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Reliance Gold Project, B.C.

The Reliance Gold Property (the "Property") is located 4 kilometres ("km") east of Gold Bridge and 10 km north of the Bralorne-Pioneer Gold Mining Camp which has historically produced over 4 million ounces of gold.

The Property was previously explored with trenching and diamond drilling from 1985 through 2008. Gold mineralization is associated with silicification, quartz-stibnite veining and vein stockwork, quartz-feldspar porphyry, and wide zones of ankerite-sericite-clay alteration. The most explored structure is the Royal Shear which hosts the Imperial, Crown, Senator and Eagle Zones identified by historic surface sampling with associated encouraging gold values. The Property was last diamond core drilled in 2008 and this campaign, which in part targeted the Imperial Zone, returned highlight drill intersection widths from this zone of 13.30 grams per tonne ("gpt") gold over 4.20 metres ("m) (est 1.8 m true width), 7.05 gpt gold over 5.06 m (est 2.05 m true width), 5.70 gpt gold over 12.05 m (est 9.5 m true width), 5.43 gpt gold over 15.35 m (est 10 m true width) and 2.16 gpt gold over 12.13 m (est 6.5 m true width) , in five (5) drill holes of an eight (8) hole drilling campaign.

Surface grab and chip sampling results, together with the historic drilling, indicate a mineralized Orogenic-Type gold system within the Royal Shear that extends over at least 1,100 m of strike and 300 m vertically. A systematic exploration program is warranted to thoroughly explore this project in a professional and thorough manner. Based on recent rock sampling, soil sampling, biogeochemical sampling, airborne geophysics and a continuing robust alteration system, the Royal Shear remains open and unexplored along strike in both directions.

2019 Activity

The Company optioned the Property in September 2019. In December 2019, the Company announced encouraging surface sampling results from the Property. Sampling efforts were largely focused on a small portion of the Royal Shear and recent assay results have confirmed encouraging gold results on surface. Highlights of the results include 10 gpt gold over 5 m at the Imperial Zone and 4.6 gpt gold over 2 m at the Senator Zone prospects. The gold mineralization is hosted within areas of alteration up to 30 m wide in the Royal Shear consisting of ankerite-sericite-clay alteration with silicification, quartz-stibnite veining, vein stockwork, vein breccia and quartz-feldspar porphyry.

The best December 2019 rock sample result from the Imperial Zone assayed 10 gpt gold over 5 m was collected from a road cut. The sample was a representative chip and grab sample within a panel extending about 5 m of horizontal length and 1 m height on the upper bank of a road cut. The deeply weathered outcrop is ankerite altered, sheared and brecciated volcanic in the footwall of the Royal Shear. Weathering of this alteration results in exposure of orange, yellow, brown and rusty gouge with some observed fine-grained black sulphide, interpreted to be stibnite. There was no obvious silicification or quartz veining observed in the collected sample.

The best 2019 rock sample result from the Senator Zone assayed 4.6 gpt gold over 2 m and was collected from a similar road cut about 75 m west-southwest of the above sample. This sample was collected from a panel extending over 2 m of horizontal length and 1 m height. At this outcrop, brown to orange weathering ankerite altered, sheared and brecciated volcanic is also present. At this location, fine grained banded silicification and quartz veining is present associated with fine grained black sulphide interpreted to be stibnite.

2020 Exploration Program

The Company has been conducting a systematic 2020 exploration program consisting of compilation and location of historic technical data, airborne geophysics, rock, soil and biogeochemical sampling, geological structural mapping and extensive representative channel sampling, followed by a planned drilling program. The current exploration focus is on the Royal Shear Zone.

Geophysics -- The 2020 airborne magnetics survey has identified a magnetic anomaly associated with the best gold occurrences on the Royal Shear which has a contiguous strike length of about 2.5 km on the Property. This airborne magnetics survey data combined with observations from initial field work has also identified four (4) other subparallel lineaments on the Property named Steep, Treasure, Camp and Nemo. Gold mineralization has been historically reported on the Treasure and Camp lineaments and antimony mineralization has been reported along the Nemo lineament. An IP geophysical survey on the Royal Shear will be considered once the permit is granted.

Soil and Vegetation Sampling -- The Talus fines/C-horizon soil survey demonstrates a robust and continuous northwest-southeast trending gold, silver, arsenic, and antimony anomaly that exceeds 100 parts per billion ("ppb") gold along a strike length of 1,100 m and width of between 100 and 300 m associated with the Royal Shear. The multielement geochemical anomaly is 1,200 m in length and remains open to expansion along strike in both directions. Of the 236 samples collected to date, 64 samples exceeded 100 ppb gold (27% of total) and 12 samples exceeded 1,000 ppb gold. These 12 over-limit soil samples were re-analyzed and returned peak values of 27 parts per million ("ppm"), 11 ppm, 8.42 ppm, 5.55 ppm, 3.77 ppm and 3.66 ppm gold. There is a strong positive geochemical correlation between gold and associated elements silver (+0.85), arsenic (+0.90) and antimony (+0.85). A 2020 biogeochemical sampling program of Douglas Fir tree branch cuttings, consisting of 129 samples, has identified an anomaly which is coincident with the greater than 100 ppb gold-in-soil anomaly. The biogeochemical anomaly is defined by elevated arsenic (+/-gold, +/-antimony) over a 850 metre strike length which is open to expansion. These results indicate that Douglas Fir sampling can be an economical method to detect blind mineralization obscured by the thick volcanic pumice tephra-ash that blankets the Property. Based on these encouraging results, the Company has completed a more extensive biogeochemical sampling program with the goal of discovering new mineralized areas hosted along the extensions of the Royal Shear Zone within the Property. Results from this survey are expected before year-end 2020.

2020 Rock Sampling -- The Company has restored the high-bank road outcrop exposures of the known gold zones on the Royal Shear to facilitate channel sampling as well as geological and structural mapping. About 585 metres of outcrop have been cleaned and exposed for further sampling and geological evaluation. To access the prospects, about 5 km of previously excavated access trails on the Royal Shear were cleared of underbrush and the outcrops cleaned to facilitate geology and sampling. Highlights of the initial 2020 rock sampling include a chip sample 4.1 gpt Gold over 3.7 m at the Imperial Zone and a chip sample of 8.8 gpt gold over 1.52 m at the Eagle South Zone. Highest grade rock sample results include a chip sample of 24.4 gpt gold over 0.3 m at the Eagle South Zone and 19.2 gpt gold in a grab sample from the Eagle Zone.

2020 Channel Sampling -- Systematic rock channel sampling has been completed over a significant strike length of the exposed prospects. The channel samples were collected using a hand-held electric hammer "demolition" chisel which extracts a continuous channel in outcrop horizontally across a pre-measured and marked outcrop face. The first channel sample results were reported the Eagle South Zone and returned 8.9 gpt gold over 9.6 m within a wider mineralized zone of 6.92 gpt gold over 13.4 m. The Eagle South Zone does not have any significant associated antimony. The true width of the sampled and exposed 13.4 m zone is estimated to be about 10 m. Assay results for the remaining channel samples at the Eagle Zone, Crown Zone, Merit Zone, and Imperial Zone are expected to be received through to the end of November 2020.

Geological Mapping -- The Company engaged Oliver Geoscience International Ltd. to complete a geological structural mapping program over a 1.0 km trend of the Royal Shear in the area of the best known gold prospects. The Royal Shear is a multi-strand brittle ductile northwest trending and steeply southwest dipping reverse fault that separates a dominantly mafic volcanic sequence on the northeast from a dominantly ribbon chert argillite sequence on the southeast. The most significant gold occurrences are located in the footwall mafic volcanic that are sheared and iron-carbonate altered resulting in wide zones of modest to intense alteration with the most intense alteration associated with silicification spatially associated with altered feldspar porphyry. Two types of orogenic-type gold mineralization have been observed on surface within the area of the most intense iron-carbonate alteration and shearing. One form is associated with silicification, quartz veins, quartz vein breccia, and often significant stibnite (up to 11% antimony in grab samples) and second type which is hosted within sericite altered brittle-ductile shearing with insignificant silicification but iron oxide oxidation suggesting elevated sulfide contents. It was observed that the later mineralization type is associated with recessive weathering shear zones up to 14 m in width. A copy of the summarized geology and alteration map is available on the maps page. Follow-up geological mapping along the structural trend was completed in October and results of that regional mapping program are anticipated in November.

Permitting, Archaeological Study & Consultation -- The Company's Notice of Work drill permit application has been accepted by the BC Ministry of Energy and Mines and has now completed the consultation referral stage without concerns raised by any of the affected communities or other resource agencies. The Company is committed to a mutually beneficial relationship with local First Nations. Dialogue has been active throughout 2020 and the Company has been engaging First Nation contractors to assist in the 2020 exploration activities. A preliminary archaeological study is now complete, and the field-oriented study did not identify any archaeological artifacts, or areas of concern.

Drilling Planned -- After the permit has been granted, a reverse-circulation (RC) shallow drill program will follow based on the results from the currently active surface program.

The Option Deal

Under the terms of the agreement with the Optionor, the Company can earn a 100% interest in the Reliance Gold Property located near Gold Bridge, British Columbia, for cash consideration in the aggregate amount of $300,000 ($20,000 paid) and exploration expenditures in the aggregate amount of $3,000,000 by December 31, 2024; the allotment and issuance of up to a total of 4,000,000 common shares (200,000 common shares issued at a value of $5,000) of the Company by December 31, 2025. The Option is subject to a 2.5% NSR, of which 1.5% NSR can be purchased by the Company at any time for $1,000,000. In addition, the Company agreed to issue up to a maximum of 200,000 Shares to PI Financial Corp. (the " Finder") which introduced the Optionors to the Company. The Shares will be issued and paid to the Finder in two tranches. The initial 100,000 Shares was paid on execution of the formal option agreement between the Optionor and the Company, and the second tranche of 100,000 Shares will be issued and paid on or before January 31, 2021 provided that the Option remains in good standing on December 31, 2020.

 

Robert T. Boyd, P.Geo. is a qualified person as defined in National Instrument 43-101 and supervised the compilation of the historic information forming the basis for this summary. The 2019 representative chip and grab samples mentioned in this release were analyzed for gold only at SGS Canada by GE_FAA30V5. The single overlimit sample that exceeded 10,000 ppb gold was analyzed by SGS Canada by GO_FAG30V. Confirmation standards were inserted by SGS Canada with each of the two analytical techniques.

The 2020 work program is supervised by Darren O'Brien, P.Geo., an independent consultant and qualified person as defined in National Instrument 43-101. The 2020 Rock samples and channel samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they were crushed to 70% <2 mm then up to 250 gram pulverized to <75 microns. Samples were then submitted for four-acid digestion and analyzed for 48 element ICP-MS (ME-MS61) and gold 30g FA ICP-AES finish (AU-ICP21). Over limit samples returning greater than 10 ppm gold were re-analyzed by Au-GRA21 methodology and over limit antimony returning greater than 10,000 ppm Sb were re-analyzed by Sb-AA08 methodology. Grab samples are selective by nature and are unlikely to represent average grades on the property or within the target areas.

Bedrock representative chip and grab samples mentioned in this release are potentially selective by nature and are unlikely to represent average grades within the bedrock when drilled. Except for the drilling completed in 2008, the historic exploration drilling activity cannot be relied upon due to poor quality georeferencing and lack of down-hole dip information. Despite estimates, the drill intersections mentioned in this release may not accurately represent the true width of the intersection. In 2008 all cut and/or split core samples were analyzed by ICP analyses at Ecotech Analytical Laboratory. Samples that exceeded 1,000 ppb gold were re-analyzed by lead collection fire assay at the same laboratory using a preferred 30 gram sub-sample size.

2020 Soil samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they were prepped and screened to -180 micron using method code SCR-41. Samples were then submitted for aqua regia digestion and analyzed for gold and other trace elements with an ICP-MS finish (method code AuME-TL43). Over limit samples returning greater than 1,000 ppb gold were re-analyzed by Au-AROR43 methodology.

For the 2020 biogeochemistry program, Douglas Fir clippings weighing approximately 350 grams per sample were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where the Douglas Fir clippings were prepped for analysis and then air dried. An average homogenized weight of 24 grams of the collected and dried sample was then ashed at 475 degrees centigrade for 24 hours (prep method code VEG-ASH01) for a resultant average weight of 0.6 grams. The ashed samples were then submitted for nitric/hydrochloric acid digestion and analyzed for trace elements and gold with an ICP-MS finish (method code AuME-VEG41a). Analytical results are reported to the Company based on the ashed weight.

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