Mr. Darrell Rader of Minaurum Gold reports

MINAURUM EXECUTES DEFINITIVE AGREEMENT TO ACQUIRE LONE MOUNTAIN CRD PROJECT IN NEVADA'S BATTLE MOUNTAIN-EUREKA TREND

Minaurum Gold Inc. has entered into an agreement with Nevada Zinc Corp. to purchase an initial 25-per-cent beneficial interest and an option to acquire a 100-per-cent registered and beneficial interest in Nevada Zinc's Lone Mountain carbonate replacement deposit (CRD) project located on the Battle Mountain/Eureka trend in Nevada, United States, as further detailed as follows.

Nevada Zinc completed a preliminary economic assessment of the viability of potentially mining the zinc mineralization at the project in June, 2019 (National Instrument 43-101 preliminary economic assessment and technical report; Peimen Ling & Associates Ltd.; June 27, 2019; or see Nevada Zinc's news release dated June 27, 2019). In accordance with the disclosure in the PEA, the project is a brownfield project with a historic inferred mineral resource estimate of 3,257,000 tonnes of mostly oxidized material grading at 7.57 per cent zinc and 0.70 per cent lead. Select drilling highlights include: hole LM-15-27, which returned 118.87 metres at 9.58 per cent zinc and 0.74 per cent lead; and hole NLM-17-08, which intersected 24.7 metres grading 23.06 per cent zinc. The PEA also demonstrated a 35-per-cent after-tax internal rate of return (IRR). See the rest of this news release for further details on the mineral resource estimate report and the PEA.

"Lone Mountain looks a lot like neighbouring historical silver-lead-zinc CRDs, such as Eureka next door or Cortez up the road, both of which have been found to have a significant Carlin gold overprint," said Dr. Peter Megaw, co-founder and exploration adviser to Minaurum. "Historical drilling was tightly focused on near-surface high-grade zinc oxides and did not seek that kind of gold mineralization or the polymetallic CRD sulphide potential that should lie beneath."

"The acquisition of the Lone Mountain project adds another highly prospective and derisked project to Minaurum's portfolio while diversifying our jurisdictional focus," stated Darrell Rader, president and chief executive officer of Minaurum Gold. "Lone Mountain hosts significant exploration and resource growth potential, with high zinc grades providing a potential pathway to fast-track critical metals permitting. Assuming acquisition of the project, we plan to advance Lone Mountain through drilling and geology as we continue resource drilling at our Alamos silver project."

Lone Mountain CRD project

Lone Mountain is a high-grade CRD project comprising a single patented mining claim and 203 unpatented mining claims that cover 1,850 hectares. The project lies 28 kilometres northwest of the historic Eureka mining district, which anchors one end of the Battle Mountain/Eureka trend in Nevada, United States. The region supports an active mining work force with significant resources for mineral exploration, mine development and mine operations. Major mines in the region include Barrick Gold's Goldstrike and Carlin mines, Nevada gold mines, Pine Valley mine and Cortez Hills mine; McEwen Mining's Gold Bar mine; and i80's Ruby Hill project, amongst others.

The project includes the historical Mountain View mine which produced almost five million pounds of zinc, 650,000 pounds of lead and 4,000 pounds of silver between 1942 and 1968 (Paterson (2005 and 2007) and Gow (2007)). Zinc-lead mineralization at Lone Mountain is hosted by Paleozoic limestone and dolomite in the lower plate of the Roberts Mountain thrust fault. Mineralization produced from shallow workings and drilled so far is nearly entirely oxidized, but Minaurum geologists believe that sulphide mineralization may lie at depth below.

Historical resource estimate and PEA

As disclosed in the PEA, the project is a brownfield project with a historical inferred mineral resource estimate of 3,257,000 tonnes grading 7.57 per cent zinc and 0.70 per cent lead (see attached table). Minaurum management believes there remains significant potential to expand the known inferred mineral resources and discover other areas of mineralization.

The company believes that the PEA highlights strong potential economics for a low-cost, relatively simple, open-pit zinc mine and flotation plant operating, producing and selling zinc concentrate for 12 years based on the historic mineral resources and a proposed nominal operating rate of 800 tonnes per day. The PEA summarizes the following cash flow forecast: Using a long-term average zinc price of $1.13 (U.S.) per pound and an 8-per-cent discount rate, the project was estimated to generate a pretax net present value (NPV) of $56.4-million (U.S.) ($75.2-million) and a pretax 40-per-cent internal rate of return (see attached table).

Historical drilling

Historical drilling was concentrated around the historical Mountain View mine and included 85 reverse circulation holes and 13 core holes totalling 14,407 metres carried out from 2014 to 2017. Drill highlights are summarized in an attached table. Zinc-rich carbonate oxide mineralization is well defined to 250 metres. However, drilling did not test the deeper potential oxide or sulphide zinc potential, which is open along strike and to depth.

Acquisition terms

Minaurum purchased a 25-per-cent beneficial interest in Nevada Zinc's rights and interests in its wholly owned and leased claims for cash consideration of $116,908 (U.S.). Additionally, Minaurum has an exclusive option to acquire: (i) 100 per cent of Nevada Zinc's right, title and interest in and to its wholly owned claims; and (ii) 100 per cent of Nevada Zinc's rights and interests in and to the lease in respect of the leased claims. Under the terms of the agreement, subject to receipt of approval of the TSX Venture Exchange and the shareholders of Nevada Zinc, Minaurum can exercise the option by:

• Issuing common shares with an aggregate value of $1-million (U.S.) based on the 10-day volume-weighted average trading price of its common shares;
• Paying a cash fee in the amount of $100,000 (U.S.).

Minaurum Gold is an Americas focused explorer concentrating on the high-grade, 100-per-cent-owned, production-permitted Alamos silver project in southern Sonora, Mexico, and the Lone Mountain CRD project in Nevada, United States. Minaurum is managed by one of the strongest technical and finance teams and will continue its founders' legacy of creating shareholder value by acquiring and developing a pipeline of Tier 1 precious metal and base metal projects.

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