Mr. Jason Attew reports

LIBERTY GOLD ANNOUNCES PURCHASE AND RESALE OF BLACK PINE ROYALTY INTEREST AND US$5.7 MILLION PRIVATE PLACEMENT FINANCING WITH STRATEGIC INVESTMENT FROM WHEATON PRECIOUS METALS

Liberty Gold Corp. has reached agreements on a series of transactions that will provide a future option to reduce the royalty interest from the current 0.5-per-cent net smelter royalty (NSR) to a 0.25-per-cent NSR at the company's Black Pine oxide gold project in southeastern Idaho on attractive financial terms. The company has also arranged a non-brokered private placement raising proceeds of up to $5.7-million (U.S.), anchored by a $5-million (U.S.) strategic investment by Wheaton Precious Metals Corp.

Jason Attew, president and chief executive officer of Liberty Gold, commented: "It is a rare occasion to have an opportunity to reduce the royalty interest of a mining project, particularly one as high quality and favourably located as Black Pine. This option further derisks the future development of Black Pine and would result in more of the project economics being attributable to Liberty Gold's shareholders. The company is also pleased to welcome Wheaton to its share register and is thankful for the endorsement of Black Pine and Liberty Gold by Wheaton that these transactions represent."

Purchase and resale of royalty

The company has reached an agreement to purchase the existing 0.5-per-cent NSR from a private company on certain claims at Black Pine for $3.5-million (U.S.) in cash consideration and 200,000 common shares of the company. The 0.5-per-cent NSR was part of the consideration paid when Liberty Gold acquired Black Pine back in 2016.

Concurrently, the company has reached an agreement to grant an affiliate of Wheaton a new 0.5-per-cent NSR for cash consideration of $3.6-million (U.S.) covering all claims comprising Black Pine. As part of this transaction, the company has been granted an option to repurchase 50 per cent of the royalty for $3.6-million (U.S.) at any point in time up to the earlier of commercial production at Black Pine or Jan. 1, 2030. An affiliate of Wheaton will also be granted a right of first refusal on any royalties, streams or prepays that include precious metals pertaining to Black Pine in the future.

Private placement financing

In addition, the company is pleased to announce a non-brokered private placement of up to 22.9 million shares at 34 cents per share for proceeds to the company of up to $5.7-million. Wheaton has agreed to subscribe for $5-million (U.S.) of the offering with existing shareholders, management and directors of the company subscribing for up to $700,000 (U.S.) of the offering.

The proceeds of the offering will be used for exploration, development, economic studies and permitting programs for the company's projects in the Great basin and for general working capital.

The offering and royalty transactions are scheduled to close on or about Sept. 15, 2023, and are subject to a number of conditions including, but not limited to, receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.

Certain directors, management and insiders of the company are expected to purchase or acquire direction and control over an aggregate of 558,820 common shares under the offering. The interested persons are each considered a related party of Liberty Gold and the sale of common shares under the offering to the interested persons constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

About Liberty Gold Corp.

Liberty Gold is focused on exploring for and developing open-pit oxide deposits in the Great basin of the United States, home to large-scale gold projects that are ideal for open-pit mining. This region is one of the most prolific gold-producing regions in the world and stretches across Nevada and into Idaho and Utah. Liberty Gold knows the Great basin and is driven to discover and advance big gold deposits that can be mined profitably in open-pit scenarios.

We seek Safe Harbor.