Mr. Doug Fulcher reports

CENTENARIO ANNOUNCES HIGH GRADE COPPER MINERALIZATION ENCOUNTERED IN UNDERGROUND SAMPLING AT THE LOS REYES PROJECT, CHIHUAHUA, MEXICO

Centenario Gold Corp. has completed the first phase exploration program on the Los Reyes project, a highly prospective copper and gold asset located near the city of Chihuahua, Mexico.

This first phase of exploration consisted of mapping and sampling of old mine dumps and underground workings found along the intrusive-limestone contact zone where copper-rich skarn zones are encountered. Most of the old mining tunnels were built by Asarco in the late 1800s to early 1900s. Old government records state that approximately 200,000 tons of copper/zinc/silver material was mined out of Los Reyes during that period.

Location and project status

The Los Reyes project is located 225 kilometres south of Chihuahua City, along Highway 49, a main artery connecting the city of Chihuahua to the major cities of Torreon and Monterrey farther south. The project's El Rey mineral claim, where most of the old mine workings are located, sits just off Highway 49, approximately 14 kilometres south of the mid-size town of Jimenez and can be easily accessed driving up a secondary dirt road for a few kilometres.

The Los Reyes property is composed of two mineral claims: El Rey (36.0 hectares) and El Rey 2 (9.3 hectares), located approximately 1.8 kilometres apart. Each claim covers a segment of the intrusive-sediment contact where mineralization occurs. The El Rey mineral claim to the east, where the present exploration work is being done, contains the most important old mine workings found in the district. Penoles, a major Mexican mining company, controls all of the surrounding ground around the perimeter of the granodiorite intrusive.

Exploration program

This first-phase exploration program was designed to review and field-check the existing geological and exploration data (IMMSA, 1992, and Valterra Resources Corp., 2019) and complete an initial rock sampling program across shallow mining pits and segments of the old underground mine workings found on the El Rey mineral claim.

This first-phase exploration program was designed to review and field-check the existing geological and exploration data (IMMSA 1992, and Valterra Resources Corporation 2019) and to complete an initial rock sampling program across shallow mining pits at surface and segments of the old underground mine workings found on the El Rey mineral claim. Until now, no modern, systematic sampling has ever been done across the underground portion of the Los Reyes project.

The first-phase exploration fieldwork included:

Geological and mineralogical reconnaissance work, including alteration mapping, covering the central portion of the claim toward the south.

Collection of total of 58 rock samples:

1. Seven taken from surface rock outcrops near the central area;
2. 11 from old waste dumps and shallow pits near the Tuesda shaft;
3. 12 rock-chip samples taken underground at the Tuesda mine;
4. 28 rock-chip samples taken underground at the Jibosa mine.

The collection of the surface and underground rock samples at Los Reyes was supervised by a senior professional geologist. The rock samples taken both on surface and underground consisted of rock chips, less than five centimetres in diameter, collected across rock outcrops with the help of a chisel and hammer. Samples weighted between 1.5 kilograms and 2.0 kilograms. The length of the rock outcrop sample cuts varied from 0.3 metre to 3.0 metres. Each sample's chips were then transferred to a cotton cloth bag, labelled and tied with a string.

At the end of each day, the samples were transferred to larger corn bags, labelled, sealed with a zip tie and stored at the hotel in the town of Jimenez. After 10 days, when the initial exploration program was completed, the supervising geologist transported the samples to the sample preparation lab of ALS Chemex in the city of Chihuahua. Each corn bag, containing 10 to 12 samples, was labelled and photographed before being transferred to the laboratory's pickup service agent.

The rock samples are being analyzed by ALS Chemex of Mexico. Sample preparation included high-temperature drying, crushing and pulverizing. Samples were then geochemically analyzed using the standard fire assay method for Au and the acid digestion (HF-HNO3-HClO4) for 34 other elements.

Mineralization and alteration

At El Rey, the copper-rich skarn mineralization occurs sporadically for more than 800 metres along the north-south-trending granodiorite-limestone contact. On surface, the altered zone ranges up to 120 metres in width. The contact's dip varies between vertical and 75 degrees to the east. The alteration shows a typical skarn zoning pattern, varying gradually outward to the east, away from the intrusive granodiorite, skarn/marble recrystallization in the limestone unit, and lastly, hornfels with some thin garnet bands in the overlying unit.

The copper-rich mineralization occurs as chalcopyrite, bornite, malachite, azurite and chalcocite within irregular, semi-tabular, lenses or bodies, that can be up to 60 metres wide. Some of the zones previously mined by Asarco were reported to exceed 125 metres in length. The mineralized zone identified and sampled below the Tuesda shaft, although irregular in shape, showed a thickness of up to 20 metres. At Jibosa, on the other hand, where the mineralization is better defined, the thickness of the mineralized body did not exceed 15 metres.

Higher-sulphide content is presumed to persist farther north of the Tuesda shaft. In several old mine dumps found at El Rey, fragments of magnetite and skarn with magnetite and specularite were found, suggesting the existence of copper/gold skarn-type mineralization associated with the system.

Conclusion

Results from the 58 rock samples taken during this initial phase of exploration work and sent to ALS Chemex Laboratories are expected to be received by mid-June. Once the geochemical assay results are in, the company will release the pertinent information as promptly as possible. The rock sample assays will supply the company with valuable geochemical information that will help Centenario in better understanding the controls, distribution and extension of mineralization.

The completion of this first-phase exploration program will lead to the next phase of exploration, the drilling program, which is planned to begin in July. The proposed 1,500-metre drill program is specifically designed to test the strike or downdip extensions (greater than 50 metres below surface) of the copper-rich skarn zones that were identified by the underground sampling and mapping work. The two most important drill target areas are close to the Jibosa and Tuesda mining shafts.

Qualified person

Derrick Strickland is an independent qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this release.

Reader caution: The qualified person has not verified the information on the adjacent properties or mineralization found on adjacent and/or geologically similar properties, which is not necessarily indicative of mineralization found on the property.

About Centenario Gold Corp.

Centenario Gold is a mineral exploration company incorporated in British Columbia and headquartered in Vancouver, Canada. The company is focused on the acquisition, exploration and development of high-potential mineral projects in the Americas, with a primary emphasis on gold, copper and silver.

The company is committed to responsible exploration and development, working closely with local communities and stakeholders. Centenario's management team brings extensive experience in mineral exploration, project development and capital markets.

Centenario Gold is listed on the TSX Venture Exchange and continues to evaluate new opportunities to expand its portfolio in both Mexico and Canada and deliver value to shareholders.

We seek Safe Harbor.