Mr. Duane Poliquin reports

ALMADEX SELLS ITS REMAINING INTEREST IN THE PONDEROSA PROPERTY, SPENCE'S BRIDGE GOLD DISTRICT

Almadex Minerals Ltd. has entered into an agreement to sell its remaining 40-per-cent interest in the Ponderosa property to Au Gold Corp. (AUGC).

On Sept. 11, 2019, Almadex announced that it had granted 1201361 B.C. Ltd., a predecessor company to AUGC, an option to acquire a 60-per-cent interest in this 41.5-hectare property. AUGC has since completed its earn-in requirements through a combination of share payments and exploration expenditures. Rather than proceed to enter into a 60/40 joint venture as provided for under the original option agreement, Almadex has agreed to terminate the option agreement and sell to AUGC its remaining 40-per-cent interest in the property in return for the following:

• 750,000 shares of AUGC payable on closing;
• The grant of a 2.0-per-cent NSR to Almadex;
• 500,000 shares of AUGC conditional upon definition of a mineral resource of at least 250,000 ounces gold.

Upon completion of this transaction, Almadex will own approximately 1.08 million shares of AUGC and retain a 2-per-cent NSR royalty on the property. The property represents a core area of AUGC's larger 420-hectare property which it also refers to as Ponderosa. Almadex looks forward to AUGC's continued exploration of this prospective area.

Closing of the agreement is subject to AUGC receiving the approval of the TSX Venture Exchange.

About Almadex Minerals Ltd.

Almadex is an exploration company that holds a large mineral portfolio consisting of projects and NSR (net smelter return) royalties in Canada, the United States and Mexico. This portfolio is the direct result of many years of prospecting and deal-making by Almadex's management team. The company owns a number of portable diamond drill rigs, enabling it to conduct cost-effective first-pass exploration drilling in-house.

We seek Safe Harbor.