel samples and drill hole samples.

More sampling information does not always lead to direct increases in resource tonnages and contained metal. In some cases, the new information provides improved understanding (developed by variogram modelling and kriging neighborhood analysis) that may demote some portions of mineral resource from high confidence measured and indicated categories, to a lower confidence inferred category.

Currently, for the San Gonzalo and Avino Vein Systems, estimated blocks more than thirty-five metres from samples are not included in the indicated category resources and have been classified as inferred resources.

For the Oxide Tailings, estimated blocks more than fifty metres from samples are not included in the indicated category resources.

The 9 holes totaling 1062 metres tested the main Crestaurum shear structure at shallow depths across 900 metres of strike length, and also tested high-grade secondary shears and splays in the hanging wall and footwall of the main shear.

The Crestaurum gold deposit 3D model can be viewed at https://vrify.com/decks/crestaurum-january-13-pr.

President and CEO David Suda stated, &quot;The Crestaurum deposit is likely an extension of the Con Shear Zone which produced approximately 1 M oz of gold at the past producing Con Mine. 2020 drilling at the Crestaurum deposit identified multiple vein systems from near surface to approximately 250m below surface. With these results, we are confident that the Crestaurum could potentially be host to a substantial open pit scenario in the future. In 2021, we will continue to focus on expanding our YCG resource and resume drilling on our highest priority target, the Campbell Shear, immediately south of the past producing Con mine (5 million ounces). Both the Campbell Shear and the Con Shear stratigraphy are exceptional due to the high-grade nature of their past producing gold deposits.&quot;

Drilling Highlights

Hole GTCR20-104 intersected 9.03 g/t Au over 5 metres including 23.7 g/t Au over 1.0 meter within a mineralized shear zone containing quartz veins with visible gold. The hole is located approximately 40 metres up dip and 25 metres to the south from GTCR20-103 which intersected 9.60 g/t over 4.0m (NR December 9, 2020). In addition, hole GTCR20-105 intersected 5.84 g/t Au over 2 metres approximately 75 metres up dip of GTCR20-104.

Three holes were drilled in an area around the exploration shaft sunk in 1946, an area previously believed to be unmineralized. Hole GTCR20-102 had a narrow low grade intersection of 2.66 g/t Au over 0.80 metres, Hole GTCR20-106 was designed to test both the main shear and a hangingwall vein and intersected 3.23 g/t Au over 0.75 metres in the hangingwall vein and 1.75 g/t Au over 2.70 metres in the main shear. Hole GTCR20-107 intersected 2.31 g/t Au over 4.10 metres, including 10.55 g/t Au over 0.80 metres.

Three drill holes were drilled across approximately 200 metres of strike length to intersect the main shear at shallow depths above current high grade in the South Shoot area. These holes were designed to increase the near surface mineralization available for future open pitting. Hole GTCR20-108 interested 8.19 g/t Au over 1.95 metres, and GTCR20-109 intersected 3.43 g/t over 3.90 metres, including 7.11 g/t Au over 1.75 metres. Both holes also intersected significant mineralization in the footwall of the main shear, including 2.53 g/t Au over 2.75 metres in hole GTCR20-109. Hole GTCR20-111 failed to intersect significant mineralization in the main shear and had two gram level assays in the hangingwall to the shear.

Hole GTCR20-110 was drilled south of the Daigle Fault to determine the location of the southern extension of the Crestaurum Shear beyond the fault. The shear structure was successfully intersected but was low grade (0.86 g/t Au over 3.0 metres).

Assays are pending for hole GTCR20-112.

Technical Appendix

This news release reports the assay results from nine (9) drill holes totaling 1,062 metres from which 264 core samples were assayed. Assay results range from non-detectable gold to a highest assay of 23.7 g/t Au. The Company inserts certified standards and blanks into the sample stream as a check on laboratory Quality Control (QC). Drill core samples are cut by diamond saw at Gold Terra’s core facilities in Yellowknife. A halved core sample is left in the core box. The other half core is sampled and transported by Gold Terra personnel in securely sealed bags to ALS (ALS) preparation laboratory in Yellowknife. After sample preparation, samples are shipped to ALS&#39;s Vancouver facility for gold analysis. Gold assays of &#62;3 g/t are re-assayed on a 30 g split by fire assay with a gravimetric finish. Samples with visible gold are additionally assayed using a screen metallics method. ALS is a certified and accredited laboratory service. ALS routinely inserts certified gold standards, blanks and pulp duplicates, and results of all QC samples are reported.

Drill holes were drilled at right angles to the zones of mineralization and dip angles of holes were designed to intersect the zones as close to normal as possible. Zones reported here are interpreted to be 90-100 percent of true thickness.

The technical information contained in this news release has been reviewed and approved by Joseph Campbell, Chief Operating Officer, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Crestaurum - DDH Intersections

Drill HoleDipAzimuthUTM Location       From (m)To (m)Interval (m)Au g/t
                    EastingNorthing                                    
GTCR20-102-50305    635923 6941966     39.3    40.3  1.00        1.98  
                                       95.9    96.7  0.80        2.66  
GTCR20-104-59309    636041 6942093     90.31   95.31 5.00        9.06  
GTCR20-105-46305    636019 6942074     86      88    2.00        5.85  
                                   incl87      88    1.00        11.55 
GTCR20-106-45306    636059 6941923     40.5    41.25 0.75        3.23  
                                       167.3   170   2.70        1.75  
                                   incl167.3   168   0.70        5.37  
GTCR20-107-50305    635958 6941948     102.95  107.054.10        2.31  
                                       102.95  103.750.80        10.55 
GTCR20-108-58305    635613 6941593     32.85   34.8  1.95        8.19  
                                       40      41.4  1.40        0.70  
                                       43.55   44.45 1.00        1.28  
GTCR20-109-45354    635625 6941612     19      22.9  3.90        3.43  
                                   incl21.15   22.9  1.75        7.11  
                                       31.4    34.15 2.75        2.53  
                                       37.35   39    1.65        0.75  
GTCR20-110-7040     635497 6941317     91.52   92.52 1.00        1.06  
                                       169     172   3.00        0.86  
GTCR20-111-45305    635559 6941443     46.7    47.76 1.06        1.30  
                                       53.65   54.65 1.00        0.93

HIGHLIGHTS:Lithium assay grades range from 1125 to 1450 ppmCesium assay grades range from 112 to 688 ppm

The high grades of both lithium and cesium in the solid samples has made an advanced exploration program on the Laguna Blanca property a priority for Lithium Chile as the lithium and cesium grades were some of the highest grades seen by the Company to date.

The U.S. Geological Survey designated cesium as a strategic mineral in May 2018. Demand and prices for cesium have risen recently, primarily driven by its use in 5G mobile networks. There are currently only three producing cesium mines in the world, all of which are controlled by Chinese companies.

More importantly, the ability for Lithium Chile to get their exploitation team on the ground at Laguna Blanca reflects the easing of Covid 19 restrictions that have been in place in Chile since early in 2020. Easing of these restrictions will allow Lithium Chile to advance its other lithium projects as well.

Steve Cochrane, President and CEO of Lithium Chile, commented: “It gives me great pleasure to be able to advise shareholders that we are once again working on our lithium prospects. The proximity of our lithium properties, in the heart of the lithium triangle, to Bolivia and Argentina resulted in a year-long access restriction to our properties by the Chilean Government. The Government’s wish to reduce the risk of cross border contamination resulted in these road and border closures. The lifting of these access restrictions coupled with the recent rise in Chinese lithium carbonate prices from 40,000 RMB/ton ($6,000US/ton) to 60,000 RMB/ton ($9,000 US/ton) over the last 15 weeks gives us a reason to be optimistic for 2021.”

Summary

New gold discovery at Sinerma

A new gold discovery at Sinerma located 23 km SSW of Agnico-Eagle’s Kittila Mine. Trench channel sampling results include 1.07 g/t Au over 42.40 m and 1.30 g/t Au over 20.80 m. A four-hole diamond core drilling program returned intersects including 0.54 g/t Au over 40.20 m (SIN20001 from 7 m down hole), 6.80 g/t Au over 0.75 m (SIN20003 from 110.80 m down hole) and 4.11 g/t Au over 1.40 m (SIN20002 from 13.50 m down hole).

High-grade gold intersected at Kutuvuoma East

Gold intersects, including 14.77 g/t Au over 1.60 m (KUE20003 from 42.20 m down hole) and 1.63 g/t Au over 2.80 m (KUE20001 from 50.90 m down hole), were returned from a new target area located along strike and in between Rupert Resources Ltd.’s Ikkari discovery (3-4.5 km to east) and the Kutuvuoma prospect (3.5-5.0 km to west).

Comments

“The discovery of new zones of gold mineralization in two previously untested areas, with a modest drill program of only 2,000 m, highlights the potential of the extensive Aurion-B2Gold JV area,” commented Matti Talikka, Aurion’s CEO. “We’re pleased to have B2Gold as a committed partner and are looking forward to an exciting year as increased levels of exploration activities are planned with a focus on the Kutuvuoma-Ikkari area.”

New gold discovery at Sinerma

The Sinerma area is located in the western part of the JV property, approximately 22 km northwest of the Kutuvuoma prospect and 23 km SSW of Agnico-Eagle’s Kittila Mine. The gold mineralized zones in the Sinerma area were identified via base of till sampling and geophysical survey programs, which were followed by excavation of five trenches and drilling of four diamond drill holes (total 647.7 m).

The gold mineralized zones are hosted within strongly altered (fuchsite plus or minus Fe-carbonate plus or minus silica) and deformed or brecciated contact zones between ultramafic and mafic volcanic rocks.

Trench SINTR01 is ~100 m long and returned anomalous channel sampling intervals including 0.41 g/t Au over 5.80 m and grab samples up to 10.37 g/t Au. Trench SINTR02 is ~160 m long in E-W orientation and has a ~50 m long arm in N-S orientation. Channel sampling within the trench returned several intervals with elevated gold values including 1.07 g/t Au over 42.40 m, 1.30 g/t Au over 20.80 m, 0.95 g/t Au over 11.00 m and 0.91 g/t Au over 10.50 m. Individual samples returned gold values up to 9.31 g/t Au. Trench SINTR03 is ~20 m long and no significant gold values were encountered. Trench SINTR04 is ~50 m long in E-W orientation, located 1.0 km NW of trench SINTR2 and did not return elevates gold values. Trench SINTR05 is ~40 m long in E-W orientation, located 1.4 km NW of trench SINTR05 and channel sampling returned an interval of 1.46 g/t Au over 1.30 m.

Drill hole SIN20001 was drilled below trench SINTR02 and returned a gold mineralized interval of 0.54 g/t Au over 40.20 m from 7.00 m down hole including 1.28 g/t Au over 2.30 m from 20.40 m down hole and 1.62 g/t Au over 1.95 m from 38.75 m down hole. Drill hole SIN20002 was drilled below trench SINTR02 and returned gold mineralized intervals of 4.11 g/t Au over 1.40 m from 13.50 m down hole and 1.24 g/t Au over 1.10 m from 45.90 m downhole. Drill hole SIN20003 was drilled ~40m to the south from the main E-W oriented portion of trench SINTR02. The drill hole returned gold mineralized intervals of 0.53 g/t Au over 10.70 m from 31.50 m down hole and 6.80 g/t Au over 0.75 m from 110.80 down hole. Drill hole SIN20004 was aimed to undercut trench SINTR05 but did not intersect the contact between mafic and ultramafic rocks and returned intervals with anomalous gold values (up to 0.16 g/t Au).

Table 1: Sinerma Drill Hole Summary.
  
  
   HOLE_ID        Azimuth       Dip        From (m)      To (m)      Width (m)Au (g/t)
SIN20001       360.0         -50.0      7.00          47.20       40.20    0.54    
incl.                                   20.40         22.70       2.30     1.28    
incl.                                   38.75         40.70       1.95     1.62    
SIN20002       360.0         -50.0      13.50         14.90       1.40     4.11    
AND                                     45.90         47.00       1.10     1.24    
AND                                     52.30         59.10       6.80     0.32    
SIN20003       90.0          -40.0      31.50         42.20       10.70    0.53    
incl.                                   32.80         34.20       1.40     1.47    
AND                                     68.90         100.00      31.10    0.20    
AND                                     110.80        111.55      0.75     6.80    
SIN20004       80.0          -45.0                                         NSV     
All widths are core widths.  True width is not known at this time.                 
All assay values are uncut. NSV = No significant values                            


  

High-grade gold intersected at Kutuvuoma East

Kutuvuoma East target is located along strike and in between Rupert Resources’ Ikkari discovery (3-4.5 km to east) and the Kutuvuoma prospect (3.5-5 km to west) and within the metavolcanic and metasedimentary rocks of the Savukoski group near the contact with the sedimentary rocks of the Kumpu group.

The initial, widely spaced, five-hole (1,259.1 m) diamond drilling program tested selected geochemical (gold in base of till) and geophysical targets over an area extending 1,300 m in strike length. All drill holes intersected zones with elevated gold (>0.1 g/t Au) with mineralized zones encountered in multiple lithologies including ultramafic and mafic volcanic rocks, siltstones, graphitic sediments and in contacts between volcanic rocks and felsic/porphyritic dykes.

Drill holes KUE20001 and KUE20002 were collared in the western part of the target area and intersected strongly altered (silica plus or minus albite plus or minus Fe-carbonate plus or minus sericite plus or minus pyrite) and deformed units of mafic, ultramafic and intermediate volcanics, graphitic sediments and gabbro of the Savukoski group. KUE20001 returned an intercept of 1.63 g/t Au over 2.80 m from 50.90 m down hole. In addition, both drill holes intersected intervals with anomalous (>0.1 g/t) gold values.

Drill holes KUE20003, KUE20004 and KUE20005 were collared in the eastern part of the target area and intersected strongly altered (silica plus or minus albite plus or minus Fe-carbonate plus or minus sericite plus or minus pyrite) and deformed units of mafic and ultramafic volcanics, graphitic sediments and felsic/porphyritic dykes of the Savukoski group and quartzite, conglomerate and arkose of the Kumpu group. KUE20003 returned intercepts of 14.77 g/t Au over 1.60 m from 42.20 m down hole and 1.86 g/t Au over 1.40 m from 52.40 m down hole. KUE20005 returned intercepts of 2.21 g/t Au over 1.40 m from 48.40 m down hole, 2.14 g/t Au over 0.90 m from 77.10 m down hole and 1.13 g/t Au over 0.95 m from 160.60 m down hole. In addition, all drill holes intersected intervals with anomalous (>0.1 g/t) gold values.

Gold mineralization was intersected in all holes (from anomalous to 28.90 g/t Au) in the maiden drill program on the Kutuvuoma East target. The drilling results indicate that the geological sequence is prospective for gold for at least 8 km between Kutuvuoma and Ikkari.

Table 2: Kutuvuoma East Drill Hole Summary
  
  
   HOLE ID         Azimuth        Dip         From (m)       To (m)       Width (m) Au (g/t) 
KUE20001        160.0          -45.0       50.90          53.70        2.80      1.63     
KUE20002        160.0          -45.0                                             NSV      
KUE20003        160.0          -45.0       42.20          43.80        1.60      14.77    
incl.                                      43.00          43.80        0.80      28.90    
AND                                        52.40          53.80        1.40      1.86     
KUE20004        340.0          -45.0                                             NSV      
KUE20005        340.0          -45.0       48.40          49.80        1.40      2.21     
AND                                        77.10          78.00        0.90      2.14     
AND                                        160.60         161.55       0.95      1.13     
Intercepts reported at 1 g/t gold. All assay values are uncut. NSV = No significant values
All widths are core widths.  True width is not known at this time.                        


  

Other exploration activities in 2020

An extensive drone geophysical magnetic survey was carried out covering 24 km2 in the Kutuvuoma area and 178 km2 in the western part of the JV area.

A total of 1,175 base of till samples were collected in the Ahvenjarvi and Sinerma areas. The sampling program identified several gold in till anomalies, such as at Sinerma.

Diamond drilling at Kutuvuoma returned gold mineralized intervals including 12.28 g/t Au over 2.75 m from 28.15 m down hole and 6.74 g/t Au over 5.60 m from 121.20 m down hole. Drilling confirmed lateral extensions to the west and east of the main zone to over 1,080 m along strike, with mineralization open in all directions (see news release Aug 26, 2020).

JV area amendment

Three new permits or permit applications (total 2,589 ha) located to the south of the current JV land holdings will be added to the JV area increasing the total land holdings to approximately 29,000 ha.

Exploration activities in 2021

B2Gold is planning to increase the level of exploration activities in 2021 with an initial budget of CAN$6 million. The preliminary plans include geophysical surveys, trenching, base of till sampling and at least 5,000 m of diamond drilling with a focus on the Kutuvuoma-Ikkari area. Rupert Resources’ Ikkari discovery is located 100-300 m from the JV property boundary with the prospective geological sequence interpreted to extend to the JV area. The possible extensions of the discovery will be tested following the granting of the adjacent exploration permits.

Background

On August 13th, 2019, B2Gold exercised its option to acquire a 51% interest in the Finland Joint Venture covering approximately 29,000 hectares, which include the Kutuvuoma, Ahvenjarvi and Sinerma projects. Since inception of the agreement, dated January 13, 2016, B2Gold completed over CAN$5 million in exploration expenditures, paid Aurion CAN$50,000 in cash and issued 550,000 B2Gold shares over a four-year period to complete the requirements of the first option.

B2Gold is currently earning an additional 19% interest by spending a further CAN$10 million over two years, and, if exercised, an additional 5% interest by completing a feasibility study, for a total of 75%.

Highlights include:

• 16,000 m of drilling at Bonnefond, including 8,000 m of expansion drilling at depth on the Bonnefond intrusive and 8,000 m of exploration drilling on the broader Bonnefond property;
• 12,000 m of exploration drilling around the formerly producing Bevcon mine;
• 7,000 m of exploration drilling on the New Louvre target.

Following on a very active and successful 2020, QMX has commenced the winter campaign. The 35,000 m winter campaign, focusing on the highly prospective East zone, will culminate in seven drill rigs turning on the Bonnefond, New Louvre and Bevcon targets. The primary objective of this drilling campaign is to further expand the Bonnefond deposit and follow up on previous significant drilling results in the East zone.

“We are thrilled to report the start of our winter campaign,” said Dr. Andreas Rompel, vice-president, exploration. “We intend to enlarge the known resource on Bonnefond even further and want to embark on exploration around the prolific Bevcon intrusive, which has been the host to a historic mine which was far from depletion when stopped. We are very confident that we can build a similar resource base compared to our flagship Bonnefond project.”

Continuing exploration

QMX is currently operating four drill rigs on and around the Bonnefond deposit area. This initial phase of the winter campaign is focused on deep drilling below the Bonnefond deposit and exploration drilling near the New Louvre target. Three additional drill rigs will be mobilized as the winter campaign progresses.

Bonnefond deposit

This winter, QMX plans to drill approximately 8,000 m to explore the Bonnefond intrusive further at depth with the objective of expanding the current underground resource. In parallel, QMX is conducting a broader 8,000 m exploration program testing prospective targets to the east of the Bonnefond deposit.

Previous drilling at Bonnefond intersected 6.48 grams per tonne gold over 73.2 m, and 35.56 g/t Au over 4.0 m at 1,050 m in DDH 17215-20-121 (news release dated Aug. 18, 2020) and intersected 185.0 m of 2.16 g/t Au in pit and 11.2 m of 10.88 g/t Au at depth in DDH 17315-20-149 (news release dated Jan. 5, 2021).

Bevcon intrusive

During the fall of 2020, QMX tasked InnovExplo to complete a Leapfrog 3-D model and structural analysis of the Bevcon mine. This detailed geological model integrated all of the available data on the project and facilitated a better understanding of the 2.5 km long target area, driving the company’s 12,000 m drill program this winter.

The initial phase of the winter campaign on the Bevcon intrusive will follow up on the significant results returned from the 2019 drilling campaign. The previous drilling to the west of the Bevcon mine intersected 84.8 g/t Au over 6.0 m, including 137.5 g/t Au over 3.7 m in DDH 17311-18-015 and 10.8 g/t Au over 4.3 m in DDH 17311-18-017 (news release dated Sept. 24, 2019).

New Louvre target

The New Louvre target is located 1.5 km southeast of the Bonnefond deposit on the Bonnefond property. It consists of a grano-dioritic sill hosted in a major shear zone. Mineralization is hosted in quartz-tourmaline veins associated with the deformation. In 2018, a first reconnaissance drilling campaign on the New Louvre sill returned several mineralized intersection over the roughly one km structure, including 6.6 g/t Au over 3.7 m in DDH 17315N-18-007, 14.0 g/t Au over 1.4 m in DDH 17315N-18-008, 21.5 g/t Au over 0.9 m in DDH 17315N-18-017 and 10.9 g/t Au over 2.5 m in DDH 17315N-18-018 (news release dated Aug. 22, 2019).

QMX anticipates drilling 7,000 m on the New Louvre target during the winter campaign.

Quality control

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

Drill holes reported herein show significant extensions of gold mineralization beyond the PEA whittle pit published in 2020 (see press release dated Aug. 31, 2020), which successfully outlined an estimated inferred resource of 580,000 ounces of gold equivalent (AuEq) ounces (22.6 million tonnes, at average grade of 0.80 gram per tonne gold equivalent) in the Southwest zone (SWZ). This new zone, initially discovered and drilled in late 2019 and early 2020, is located approximately three kilometres southwest of the former mine and main mineral resource area, and is believed to represent one of the most important near-term mineral growth targets on the Troilus property.

Southwest zone drilling highlights include:

• Drill hole TLG-ZSW20-204, a 200-metre stepout hole, intersected high-grade gold-bearing mineralization between 50 metres and 450 m from surface, all located outside of the National Instrument 43-101 mineral resource envelope and the open pit proposed in the August, 2020, PEA.

Intercept highlights include:

• 1.95 g/t AuEq over 20 metres, including 2.73 g/t AuEq over nine metres, and 1.50 g/t AuEq over nine metres, including 2.21 g/t AuEq over five metres, located over 50 metres beyond the pit wall proposed in the PEA;
• 3.51 g/t AuEq over one metre and 9.01 g/t AuEq over two metres, located over 200 metres below the pit wall proposed in the PEA;
• 2.09 g/t AuEq over four metres.

Drill hole TLG-ZSW20-201 confirmed extensions of mineralization in a previously undrilled area within the PEA pit. Intercept highlights include:

• 2.48 g/t AuEq over six metres and 2.5 g/t AuEq over five metres within a broader intersection of 1.74 g/t AuEq over 21 metres;
• 1.9 g/t AuEq over 2.6 metres within a broader intersection of 1.03 g/t AuEq over eight metres;
• 1.77 g/t AuEq over four metres;
• 1.22 g/t AuEq over 2.2 metres located beyond the pit wall proposed in the PEA.

Justin Reid, chief executive officer of Troilus, commented: “In just 12 months, our geology team has discovered, interpreted, outlined and is now extending what could be the most significant new drill results in the Frotet-Evans belt since the discovery of the Troilus mine nearly 35 years ago. Today’s results from the Southwest zone reaffirm our belief that the sizable mineral resource estimates that we have already outlined around the past-producing mine are only scraping the surface of the Troilus mineralized system, and highlight the potential positive impact they could have on the prefeasibility study we intend to complete later this year. We remain focused on the Southwest zone as a priority target as we aim to further expand and define the extent of this zone.”

These results continue to validate the company’s new structural model for gold mineralization at Troilus developed by the exploration team over the last three years. This geologic reinterpretation has been successfully applied to the main Z87, Z87 South, J zones and more recently to the Southwest zone, where the overall estimated indicated mineral resources have grown 142 per cent and estimated inferred mineral resources have grown 350 per cent in 24 months with only 80,500 metres drilled (see press release announcing the latest mineral resource estimate dated July 28, 2020). This summer’s field exploration program, developed using the same methodology, has also demonstrated success at a regional scale as new targets were defined and discoveries made on Troilus’s recently expanded 107,000-hectare property (see latest regional exploration press release dated Dec. 9, 2020).

Update on operations during COVID-19 pandemic

On Jan. 6, 2021, the government of Quebec announced a new lockdown for several sectors of the Quebec economy, however, mineral exploration companies with commitments and essential work are permitted to continue with operations. The Troilus site reopened effective Jan. 11, 2021, following a temporary closure over the holiday break. Current operations remain focused on essential activities related to the continuing drill program. Strict COVID-19 protocols and screening remain in place at site to protect the health of employees, contractors and the company’s local communities and it will continue to closely monitor the provincial government’s directives and public health guidelines.

                        SUMMARY OF NEW SOUTHWEST ZONE DRILL RESULTS

                 From        To     Int.     Au grade    Cu grade    Ag grade    AuEq grade
Hole               (m)       (m)      (m)*       (g/t)         (%)       (g/t)         (g/t)

TLG-ZSW20-201   182.0    190.00     8.00         0.78       0.163        3.65          1.03       
incl.           186.4    189.00     2.60         1.50       0.241        4.35          1.90       
                197.0    218.00    21.00         1.35       0.270        7.66          1.74       
incl.           198.0    204.00     6.00         1.90       0.372        9.60          2.48       
incl.           211.0    216.00     5.00         2.08       0.312        1.68          2.50       
                220.0    227.00     7.00         0.58       0.264        1.18          0.93       
                232.0    234.00     2.00         1.12       0.015        0.38          1.14       
                237.0    240.00     3.00         0.70       0.012        9.52          0.82       
                266.0    278.00    12.00         0.87       0.029        0.33          0.91       
incl.           266.0    270.00     4.00         1.75       0.014        0.25          1.77       
                404.0    406.15     2.15         0.95       0.188        3.15          1.22       
TLG-ZSW20-204    59.0     66.00     7.00         1.08       0.004        0.79          1.09       
incl.            61.0     64.00     3.00         1.60       0.002        0.76          1.61       
                 75.0     77.00     2.00         1.07       0.010        4.07          1.13       
                142.0    146.00     4.00         1.71       0.287        1.88          2.09       
                315.0    324.00     9.00         1.23       0.201        1.34          1.50       
incl.           315.0    320.00     5.00         1.80       0.304        1.90          2.21       
                346.0    366.00    20.00         1.69       0.193        1.90          1.95       
incl.           357.0    366.00     9.00         2.38       0.266        1.69          2.73       
                546.0    553.00     7.00         0.78       0.079        1.60          0.91       
                574.0    575.00     1.00         3.19       0.212        4.09          3.51       
                599.0    601.00     2.00         8.57       0.079        32.35         9.01       

* Note drill intervals reported in this news release are down-hole core lengths as true 
  thicknesses cannot be determined with available information.

All four holes intersected high-grade shallow oxide gold. Selected highlighted results from these first holes are 3.3 grams per tonne Au over 25 metres, including 5.4 g/t Au over seven m (FG20-001C); 3.4 g/t Au over 51.6 m, including 14 g/t Au over 10 m (FG20-002C); 3.2 g/t Au over 14.6 m (FG20-003C); and 1.8 g/t Au over 92 m, including 8.7 g/t Au over 7.7 m and 15.1 g/t Au over 4.3 m (FG20-006C). Gold mineralization extends to at least 200 metres and is open at depth. Of note, the high-grade zones lie within broader lower grade mineralized envelopes, such as 1.1 g/t over 189.1 metres (FG20-006C; see attached table). Drill holes reported in this press release cover an area of 150 by 50 metres of the Lemhi deposit.

    
                           Total                      Depth (m)                            Average grade
Drill hole ID           depth (m)              From               To           Int. (m)          (g/t Au)

FG20-001C                    247              28.0              53.0              25.0               3.3
incl.                                         32.0              41.0               9.0               4.0
and incl.                                     46.0              53.0               7.0               5.4
FG20-002C                    242               6.4              58.0              51.6               3.4
incl.                                         47.0              57.0              10.0              14.0
FG20-003C                    185              40.0              96.0              56.0               1.2
incl.                                         81.4              96.0              14.6               3.2
FG20-006C                    213              12.9             202.1             189.1               1.1
incl.                                         37.0             129.0              92.0               1.8
incl.                                         81.5              89.2               7.7               8.7
incl.                                         81.5              85.8               4.3              15.1

* Intervals are core length. True width is estimated between 90 and 95 per cent of core length.


  

Will Randall, president and chief executive officer, commented: “These initial results clearly demonstrate the high-grade nature of the Lemhi gold project, including project enhancing thick shallow high-grade oxide gold zones. This is a great start to the drill campaign confirming historically defined mineralization as well as providing a more comprehensive understanding of the gold mineralization and its controls.”

Geologically, the Lemhi gold project lies within the Idaho-Montana porphyry belt, a northeast-trending alignment of metallic ore deposits and mines related to granitic porphyry intrusions. These extend northeasterly across Idaho and are related to the Trans-Challis fault system, a broad (20 to 30 km wide) system of en echelon northeast-trending structures extending from Boise basin more than 270 km into Montana. At Lemhi, gold mineralization is hosted in Mesoproterozoic quartzites and phyllites within a series of relatively flat-lying lodes consisting of quartz veins, quartz stockwork and breccias. Mineralized lodes are associated with low-angle faults, folding and shear zone(s). The mineralized zones have varying amounts of sulphides (pyrite, chalcopyrite, bornite, molybdenum and occasionally arsenopyrite) where free gold is common. Gold mineralization at Lemhi is open at depth and on strike.

All drill core and rock samples are sent to ALS Global Laboratories (geochemistry division) in Vancouver, Canada, an independent and fully accredited laboratory (ISO 9001:2008) for analysis for gold by fire assay and multielement induction coupled plasma spectroscopy (select drill holes). Freeman Gold has a regimented quality assurance, quality control (QA/QC) program where at least 10 per cent duplicates, blanks and standards are inserted into each sample shipment.

Core photos and drill sections can be found at the company’s website. Drill holes are not analyzed in order but as shipments were logged in at the laboratory. Results from the remaining 30 drill holes are pending.

The technical content of this release has been reviewed and approved by Dean Besserer, PGeo, vice-president of exploration for the company and a qualified person as defined by the National Instrument 43-101.

2020 Airstrip exploration highlights

• Diamond drill hole AS-20-005 intersected 46.32 metres of 0.51 gram per tonne gold from surface and hole AS-20-004 intersected 26.06 m of 0.48 g/t gold from 128.81 m.
• Broad zones of lower grade gold mineralization were encountered in multiple diamond drill holes, including 101.13 m of 0.24 g/t gold from 314.27 m in AS-20-005 and 117.35 m of 0.14 g/t gold from 7.32 m in AS-20-002.
• Higher grade discrete veins were identified in drilling, including 0.29 m of 7.33 g/t gold in hole AS-20-005.
• Rotary air blast (RAB) and diamond drilling has encountered gold mineralization over an 1,800 by 900 m area and across a vertical extent of 380 m;
• High-grade silver-copper-tungsten mineralization was encountered in two holes, including 2.45 m of 3,350 g/t silver, 0.85 per cent copper and 0.40 per cent tungsten from 64.30 m in hole AS-20-002.

“Our first six diamond drill holes at Airstrip have successfully demonstrated the presence of orogenic gold mineralization over a considerable area. Systems like this are typically complex and have broad lower grade zones with higher grades concentrated in key structural areas,” stated president and chief executive officer Graham Downs. “The 2020 exploration program has barely scratched the surface of this large 11.5 square km gold anomaly, and we have already identified multiple broad horizons of gold mineralization. Future work will allow us to systematically test the six km long target area for structurally favourable zones with higher grades.”

Phase two program summary

The phase two exploration program included six diamond drill holes totalling 1,876 m, RAB (rotary air blast) drilling, prospecting, mapping and trenching focused on better defining gold mineralization at the largely overburden covered Airstrip target.

Highlight gold results from the 2020 diamond drilling at the Airstrip target are in the attached “Gold results” table.

                                  GOLD RESULTS
  
Hole                From (m)           To (m)     Interval (m)       Gold (g/t)

AS-20-002              7.32           124.67           117.35             0.14
incl.                  7.32            22.56            15.24             0.43
AS-20-004            120.09           179.16            59.07             0.26
incl.                128.81           154.87            26.06             0.48
and                  228.04           252.00            23.96             0.18
AS-20-005              0.31            46.63            46.32             0.51
incl.                 40.17            43.00             2.83             3.12
and                  177.92           211.22            33.30             0.32
and                  314.27           415.40           101.13             0.24
incl.                415.11           415.40             0.29             7.33


  

Two holes also encountered high-grade silver with associated copper and tungsten.

  
Hole               From (m)          To (m)    Interval (m)    Silver (g/t)      Copper (%)    Tungsten (%)

AS-20-001           191.41          193.85            2.44           3,060           0.59%           0.56%
AS-20-002            64.30           66.75            2.45           3,350           0.85%           0.40%


  

Reported intersections are drilled thicknesses and true widths are unknown.

Holes AS-20-001 and -002 were targeted to twin and extend 2016 RAB holes ASR-16-004 and ASR-16-006, respectively. Challenging drilling conditions led to very poor core recovery in portions of both of these holes, and the RAB results were not replicated. Hole AS-20-001 encountered sporadic zones of trace gold, but no significant gold results were returned. Hole AS-20-002 returned a broad zone of 117.35 m of 0.14 g/t gold from near surface, including 15.24 m of 0.43 g/t gold.

Both of these holes also returned intervals of high-grade silver mineralization within faulted sections, including 2.45 m of 3,350 g/t silver, 0.85 per cent copper and 0.40 per cent tungsten from 64.30 m in hole AS-20-002.

AS-20-003 targeted an undercut of RAB hole ASR-16-004, drilling from the opposite direction. Sporadic zones of trace gold were encountered, but no significant results were returned.

AS-20-004 targeted an undercut of RAB hole ASR-20-019 and high-grade rock samples collected at surface. This hole returned multiple horizons of low-grade mineralization, including 26.06 m of 0.48 g/t gold, as well as higher grade discrete veins, including 1.87 m of 3.48 g/t gold.

AS-20-005 twinned and extended RAB hole ASR-20-018, and encountered multiple horizons of low-grade mineralization, including 46.32 m of 0.51 g/t gold and 101.13 m of 0.24 g/t gold, with higher grade discrete veins returning up to 0.29 m of 7.33 g/t gold.

AS-20-006 twinned and extended RAB hole ASR-20-021. Sporadic zones of trace gold were encountered, but no significant results were returned.

RAB hole ASR-20-024 was drilled 800 m to the west of AS-20-001, testing an area of elevated gold- and arsenic-in-soil response, and returned 39.62 m of 0.23 g/t gold from 13.72 m, ending in mineralization.

Airstrip geology and mineralization

The Airstrip target hosts an about 11.5 square km gold-in-soil anomaly with values ranging from detection limit up to 2,360 parts per billion gold. The target area is underlain by a variably graphitic and calcareous phyllite with lesser amounts of quartzite, and mafic to intermediate volcanic and volcaniclastic rocks of the Devonian-Mississippian earn group.

Gold mineralization occurs within east-southeast- to west-northwest-trending and vertically dipping, broad zones of highly deformed quartz-carbonate plus or minus sericite veins. Mineralization is also disseminated within the phyllite host rock around veins. The mineralized areas contain variable amounts of pyrite, arsenopyrite and lesser pyrrhotite, and are typically oxidized near surface.

The observations made to date would suggest the Airstrip target is a Phanerozoic orogenic gold system (such as Moose River Gold Mines, Canada, and Fosterville mine, Australia).

High-grade silver mineralization, with associated copper and tungsten, has been encountered in faulted zones in two holes. The nature of this mineralization is not currently known, and will be investigated further in future work.

East Goldfield update

Exploration work is under way at Atac’s East Goldfield, Nevada, project. Airborne hyperspectral and lidar surveys were flown last summer, first pass soil sampling was conducted in October, and initial prospecting was completed in December. A follow-up prospecting and mapping program is scheduled to begin in late January. Further information will be provided in the coming weeks once results have been received and reviewed.

Quality assurance/quality control

Sawn diamond drill core and RAB sample splits were forwarded to ALS Minerals in Whitehorse for sample preparation. Samples were fine crushed to 70 per cent passing two millimetres before a 250-gram split was pulverized to better than 85 per cent passing 75 microns. Pulps were then analyzed at ALS Minerals in North Vancouver where gold determinations were carried out. Gold analyses were by the Au-AA24 (RAB) and Au-AA26 (diamond drill core) procedures, which involve fire assay preparation using a 50-gram charge with an atomic absorption spectroscopy finish.

Initial multielement data for 48 elements were determined for all samples by the ME-MS61 procedure, which involves a four-acid digestion followed by inductively coupled plasma atomic emission spectroscopy and inductively coupled plasma mass spectrometry. Overlimit values for silver were determined by the Ag-OG62 method which utilizes a four-acid digestion followed by an inductively coupled plasma atomic emission spectroscopy finish. Overlimit values for silver determined by the Ag-OG62 method were reanalyzed using the Ag-GRA21 method which involves fire assay preparation using a 30 gram charge and a gravimetric finish.

Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the sample stream of diamond drill samples to ensure integrity of the assay process. All diamond drill samples included in this news release have passed the QA/QC procedures as described above.

All results reported in this release represent highlight results only. Low or below detection values for gold, silver, copper and tungsten were encountered in unreported samples and drill intervals.

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

Abraplata made substantial progress on multiple fronts in 2020, with the top three highlights being:

• The successful completion of three equity financings for aggregate gross proceeds of $25-million, also resulting in Eric Sprott becoming the company’s largest shareholder;
• Announcing multiple high-grade silver, gold and copper exploration results at Oculto as part of the continuing 13,000-metre drill program. Refer to the attached table for summary of top drill intercepts; and
• Strong share price appreciation with increased shareholder value of 750 per cent for the year, resulting in the company being among the best performing mineral exploration companies listed on the TSX-Venture Exchange.

John Miniotis, president and chief executive officer, commented: “The past year has truly been transformational for the company, and has greatly positioned us to continue to add value going forward. With an aggressive exploration program at Diablillos under way, a strong balance sheet and a highly supportive shareholder base, we’re pleased to be rapidly emerging as one of the premier silver-gold-focused exploration stories. I would personally like to thank all of our team members for their hard work and shareholders for their continuing support, as we look forward to further exciting years ahead in 2021 and beyond.

“Finally, we are extremely pleased to be actively working in the Salta province, which is ranked among one of the best mining jurisdictions, not only in Argentina but in the Americas. The province has proven over time its commitment to support the mining and exploration industry, which has had a very positive impact on the business environment. We look forward to continuing to work closely with the government and local communities, as we look to advance the Diablillos project towards production,” stated Mr. Miniotis.

2020 drilling highlights

In 2020, Abraplata drilled approximately 8,900 metres in 33 holes at Diablillos. Of these holes, the company has reported drill results from only 14 holes, with the results from the remaining 19 holes currently pending. The three main priority drilling targets were to:

• Identify additional gold resources in the deeper oxide gold zone;
• Extend silver-gold mineralization northeast of the Whittle Pit boundary; and
• Define a shallow gold zone (from surface to approximately 100-metre depth) which would benefit early open pit mining operations.

2021 outlook

The company begins the year with a substantial backlog of assays from 19 exploration drill holes that it expects to report in Q1 2021. These assay results are expected to be released in batches starting in the next several weeks, which should help lead to record-high levels of news flow ahead. Other expected milestones for the year ahead include:

• Completing the 13,000-metre exploration program (Q1 2021);
• Completing additional metallurgical test work and mineralogical studies (H1 2021);
• Completing additional water well drilling to test identified aquifers (H1 2021);
• Updated mineral resource estimate and preliminary economic assessment study (mid-2021);
• Evaluating additional targets and district-scale potential at Diablillos (throughout 2021);
• Advancing environmental and hydrology baseline studies (throughout 2021);
• Progressing other projects (throughout 2021);
• Arcas project, Chile — The company’s partner, Rio Tinto, has an option to earn up to a 75-per-cent interest in Arcas by spending up to $25-million (U.S.) in exploration expenditures. Rio Tinto is expected to commence an initial 2,000-metre RC drill program in H1/2021;
• Santo Domingo, San Juan — The company has an option to acquire a 100-per-cent interest by paying a total of $2.5-million (U.S.) in staged payments over the next seven years. Numerous targets have been identified on the project and will be evaluated in H1/2021, with the company potentially commencing an initial drill program by the end of the year; and
• La Coipita, San Juan — The company has an option to acquire a 100-per-cent interest by paying a total of $4,265,000 (U.S.) in staged payments over the next four years. The company is currently in discussions with potential strategic partners to advance the project.

“We are pleased that our warrant holders exercised all the outstanding warrants that were expiring and were able to benefit from the continued growth in value of the company since the securities were issued in 2019. The proceeds from the exercise of the warrants only strengthen what is an already strong treasury while we continue to generate free cash flow from our operations. We begin 2021 in an excellent position to execute our growth programs and create further value for our shareholders,” said Kevin Bullock, president and chief executive officer of Anaconda Mining.

Upcoming investment conference

The company is also pleased to announce that Mr. Bullock, president and CEO, will be participating in the BMO Capital Markets Global Metals and Mining Conference to be held virtually from March 1 to March 5, 2021. The BMO Capital Markets Global Metals and Mining Conference connects mining companies with institutional finances, private equity groups, family offices and sector analysts.

Milestones Achieved in 2020

Columba Project, Chihuahua

• Initiated and completed the second drill program comprised of 43 holes, totaling over 9,114 meters designed as a follow up the initial 41 holes completed in 2019.
• Targeted infill and step out drilling within the high-grade F vein at the site of historical mining
• Further drill tested higher grade intercepts encountered in 2019 on other veins (such as the J & Z Veins) and tested previously undrilled veins mapped by the Kootenay geologic team.
• Discovered the J-Z vein – an area that hosts a different geological structure composed of veins and breccia as opposed to the classic epithermal veins present in the F vein.
• Intercepted additional high-grade silver mineralization within the F vein, which included an impressive hanging wall structure parallel to the F vein that was not apparent from surface.
• Drill highlights included:
  • CDH-20-045: 0.5 meters of 974 gpt silver; F Vein
  • CDH-20-046: 0.6 meters of 1,585 gpt silver and 1.4 meters of 911 gpt silver; F Vein
  • CDH-20-049: 2.8 meters of 762 gpt silver including 1.0 meter of 2,010 gpt silver; hanging wall structure
  • CDH-20-051: 2.0 meters of 865 gpt silver; hanging wall structure
  • CDH-20-060: 11.0 meters of 361 gpt silver including 5 meters of 608 and 1.0 meter of 1160; hydrothermal breccia and stockwork
  • CDH-20-066: 1.5 meters of 773 gpt silver; hydrothermal breccia
• Assays from the remaining 17 holes are being analyzed and interpreted with results to be released once completed.

Copalito Project, Sinaloa

• Completed the first drill program to ever be conducted on the property consisting of 40 holes totaling over 4,100 meters
• Intercepted high-grade mineralized intersections with the following drill highlights:
  • BDH-20-001: 369 gpt silver equivalent (“AgEq.”); 250 gpt silver and 0.247 gpt gold over 5.0 meters; 360 gpt silver and 0.1 gpt gold over 1.0 meter within 272 gpt AgEq.
  • BDH-20-002: 179 gpt AgEq.; 1.69 gpt gold over 4.3 meters and 274.8 gpt AgEq.; 3.02 gpt gold over 1.7 meters
  • BDH-20-004: 1,323 AgEq.; 1,297 gpt silver and 0.285 gpt gold over 3.2 meters
  • BDH-20-009: 1,047 gpt AgEq.; 936 gpt silver, 0.29 gpt gold and 3.31% lead+zinc (“Pb+Zn”) over 1.0 meter
  • BDH-20-015: 394 gpt AgEq.; 51 gpt silver, 2.28 gpt gold, 6.18 % Pb+Zn over 1.2 meters
  • BDH-20-033: 1,210 gpt AgEq.; 59 gpt silver, 7.05 gpt gold, 13.55 % Pb+Zn over 0.2 meters
  • BDH-20-037: 1,261 gpt silver AgEq. over 1.0 meter consisting of 846 gpt silver, 3.11 gpt gold and 6.15% lead plus zinc; 5 senores vein
  • BDH-20-040: 933 gpt AgEq. over 2.25 meters consisting of 6.65 gpt gold, 335 gpt silver 1,813 gpt AgEq. over 0.51 meters consisting of 16.95 gpt gold, 369 gpt silver and 3.74% lead plus zinc including:
    • 1,813 gpt AgEq. over 0.51 meters consisting of 16.95 gpt gold, 369 gpt silver and 3.74% lead plus zinc 5 Senores vein (one of the deepest holes drilled to date)

Complete drill results for both Columba and Copalito can be found on our company website. AgEq. based $24/oz silver $1900/oz gold, $1/lb zinc, $0.8/lb lead. Estimated true widths range from 65 to 90% of drilled widths depending on dip of the vein and inclination of the hole. All AgEq. And silver composites rounded to the nearest whole number.

Cervantes Project, Sonora

• Completed a joint venture (“JV”) agreement with Aztec Minerals Corp. in respect of the Cervantes porphyry gold-copper project in Sonora, Mexico.
• Aztec Minerals completed the earn-in to acquire 65% interest in Cervantes with Kootenay retaining the remaining 35%. Both companies will hold interests in the Property indirectly through share ownership in the JV company, Aztec Minerals (Mexico) JV Corp.

La Cigarra Project, Chihuahua

• Initiated the relogging of drill core from within the resource to work conducted in 2015, to create a new geological model better fitting the geology of the resource to potentially optimize grade and increase economic favourability.

Financings

• Closed a major financing in August with leader broker Mackie Research Capital Corporation for gross proceeds of $7 million. Each $0.40 unit was comprised of one share and one-half of one common share purchase warrant exercisable at $0.55 until August 25, 2022. Eric Sprott, through 21764123 Ontario Ltd. maintained his proportionate equity interest in Kootenay.
• Received cash proceeds of $2.5 million during Q4, 2020 from the exercise of 8,478,150 warrants exercised at $0.30.

Strategic Plans Developing for 2021

Columba and Copalito

Significant drilling is planned at both Columba and Copalito. Planning meetings are being held in the next two weeks after which details of these programs will be finalized. An announcement outlining the programs will be issued thereafter.

La Cigarra

Continued geologic modeling will be completed with modeling to date tested to see if mineralization within the deposit may possibly exist within a more constrained area resulting in a higher-grade resource. Upon positive findings, a small drill program will be conducted to confirm the model is predictive (reliable and accurate) after which a decision will be made on if a new resource update is supportable or required. The over-arching objective is to optimize the resource and advance it to a PEA study.

La Negra, Sonora

Examination of the extensive drill data is underway to determine if a resource calculation is warranted. Following a positive outcome, a NI43-101 maiden resource estimate will be prepared on the project.

Cervantes

Once a budget has been approved by the JV committee, details of an exploration program will be provided in a news release. Cervantes is host to gold-copper porphyry type mineralization and has promise for both open pit heap leach gold and a larger gold-copper porphyry deposit.

Other

Introducing the Top 25th Percentile Search

In addition to the extensive drilling in 2020 Kootenay continued its grass roots exploration efforts with the initiation of two programs aimed specifically at the discovery of large silver-base metal deposits in the top 25 percentile of size. One such program is focused in the famous Purcell Basin in southeastern B.C. that is host to billions of ounces of silver in the Coeur D’Alene, Montana Copper-Silver and Sullivan mining districts. The second is focussed on the discovery of Carbonate Replacement Deposits (“CRD”) deposits in northern Mexico which make up some of the biggest and longest producing silver-base metal deposits in Mexico.

Moyie Anticline Program – Southeast B.C.

This program was stimulated by the alignment of several fortuitous events. Firstly, for the first time in over 50 years a large land package of prospective geology was open and available for staking; secondly the advancement of deep penetrating geophysical methods to see buried ore bodies and Kootenay’s long-term association with the Kennedy Exploration Group and their deep knowledge and understanding in the area has resulted in identifying targets based on geology/mineralization.

The program was kicked off in 2020 with the acquisition of nearly 35,000 hectares at an up -front cost of less than $60,000. The Company’s next steps will involve detailed geologic mapping and prospecting combined with deep seeing geophysics and then drilling.

CRD Program – Northern Mexico

CRD’s in Mexico are well known for being some of the biggest and longest-lived silver and base metal producers in the world’s largest silver producing country. In the last quarter of 2020 Kootenay designated a team dedicated to the identification and acquisition of projects with CRD discovery potential. An extensive database has been compiled and priorities identified with numerous prospects visited. This will be an ongoing concentrated effort that will take time but given the target size, the Company believes it is worth the effort.

Kootenay’s technical team will continue to advance our grass roots projects, look for new acquisitions and seek partners to advance the properties we currently own.

Highlights

The carbon intensity of Baptiste operations is expected to average 2.40 tonnes of carbon dioxide (“CO2 “) per tonne of refined nickel production (“t CO2/t refined Ni”) Baptiste carbon intensity compares very favourably to published literature estimating the carbon intensity of existing nickel production from various mineral deposit types:

7.19 t CO2/t refined Ni for Class 1 nickel production from sulphide ore

27.50 t CO2/t refined Ni for Class 1 nickel production from laterite ore

45.00 t CO2/t refined Ni for ferronickel production from laterite ore

69.00 t CO2/t refined Ni for nickel pig iron production from laterite ore

Results summarized herein assume no sequestration of carbon dioxide in Baptiste tailings

“These results, taken in combination with the recent PEA, position Baptiste as a truly disruptive project in the global nickel industry, with the potential to become a significant nickel producer at both low-cost and low-carbon intensity for the electric vehicle battery and stainless steel markets,” commented Martin Turenne, FPX’s President and CEO. “Importantly, these estimates of Baptiste’s carbon footprint do not account for the potential sequestration of CO2 in the Project’s tailings, which our ongoing research collaboration with the University of British Columbia suggests could act as a sizeable carbon storage facility and further lower the Project’s net carbon emissions below 2.40 t CO2/t refined Ni. Given the regulatory push by governments in Europe and elsewhere to impose maximum carbon footprint thresholds for electric vehicle batteries, we see the favorable positioning of Baptiste on the global nickel ‘carbon curve’ as a key differentiator for the Project going forward.”

Based on the diesel and electricity consumption for mining and processing activities outlined in the PEA, the carbon intensity of Baptiste operations is expected to average 2.40 tonnes of CO2 per tonne of refined nickel production over the Project’s 35-year mine life. Figure 1 provides a comparison of the estimated carbon footprint of Baptiste nickel production versus industry-wide emissions averages for other major forms of nickel production, as documented in published independent studies.

The low carbon intensity of Baptiste nickel production is a function of several features specific to the Project, including:

Low Stripping Ratio: Baptiste has a life-of-mine stripping ratio of 0.40:1, and thus requires lower consumption of diesel for the mining fleet compared to other similar-scale operations with higher overburden and waste content and higher stripping ratios

Hydroelectric Power: The Project’s processing facility will be powered by low-carbon hydro-electric power, while a significant proportion of global nickel operations (e.g. ferronickel and nickel pig iron) are powered by carbon-intensive coal-fired plants

Refined Nickel Product with No Smelting: Given their high metal content (63% nickel and 30% iron) and low level of deleterious elements, Baptiste’s ferronickel briquettes are expected to bypass the traditional nickel smelting process and be sold as a refined nickel product directly to stainless steel producers, thereby avoiding the carbon emissions associated with the smelting and refining of typical nickel sulphide concentrates.

Comparison to Sulphide Nickel Production

The Baptiste PEA (which was filed September 29, 2020 under the Company’s SEDAR profile) demonstrates the potential for establishing a greenfield open-pit mine and an on-site magnetic separation and flotation processing plant, using conventional technology and equipment. At a throughput rate of 120,000 tonnes per day (or 43.8 million tonnes per year), annual production is projected to average 99 million pounds (44,932 tonnes) nickel contained in ferronickel briquettes grading 63% nickel at C1 operating costs of US$2.74 per pound (US$6,038 per tonne) of nickel.

Cautionary Statement: The PEA is preliminary in nature and 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. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the conclusions or results as reported in the PEA will be realized.

Investor Relations Engagement

The Company has retained the services of Renmark Financial Communications Inc. (“Renmark”) to assist with its investor relations activities. In consideration of the services to be provided, the monthly fees incurred by the Company will be a cash consideration of up to $8,000 CAD, starting January 1 st, 2021 for a period ending on June 30 th, 2021 and monthly thereafter. Renmark does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest.

Dr. Peter Bradshaw, P. Eng., FPX’s Qualified Person under NI 43-101, has reviewed and approved the technical content of this news release.

About the Decar Nickel District

The Company’s Decar Nickel District claims cover 245 square kilometres of the Mount Sidney Williams ultramafic/ophiolite complex, 90 km northwest of Fort St. James in central British Columbia. The District is a two-hour drive from Fort St. James on a high-speed logging road.

Decar hosts a greenfield discovery of nickel mineralization in the form of a naturally occurring nickel-iron alloy called awaruite, which is amenable to bulk-tonnage, open-pit mining. Awaruite mineralization has been identified in four target areas within this ophiolite complex, being the Baptiste Deposit, the B target, the Sid target and Van target, as confirmed by drilling in the first three plus petrographic examination, electron probe analyses and outcrop sampling on all four. Since 2010, approximately US $24 million has been spent on the exploration and development of Decar.

Of the four targets in the Decar Nickel District, the Baptiste Deposit, which was initially the most accessible and had the biggest known surface footprint, has been the main focus of diamond drilling since 2010, with a total of 82 holes and over 31,000 metres of drilling completed. The Sid target was tested with two holes in 2010 and the B target had a single hole drilled into it in 2011; all three holes intersected nickel-iron alloy mineralization over wide intervals with DTR nickel grades comparable to the Baptiste Deposit. The Van target was not drill-tested at that time as rock exposure was very poor prior to logging activity by forestry companies.

As reported in the current NI 43-101 resource estimate, having an effective date of September 9, 2020, the Baptiste Deposit contains 1.996 billion tonnes of indicated resources at an average grade of 0.122% DTR nickel, containing to 2.4 million tonnes of nickel, plus 593 million tonnes of inferred resources with an average grade of 0.114% DTR nickel, containing 0.7 million tonnes of nickel, both reported at a cut-off grade of 0.06% DTR nickel. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Highlights:Q1 gold production of 9,204 ounces, reflecting guided lower production in first half of fiscal 2021Gold sales of 9,210 ounces at an average realized price of $1,868 per ounceMined ore production in Q1 of 14,574 tons per day with the stripping ratio of 1.0:1.0 and grade of 0.014 ounces/tonClosing cash balance of $19.2 million at December 31, 2020, a reduction in cash from September 30, 2020 as we invest in the expansion of the Pan heap leach pad to accommodate added mine life, and in on-going drilling and Feasibility Study activities to advance Gold Rock69,940 man-hours worked in Q1 with no lost time injuries and no reportable environmental incidentsFollowing the completion of the Gold Rock Preliminary Economic Assessment, we are conducting a program of resource expansion, metallurgical, geotechnical and condemnation drilling in support of a Gold Rock Feasibility Study. First drill results were announced in November 2020, headlined by 48.8 metres of 2.17 g/t gold and 32.0 metres of 1.41 g/t gold.

Gold production in Q1 was lower than the prior quarter due to fewer ore tons placed, lower ore grade and timing of gold recovery. Gold extraction on the leach pad was also temporarily impacted by a drop in the pH and alkalinity of the leach solution. The issue was addressed by our operating team through the application of additional lime to the pad to bring the leach solution pH back within the optimal range.

Tim Warman, Fiore&#39;s CEO commented, &quot;As guided, 2021 will be a year of significant reinvestment to support the longevity of the Pan Mine and to continue advancing Gold Rock. We recently announced a two-year mine life extension at Pan, and we are immediately investing in expanding the heap leach capacity to support this extension. Per our operating plan, gold production is weighted to the second half of 2021 as grades increase through the year and planned recoveries are realized. We look forward to returning to higher production levels as the year progresses. At Gold Rock, we continued with our resource expansion drilling and related Feasibility Study work. We are pleased with initial drill results as they continue to expand the oxide mineralization at Gold Rock.&quot;

Technical Disclosure

The scientific and technical information relating to Fiore Gold&#39;s properties contained in this news release was approved by J. Ross MacLean (MMSA), Fiore Gold&#39;s Chief Operating Officer and a &quot;Qualified Person&quot; under National Instrument 43-101.

Corporate Strategy

Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:continue to grow gold production at the Pan Mine, while increasing the resource and reserve baseadvance the development of the nearby Gold Rock projectacquire additional production or near-production assets to complement our existing operations

Under the agreement, ITG will receive compensation of $6,000 per month, payable monthly in advance. The agreement is for an initial term of three months and will renew for additional one-month terms, unless terminated. The agreement may be terminated by either party with 30 days of notice. There are no performance factors contained in the agreement, and ITG will not receive shares or options as compensation. ITG and the company are unrelated and unaffiliated entities, and, at the time of the agreement, neither ITG nor its principals have an interest, directly or indirectly, in the securities of the company.

The company further announces it has initiated the process for uplisting its common shares to the OTCQB Venture Market from the Pink Open Market. The OTCQB Venture Market, operated by OTC Markets Group Inc. in New York, United States, is a premier market for entrepreneurial and development-stage companies that are committed to providing high-quality trading and improved market visibility for U.S. investors to build liquidity and trading volumes. To be eligible, companies must: be current in their financial reporting; pass a minimum bid price test; and undergo an annual company verification and management certification process.

Greg Johnson, chief executive officer and chairman of Metallic Minerals, stated: “We believe that the uplisting on the U.S. OTCQB Venture Market, along with engagement of ITG as a designated market-maker, will provide additional market visibility and liquidity for our shareholders and facilitate investment by long-term institutional investors and large investors in the USA and internationally. The company’s common shares will continue to trade under the symbol MMG on the TSX Venture in Canada and under MMNGF in the USA.”

The company also announces that it has granted, effective today, an aggregate of 825,000 stock options to certain directors and officers of the company, in accordance with the company’s stock option plan. Each option is exercisable into one common share in the capital of the company at a price of 60 cents per share, being the closing price of the shares on the TSX-V on Jan. 11, 2021, for a period of five years from the date of grant. The options are subject to certain vesting requirements, in accordance with the company’s stock option plan.

The company started drilling the first of a six-well, three-phase drilling program at the start of December (see press release dated Dec. 1, 2020) and it was completed just prior to shutting down for Christmas. After satisfying necessary COVID-19 testing requirements, the entire crew has now returned to location to commence flow back and clean out of the well bore. Once completed, the crew and rig will move to the second location of phase 1.

A summary of the company’s three-phase drilling plan

Phase 1: two shallow wells (less than 100 metres) designed to test and confirm geophysical targets on the east and west peripheries of the Tolillar salar. Management elected to drill these targets first, as they were fully permitted and drill ready. The primary objective for these two wells is to confirm lithium grades and further refine the company’s hydrogeological model.

Phase 2: up to two medium-depth wells (between 250 m and 400 m) designed to test geophysical targets on the eastern side of Tolillar salar, which have not previously been tested, other than very shallow lithium tests that were performed by the previous salar owners. The primary objectives of phase 2 drilling are to confirm lithium grades and production flow rates for the 10-square-kilometre extension into the southern portion of the salar. Following a short reapplication process for the expired drilling licence for these locations, the company has been informed that the licence has recently been regranted by the Argentine government.

Phase 3: up to two deep wells (greater than 400 m). Management is eager to drill these wells, as the last round of geophysics (see press release dated Nov. 10, 2020) identified a new, thick, deep horizon in the southern part of the Tolillar salar. This deep horizon has been found to be highly productive and contain exceptionally high lithium concentrations on the nearby Hombre Muerto salar. The primary objective is to identify the geological, chemical and deliverability properties of this new, high-impact horizon. The company has applied for a licence to drill on these two locations and expects to receive approval shortly. The company’s 27,500-hectare Tolillar salar, which is over 20 km long and up to 500 m deep, has the potential to host a significant lithium deposit. It is the company’s intent to capitalize on the next generation of direct lithium extraction (DLE) techniques that have been shown to economically extract lithium at concentrations as low as 100 milligrams per litre. Previous drilling and sampling at the Tolillar salar yielded lithium concentrations of up to 504 mg per litre (see press release dated May 5, 2020).

Brad Nichol, chief executive of Alpha, commented: “Even in the midst of COVID, Christmas vacations and New Year’s break, our operations team in Argentina has successfully completed drilling of Alpha’s inaugural well bore. The crew is back at work and we are almost ready to move the rig to its second location. We are also investigating the availability of a second drilling rig to move quickly and simultaneously onto phase 2.” Mr. Nichol continued: “While the focus is currently and understandably on drilling, Alpha’s corporate motivation is to commence producing the enormous volumes held within this very large salar. Our recent team additions from Beyond Lithium (see press release dated Nov. 18, 2020) are already working on unlocking the potential of DLE, which should allow us to process the large volumes contained within the Tolillar salar.”

Alpha has also granted 1.25 million stock options to a consultant of the company as full compensation in exchange for corporate consulting services, specifically limited to European markets. The stock options have a strike price of 80 cents, a two-year exercise life and will vest immediately.

The material from the Wenden stockpile comprises different styles of mineralization, which are marked and tagged by their source location for detailed analysis. Using American Manganese’s patented manganese recovery process (U.S. patent No. 8,460,631), the initial testing steps include assaying and varying size reductions of the sample material to analyze leach conditions and establish realistic limits for selective manganese extraction and recovery. Testing is to be conducted on the individual samples as well as a master blend to determine the optimal processing conditions.

In 2013, American Manganese tested two Wenden stockpile samples with results indicating that the Wenden material is receptive to treatment with American Manganese’s patented process and flow sheet, initially developed for Artillery Peak’s low-grade manganese resources. The 2013 testing recommended confirmatory measurements, and a larger selection of samples, as outlined in the program that will take place under the DLA grant. The company believes the higher-grade Wenden stockpile material could potentially have smaller equipment footprint requirements and lower operating costs than the flow sheet developed for the Artillery Peak low-grade manganese resources.

Since the development of American Manganese’s patented process for efficient recovery of manganese from lower-grade resources, the manganese market has transformed with the rapid commercialization of electric vehicles. Roskill’s manganese market report expects manganese-sulphate demand from lithium-ion batteries to double over the next decade as electric vehicle market penetration ramps up.

American Manganese has also provided an update on the detailed technical paper, Experimental Study on Recycling of Spent Lithium-Ion Battery Cathode Materials — IOPscience, published in the peer-reviewed Journal of the Electrochemical Society (JES). This technical paper describes the experimental work leading to the development of RecycLiCo, the company’s process for the recycling of valuable and critical metals from spent lithium-ion battery cathode materials. Out of all 16,580,141 research outputs ever tracked by Altmetric, the technical paper has ranked in the top 5 per cent. The Altmetric attention score is a high-level measure of the quality and quantity of on-line attention the publication has received.

“To be peer reviewed speaks well for the results achieved by our patented process,” said Larry Reaugh, president and chief executive officer of American Manganese. “To be in the 97th percentile, or top 5 per cent, of the 16,580,141 research outputs should be a source of pride for our management, shareholders, directors and advisers.”

Iron ore had the greatest price appreciation of any mainstream commodity in 2020, largely due to governments globally spending hundreds of millions on infrastructure projects to get people back to work and stimulate the economy. Black Iron is a low-cost, undeveloped iron ore project on the brink of securing financing for construction, with several major milestones targeted for this coming year, which will be covered during this presentation.

Given substantial recent developments, including a $100-million (U.S.) royalty, progress with offtake parties and increased public enquiries received, management has decided to conduct a 45-minute Web-based presentation, followed by a question period for attendees.

Matt Simpson, chief executive officer of Black Iron, stated: “Two thousand twenty-one is shaping up to be a pivotal year for Black Iron as we look to move the financing and land acquisition matters, which were well advanced in 2020, to a head with binding agreements. Given Black Iron’s share price appreciation, we have received a substantial increase in public enquiries and feel this is a great time and opportunity to: tell our story; explain what investors can expect for 2021; and answer any questions people may have. These types of presentations are generally only available to institutional investors or those who pay to attend conferences; however, we believe anyone who wishes to learn more about Black Iron should have the ability to do so.”

Felix Gold is planning to undertake an initial public offering (“IPO”) and listing on the Australian Securities Exchange (“ASX”) in 2021. Upon successful listing and ASX approval, Millrock will vest with a circa 10% share ownership of Felix Gold (dependent on the final capital raising amount).

Each of the three projects is subject to a production royalty in favour of Millrock:

Treasure Creek 2.0% Net Smelter Returns (“NSR”);

Ester Dome 1.5% NSR; and

Liberty Bell 2.0% NSR.

Each of the royalties has an initial Advanced Minimum (“AMR”) payment of US$50,000 per year that is triggered when certain milestones are met. The AMR payments increase by US$50,000 each year. AMR payments made to Millrock are deductible from future production royalty payments.

Additionally, two company’s technical teams will work together under a Strategic Alliance agreement to generate further projects in the Fairbanks Gold District. Felix Gold will contribute a minimum of US$250,000 annually for this work and future property acquisitions. Mineral rights acquired under strategic alliance efforts will be subject to a 1.0% NSR production royalty in favour of Millrock. Felix Gold will be engaging Millrock through a Services Agreement to provide staff, infrastructure and equipment.

Millrock President & CEO Gregory Beischer commented, “We are very pleased with this development. Millrock envisions a systematic, concerted, and sustained exploration effort in the Fairbanks Gold District with numerous drilling programs in the years to come. The Fairbanks Gold District offers promising chances for new gold deposit discovery success and rewards for our shareholders. The new company, Felix Gold, of which Millrock will become a significant shareholder, is named after Felix Pedroni, the prospector credited with the initial discovery of gold in Fairbanks in 1902. We look forward to our collaboration with Felix Gold and making new gold discoveries in this resurging, under-explored gold camp.”

The Fairbanks Gold District is located in the prolific Tintina Gold Province (Figure 1), which spans Alaska and Yukon. Millions of ounces of alluvial gold has been produced since gold was first discovered near the turn of the prior century. The most prominent lode gold deposit so far discovered in this area is the Fort Knox Mine operated by Kinross Gold Corp. Fort Knox has so far produced in excess of eight million ounces of gold and has substantial resources for future production (source: Kinross Gold Corporation website)

The Ester Dome Project

The Ester Dome project is located on the western bounds of the City of Fairbanks. Alluvial gold has been produced on the flanks of Ester Dome (a prominent topographic high) for over a century and continues to this day. DGGS reports that at least three million ounces of gold have been produced. Numerous lode prospects have been discovered on Ester Dome, including on claims that are held directly by or under option by Millrock. These claims are being transferred to Felix Gold.

The Liberty Bell Project

The Liberty Bell project is located approximately 115 kilometers southwest of Fairbanks. Intrusion-related gold deposits are targeted. Extensive soil anomalies are present in areas of shallow overburden. Thick gravels obscure bedrock in other area that have interesting geophysical signatures. Rotary air-blast drilling is planned to test beneath the gravel blanket in summer 2021.

The company wishes to confirm that the case pertaining to its Ixtaca mineral claims is not being heard at the supreme court level and therefore this reported ruling cannot relate to the company’s Ixtaca project. The company is aware that other mineral claims in Puebla state unrelated to the company’s Ixtaca project are the subject of one or more complaints at the supreme court level, but the company has no first-hand knowledge of the status of these cases.

Number of creditors:  one creditor

Insider:  Resource Capital Fund V LP, $382,698, 1,994,257 shares at 19.19 cents

The Alumina facility is structured to provide Namibia Critical Metals with timely access to private placement financing as and when required. Under the terms of the investment agreement, the company has the right to draw down on the $5-million facility through equity private placement tranches of up to $250,000 each. Each tranche will be a placement of units, with each unit comprising one common share and one-half of one common share purchase warrant. The units will be priced at a discount of 15 per cent to 25 per cent from the then most recent closing price of the shares on the TSX Venture Exchange at the time of the applicable company drawdown notice to Alumina. The warrants will be issued at a 40-per-cent premium over the market price of the shares and will have a term of 24 months. There are no standby charges or other upfront fees associated with the investment agreement or any penalties for not drawing the full facility. Each tranche of units issued under the investment agreement will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary four-month hold period. A first tranche drawdown of $100,000 was completed concurrent with the execution of the investment agreement on Aug. 24, 2020.

Pursuant to the second drawdown, the company issued 451,977 units at a price of 22.125 cents per unit for gross proceeds of $100,000. Each warrant in this second tranche is exercisable into one additional common share at a price of 41.3 cents. The proceeds from this second drawdown will be used for general corporate purposes.

Highlights

• Hole LM-20-111 intercepted four m of 370 grams per tonne silver from 18 m, including one m of 1,080 g/t Ag and one m of 7 per cent copper, 27.6 g/t Ag and 0.03 per cent cobalt from 113 m;
• LM-20-113 intercepted four m of 366 g/t Ag including one m of 1015 g/t Ag and 0.35 per cent Co;
• Hole LM-20-110 intercepted four m of 196.6 g/t Ag from 3.6 m, including one m of 661 g/t Ag.

Chairman and chief executive officer of Brixton, Gary R. Thompson, stated: “We continue to be pleased with the results from our ongoing 20,000 m drill program at Langis. Drilling continues to generate high-grade near-surface results that support the potential maiden resource.”

                    LANGIS FALL 2020 DRILLING HIGHLIGHTS NEAR SHAFT 3

Hole ID      From (m)    To (m)   Interval (m)   Ag (g/t)   Co (%)   Cu (%)   Ag (g/t * m)

LM-20-108       8.10     12.10           4.00      85.35                           341.40
including       9.10     11.10           2.00     157.00                           314.00
LM-20-109       8.20     12.20           4.00      68.90                           275.60
including       8.20      9.20           1.00      17.80     0.16                   17.80
including      10.20     11.20           1.00     154.00                           154.00
LM-20-110       3.60      7.60           4.00    196.60                            786.40
including       4.60      5.60           1.00     661.00                           661.00
LM-20-110      15.60     18.60           3.00       25.67                           77.00
including      16.60     17.60           1.00      34.40     0.14                   34.40
LM-20-111       0.00      3.00           3.00      28.53                            85.60
including       0.00      1.00           1.00      47.10     0.11                   47.10
LM-20-111       5.00      8.00           3.00      97.47                           292.40
including       6.00      7.00           1.00     213.00     0.07                  213.00
LM-20-111      18.00     22.00           4.00     370.28                         1,481.10
including      19.00     20.00           1.00     326.00     0.38                  326.00
including      20.00     21.00           1.00   1,080.00                         1,080.00
LM-20-111     113.00    114.00           1.00      27.60     0.03     7.00          27.60
including     113.00    113.50           0.50      39.60     0.05    10.85          19.80
LM-20-112       0.00      2.20           2.20      70.75                           155.65
including       1.20      2.20           1.00       42.50     0.61                  42.50
LM-20-112       6.20      8.20           2.00      92.90                           185.80
LM-20-113       0.00      1.80           1.80      27.20                            48.96
including       0.00      0.80           0.80      29.00     0.68                   23.20
LM-20-113       3.80      7.80           4.00     366.08                         1,464.30
including       4.80      5.80           1.00     423.00                           423.00
including       5.80      6.80           1.00   1,015.00     0.35                1,015.00
LM-20-113      16.80     19.80           3.00      33.67                           101.00
LM-20-119       0.00      1.80           1.80     109.80                           197.64

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

The gold-producing industry appears to be finally emerging from a prolonged period of fiscal discipline, balance sheet repair and asset divestiture. The sector is now rapidly consolidating and moving toward a growth-seeking phase.

With a growing high-grade surface discovery and a dominant land position in an emerging gold camp — we believe that Aurion is ideally positioned.

We look forward to the resumption of normal exploration programs and the chance for major advances on several still-early-stage discoveries

Aamurusko

We will be back on our flagship high-grade surface discovery at Aamurusko, after being forced to suspend exploration due to the pandemic. High-grade drilling discoveries on the western and eastern extents of the Aamurusko boulder field suggest that the 600-metre central Gap zone is an obvious and exciting opportunity.

Launi

Most of our 2020 exploration was directed at finding the sources of the extensive surface mineralization at Launi. The Hinge zone and the many discrete gold-bearing veins intercepted in drilling suggest that we may be onto a significant gold-bearing system.

B2Gold joint venture

Step-out drilling at Kutuvuoma resulted in a meaningful expansion of the deposit footprint. In 2021 we expect our partner will test for the possible extensions of Rupert’s Ikkari discovery — made adjacent to the property boundary.

Risti

This larger property envelope, with Aamurusko at its centre, has many advanced targets and will be subject to scout programs throughout 2021.

Year in review — 2020

An unexpected pivot

Aurion’s 2020 exploration season was focused primarily on making new discoveries. This was not entirely by design. On March 16 Prime Minister Justin Trudeau urged Canadian’s travelling abroad to return home in anticipation of border closure as a result of the COVID-19 global pandemic. In the following weeks, our field crew and the operators of our diamond drill program returned to Canada. In consultation with our crews and in consideration of the unknown health risks associated with travel, we opted not to ask Canadian staff to travel abroad for the balance of the year.

Our excellent Finnish exploration team continued to work under strict health protocols and, as a result, we were able to run a limited program for the remainder of the season.

The most serious consequence of limited staff and equipment was the suspension of helicopter-supported drilling on our flagship high-grade discovery at Aamurusko.

With our primary discovery out of action for the year we opted to run a scout drill program on our Launi property. This program was aimed at finding the sources of the extensive surface footprint of gold mineralization. We gradually expanded this to include regional exploration on Risti and Kaaresselka.

The scout program ultimately provided the initial evidence of discovery at the Launi Hinge zone which was later confirmed with a higher capacity rig.

A pleasant surprise

While progress on our own properties was incremental, we were pleasantly surprised by a major discovery, in close proximity to our joint venture with B2 Gold. Rupert’s Ikkari discovery has multimillion-ounce potential. Since the announcement of step-out drill results, Rupert’s market capitalization has regularly hovered near a billion dollars.

In every exploration season since the discovery of Aamurusko, we have devoted significant capital and human resources to further generative exploration in continuing pursuit of new discoveries. Rupert’s discovery, on our mutual border, is a dramatic illustration of the importance of these programs.

The value of new discoveries in new places

Aurion’s first major stock price appreciation occurred because of evidence provided by rock chip sampling, not drilling. Investments from Kinross and Goldcorp followed — still prior to drilling. Why was this? Quite simply, there is nothing more valuable in exploration than finding new things in new places. The Hemlo gold discovery, the Voisey’s Bay nickel discovery, uranium at Elliot Lake, the freakishly large and rich VMS (volcanogenic massive sulphide) deposit at Kidd Creek. These great discoveries came, seemingly, out of nowhere and caused staking rushes that saw multiple public stocks skyrocket in price.

New and unexpected as they were, none of these discoveries occurred overnight. The first documented evidence of gold at Hemlo was recorded in 1869. The discovery hole drilled by International Corona, No. 76, was spotted in 1981. The site of the great Elliot Lake uranium discovery was first visited by Franc Joubin in 1949. Early sampling of radioactive showings contained minimal uranium. Four years later, while travelling in London, Joubin and Charles Davidson discussed surface leaching of uranium in the Witwatersrand. This provided the critical insight that sent him back to the trenches that would become the western extent of one of the richest uranium discoveries in history. Kidd Creek’s intense geophysical signature was first detected by Texas Gulf Sulfur in 1959. Over the next four years, it was regularly used to calibrate the instrumentation on the survey helicopter. It was the 66th and last anomaly that TGS was willing to drill. Dragon 66, as the hole was code named, discovered the largest base metal deposit of this type ever found in Canada.

Aamurusko is a significant discovery and contains some areas that grade kilograms of gold, but unless we keep exploring, we will never know if it is our best. The Ikkari discovery, so close to our property border, hardens our resolve to continue searching.

Cycles matter

When Aurion began acquiring its Finnish projects in 2014, resource stocks were headed into the last and most difficult year of an epic bear market. The climactic capitulation selling happened in late 2014 and was followed by a year of complete investor indifference. On Jan. 20, 2016, the TSX Venture Exchange touched a four-decade low. There was no parade. The consensus forecast was misery for the foreseeable future. By the end of April that year, many quality resource stocks had increased in price by 100 per cent or more. It seemed likely that resource markets had entered a new cycle.

The 2016 recovery caught many off guard. Veteran investors were cautious. Bankers and portfolio managers were slow to return. The first phase of the bull market dissipated in June of 2017 as the thin funds flow from returning investors was exhausted.

In 2019, gold began a major move from $1,100 (U.S.) to over $2,000 (U.S.) and the industry’s true recapitalization had finally begun.

Positive investment funds flow is the primary force behind increasing stock prices. Growing free cash flow from producers is the single most powerful funds flow that the industry can experience. Even though there is more pressure than ever on producers to pay dividends, a substantial portion of that cash will invariably be directed to growth. Perhaps more importantly, resource markets are extremely pro-cyclical. A steady positive funds flow can have a very outsized impact. Generalist investors, attracted to growing free cash flows, crowd out early investors from the producing companies. These same early investors move upstream to the developers and explorers.

Aurion’s Aamurusko discovery in 2017 resulted in the company ending the year with a $140-million market capitalization. We were, at the time, an extreme outlier. Today new discoveries are regularly rewarded with valuations of $500-million to $1-billion.

With a market capitalization of less than $100-million today, we believe that Aurion’s share price has substantial room to appreciate.

Merger activity

Transaction volume in the space increased markedly in 2020.

With the rise of ETFs (exchange-traded funds) and factor-based investment, companies in the sector are now focused on attaining the attributes that result in passive and smart index inclusion. There is a growing multitude of ETFs, smart beta and factor-based funds. Many of these funds screen for portfolio companies using common factors: size, liquidity, reserve growth and earnings growth. The net result is that companies are rewarded for getting bigger faster. Consolidation for size and scale started at the very top of the sector with the merger of Barrick and Randgold and later that of Newmont and Goldcorp. Roll-up strategies are blossoming everywhere — Endeavour Resources in West Africa, Equinox Gold in the Americas, and Kirkland Lake Gold in Canada and Australia. Lowball bids on distressed companies now stimulate vicious competition and result in acquisition prices that are a multiple of the initial offer (Guyana Goldfields, Cardinal Resources). The early focus has been on operating or near-production assets but activity is already trending toward earlier stage projects.

Transaction size is also growing, but the multibillion-dollar growth driven acquisitions that often signal maturing cycles are nowhere in sight (Barrick/Equinox, Kinross/Redback, Newcrest/Lihir).

We believe that the industry is early in this M&A cycle.

The secret recipe

The recipe for success in exploration has many ingredients and many different formulations. The one that we favour is as follows:

• Acquire good properties in bad markets and raise capital in good markets;
• Acquire properties big enough to make big discoveries;
• Acquire properties that are big enough so that the acquiror can make additional big discoveries;
• Keep your eye on the cycle — discoveries fetch the best price when producers need to replace reserves and/or when investors demand growth rather than divesture and balance sheet repair;
• Use capital conservatively when producers are divesting assets and repairing balance sheets; use capital aggressively when producers are replacing reserves and buying growth.

We believe that by sticking to this discipline, we will get the highest possible share price for our investors. Increases in market capitalization are of little value when they are matched by increases in shares issued.

Finally, we would like to thank you for your continued faith in the Aurion team. We look forward to delivering on the immense promise that we see in our projects and prospects during 2021.

• Remove certain disclosure of resources in respect of a deposit on the Mercedes property which did not use the applicable mineral resource categories set out in Section 1.2 of National Instrument 43-101 (Standards of Disclosure for Mineral Projects) contrary to Section 2.2(a) of NI 43-101 and that disclosed the quantity, grade, or metal or mineral content of a deposit that has not been categorized as an inferred mineral resource, an indicated mineral resource or a measured mineral resource contrary to Section 2.3(1)(a) of NI 43-101;
• Remove certain disclosure of the quantity of contained metal or mineral in respect of a deposit on the Mercedes property which did not state both the grade or quality and the quantity for each category of the mineral resources contrary to Section 2.2(d) of NI 43-101;
• Remove certain disclosure regarding the production and sale of gold from the Mercedes property, including anticipated production and associated capital and operating expenditures and cash flows that may be characterized as the result of an economic analysis that includes, or is based on, inferred mineral resources or an exploration target contrary to Section 2.3(1)(b) of NI 43-101;
• Remove any use of the term ore in the context of mineral resources that may be potentially misleading;
• Include the name and relationship to the company of the qualified person who prepared or supervised the preparation of the information that forms the basis for the written disclosure or who approved the written disclosure in accordance with Section 3.1 of NI 43-101.

The updated corporate presentation is now available on the company’s website.

Additionally, the company wishes to clarify certain disclosure regarding the potential production and sale of gold from the Mercedes property. The decision to produce at the Mercedes property was not based on a technical report supporting either mineral resources or mineral reserves demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, which include increased risks associated with developing a commercially minable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the company’s cash flow and future profitability. Readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions. It is further cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.

Number of securities:  14,261,889 Quebec flow-through common shares; 5,079,117 federal flow-through common shares

Purchase price:  18 cents per Quebec flow-through common share; 17 cents per federal flow-through common share

Warrants:  9,670,503 common share purchase warrants to purchase 9,670,503 shares

Warrant exercise price:  23 cents per share for a period of 18 months following the closing of the private placement

Number of placees:  56 placees

Insider:  Michel Bouchard, 85,000

Total pro group:  966,895 (10 placees)

Finder’s fee:  Six finders received cash commissions totalling $197,408.97.

The company has confirmed the closing of the private placement in news releases dated Dec. 11, 2020, and Dec. 16, 2020.

The issuance of shares is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange. The service shares are to be subject to a four-month hold period.

The company’s share-for-service plan was approved by written consent from disinterested shareholders and approved by the TSX Venture Exchange as originally announced Nov. 14, 2016. This plan and an updated plan passed at the 2019 annual general meeting on Sept. 26 2019, seek to provide competitive packages to retain and attract key executives, align senior executives and directors to the creation of value for shareholders, and minimize the cash overheads of the Company.

Shares issuable are at a deemed price equal to the greater of: (i) the closing price of the shares on the TSX-V on the last trading day prior to the date such shares are issuable; and (ii) the volume weighted average price of the shares traded on the TSX-V for the five trading days immediately preceding the date such shares are issuable, with a minimum deemed price of five cents per share.

In addition, Kincora has granted 2,004,505 options with a three-year term to certain directors, officers, employees and consultants of the company, which are exercisable at 44.5 cents per share within the first two year period and 48 cents per share in the final third year.

      SUMMARY OF QUARTERLY SHARES FOR SERVICES FOR CALENDAR YEAR 2020

Period                        March 31     June 30    Sept. 30     Dec. 31
Postconsolidation basis
Deemed/issuance price         15 cents    45 cents  31.7 cents  37.5 cents
Closing price, quarter-end  10.5 cents    45 cents    30 cents  37.5 cents
Number of shares               605,000     201,667     286,284     232,133
Preconsolidation basis
Deemed/issuance price       five cents    15 cents  10.6 cents  12.5 cents
Closing price, quarter-end   3.5 cents    15 cents    10 cents  12.5 cents
Number of shares             1,815,000     605,000     858,852     696,400

              SUMMARY OF KINCORA'S SHARE CAPITAL STRUCTURE
            (on a fully diluted, full-share-equivalent basis)

Postconsolidation basis 
Common shares                                               70.7 million
Options                                                      6.9 million
Warrants                                                    38.6 million

Market-maker appointment

Kincora, subject to regulatory approval, has retained Mackie Research Capital Corp. to initiate its market-making service to provide market-making services to the company in compliance with the policies and guidelines of the TSX-V and other applicable legislation.

Mackie will trade shares of Kincora on the TSX-V for the purposes of maintaining a reasonable market and improving the liquidity of Kincora’s common shares. The agreement between Mackie and the company is for a minimum three-month term and the company has agreed to pay Mackie $4,000 per month during the term, payable quarterly in advance.

The company and Mackie act at arm’s length, but Mackie may provide investment banking services to Kincora, and Mackie and/or its clients may have an interest, directly or indirectly, in the securities of Kincora.

The agreement is principally for the purposes of maintaining market stability and liquidity for the company’s common shares and is not a formal market-making agreement. There are no performance factors contained in the agreement between Mackie and the company, and Mackie will not receive any shares or options from the company as compensation for services it will render.

Mackie is one of Canada’s largest independent full-service investment firms and proudly traces its roots back to 1921. Mackie is privately owned by many of its 300 employees. As a fully integrated national investment dealer, Mackie offers a full complement of capital markets and wealth management services to private clients, institutions and growth companies.

Additionally, Roscan has completed a high-resolution airborne geophysical survey, which consists of approximately 3,900 kilometres of flight lines at approximately 30 metres above ground over the company’s entire Kandiole project. Data processing and interpretation will now be undertaken, followed by development of magnetic inversion and electromagnetic models. This digital information will then be integrated with all drilling data, surface geochemistry, geology and regolith maps in a generative study designed to develop targets for follow-up exploration in 2021.

Nana Sangmuah, president and chief executive officer, stated: “This new acquisition is very critical as it captures the western offset of the magnetic structure associated with our Southern Mankouke discovery. This structure extends for 22 km towards the northeast into our Kabaya target and we await the complete 3-D interpretation of geophysics to commence delineation drilling to enhance the footprint of the initial discovery. The 3-D target delineation and prioritization exercise would refine our existing targets, define new targets and significantly enhance our discovery rate. We are looking forward, with great optimism, to an exciting year in 2021.

“The current discoveries at Mankouke South, Kandiole North, Walia and Moussala North in such a short time span, and other near-surface discoveries, are testaments to the strength of our technical team, and the tremendous exploration upside potential at Roscan.”

The geophysics map on the company’s website clearly highlights the major structure of the company’s Mankouke and Kandiole discoveries trending into the newly acquired land package. The company remains financed to support an extended drill campaign that will generate news flow.

The company chose to undertake a combined EM (electromagnetic) and magnetic survey in order to be able to define both the structural and geological framework, as both of these parameters are critical for defining the locus of shear-hosted gold deposits within the Mali west region. The survey was carried out by New Resolution Geophysics (NRG), utilizing its proprietary Xcite Electromagnetic (AEM) system, in conjunction with the collection of magnetic and radiometric data.

The company awaits interpretation of the geophysics survey to better define its targets, which will be tested as part of the 2021 exploration drilling campaign. A target generation exercise is now in process incorporating all drilling, surface geochemistry and geology with the new, recently processed, geophysical data. Initial results from the newly acquired EM data highlight a broad (six km wide), structural corridor spanning over 24 km over the company’s permit portfolio in an N20 trend and hosting multiple conductive bodies which include all of the currently known, priority gold targets and discoveries. Additionally several anomalies along this trend are yet to be tested.

Current drilling on the project targeting the Mankouke permit, as well as testing along its strike and downdip extensions to confirm the depth and continuity of the zone in fresh rock, is continuing. Management intends to include in the drill campaign this new land package for possible extension of the Mankouke and Kandiole mineralization.

• Drilling will begin on Jan. 14. Osisko Metals is planning a 3,000-metre winter campaign focused on infill and extension drilling in the Western zone with the objective of converting the bulk of three high-priority prismatic deposits to the indicated resource category.
• Hydrogeological studies and tests are planned across the property to further refine the dewatering model used in the 2020 PEA. Osisko Metals believes that improvements to the hydrogeological model could lead to substantial water management cost reductions over life of mine, including initial capex, in future economic studies.
• An updated PEA and an MRE (mineral resource estimate) are expected in early 2022. With the potential for operational improvements and the incorporation of extension and infill drilling completed in 2020 and 2021, Osisko Metals will update the Pine Point PEA to better reflect sustained positive zinc and lead commodity prices.
• The company plans to submit an EA (environmental assessment) initiation package to advance permitting in accordance with the project development timeline. The environmental assessment (EA) initiation package, including the project description as per the PEA, is expected to be submitted in February, 2021. On receipt of a positive decision on the EA, expected in Q3 2023, the project permitting phase will then commence and is expected to be completed by Q3 2024.

Robert Wares, chairman and chief executive officer, commented: “Two thousand twenty was an important year for Osisko Metals and Pine Point with the release of the 2020 PEA, cementing Pine Point as a Tier 1 zinc development project. Pine Point combines excellent open-pit metal grades with available infrastructure and projected low operating costs, pointing to the potential for a top 10 global zinc producer. Building on this success, we will focus on delivering increased value to Pine Point through our planned 2021 drill campaign and hydrogeological studies.”

2020 highlights:

• 2020 PEA: After-tax NPV (net present value) and IRR (internal rate of return) are $500-million and 28.6 per cent using conservative, long-term metal prices and smelting assumptions. With a capex of $550-million, Pine Point would produce, on average, over 350 million pounds of zinc during its first six years of operation. This would make Pine Point the eighth-largest zinc mine in the world. The proposed mine would have a 10-year life. However, with over a dozen individual deposit still open along strike, there is substantial potential to increase the mine life beyond the initial 10 years.
• Expansion drilling the East mill and Central zone: In support of the opportunities identified in the PEA for resource and mine life expansion, Osisko Metals reported excellent results from its limited 2020 drill campaign in the O53 deposit area. Highlights include:
  • Drill hole O53-20-PP-012 intersected 28.80 metres grading 23.90 per cent zinc and 6.24 per cent lead. The hole extends the high-grade O53 prismatic mineralization approximately 10 metres below the currently modelled pit boundary in the immediate area of the hole.
  • Drill hole OM13-20-001 intersected 4.80 metres grading 7.25 per cent Zn and 1.45 per cent Pb. This hole intersected well-developed, near-surface tabular-style mineralization that potentially extends mineralization 800 metres west of the current western limit of the O53 deposit.
  • Drill hole O53-20-PP-003 intersected 3.00 metres grading 8.45 per cent Zn and 0.61 per cent Pb and also indicates the presence of tabular mineralization 135 metres to the west of the O53 deposit, well outside the boundaries of the current pit-constrained resource model, indicating potential for a new tabular deposit extending westward at shallow depths.

As disclosed on June 15, 2020 (see news release), Prime agreed to pay Vista $2.1-million in lieu of being granted certain royalties and back-in rights relating to the project. The remaining $1.0-million payment is due during July, 2021. If Prime fails to make the remaining payment, Vista will have the right to reinstate its royalties and back-in rights.

All dollar amounts are U.S. dollars.

Rockland property highlights:

• Hosts a large, robust, epithermal gold-silver vein system with characteristics akin to the neighbouring high-grade Aurora (Hecla Mining) and Bodie vein districts, each with over 1.5 million ounces of gold production at grades of plus one ounce per ton gold, excellent potential for the expansion of known zones of mineralization, and the discovery of new ones;
• Numerous significant historical intercepts such as:
  • 182.9 metres of 0.40 gram per tonne (g/t) Au in Romarco hole PG-33;
  • 109.7 metres of 0.96 g/t Au including 12.2 metres of 1.88 g/t Au in Romarco hole PG-32;
  • 59.4 metres of 1.03 g/t Au including 6.1 metres of 4.80 g/t Au in BHP hole RK-11;
  • 39.6 metres of 1.16 g/t Au including 3.1 metres of 8.56 g/t Au in BHP hole RK-17;
  • 1.5 metres of 19.80 g/t Au in Romarco hole PG-36C;
  • 1.5 metres of 5.08 g/t Au and 354 g/t Ag in B2Gold hole RK18-27;
• Excellent location within the Walker Lane structural belt, globally endowed with over 80 million ounces of gold and over 700 million ounces of silver, and rapidly developing with advanced prospects and/or new mines such as Bullfrog (Bullfrog Gold/Barrick/Augusta), Mother Lode (Corvus Gold), Silicon (Anglo Gold), Castle Mountain (Equinox), Tonopah (Blackrock) and others;
• Historic production from the Rockland mine of an estimated 50,000 ounces of gold-silver grading as high as 2.8 oz/t gold equivalent (96 g/t AuEq);
• Drive-on access and workable year-round, meaning low discovery and development costs.

“Evergold was founded to create shareholder value and our two flagship properties in B.C., Golden Lion and Snoball, yielded exploration discoveries in our first field season post-IPO,” said Kevin Keough, president and chief executive officer. “This year we plan to advance both these discoveries. We are nonetheless moving dynamically to take advantage of good exploration opportunities as they arise, and Rockland is an exciting one, complementary to both Golden Lion and Snoball for its known gold-silver zones and immediate exploration upside, and its potential to provide year-round news flow and mitigate the share price winter flu that most Golden Triangle plays catch.”

Note

Evergold personnel recently visited the Rockland property. The historical assays referenced in this news release have not, however, been independently confirmed. Nonetheless, the historical drilling and sampling are believed to have been carried out by competent personnel working for reputable companies, as cited. Intercept true widths are not known. Readers should further note that mineralization hosted by neighbouring districts and properties, though believed to be of generally similar style, may not necessarily be representative of the mineralization found on the Rockland property.

About the Rockland property

The Rockland property is located approximately 25 miles south of the town of Yerington in western Nevada, along the northern portion of the Walker Lane trend. The property consists of 71 unpatented claims encompassing 594 hectares, and is underlain by a large, robust, low-sulphidation, quartz-adularia epithermal gold-silver system with excellent potential for the expansion of known zones of mineralization, and the discovery of new ones.

Mineralization on the property is spatially and genetically associated with Late Miocene-age rhyolite intrusive activity and occurs in intensely altered rhyolites, associated sedimentary rocks and pre-Tertiary granodiorite. The best gold grades are associated with quartz veins and rhyolite feeder dikes that cut the basement granodiorite at the Rockland mine. Alteration and mineralization are primarily controlled by north-northeast-to-northeast-trending structures, which are common orientations of the high-grade veins at Aurora and Bodie. The strong association of gold mineralization with shallow rhyolite intrusions also suggests comparisons with the Sleeper and Midas high-grade vein districts elsewhere in Nevada.

The property hosts two key target areas: the historic Rockland mine and Rockland East. Five companies — BHP, Hecla, Inmet, Romarco and B2Gold — explored the property between 1987 and 2019, drilling 78 holes totalling 50,385 feet. Many of the holes bottomed in mineralization.

Rockland mine target area

The historic Rockland mine is located within the western portion of the property. Production between 1870 and the late 1930s was largely undocumented but is estimated by the Geological Society of Nevada to have approximated 50,000 ounces of gold and silver, with grades as high as 2.8 oz/t gold equivalent (96 g/t AuEq). The Rockland mine area has yielded surface values up to 50.9 g/t Au and 1,758 g/t Ag, and underground values up to 91 g/t Au. Stopes along the Rockland mine adit level are reported to be several feet wide and semi-continuous for nearly 1,000 feet along strike and up to 1,400 feet downdip.

In the vicinity of the Rockland mine, drilling by BHP in the late 1980s returned relatively shallow, broad intercepts of low-grade mineralization encompassing intervals of higher grade (true widths unknown), including:

• 39.6 metres of 1.16 g/t Au including 3.1 metres of 8.56 g/t Au in BHP hole RK-17;
• 59.4 metres of 1.03 g/t Au including 6.1 metres of 4.80 g/t Au in BHP hole RK-11;
• 67.1 metres of 0.34 g/t Au in BHP hole RK-8.

Much of the approximately one-kilometre strike length of the Rockland mine en echelon vein system remains untested for high-grade mineralization, particularly below the Rockland mine adit level. A hole by B2Gold in 2018 intersected a vein with 5.08 g/t Au and 354 g/t Ag over 1.5 metres in hole RK18-27, which is interpreted as the downdip extension of the main vein historically mined.

Rockland East target area

Limited historical drilling indicates a large low-grade gold zone at depth at Rockland East, with broad lower-grade intercepts commonly encompassing narrower intervals of higher grade. The geometry of this zone is still poorly understood. Map relations coupled with abundant associated pathfinder elements (particularly arsenic and antimony) characteristic of the upper levels of low sulphidation systems found at Nevada mines such as Sleeper, Hollister and Midas, and El Penon in Chile (all over 1.5 moz deposits), indicate that the Rockland East target area is down dropped relative to the Rockland mine area western block and that the entire epithermal system in this area may be largely preserved.

Significant Rockland East historical intercepts include (true widths unknown):

• 30.5 metres of 1.29 g/t Au including 3.1 metres of 6.13 g/t Au in Inmet hole PG-13;
• 16.8 metres of 1.05 g/t Au and 9.1 metres of 2.82 g/t Au including 1.5 metres of 9.20 g/t Au in Inmet hole PG-15;
• 109.7 metres of 0.96 g/t Au including 12.2 metres of 1.88 g/t Au in Romarco hole PG-32;
• 182.9 metres of 0.40 g/t Au in Romarco hole PG-33;
• 59.4 metres of 1.09 g/t Au including 3.1 metres of 19.80 g/t Au in Romarco hole PG-36C.

As at the Rockland mine area, many of the Rockland East holes bottomed in gold mineralization.

Other target areas with anomalous surface geochemistry occur on the property and have had little or no drilling, including an area with high-grade vein boulders containing up to 30 g/t Au and 140 g/t Ag.

Evergold exploration approach

Few of the companies that previously carried out work on the Rockland property executed systematic exploration programs, with most drilling limited to one or two phases and occurring two or more decades ago. Evergold believes that its exploration team, advancing a program of methodical exploration, can potentially expand known zones of mineralization and generate new discoveries, possibly leading to the definition of significant gold-silver resources. This work will commence with digital compilation and modelling of previous results (most of the historical data are available) followed by mapping, geophysics (airborne magnetics and induced polarization), soil geochemistry and hyperspectral imaging. Work on the property will be possible year-round.

Terms of the letter agreement

Under the terms of the letter agreement, the company will have the right to earn a 100-per-cent ownership interest in the Rockland property in exchange for staged outlays to Enigma over five years, which cumulatively total $805,000 (U.S.) cash and 500,000 common shares payable in instalments as set out in the associated table, in addition to escalating work commitments of $1,675,000 (U.S.) over the same time frame, and a 3-per-cent net smelter returns royalty granted to Enigma, two percentage points of which can be bought back by the company for an aggregate of $3-million (U.S.), with a right of first refusal granted to the company by Enigma to purchase the remaining one percentage point.

                   SCHEDULE OF CASH AND SHARE PAYMENTS
  
Date                                      Payment (U.S. dollars and shares)

On signing                                                           $5,000
On TSX approval of transaction                    $35,000 and 40,000 shares
Jan. 1, 2022                                      $40,000 and 40,000 shares
Jan. 1, 2023                                      $50,000 and 45,000 shares
Jan. 1, 2024                                     $75,000 and 100,000 shares
Jan. 1, 2025                                    $100,000 and 275,000 shares
Jan. 1, 2026                                                      $500,000*
Total                                           $805,000 and 500,000 shares

* The final $500,000 payment may be made in cash, shares or any combination 
thereof, at the discretion of Evergold, based on a price per share equal 
to the greater of 30 cents or the 20-day volume-weighted average price 
of the shares on the TSX Venture Exchange.

Schedule of work commitments

Evergold will be required to incur a minimum of $1,675,000 (U.S.) in exploration expenditures as follows:

• $75,000 (U.S.) on or before Jan. 1, 2022;
• $175,000 (U.S.) on or before Jan. 1, 2023;
• $250,000 (U.S.) on or before Jan. 1, 2024;
• $1,175,000 (U.S.) on or before the later of Jan. 1, 2025, or 18 months from the receipt of drill permits, and to include drilling (with assaying costs) that includes 5,000 feet in the Rockland mine area and 15,000 feet in the Rockland East target area.

Andrew J. Mitchell, PGeo, vice-president, exploration, for Evergold and a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release.

“The opportunity to utilize the excess capacity and existing infrastructure at the Kidd met site provides the potential to allow a faster, simpler, smaller-scale start-up of Crawford at a vastly lower capital cost while the company continues to permit and develop the much-larger-scale project currently being contemplated. Given the potential for this significant change in the scope of the project start-up, the release of the preliminary economic assessment (PEA) will be delayed until the end of March, 2021, to allow this option, if successful, to be incorporated,” said Mark Selby, chair and chief executive officer of Canada Nickel.

Canada Nickel has completed an initial high-level assessment and will now proceed with a detailed study on the potential for upgrading excess capacity at the Kidd concentrator and/or utilizing the existing infrastructure in place at the Kidd met site for milling and further processing the nickel-cobalt and magnetite concentrates that are expected to be produced from Crawford. Should the study deliver a positive outcome for both parties, the parties will continue good faith negotiations toward a binding agreement. The MOU is non-exclusive.

This detailed study is expected to be completed by the end of March, 2021. Ausenco Engineering Canada Inc., currently retained as the lead study consultant for the Crawford preliminary economic assessment that is under way, has been engaged to support the assessment of the Kidd met site facilities.

About Kidd operations

Located in Timmins, Ont., Glencore Canada Corp. operates the Kidd operations consisting of the Kidd metallurgical site and the Kidd mine.

The concentrator is located on the property of the Kidd metallurgical site. The Kidd met site is located 27 km east of Timmins, Ont., in the townships of Hoyle and Matheson, within the Timmins city limits. Built in 1966 with numerous upgrades over the years, the concentrator currently processes metal ore to produce copper and zinc concentrates. The facility has a design rated capacity of 12,500 tonnes per day and is fully permitted with water taking and discharge permits and thickened tailings storage. The site has incoming and outgoing rail service via Ontario Northland Railway.

The project is located within the heart of the Golden Triangle of Northwestern British Columbia which is on-trend from Seabridge’s KSM Project located five kilometers southwest of the Goldstorm Zone. Results from sampling of 9,621.7 meters of HQ and NQ2 core, from 11 diamond drill holes, have recently been received from MSA Labs. American Creek’s JV partner, Tudor Gold has completed 50 diamond drill holes at the Goldstorm System (GS) and three diamond drill holes at the Perfect Storm Zone (PSZ), for respective totals of approximately 44,000 meters (GS) and 1,600 meters (PSZ) during the 2020 exploration season. It was necessary to abandon two of the final drill holes as ground conditions prevented the safe completion of GS-20-99 and GS-20-101 late in the season, however, significant gold and silver mineralization was encountered in GS-20-99 (0.647 gpt AuEq over 109.5 meters) and this hole ended in strong stockwork within the DS5 System. Unfortunately drill hole GS-20-101 was abandoned before intersecting the area of the intended target and this hole will be re-drilled in 2021. From the remaining 51 drill holes, all but one were successful in intersecting the intended targets.

As part of the Company’s larger planned exploration and development program, Phase One, which starts today, is designed to target deep mineralization on and along the Boulder Vein resource. This program design was based on the positive results from the recently completed 2020 drill program which highlighted the near term opportunities to increase the overall resource significantly, both at depth and along strike to the east that show high grade gold and silver potential.

&quot;We are very excited to kick off this Phase One drilling at Dome Mountain&quot; said Bill Cronk, Chief Geologist of Blue Lagoon Resources.&quot; The 2020 drilling program identified clear targets for follow up which will significantly add to the growing resource potential at Dome Mountain. In addition, fifteen high grade gold (drill ready) vein targets and, early developmental targets based on our 2020 airborne geophysics and ground soils and prospecting, offer further resource expansion opportunities on the Dome Mountain Gold Project,&quot; he said.

Airborne geophysics completed on the project in 2020 detailed numerous targets for further development, as well as a clear Mag signature associated with additional strike length potential to the east on the Boulder Vein. See news release dated January 7, 2021 for additional details.

&quot;Although we&#39;ve reached a number of significant milestones for Blue Lagoon in a very short time, one of the most important and significant were results that we received from the first ever property wide airborne geophysical survey conducted at Dome Mountain,&quot; said Rana Vig, President &amp; CEO of Blue Lagoon Resources. &quot;This survey identified five (5) new perspective targets and led the company to immediately stake an additional 7,646 hectares, thereby nearly doubling the property to nearly 19,000 hectares,&quot; he said.

&quot;Furthermore,&quot; he added, &quot;with a very busy year ahead, the Company anticipates significant positive results and milestones throughout the course of 2021. With drilling starting today, the first results are expected to be released in early March and will continue until the fall of 2021. In addition, the Company has nearly $6 million in treasury, no debt, and approximately $5 million in warrants and options that are in the money and could provide more capital this year, if needed,&quot; he said.

MILESTONES AND CATALYSTS FOR GROWTH

EXPLORATION:2021 work program includes the largest drilling program in the project&#39;s history.Drilling will focus on near term resource expansion at Dome as well as drill ready targets that offer New Discovery potential on the property.New drill results will continue through to Fall 2021.Ground based exploration to focus on new targets identified by the recently completed airborne geophysics.Expand the &quot;drill ready&quot; target portfolio.An aggressive property wide soils program will include collection of at least 4000 samples.Focused ground IP survey.Update the recently filed 43-101 Technical Report to include new drill data (from 2020 drilling and, 2021 Phase One drilling).

MINE DEVELOPMENT:Finish water treatment facility (February 2021)Underground installation of a secondary emergency egress and vent raise (February 2021)Removal and processing of high-grade broken ore sitting on site (March 2021)Complete mine reclamation and closure plans (April 2021)Submit all amendment documents to the Ministry for approval to begin mining (June 2021)

The Company will evaluate a production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

PHASE ONE DRILLING

The first hole of the Phase One drill program will be drilled from the Noranda 1 Pad (see figure 1). This is the location of hole DM-20-139 which intersected 17.69 g/t Au and 70.40 g/t Ag (including 0.65 meters running 48.4 g/t Au and 95 g/t Ag) over 3.13 meters at a downhole depth of 338 meters (news released Dec 9, 2020). DM-21-140 will focus on follow-up of the Boulder Intercept and will target mineralization in the Boulder Vein up dip from that deep intercept in order to verify the attitude of the vein at depth as well as test the average vein thickness.

Pads located south of here (Pads 27, 31, 32 and 33) will be drilled to depth in order to further test the down dip extension of the Boulder Vein Mineralization.

Pads located to the east include Pad 26 which is the location of the previously announced hole DM-20-114 which intersected 107 g/t Au and 278.5 g/t Ag over 1.42 meters (including 165.3 g/t Au and 398 g/t Ag over 0.71 meters) at a depth of 69.13 meters from a hole with an inclination of -73 degrees. Planned holes from this pad will be targeting this high-grade gold/silver mineralization at depth as well as farther along strike.

The scientific and technical disclosure in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.

The publication describes experimental work leading to the company’s patented RecycLiCo process (United States patent No. 10,246,343 and PCT international publication No. WO2018089595A1) for the recycling of valuable and critical metals from spent lithium-ion battery cathode materials. Included in the publication is lab-scale testing of NMC (lithium nickel manganese cobalt oxide), NCA (lithium nickel cobalt aluminum oxide), LMO (lithium manganese oxide) and LCO (lithium cobalt oxide) cathode materials. Key details demonstrate over 99 per cent extraction of lithium, nickel, cobalt and manganese, and an environmentally friendlier closed-loop hydrometallurgical process that minimizes environmental impacts of recycling lithium-ion battery cathode materials.

“We are thrilled that a highly cited and respected peer-reviewed scientific journal like JES reviewed and published the findings of our research in lithium-ion battery cathode material recycling,” said Larry Reaugh, president and chief executive officer of American Manganese. “This shows that the work we had undertaken to develop the RecycLiCo process is able to pass the scrutiny of people with expertise in this field.”

Effective at the opening on Jan. 8, 2021, the common shares of Kincora Copper Ltd. will commence trading on the TSX Venture Exchange on a consolidated basis. The company is classified as a mineral exploration/development company.

Postconsolidation

Capitalization:  unlimited shares with no par value, of which 69,386,944 shares are issued and outstanding

Escrow:  nil shares subject to escrow

Transfer agent:  Computershare Investor Services Inc.

Trading symbol:  KCC (unchanged)

Cusip No.:  49451A 60 3 (new)

In the other hole being reported, an intersection of 9.4 g/t Au over 0.5 m with visible gold (VG) was returned from a step-out hole located 400 m east of the previous eastern limit and along strike of the GMZ. The intervening 400 m is the continuation of the soil anomaly that led to the discovery of the GMZ in December, 2017, and has not yet been drilled. Results from this hole cover a core length of six m that were rushed out of the 391.5 m total; the balance of this hole remains pending.

Galway is increasing its drill count to seven rigs from five at Clarence Stream

Given the three new discoveries Galway has made in recent months (13.4 g/t Au over 12.95 m, 186.5 g/t Au over 0.6 m and 4.8 g/t Au over 3.1 m), which are now targeted for follow-up drilling, plus the highly prospective claims recently acquired that the company plans to drill (Aug. 25, 2020), plus the goal of completing the drill program for the pending resource update, Galway has decided to expand its drill program at Clarence Stream to seven rigs from five. The sixth rig is expected to arrive in January and the seventh in February. This drilling, which will result in an increase in the 2020-2021 program to 100,000 m from 75,000 m, is expected to further demonstrate that Clarence Stream is an important new gold district in North America.

• New discovery: Hole CL-72 intersected 4.8 g/t Au over 3.1 m, starting at a vertical depth of 95 m.
• GMZ East extension (400 m): Hole CL-75 intersected 9.4 g/t Au over 0.5 m, starting at a vertical depth of 204 m.

“The number of gold-bearing zones — eight — that have been intersected when drilling gold-in-soil anomalies at Clarence Stream is impressive. With five rigs turning and two more on their way, Galway is looking forward to following up to expand the new discoveries and to drill the dozens of other stronger anomalies on the property,” cites Robert Hinchcliffe, president and chief executive officer of Galway Metals.

New discovery is in a similar setting to all other intrusion-related gold deposits at Clarence Stream

The 4.8 g/t Au over 3.1 m new discovery intersection is located in sediments between two intrusions and is controlled by a fault. It was originally drilled to test a 61-part-per-billion soil anomaly that coincided with a strong linear magnetic low, and is in quartz veining with associated 1 per cent to 3 per cent pyrite, pyrrhotite and arsenopyrite. It is located 20 m south of the contact with a granite. This is a similar setting, and with similar geochemical/geophysical signatures, as all the other intrusion-related gold deposits and discoveries at Clarence Stream. Several other intersections in the hole were anomalous for gold, such as 102 ppb over 6.0 m (including 391 ppb over 0.9 m).

400-metre stepout may extend the GMZ by 50 per cent to over 1.1 kilometres

The 9.4 g/t Au over 0.5 m intersection with VG is located in 1.1 m of 10 per cent quartz stringers with 2 per cent pyrite plus pyrrhotite in sediments. Galway is looking forward to drilling the intervening 400 m gap between this intersect and the easternmost extent of the GMZ, which could result in the GMZ being extended by 50 per cent to more than 1.1 km in strike length. The GMZ is 765 m long to date (excludes this 400 m step-out intersect), with multiple structures over 310 m horizontal thickness (width) and with all veins open in every direction. Soil anomalies, in conjunction with glacial till and stream sediment anomalies, led to the discovery of all five known gold deposits at Clarence Stream, and the property hosts many other as of yet untested gold anomalies. The new Adrian zone is located to the northeast of the GMZ.

As Galway continues to make new discoveries, it is becoming apparent that Clarence Stream is an important new gold district in North America.

                             ASSAY RESULTS 

Hole ID     From (m)  To (m)  Intercept (m)  Intercept (m) TW  Au g/t  

GWM20CL-72    128.9   132.0            3.1                        4.8    
incl.         128.9   130.1            1.2                        6.7    
incl.         130.1   131.0            0.9                        7.0    
incl.         131.0   132.0            1.0                        0.6    
GWM20CL-75        0   280.5                                   Pending
              283.0   283.5            0.5                     9.4 VG 
              286.5   398.1                                   Pending

(1) 0.42 g/t Au was used for the bottom cut-off
(2) True widths are unknown if not noted
** Previously released; VG = visible gold

New Brunswick junior mining assistance program

Galway would like to acknowledge financial support from the New Brunswick junior mining assistance program, which partially funded drilling of the GMZ, Jubilee and Richard zones.

Geology and mineralization

The discovery of the Richard zone in hole 12 contains elevated levels of bismuth, arsenopyrite and antimony, in multiple quartz veins, with tungsten in the vicinity. This is similar to other Clarence Stream deposits, which can be characterized as intrusion-related, quartz-vein-hosted gold deposits. The Richard zone contains multiple zones of quartz veining with sulphides and sericite alteration. In general, mineralization at Clarence Stream consists of 10 per cent to 70 per cent quartz stockworks and veins with 1 per cent to 5 per cent fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite-altered sediments. The Jubilee mineralization consists of 2 per cent to 5 per cent disseminated pyrite, sphalerite, galena, arsenopyrite, chalcopyrite and pyrrhotite in sediments with white to smoky grey quartz veining. Locally there is up to 10 per cent sphalerite and semi-massive galena veinlets. The 2.5 km trend that hosts the GMZ, Richard and Jubilee zones contains a mineralized mafic intrusive locally, similar to the South zone, which currently hosts most of the property’s last reported gold resources (September, 2017). A more complete description of Clarence Stream’s geology and mineralization can be found on the company’s website.

Review by qualified person, quality control and reports

Michael Sutton, PGeo, director and vice-president of exploration for Galway Metals, is the qualified person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals. All core, chip/boulder samples and soil samples are assayed by Activation Laboratories, located at 41 Bittern St., Ancaster, Ont., Canada, and/or Agat Laboratories, located at 5623 McAdam Rd., Mississauga, Ont., Canada, L4Z 1N9, and 35 General Aviation Rd., Timmins, Ont., P4P 7C3. All three labs have ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by fire assay, with gravimetric finish, and other elements assayed using ICP. The company’s quality assurance/quality control program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately 5 per cent of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99 per cent.

For results of all holes that Galway has drilled at Clarence Stream, go to Galway’s website.

Flow-through (FT) shares

Number of shares:  2,904,700 flow-through common shares

Purchase price:  $1.05 per flow-through common share

Flow-through units

Number of shares:  7,725,600 flow-through common shares

Purchase price:  $1.25 per flow-through common share

Warrants:  3,862,800 share purchase warrants to purchase 3,862,800 common shares

Warrant exercise price:  $1.30 until Dec. 11, 2022

Non-flow-through units

Number of shares:  1,214,100 non-flow-through common shares

Purchase price:  90 cents per non-flow-through common share

Warrants:  607,050 share purchase warrants to purchase 607,050 common shares

Warrant exercise price:  $1.30 until Dec. 11, 2022

Number of placees:  93 placees

Total pro group involvement:  77,600 (three placees)

Brokers’ commissions:  aggregate of $737,977.50 in cash and 582,789 non-transferable broker warrants payable to Echelon Wealth Partners Inc. and Eight Capital (Each broker warrant entitles the holder to acquire one non-flow-through unit at 90 cents until Dec. 11, 2022.)

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

In order to acquire the 100-per-cent interest in the property, the company must pay an aggregate of $100,000 and issue an aggregate of 600,000 common shares, as well as incur aggregate exploration expenditures of $250,000 over a three-year period.

For more information, refer to the company’s news release dated Dec. 2, 2020.

Number of shares:  12.9 million shares

Purchase price:  $1.20 per share

Warrants:  6.45 million share purchase warrants to purchase 6.45 million shares

Warrant initial exercise price:  $1.60

Warrant term to expiry:  two years

Number of placees:  154 placees

Finders’ fees:  RFC Ambrian Ltd., $50,000 cash and 40,000 warrants; Mariusz Skonieczny, 70,000 warrants; Longford Capital Corp., 38,400 shares and 19,200 warrants; Longord Capital, 10,000 warrants

Finder’s warrant initial exercise price:  $1.20

Finder’s warrant term to expiry:  non-transferable — two-year term

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

Drilling under the fully financed phase 2 program will consist of up to 11,000 metres in 29 core drill holes, to test for new VMS (volcanogenic massive sulphide) lenses in anticlinal hinge zones identified to the north and south of recent drilling, as well as the up-plunge and down-plunge extensions of known hinges. Drilling will begin at the Kay mine targets and progress to targets on strike (north and south) of the Kay mine, and then to Central and Western targets as permitting is completed.
Marc Pais, chief executive officer, commented: “We are pleased to have commenced the phase 2 drill program, which we believe has the potential to significantly expand the scope and scale of the Kay project, well beyond the boundaries of the 5.8-million-tonne historic estimate (1) outlined by Exxon Minerals in 1982. Our successful phase 1 drill program greatly increased our confidence in the model. Drilling encountered massive sulphides in 19 of 20 holes. Recently completed spectral alteration analyses of the Kay mine phase 1 program drill core, along with downhole EM geophysical surveying, has given us an even stronger understanding of the folding of the Kay deposit at depth. This work has identified a number of high-priority drill targets, which we believe have the potential to host additional VMS lenses, as well as wide mineralized hinge zones, similar to the 43 metres of 3.9 per cent copper equivalent (including 15 m of 6.7 per cent CuEq) encountered in hole 13.”

Highlights:

• Initial results from 10,000 m RC drilling program at Diba gold project in western Mali;
• Intersections from Diba Deposit include:
  • 3.34 grams per tonne gold over 60 m from 17 m (including 13.60 g/t Au over nine m);
  • 4.48 g/t Au over 15 m from 22 m (including 7.18 g/t Au over nine m);
  • 22.11 g/t Au over six m from 89 m;
  • 2.51 g/t Au over 12 m from three m (including 3.32 g/t Au over seven m);
• Two new zones discovered at the Diba NW prospect, 800 m northwest of Diba deposit;
• A mineral resource estimate (MRE) for the Diba deposit comprises:
  • 4,834,000 tonnes at 1.39 g/t Au for 217,000 ounces in the indicated category;
  • 5,479,000 tonnes at 1.06 g/t Au for 187,000 ounces in the inferred category;
• Further assay results from the balance of the drilling program anticipated shortly;
• Follow-up drilling planned for Q2 of 2021 to include currently undrilled prospects;
• Diba is strategically located in a world-famous gold belt that hosts numerous open-pit mines.

Steven Poulton, chief executive officer of Altus, commented: “We are delighted to report on the excellent results returned from the ongoing 10,000 m RC drilling program at the Diba gold project in western Mali, including 3.34 g/t Au over 60 m from 17 m downhole from within the Diba deposit. Separately we are highly encouraged by intercepts outside the margins of the current MRE envelope, indicating along strike and downdip continuation, including 4.48 g/t Au over 15 m from 22 m on its western side and 22.11 g/t Au over six m from 89 m on its eastern side.

“The current drilling program is also testing satellite prospects to the main Diba deposit. Initial results received from the Diba NW prospect indicate the discovery of two potentially significant, shallow-dipping and consistent zones of mineralization totalling approximately 750 m in strike length with intersections including 0.87 g/t Au over 21 m from 79 m.

“A number of priority prospects have not been tested in the current program, and we anticipate that these will be drilled in a follow-up program once physical access to the drill rig is complete. In the meantime, we look forward to updating shareholders on further assay results from the current program as they are received.”

Diba project: drilling program

The RC drilling program is currently being undertaken by Capital Drilling Ltd. and, once complete, will comprise approximately 110 holes totalling approximately 10,000 m. Approximately 4,800 m (over 52 holes) is being drilled in and around that part of the Diba deposit subject to the MRE, testing the potential downdip and along-strike extensions, as well as infilling areas to increase the resource confidence. Approximately 5,200 metres are being drilled to test up to five priority prospects each located within three km of the Diba deposit.

The results for assays returned for the first 51 holes covering a total of 4,886 m of drilling are summarized in the associated table. These holes were drilled at a minus-60-degree inclination and ranged between 50 m and 270 m in length. Drilling has been orientated perpendicular to the strike of the Diba deposit and the interpreted structural orientation of the target areas.

The programme was designed to:

• Test potential extension of that part of the Diba deposit subject to the MRE along strike and downdip;
• Increase the resource confidence of the MRE, including the northeast-trending high-grade zone;
• Test the potential for mineralization at five surrounding prospects within three km of that part of the Diba deposit subject to the MRE;
• Provide quality assurance/quality control support for the Diba deposit model.

Testing potential extension of the Diba MRE

Drilling was undertaken along strike (to the north and south), downdip (to the east) and also targeted the potential for lenses to the west. To date, approximately 4,345 m of drilling has been completed in 23 holes, and assay results have been returned for 14 holes (covering approximately 1,396 m of drilling). Three holes remain to be drilled.

The results received to date confirm potential on-strike and downdip extensions, including:

• Continuation of mineralization downdip in the east:
  • 22.11 g/t Au over six m from 89 m downhole (20KSRC049);
  • 0.73 g/t Au over three m from 80 m downhole (20KSRC-050);
• Continuation of mineralization updip to the west:
  • 0.54 g/t Au over two m from 17 m downhole (20KSRC-004);
  • 5.42 g/t Au over two m from 46 m downhole (20KSRC-005);
• Along strike to the south:
  • 1.23 g/t Au over five m from 87 m downhole (20KSRC-009).

Increase the resource confidence of the MRE, including the northeast-trending high-grade zone

Approximately 1,384 metres of drilling have been completed in 15 holes within that part of the Diba deposit subject to the MRE, particularly targeting the interpreted high-grade northeast-trending zone. Assay results from six holes have been received to date with an additional six holes remaining to be drilled.

The results received to date confirm high-grade and near-surface mineralization, including:

• 7.18 g/t Au over nine m from 26 m downhole (20KSRC-006);
• 29.65 g/t Au over two m from 26 m downhole (20KSRC-028);
• 3.34 g/t/Au over 60 m from 17 m downhole (20KSRC-051).

Test the potential for mineralization at five surrounding prospects within three km of the MRE

Approximately 5,275 m of drilling has been completed in 56 holes across five targets. Assay results have been received for 30 holes to date with an additional two holes remaining to be drilled.

The results received to date validate the exploration potential near to the Diba deposit, including:

• 0.75 g/t Au over 16 m from three m downhole (20KSRC-019);
• 0.87 g/t Au over 21 m from 79 m downhole (20KSRC-041).

Provide quality assurance/quality control support for the Diba deposit model

A number of holes were planned proximal to historic holes to validate previous assay results and intersections in the Diba deposit model. So far one hole has been completed and a further three holes are to be drilled.

The results received to date validate the historic assay data and intersections, including:

• 3.34 g/t Au over 60 m from 17 m downhole (20KSRC-051).

            DIBA DRILL INTERSECTIONS FROM CURRENT PROGRAM

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

20KSRC-006          22.00       37.00            15.00           4.48
including
                    26.00       35.00             9.00           7.18
                    44.00       51.00             7.00           0.51
                    59.00       60.00             1.00           0.51
20KSRC-010           3.00       15.00            12.00           2.51
including
                     3.00        7.00             4.00           1.62
                     8.00       15.00             7.00           3.32
                    20.00       25.00             5.00           0.50
20KSRC-011           7.00       13.00             6.00           0.81
                    17.00       19.00             2.00           0.99
                    25.00       29.00             4.00           0.84
20KSRC-015           1.00        6.00             5.00           0.63
                    38.00       39.00             1.00           2.01
                    46.00       48.00             2.00           1.14
20KSRC-028          26.00       28.00             2.00          29.65
                    35.00       36.00             1.00           0.53
                    41.00       45.00             4.00           0.46
including
                    41.00       42.00             1.00           0.73
                    70.00       71.00             1.00           1.25
                    87.00       88.00             1.00           0.78
                   122.00      127.00             5.00           0.72
                   152.00      153.00             1.00           0.76
20KSRC-051          17.00       77.00            60.00           3.34
including
                    17.00       20.00             3.00           6.66
                    22.00       29.00             7.00           2.44
                    30.00       39.00             9.00          13.60
20KSRC-001                                     no significant results
20KSRC-002                                     no significant results
20KSRC-003          19.00       20.00             1.00           1.79
                    25.00       38.00            13.00           1.05
20KSRC-004          17.00       19.00             2.00           0.54
20KSRC-005          46.00       48.00             2.00           5.42
20KSRC-007                                     no significant results
20KSRC-008                                     no significant results
20KSRC-009          83.00       99.00            16.00           0.79
including
                    87.00       92.00             5.00           1.23
20KSRC-012          82.00       85.00             3.00           0.93
20KSRC-013          37.00       38.00             1.00           0.94
20KSRC-014          69.00       70.00             1.00           0.80
20KSRC-016          13.00       16.00             3.00           1.47
                    26.00       27.00             1.00           0.88
                    31.00       32.00             1.00           2.27
20KSRC-049A         57.00       58.00             1.00           0.53
                    76.00       77.00             1.00           0.56
                    81.00       84.00             3.00           0.43
                    89.00       95.00             6.00          22.11
                   103.00      104.00             1.00           0.52
                   130.00      131.00             1.00           0.51
                   145.00      148.00             3.00           0.53
                   167.00      171.00             4.00           0.37
                   239.00      244.00             5.00           3.33
                   255.00      256.00             1.00           1.31
20KSRC-050          11.00       12.00             1.00           1.03
                    80.00       83.00             3.00           0.73
                    97.00       98.00             1.00           0.51
                   122.00      124.00             2.00           0.74
                   134.00      135.00             1.00           0.63
20KSRC-017           4.00        5.00             1.00           0.50
                     9.00       10.00             1.00           0.51
                    40.00       48.00             8.00           0.55
                    52.00       53.00             1.00           0.73
20KSRC-018                                     no significant results
20KSRC-019           3.00       19.00            16.00           0.75
                    23.00       28.00             5.00           0.54
                    41.00       42.00             1.00           0.52
                    58.00       59.00             1.00           1.03
                    75.00       76.00             1.00           0.72
20KSRC-020          22.00       41.00            19.00           0.68
                    48.00       49.00             1.00           0.53
                    67.00       69.00             2.00           1.29
20KSRC-021          35.00       36.00             1.00           1.66
20KSRC-022          18.00       19.00             1.00           1.21
                    25.00       30.00             5.00           0.76
                    38.00       39.00             1.00           0.51
                    44.00       45.00             1.00           1.10
                    72.00       73.00             1.00           0.51
20KSRC-023           2.00       14.00            12.00           0.77
                    18.00       20.00             2.00           0.62
                    28.00       30.00             2.00           0.57
                    68.00       69.00             1.00           0.53
                    71.00       72.00             1.00           0.79
20KSRC-024           4.00        5.00             1.00           0.89
                    16.00       21.00             5.00           0.48
                    39.00       41.00             2.00           0.77
                    51.00       57.00             6.00           0.57
                    62.00       63.00             1.00           0.50
20KSRC-025          35.00       50.00            15.00           0.54
                    62.00       63.00             1.00           0.64
                    67.00       68.00             1.00           0.66
                    74.00       76.00             2.00           0.61
20KSRC-026          63.00       64.00             1.00           0.61
20KSRC-027          61.00       62.00             1.00           1.02
20KSRC-029                                     no significant results
20KSRC-030                                     no significant results
20KSRC-031                                     no significant results
20KSRC-032          32.00       33.00             1.00           0.52
                    60.00       61.00             1.00           0.84
                    66.00       67.00             1.00           0.57
20KSRC-033          26.00       27.00             1.00           1.17
                    86.00       87.00             1.00           2.63
20KSRC-034                                     no significant results
20KSRC-035          20.00       21.00             1.00           0.55
                    28.00       32.00             4.00           0.72
                    37.00       46.00             9.00           0.79
                    54.00       55.00             1.00           0.50
20KSRC-036          15.00       16.00             1.00           0.54
                    23.00       24.00             1.00           0.77
                    31.00       32.00             1.00           0.67
                    35.00       41.00             6.00           0.62
                    43.00       45.00             2.00           0.62
                    57.00       61.00             4.00           0.42
                    68.00       69.00             1.00           0.54
20KSRC-037          16.00       18.00             2.00           0.60
                    24.00       25.00             1.00           0.62
                    69.00       79.00            10.00           0.55
                    86.00       87.00             1.00           0.51
                    96.00       97.00             1.00           0.82
20KSRC-038          24.00       27.00             3.00           0.71
                    39.00       48.00             9.00           0.47
                    79.00       80.00             1.00           0.52
20KSRC-039           2.00        3.00             1.00           0.54
                    40.00       41.00             1.00           0.60
20KSRC-040           2.00        3.00             1.00           0.59
                    39.00       46.00             7.00           0.37
                    66.00       73.00             7.00           0.55
                    78.00       79.00             1.00           0.51
20KSRC-041          15.00       16.00             1.00           0.60
                    47.00       48.00             1.00           0.56
                    57.00       58.00             1.00           1.03
                    73.00       75.00             2.00           1.09
                    79.00      100.00            21.00           0.87
20KSRC-042           3.00       11.00             8.00           0.68
                    17.00       25.00             8.00           0.65
                    29.00       32.00             3.00           1.36
                    38.00       44.00             6.00           0.51
                    64.00       65.00             1.00           0.53
                    87.00       98.00            11.00           0.73
20KSRC-043          29.00       30.00             1.00           0.52
                    36.00       44.00             8.00           0.67
                    48.00       49.00             1.00           0.73
                    55.00       65.00            10.00           0.85
20KSRC-044          42.00       57.00            15.00           0.52
                    62.00       67.00             5.00           0.62
                    72.00       74.00             2.00           0.71
                    91.00       92.00             1.00           0.76
20KSRC-045          68.00       79.00            11.00           0.47
                    87.00       98.00            11.00           0.63
20KSRC-046          34.00       35.00             1.00           0.50
                    40.00       41.00             1.00           1.15
                    64.00       66.00             2.00           0.99
20KSRC-047                                     no significant results
20KSRC-048          57.00       58.00             1.00           0.70
                    74.00       75.00             1.00           1.18

Notes
(1) Intersections are based on 0.5 g/t Au cut off and less than or 
equal to three m consecutive internal waste.
(2) Intersections are down-the-hole and do not represent true widths 
of mineralization.
(3) No grade capping has been applied.
(4) Estimated true widths for the holes are from 75 per cent to 
100 per cent of the intercept width.

Mineral resource update

The company intends to incorporate the results from the current drill program when all have been received and compiled into an updated MRE for the Diba deposit. Diba currently hosts an MRE of 217,000 ounces at 1.39 g/t Au (indicated) and 187,000 ounces at 1.06 g/t Au (inferred) in both oxide and fresh domains as set out in the associated table. The MRE was previously reported by the Company on 06 July 2020 (see Altus&#39; news release titled &quot;Significant Gold Resource at Diba Project, Western Mali&quot;).

                       DIBA MINERAL RESOURCE ESTIMATE
                                                                  Inferred
                     Grade    Contained                Grade     Contained
            Tonnes   (g/t)    gold (oz)       Tonnes   (g/t)     gold (oz)

Oxide    3,900,000    1.46      183,100      939,000    1.10        33,200             
Fresh      934,000    1.12       33,600    4,540,000    1.05       153,300            
Total    4,834,000    1.39      217,000    5,479,000    1.06       187,000            

Notes
(1) The MRE has an effective date of July 6, 2020.
(2) The mineral resources in the MRE are classified according to the 
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation 
of Mineral Resources and Mineral Reserves Best Practice Guidelines" dated 
Nov. 29, 2019,and CIM "Definition Standards for Mineral Resources and 
Mineral Reserves" dated May 10, 2014. 
(3) Mineral resources are reported within a pit shell and are reported 
to a base-case cut-off grade of 0.5 g/t Au. 
(4) The quantity and grade of reported inferred resources in this 
estimation are uncertain in nature, and there has been insufficient 
exploration to define these inferred resources as an indicated or 
measured mineral resource and it is uncertain if further exploration 
will result in upgrading them to an indicated or measured mineral 
resource category.
(5) Mineral resources which are not mineral reserves do not have 
demonstrated economic viability. The estimate of mineral resources 
may be materially affected by environmental, permitting, legal, 
marketing or other relevant issues. 
(6) All tonnages reported are dry metric tonnes. Minor discrepancies 
may occur due to rounding to appropriate significant figures.
(7) Tonnages are rounded to 1,000 t and gold to 1,000 oz as this is 
an estimate.

Diba project: location

The 81-square-kilometre Diba (Korali Sud licence) project is located in the Kayes region of western Mali, approximately 450 km northwest of the capital city of Bamako. The project sits five km west of the company’s Lakanfla gold project, which is under joint venture with Australian Securities Exchange-listed Marvel Gold Ltd. and approximately 13 km south of the multimillion-ounce Sadiola gold mine and 35 km south of the multimillion-ounce Yatela former gold mine, both owned by Allied Gold Corp. Diba is bounded by the Sadiola permit on its northern and eastern boundaries. Mineralization hosted on these properties is not necessarily indicative of mineralization hosted at Diba.

Diba project: geology and mineralization

Mineralization at the Diba project is sediment-hosted within a series of stacked lenses, typically between 20 m and 40 m thick. The lenses are shallow-dipping at approximately 30 degrees angled to the east/east-southeast. The Diba deposit is considered to be controlled by a number of northwest- and northeast-oriented structures, with gold occurring as fine-grained disseminations in localized high-grade calcite-quartz veinlets. Alteration at Diba is typically albite-hematite-plus/minus-pyrite, although pyrite content is generally very low (less than 1 per cent). The weathering profile at the project is estimated to be up to 70 m vertical depth, resulting in extensive oxidation from surface. The oxide gold mineralization at Diba is predominantly found in saprolite within 50 m of surface and across a compact 700 m by 700 m area.

Mr. White is based in Toronto and has over 20 years of experience as a portfolio manager with a focus on alternative investments, including hedge funds, private equity and venture capital. He is currently a principal at Blue Deer Capital, an exempt market dealer, and is a co-founder and the chairman emeritus of EdgeHill Partners, a plus-$650-million alternative asset manager started in 2010. Prior to forming EdgeHill, Mr. White was a co-founder of Salida Capital, where over an eight-year period as portfolio manager his funds recorded 30 per cent compounded returns annually. He is also a director of Synaptive Medical, a private medical technology company. Prior to fund management, Mr. White worked as a research analyst at Morgan Stanley, TD Securities and BMO Nesbitt Burns, compiling over 27 years of experience in capital markets. Over the last two decades, Mr. White has been an avid investor in the metals and mining industry. He is also the founder and benefactor of the Embley Park Foundation, a private philanthropic organization. He holds a BComm from Memorial University and a CFA designation.

Richard Clark, chief executive officer and director of Orca Gold, said: “Management is very pleased with the addition of Mr. White to the board of directors. With all the positive developments in Sudan, the company is moving the block 14 gold project towards construction. Brad’s extensive experience in capital markets will be a great asset to Orca in the financial planning to achieve the company’s goals for block 14.”

The company has also granted 300,000 incentive stock options to Mr. White. The options are exercisable, subject to vesting provisions, over a period of three years at a price of 82 cents per share.

Highlights of the expanded area of the Tilt Cove project include:

• A highly prospective, road-accessible mineral property with 17 significant gold and copper occurrences;
• 190 of 1,416 historic rock grab and float samples grading between 0.5 and 152.6 grams per tonne gold, including 79 rock grab and float samples grading between 5.0 and 152.6 g/t gold;
• Underlain by the Betts Cove complex geology, which hosts the nearby, formerly producing, high-grade Nugget Pond mine, as well as the Tilt Cove and Betts Cove copper mines;
• Adjacent to the Green Bay fault, part of the Long-Range fault system, a first order structure proximal and genetically linked to numerous gold deposits including the high-grade Nugget Pond and Hammerdown mines.

“We are excited to have completed such a significant expansion of the Tilt Cove gold project, which provides the company with an additional 14 kilometres of continued strike length, in a highly prospective mineral property, encompassing the same geological trend as the past-producing, high-grade, Nugget Pond mine, which had an average recovered grade of 9.85 grams per tonne gold. The Tilt Cove gold project now includes a 35-kilometre strike extent of this highly prospective geological terrane, in addition to being adjacent to the Green Bay fault, a crustal-scale structure proximal and genetically linked to both the Nugget Pond and Hammerdown mines. We continue to aggressively execute our exploration programs at Tilt Cove, including an initial ongoing 10,000-metre program, and we are well funded to advance exploration work on our expanded land package and follow-up on any potential discovery,” said Kevin Bullock, president and chief executive officer, Anaconda Mining.

Exploration update

The continuing 10,000-metre drill program continues to focus on several high-priority targets with drilling expected to continue into the winter. The company is aggressively executing on its exploration and growth plans, having drilled 3,569 metres at the Scarp zone and West Pond targets, with plans to initiate drilling at the Betts Cove, Growler, West Pond and East Pond targets early in the first quarter of 2021. The results of drilling at the Scarp zone and West Pond will be communicated once all assays have been received.

Expansion of the Tilt Cove project

Anaconda has expanded the Tilt Cove project, acquiring an additional 14 kilometres of strike extent of the Betts Cove complex, host to the past-producing, high-grade, Nugget Pond gold mine as well as the Tilt Cove and Betts Cove copper mines. The expanded area is road accessible, underlain by the Betts Cove ophiolite, as found throughout Tilt Cove, and 17 significant gold and copper occurrences with 190 of 1,416 rock grab and float samples grading between 0.5 and 152.6 g/t gold, including 79 of 1,416 rock grab and float samples grading between 5.0 and 152.6 g/t gold. These occurrences have only been historically tested, primarily for base metals, by cursory diamond drilling comprising 1,701.1 metres in 16 drill holes between 1965 and 1997. None of the drilling completed in 1965 (seven holes, 1,023 metres) was tested for gold mineralization and many of the other subsequent holes stopped short of the targeted mineralization. Compilation and review of historic data will be completed during early 2021 in advance of a summer exploration program.

The expansion of the Tilt Cove project was primarily achieved by staking of 2,375 hectares of mineral lands in a single licence. The company also entered into an option agreement with local prospectors for the right to acquire a 100-per-cent undivided interest in a further 1,800 hectares in 13 licences. The option agreement provides for total cash payments of $145,000 and further share or cash payments (at the company’s election) of $85,000, both over a four-year term, as well as a 2-per-cent net smelter return, capped at $5-million.

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president, exploration, with Anaconda Mining, a qualified person, under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Hole AK-20-044 successfully extended the mineralized footprint of the AntaKori system well beyond the current limits of the 2019 resource model and conceptual pit. In addition, mineralization and favourable alteration appear to be increasing with depth, with the hole ending in 50.8 m of well-mineralized material. Hole AK-20-045 is less well mineralized, however the intensity of mineralization and alteration is also clearly increasing toward the bottom of the hole. Both holes ended in the favourable lithological host rocks for skarn-style alteration and mineralization before being stopped, indicating potential for more mineralization at depth. The results of these holes (in particular AK-20-044) combined with previous results of holes AK-19-034, AK-19-037 and AK-19-041, and some additional support drilling, should warrant extending and deepening the conceptual resource pit, which would add significant resources to the overall AntaKori system. In addition, mineralogical, geochemical and alteration information from both holes suggest that they were drilled along the western flank of the potential source of the hydrothermal mineralizing fluids. This is also consistent with the ground magnetic data and geological modelling that have been done to date. This provides additional evidence supporting the hypothesis that the centre of the system lies east-southeast of these holes, wholly within 100-per-cent-owned Regulus claims.

Highlights from drill holes AK-20-044 and AK-20-045 — Anta Norte Area of the AntaKori project

AK-20-044

• 10.60 m of 0.28 per cent copper, 0.20 gram per tonne gold and 8.36 g/t silver (0.50 per cent copper equivalent (CuEq)) from 281.90 m;
• 59.05 m of 0.47 per cent Cu, 0.38 g/t Au and 30.77 g/t Ag (1.02 per cent CuEq) from 304.25 m;
• 141.60 m of 0.22 per cent Cu, 0.22 g/t Au and 5.71 g/t Ag (0.43 per cent CuEq) from 477.00 m:
  • Including 10.20 m of 0.15 per cent Cu, 1.08 g/t Au and 15.77 g/t Ag (1.07 per cent CuEq) from 479.00 m;
  • Including 14.70 m of 0.35 per cent Cu, 0.61 g/t Au and 20.61 g/t Ag (0.98 per cent CuEq) from 562.90 m;
• 50.80 m of 0.32 per cent Cu, 0.28 g/t Au and 1.71 g/t Ag (0.54 per cent CuEq) from 762.60 m:
  • Including 10.80 m of 0.48 per cent Cu, 0.44 g/t Au and 2.51 g/t Ag (0.81 per cent CuEq) from 779.70 m;
• Alteration and mineralization were increasing toward the bottom of the hole;
• Hole was stopped before it reached the end of the favourable geological sequence for skarn-style mineralization.

AK-20-045

• 15.90 m of 0.31 per cent Cu, 0.76 g/t Au and 2.24 g/t Ag (0.87 per cent CuEq) from 640.75 m;
• 17.25 m of 0.33 per cent Cu, 0.36 g/t Au and 2.44 g/t Ag (0.61 per cent CuEq) from 821.65 m;
• Alteration and mineralization were increasing toward the bottom of the hole;
• Hole was stopped before it reached the end of the favourable geological sequence for skarn-style mineralization.

Dr. Kevin B. Heather, chief geological officer of Regulus, commented as follows: “The Anta Norte target area is approximately 1.2 kilometres by 1.6 km in size and will require several holes to truly test the full extent of the various anomalies. The results of these holes, in a greenfield area, are very encouraging from a geological and resource perspective. They extend the mineralized footprint well beyond the current constraints of our 2019 resource model, and with additional support drilling, should justify expanding the conceptual resource pit well beyond its current limits. Expanding the resource pit is especially important, as it not only adds new resources from recent drilling, but also because it should capture existing unclassified resource blocks that are already modelled but that currently fall outside of the conceptual pit and are thus not included. In addition, the results from these two holes and previously reported holes, are vectoring us towards the centre of the system being located on our 100-per-cent-owned claims, east-southeast of holes 44 and 45, where we believe there may be a porphyry centre with more skarn-style mineralization and ultimately the mineralizing source for the region.”

John Black, chief executive officer of Regulus, commented as follows: “We are encouraged by the results of the first two holes in this greenfield area of the AntaKori project. The results from these holes significantly expand the known extent of the AntaKori system and provide us with better information for future drill targets. Given both holes ended in mineralization, which seemed to be intensifying with depth, we may decide to revisit these holes and see if they can be extended at some point. In addition, drilling these holes brings us one step closer to fulfilling our drilling obligation to earn up to a 70-per-cent interest in the Colquirrumi claims and further consolidation of the region. Drilling at the Anta Norte portion of the AntaKori project is currently temporarily suspended while we address concerns about potential impacts from drilling. Discussions are progressing well and we anticipate that we will reinitiate drilling soon. It is our intention, upon recommencing drilling, to move onto our 100-per-cent-owned ground to test the most promising targets.”

Discussion of results

The attached table provides more details regarding the mineralized intercepts encountered in drill holes AK-20-044 and AK-20-045.

                                        ANTAKORI HOLES AK-20-044 AND AK-20-045
 
Drill hole         From (m)     To (m)   Interval (m)     Cu (%)   Au (ppm)   Ag (ppm)   As (ppm)     Zn (%)   CuEq (%)

AK-20-044
interval (1)        281.90     292.50          10.60       0.28       0.20       8.36        387       0.61       0.50
interval            304.25     363.30          59.05       0.47       0.38      30.77        582       0.36       1.02
interval            477.00     618.60         141.60       0.22       0.22       5.71        239       0.26       0.43
including (2)       479.00     489.20          10.20       0.15       1.08      15.77        522       0.56       1.07
including           562.90     577.60          14.70       0.35       0.61      20.61       1178       1.18       0.98
interval            762.60     813.40          50.80       0.32       0.28       1.71        181       0.00       0.54
including           779.70     790.50          10.80       0.48       0.44       2.51        211       0.00       0.81
Total depth         813.40
AK-19-045
interval            640.75     656.65          15.90       0.31       0.76       2.24        561       0.01       0.87
interval            821.65     838.90          17.25       0.33       0.36       2.44         70       0.02       0.61
Total depth         841.40

The grades are uncut. CuEq and AuEq values were calculated using copper, gold and silver. Metal prices utilized for the 
calculations are Cu -- $2.25 (U.S.) per pound, Au -- $1,100 (U.S.) per ounce and Ag -- $14 (U.S.)/oz. All intervals 
presented in the table consist of sulphide mineralization. No adjustments were made for recovery as the project is an 
early-stage exploration project and metallurgical data to allow for estimation of recoveries are  not yet available. The
formulas utilized to calculate equivalent values are CuEq (per cent) is equal to Cu per cent plus (Au g/t multiplied by 
0.7130) plus (Ag g/t multiplied by 0.0091). 

Notes 

(1) Interval calculated using a 0.2-per-cent CuEq cut-off.

(2) Including interval calculated using a 0.5-per-cent CuEq cut-off.

Drill hole AK-20-044 — geology descriptions

Hole AK-20-044 was drilled with an azimuth of 027 degrees and an inclination of minus 70 degrees. The first five m of the hole passed through transported overburden material before getting into bedrock consisting of about 95 m of dominantly Miocene-aged tuffs of the Calipuy formation, with some intervals of late breccia cutting the tuffs. The massive crystal tuffs have a uniform texture and locally resemble intrusive rocks; however, the presence of broken crystals and sparse but consistent lithic clasts shows them to be fragmental rocks. They are pervasively altered to a quartz-sericite-pyrite-clay assemblage. Mineralization is weak within the volcanic package of rocks, with sparse enargite-pyrite veins mostly associated with the late breccia bodies.

From about 97 to 733 m, the hole encountered a thick sequence of metamorphosed and variably skarn-altered, calcareous sedimentary rocks cut by intervals of breccia and diorite intrusive rocks. These intrusive rocks account for roughly 37 per cent of the interval and are weakly mineralized and are altered to a quartz-sericite-pyrite assemblage, with patchy chlorite and epidote alteration. These intrusions belong to an early group of intrusive rocks thought to be approximately contemporaneous with the skarn forming event. All these sedimentary rocks occur within either the outer thermal halo of an intrusive event (the marble front) or within the metasomatic alteration halo (the skarn front). The upper portion of the sedimentary interval, to about 280 m depth, contains alternating marble, hornfels and skarn intervals which indicate that this zone is in the vicinity of the skarn front.

Below 280 m, the Chulec formation is dominated by massive skarn and contains important intervals of brecciated skarn, notably between 317 and 359 m. These breccias are associated with elevated copper-gold grades in the neighbouring skarns, which suggests that they formed early and served as pathways of enhanced permeability during the retrograde skarn alteration and mineralization. Reported intervals 281.90 to 292.50 m and 304.25 to 363.30 m are this style of mineralization, but also have slightly elevated zinc (Zn) values suggesting the company is toward the outer portion of the skarn system.

The lower part of the Chulec interval, from 495 m onward, is moderately to well mineralized and contains several massive sulphide intervals at 544 to 545 m and from 563 to 571 m. There are several diorite intrusions, like those described above, at 584 to 593 m, 617 to 644 m, 685 to 712 m and 713 to 717 m. Another massive sulphide interval occurs from 716 to 722 m and then at 733 m the contact with fine-grained sedimentary rocks of the underlying Inca formation was encountered. The report interval from 477.00 to 618.60 m is characterized by a mix of prograde and retrograde skarn assemblages, numerous diorite intrusive dikes, locally developed breccias and numerous massive sulphide replacement bodies.

The hole continues in hornfels, marble and skarn of the Inca formation until the hole terminates at 813.4 m. The rocks exhibit a moderate retrograde skarn alteration dominated by chlorite and magnetite, with lesser epidote, pyrite and chalcopyrite. Intervals of massive sulphides are present at 774 to 778 m, 783 to 791 m and 803 to 806 m. The reported interval 762.60 to 813.40 m consists of moderate skarn-style copper-gold mineralization, which clearly continues to intensify toward the bottom of the hole.

Drill hole AK-20-045 — geology descriptions

Hole AK-20-045 is drilled at an azimuth of 030 degrees and an inclination of minus 70 degrees. It passes through four m of overburden, possibly slumped material, and then remains in Calipuy formation volcanic crystal tuffs to 73 m depth.

From 73 to 259 m, the hole cuts a series of alternating marble and hornfels layers with minor skarn development. Apart from a metre of skarn with a clot of massive sulphide at 239 m, the interval has no copper mineralization, however late-stage carbonate base metal veinlets with sphalerite and some galena are common.

From 259 to 563 m, the hole cuts through Chulec formation, consisting mostly of marble with a few skarn beds. The skarn in this interval is not well mineralized, however the carbonate base metal veinlets with minor zinc and lead continue to 390 m.

From 563 to 760 m, the hole cuts a long interval of quartz-hornblende-biotite diorite with a pervasive quartz-sericite alteration and patchy skarn-related epidote-chlorite alteration. The diorite is barren apart from isolated enargite-pyrite veining in the reported interval from 640.75 to 656.65 m. There is extensive quartz-pyrite veining with very occasional chalcopyrite, typical of the outer, peripheral pyrite halo to a porphyry copper-gold centre.

From 760 to 840 m the hole cuts through massive Chulec formation skarn, generally with pervasive retrograde chlorite-epidote-calcite-magnetite alteration and weak to moderate disseminated chalcopyrite mineralization. The skarn interval is cut by a polymictic breccia from 807 to 812 m, with clasts of diorite, skarn and quartzite. Below 820 m, the mineralization intensifies with intervals of massive sulphides and a milled skarn breccia in the final reported interval from 821.65 to 838.90 m. The last metre of the hole is once again porphyritic diorite, and the hole terminates at 841.4 m.

Geological interpretation and discussion

Drill holes AK-20-044 and AK-20-045 are the first two drill holes collared exclusively on Colquirrumi agreement ground and had four objectives: (1) provide additional drill metreage toward the required 7,500 m in order to trigger the 70-per-cent earn-in on the Colquirrumi claims; (2) provide a fence line of holes to define the extent of the skarn mineralizing system to the north of that defined by the 2019 drilling into this area; (3) test whether the San Miguel diorite intrusion is a linear, stock-shaped body as depicted on most historical maps and sections, or whether it is a more flat-lying sill-shaped body as postulated by Regulus and suggested by the geomorphology of the area; and (4) test the western edge of the very large, circular-shaped magnetic anomaly that defines the Anta Norte target area.

Hole AK-20-044 intersected multiple, reportable intervals of skarn-style replacement copper-gold mineralization spatially associated with milled-matrix breccias, diorite intrusive dikes, and favourable prograde and retrograde skarn alteration. Hole AK-20-045 intersected hornfelsed sedimentary rocks and marbles with lesser metasomatic skarn alteration, although the intensity of skarn alteration and associated copper-gold mineralization is clearly increasing toward the bottom of the hole. The hornfelsed sedimentary rocks and marbles are the product of contact thermal metamorphism related to intrusive activity, whereas the metasomatic skarn alteration and mineralization indicates that those same intrusions, or slightly younger intrusions, were carrying copper- and gold-bearing hydrothermal fluids that are responsible for the mineralization currently being explored for at Anta Norte. The combination of the above-mentioned geological features and the fact that many of the reported intervals have slightly elevated zinc (Zn) values, all suggest the company is on a more distal portion of the skarn system. When viewed in conjunction with where the holes were located relative to the western edge of the exceptionally large, circular-shaped magnetic anomaly that defines the Anta Norte target area, the centre of the system appears to be toward the east-southeast of holes AK-20-044 and AK-20-045, coincident with the centre of the large magnetic feature, which is located on Regulus’s 100-per-cent-owned claims. Hole AK-20-044 clearly is a significant stepout from the mineralization encountered in hole AK-19-037 and a major stepout from the 2019 resource pit.

True widths

The true widths of the mineralized intervals reported in the attached table are difficult to ascertain and additional drilling and geologic modelling will be required to better constrain the geometry of the mineralized zones. Skarn-style mineralization in the Cretaceous sedimentary sequence is mainly controlled by the subhorizontal stratigraphy and reported mineralized intercepts are probably close to true thicknesses, as the drill holes are steeply inclined at minus 70 degrees.

The project is located within the heart of the Golden Triangle of Northwestern British Columbia which is on-trend from Seabridge’s KSM Project located five kilometers southwest of the Goldstorm Zone. Results from sampling of 9,621.7 meters of HQ and NQ2 core, from 11 diamond drill holes, have recently been received from MSA Labs. American Creek’s JV partner, Tudor Gold has completed 50 diamond drill holes at the Goldstorm System (GS) and three diamond drill holes at the Perfect Storm Zone (PSZ), for respective totals of approximately 44,000 meters (GS) and 1,600 meters (PSZ) during the 2020 exploration season. It was necessary to abandon two of the final drill holes as ground conditions prevented the safe completion of GS-20-99 and GS-20-101 late in the season, however, significant gold and silver mineralization was encountered in GS-20-99 (0.647 gpt AuEq over 109.5 meters) and this hole ended in strong stockwork within the DS5 System. Unfortunately drill hole GS-20-101 was abandoned before intersecting the area of the intended target and this hole will be re-drilled in 2021. From the remaining 51 drill holes, all but one were successful in intersecting the intended targets.

Tudor Gold’s Vice President of Project Development, Ken Konkin, P.Geo., stated: “We are very pleased with the results obtained from our 2020 exploration program and we anticipate the completion of an initial resource estimate over the next few months. We are also determined to continue the exploration efforts in 2021 to better define and potentially expand the Goldstorm and Perfect Storm Systems. It was not possible to attempt drilling at some of our high priority exploration targets due to the rapid accumulation of snow in late November and December that caused avalanche hazards, therefore, these sites remain as excellent drill targets. We have since received our explosives permit and have purchased an explosives magazine so our avalanche teams can now safely remove snow build-up for the up-coming exploration season. Our goal is to again have a late spring start-up so that we can effectively prepare the slopes to allow drilling in the northeast area of the Goldstorm System that was not completed in 2020. The Au-Ag-Cu mineralization remains open to the northeast and to the southeast, with the possible exception of section 114+00 NE, where the easternmost drill hole (GS-20-102) may have defined the southeast limit in that area.”

Goldstorm Highlights include:Eleven diamond drill holes in this news release totaling 9,621.7 meters; the favorable composite results are listed in Table 1 below. Best near-surface intercept was from the 300 Horizon in GS-20-91 on Section 112+50 NE that averaged 0.856 gpt AuEq over 1033.5 meters (60.0-1093.5 m) containing an enriched portion of 532.5 meters (60.0-592.5 m) that averaged 1.112 gpt AuEq. GS-20-92 also had a remarkable 82.5 meter intercept (213.0-295.5 m) of 3.286 gpt AuEq within the 300 Horizon, which is the highest grade gold composite interval drilled to date on the project. This lies within a longer intercept of 531.0 meters (90.0-621.0 m) averaging 0.999 gpt AuEq.An aggressive 150 meter step-out drill hole (GS-20-99) extended the DS-5 Zone further to southeast on section 115+50 NE. The intercept averaged 0.647 gpt AuEq over 109.5 meters (855.5-965.0 m). The hole was lost at 965.0 meters in strong stockwork and DS5-type mineralization. The system remains open to the northeast and southeast along Section 115+50 NE.

The following two tables below provide the complete list of composited drill hole results as well as the drill hole data including hole location, elevation, depth, dip and azimuth.

Table l: Gold equivalent composite values from eleven Goldstorm Zone drill holesTable 1To view an enhanced version of Table 1, please visit:https://orders.newsfilecorp.com/files/682/71563_americancreekfigure1en.jpgAll assay values are uncut and intervals reflect drilled intercept lengths.HQ and NQ2 diameter core samples were sawn in half and typically sampled at standard 1.5m intervalsThe following metal prices were used to calculate the Au Eq metal content: Gold $1322/oz, Ag: $15.91/oz, Cu: $2.86/lb. Calculations used the formula Au Eq g/t = (Au g/t) + (Ag g/t x 0.012) + (Cu% x 1.4835). All metals are reported in USD and calculations do not consider metal recoveries. True widths have not been determined as the mineralized body remains open in all directions. Further drilling is required to determine the mineralized body orientation and true widths.

Table ll: Drill Data for Holes in Press Release January 7th, 2021Table 2To view an enhanced version of Table 2, please visit:https://orders.newsfilecorp.com/files/682/71563_americancreekfigure2en.jpg

Attached are Sections 108+00 NE, 109+00 NE, 112+50 NE, 114+00 NE and 115+50 NE showing holes traces with gold and copper histogram results and a Plan Map showing the drill hole and section locations.

Walter Storm, President and CEO, stated: “Our goal for Tudor Gold is to fast-track the exploration of our flagship Treaty Creek Project. We continue to advance the project on several fronts including completing our initial metallurgical work on the Goldstorm System, for which an update will be issued later this month. In addition, we recently completed the first year of an on-going water sampling program and purchased a climate station that will monitor on-site environmental conditions, providing the data required for base-line studies. Furthermore, we are preparing a winter access plan to start the 2021 exploration season as soon as the major snowfall season comes to an end in the coming spring. This approach worked extremely well for our start-up team that was able to walk-in heavy equipment on the snowpack in 2020, allowing us to start drilling much earlier than previous years. In so doing, we hit a corporate-best for drilling this past year with the completion of 53 drill holes totaling over 45,600 meters. We thank our team of men and women who worked safely and diligently during these extremely difficult conditions.”

Darren Blaney, CEO of American Creek, commented: “As I have stated previously, we are extremely pleased with the exploration program our JV partner Tudor Gold has completed this year at Treaty Creek. We sincerely thank and congratulate both the Tudor Gold and More Core Diamond Drilling teams for their outstanding work and accomplishments in 2020. The Treaty Creek project is shaping up to be everything we hoped it would be. We look forward to the upcoming metallurgical work and the maiden resource calculation for the Goldstorm deposit.”

QA/QC

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

&quot;The recently completed drill program was successful with regards to infill and, most significantly, proving the concept of the mineralized Boulder Vein continuing at depth and, along strike to the east.&quot; said Blue Lagoon Resources chief geologist, Bill Cronk. &quot;The high-grade intercepts in holes DM-20-139 and DM-20-114 offer near term prospectivity to increase the overall resource significantly, both at depth and along strike. Additionally, the intercept from hole DM-20-114 appears to be substantiated by a discreet Mag anomaly identified in our recently completed airborne Mag survey and offers a clear target for further drilling along strike to the east,&quot; he added.

DM-20-139 was drilled vertically to a depth of 595.88 meters and intercepted the Boulder Vein at 338 meters and hit 3.13 meters running 17.69 g/t Au and 70.40 g/t Ag (including 0.65 meters running 48.4 g/t Au and 95 g/t Ag). This intercept is the deepest intercept to date on the Boulder Vein. The recently filed technical report (news released Dec 24, 2020) outlines the Boulder Vein as 1000 meters in strike length and 200 meters of down-dip extent. The high grade gold intercept in hole DM-20-139 is 150 meters deeper than the lowest elevation of the Boulder Resource (Figure 1).

This hole proves the veracity of a mineralized down-dip exploration model and, the 2021 drilling program scheduled to commence on January 11 will prioritize further drilling at depth.Figure 1Boulder Resource Section showing hole DM-20-139 pierce-point of the Boulder Vein at depth, relativeto the modeled Boulder Vein Resource. Looking North

Hole DM-20-114 intercepted 107 g/t Au and 278.5 g/t Ag over 1.42 meters including 165.3 g/t Au and 398 g/t Ag over 0.71 meters. This intercept provides for the farthest east intercept in the Boulder Vein system to date. Furthermore, recent airborne data collected from our 2020 airborne survey shows a distinct Mag anomaly associated with the eastern vein intercept. The Mag anomaly clearly highlights a singular fault like feature which corresponds to the eastern end of the known Boulder Vein system (and the DM-20-114 vein intercept) and continues for at least another kilometer in the East-West direction (Figure 2).Figure 2Location of 2020 drillholes with hole DM-20-114 highlighted; Mag feature on eastern end extends to the east from the high-grade drill hole intercept in DM-20-114

The drilling program scheduled to begin next week (January 11, 2021) will target both the down dip potential of the Boulder Vein system as well as the high-grade vein extending to the East.

2021 DRILL PROGRAM EXPECTED TO SIGNIFICANLTYEXPAND KNOWN RESOURCE WITH NEW DATA

On December 24, 2020, the Company news released and filed a technical report entitled NI 43-101 Technical Report, Dome Mountain Mine dated December 21, 2020 prepared by Roughstock Mining Services LLC, which reported a mineral resource of 70,418 ounces gold and 341,784 ounces silver in the indicated category and 109,160 oz Au and 473,890 oz Ag in the inferred category, based on 398 drill holes (39,398 metres), completed at the Dome Mountain Gold Project over the period from 1985 to 2016.

It&#39;s important to note that the report does not include data from the 2020 drill program which consisted of an additional 26 drill holes totalling 3,786 meters. The Company will update the resource estimate once analysis of the data from the 2020 drill program and the upcoming 2021 drill program has been completed, expected in the second half of 2021.

The scientific and technical disclosure in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.

• The BLOI was signed with the sellers on Dec. 21 to acquire a 100-per-cent interest in 13 mining concessions in three separate blocks located in the department of Bolivar, northern Colombia, South America;
• The execution of the corresponding definitive agreement is subject to the successful completion of due diligence by Orea within 90 days from the signing of the BLOI;
• The project covers a total surface area of 250 square kilometres encompassing numerous artisanal gold mines;
• Orea considers the project to be highly prospective for large epithermal and porphyry gold-copper deposits; and
• The construction of a fully permitted ore processing plant on the land holdings is near completion and will be fundamental to formalizing mining in the region.

“After evaluating numerous opportunities in 2020, Orea is delivering on its promise to add a quality gold project to its portfolio, in line with its responsible mining approach,” commented Rock Lefrancois, president and chief executive officer of Orea. “As our Montagne d’Or gold project in French Guiana has entered mine permitting, this new acquisition within the emerging northern Andean copper-gold province will be the driver for exciting development and further growth in 2021,” he added.

The project lies within the northern San Lucas mountain range, northeast of the Colombian central cordillera. The region is known for its gold production since precolonial times, which is presently subject to prevalent formal and informal artisanal mining. The project area is characterized by moderate topography and low elevations ranging from 40 metres to 700 metres above sea level.

As is recognized all over the northern San Lucas range, numerous small-scale near-surface artisanal underground mines are documented over the project and surrounding areas. The mines are developed along narrow sulphide-rich quartz veins with economic grades in gold, silver, copper, zinc and lead. Within the northern San Lucas range, these polymetallic veins are associated with granitic intrusion of Jurassic age. A potential second phase of the gold mineralization has been recognized on the project interpreted to be associated with younger porphyritic domes of Tertiary age, where mineralized vein systems exhibit epithermal textures with associated alterations. The relation of the polymetallic vein-type mineralization with buried porphyry-type gold-copper systems has not yet been investigated on the project.

Mr. Lefrancois also commented: “The acquisition of this large land package offers excellent exposure for the discovery of epithermal and porphyry gold-copper deposits for the implementation of industrial-scale mining in the region and almost immediate cash flow from the processing plant.”

Processing plant

As a business unit separate from exploration activities, an ore processing plant is under construction on the project to treat artisanal ore feed from mines within the project and surrounding mining concessions. The plant is estimated to be 75-per-cent complete and $3-million (U.S.) capital expenditures are required for commissioning of the plant at a rate of 150 tonnes per day. Crushing and grinding capabilities can be increased to process 200 tonnes per day to 300 tonnes per day. The plant flowsheet uses standard crushing and grinding, gravity separation of the free gold and non-toxic chemical reagents flotation to produce a concentrate. No cyanide leach circuit is required to obtain more-than-90-per-cent recovery of the gold. The flotation concentrate may be shipped to a refinery via Barranquilla, Santa Marta or Cartagena on the Caribbean coast. Free gold is poured into dore gold bars and exported via Medellin for refining.

A corporate and social responsibility strategy for responsible and sustainable development of the region has been implemented by the seller. Social licensing was achieved by toll mining. Social efforts have also been advanced in the different areas of influence with the support of local authorities such as vaccination days, educational talks, improvement of school infrastructure, tropical storm season relief, among others.

Project plans

Orea’s initial objectives for the development of the project include:

• Project- and regional-scale geological evaluation and consolidation of the land package;
• Exploration strategy, targeting and resource drilling;
• Inventory of artisanal mines on the project and surrounding mining concessions;
• Secure toll mining contracts with artisanal miners;
• Commission and optimize processing plant at 150 tonnes per day;
• Mechanize and assure security protocols at artisanal mines to increase ore feed; and
• Increase plant processing rate to 200 tonnes per day to 300 tonnes per day.

Terms of acquisition

The project is held within a Colombian private company and the acquisition of the project will be completed in two stages with key terms as follows:

• Stage 1
  • Acquisition of approximately 44 per cent of the Colombian entity in exchange for cash of approximately $105,000 (U.S.), 6.6 million shares of Orea and granting a 25-per-cent net profit interest of the project mill output to the seller, capped at 300 tonnes per day ore feed and a maximum of 13.3 billion Colombian pesos (approximately $4.9-million); and
  • Issue five million shares of Orea to a third party for the assignment of the right to acquire the Colombian entity.
• Stage 2
  • Upon the NPI being paid in full, or an equivalent amount advanced to the seller, acquisition of 56 per cent of the Colombian entity in exchange for 20.4 million Orea shares.
• Upon closing of Stage 1, Orea will:
  • Have security of the remaining shares;
  • Be granted voting rights to the remaining shares;
  • Be appointed operator of the project; and
  • Assume all economic benefits and risks to the Colombian entity.

“By structuring this transaction as a two-stage acquisition, we managed to effectively have 100-per-cent control immediately, with minimal dilution as the most significant share payment will be issued in the future, and the cash component will be paid through the NPI,” said Mr. Lefrancois.

The transaction contemplated under the BLOI is subject to the approval by the Toronto Stock Exchange.

In 2020 Frontier Lithium awarded XPS, the contract to jointly construct and operate the Pilot in its Falconbridge, Ontario facility. Sample preparation and concentrate production have recently been completed, pyrometallurgical processing has commenced, and final hydrometallurgical circuit construction and commissioning is currently taking place. The mini-pilot is configured to produced high quality lithium-bearing pregnant leach solution (“PLS”) that is suitable for continuous crystallization by a reputable off-site third party with the objective of demonstrating the production of high purity battery quality lithium hydroxide monohydrate from a steady state process. This pilot project is being undertaken to alleviate financial and technical risks associated with scaling-up of our innovative patent pending lithium extraction process which is under an International Patent Cooperation Treaty (PCT) filing. The pilot aims to generate high-purity battery grade lithium hydroxide chemical which will be used as marketing samples of the product and will also provide essential data required for a future Pre-Feasibility Study to be conducted by the company. The final crystallization work is expected to be completed in the spring of 2021.

Trevor Walker, president and chief executive officer, said: “We are excited by our progress with XPS on the mini-pilot plant. Last year’s preliminary test results showed the lithium extraction technology to be viable at bench-scale. The initial commissioning of the pilot represents a significant milestone and marks the culmination of extensive research and development into a flowsheet that could process spodumene concentrates directly to lithium hydroxide chemicals without employing a lithium carbonate intermediate. Frontier is well positioned in the Great Lakes region as it develops Ontario’s largest lithium bearing spodumene resource with multiple deposits which will be required to support North American lithium-ion battery production capacity.”

Due Diligence

All scientific and technical information in this release has been reviewed and approved by Garth Drever, P.Geo., the qualified person (QP) under the definitions established by National Instrument 43-101.

Other Matters

The Company has been provided a new U.S. OTC Market symbol of LITOF. The Company’s primary listing is in Canada on TSX Venture Exchange under the symbol “FL”.

The Company anticipates releasing the initial results from its Preliminary Economic Assessment study for a fully integrated project producing lithium hydroxide from the PAK Lithium Project early next month.