GORBEA BELT PROJECT JV

PROPERTY TYPE HSE Gold Project	SIZE 32,000 ha
STATUS Optioned to Newcrest International Pty Ltd.	EXPLORATION STAGE Drilling

PROPERTY TYPE

HSE Gold Project

SIZE

32,000 ha

STATUS

Optioned to Newcrest International Pty Ltd.

EXPLORATION STAGE

Drilling

In 2012, Mirasol staked a large land package containing nine projects in the newly discovered Gorbea Belt, securing an area with broad prospective alteration systems identified by its generative team. Detailed ground follow-up of these targets identified large outcropping gold systems at the Atlas and Titan projects.

After some initial work completed by Mirasol, the Gorbea package was optioned to Yamana Gold from 2015 to 2018. During this period, Yamana spent more than C$10 M on exploration expenditures and drilled more than 11,000 m on the project. In early 2019, Mirasol entered into a new agreement with Newcrest Mining to further advance exploration on this property package. Since the beginning of this exploration partnership, Newcrest has completed a total of 5,426 m diamond drilling and reported exploration expenditures of approximately US$8.6 million on the property (to March 31, 2020), representing a significant investment on the project.

OPTION AND FARM-IN AGREEMENT

On January 28, 2019, the Company announced that it signed a definitive Letter Agreement for an Option and Farm-in Agreement with a subsidiary of Newcrest Mining Limited (Newcrest) for the Gorbea gold project in Chile. Newcrest has the right to acquire, in multiple stages, up to 75% of the Gorbea project by completing a series of exploration and development milestones and making staged option payments to Mirasol.

Newcrest has completed its initial commitment to spend US$4 million and complete 3,000 m of drilling over an initial 18-month period. However, due to the COVID-19 pandemic, activity remains suspended until at least August 2021 when COVID-19 conditions and local regulations will be reviewed by the parties. Newcrest has implemented and maintained measures to reduce and mitigate the risks of the COVID-19 pandemic to its project workforce and key stakeholders and as a consequence of these developments, Mirasol and Newcrest have agreed to amend the Gorbea Option and Farm-in Agreement allowing Newcrest to exercise its option to enter the farm-in phase of the Agreement by making a US$500,000 payment to Mirasol.

In order to complete the first farm-in phase and vest an initial 51% in the Gorbea project, Newcrest is now required to complete at least US$15 million in exploration expenditures over 4.5 years and drill a minimum of 8,000m on the Gorbea Project. The first 2,000m of drilling is to be completed before the end of 2021 and the additional 6,000m must be completed before the end of 2022. Mirasol and Newcrest have agreed to review the COVID situation in Chile in August 2021 and jointly decide how to advance the project during the next field season.

Upon Newcrest earning 75% of the project, Mirasol can elect to fund its share and retain a 25% project equity position, or exercise a one-time equity conversion option to convert up to 10% of its equity into an NSR royalty at a rate of 2.5% equity per 0.5% NSR royalty (max 2% NSR royalty)

The Gorbea belt comprises of nine 100%-owned claim blocks totalling 32,000 ha and includes the Atlas and Titan prospects. The Atlas project is centred on a +20 km² HSE gold alteration system hosting multiple gold and silver targets and contains many of the key geological, mineralization features and area extent to other economic systems in the area, such as Salares Norte (Gold Fields), Alturas (Barrick Gold) and La Coipa (Kinross Gold), supporting its potential to host large-scale gold mineralization.

The latest round of drilling on the Atlas project, brings the total drilling to 15,925 m in 35 holes by both Newcrest and Mirasol’s previous partner, and demonstrates widespread mineralization within the central breccia complex. In addition, lithochemical studies on drill samples indicate that the geochemical footprint is larger than the area covered by the drilling to date and is open to the north, east and southwest.

NEWCREST EXPLORATION:

During the first half of 2019, Newcrest, as the operator of the Gorbea exploration program, completed two diamond drill holes for 903 m, 50 km of CSAMT geophysics over the Atlas target as well as reconnaissance mapping and sampling over several other target areas in the Gorbea property package. Drilling was initially targeting a coincident geophysical, geochemical and alteration anomaly at depth below a barren steam-heated leach cap, following up on previous drilling results.

During the 2019/2020 field season, Newcrest completed 9 additional drill holes at the Atlas target, for a total of 4,523 m of diamond drilling this season.

Best Results from this season include:

ATL-DDH-001A: 0.52 g/t Au and 6.81 g/t Ag over 164m (from 372m), including:
- 1.07 g/t Au and 7.18 g/t Ag over 14m (from 372m), and
- 1.31 g/t Au and 7.82 g/t Ag over 16.5m (from 402.5m)
ATL-DDH-010: 0.54 g/t Au and 2.65 g/t Ag over 129m (from 363m), including:
- 1.4 g/t Au and 2.08 g/t Ag over 17m (from 364m), also including:
  - 2.09 g/t Au and 3.00 g/t Ag over 10m (from 371m)
- 1.84 g/t Au and 3.57 g/t Ag over 3m (from 425m)

Mineralization encountered to date is associated with phreatomagmatic and hydrothermal breccias and intensely advanced argillically altered porphyritic andesite, often where a vuggy silica texture has developed. The area has been deeply oxidized to depths of over 400 m, which is potentially advantageous for the development of favorable metallurgy.

Initial wide-spaced drilling has been important to test the large size of the system and distribution of favorable outcropping breccia targets. Future efforts to define higher grade zones will now be guided by targeting resistive units identified by CSAMT geophysics along with structural mapping, geochemistry, and vectors to feeder zones from alteration zonation and alunite composition.

Mirasol continues to work closely with Newcrest to better understand the controls on the higher-grade mineralization and to collaborate in the definition of quality targets for future drilling, which is scheduled to restart in the southern hemisphere spring season of 2020.

In addition, Newcrest intends to drill-test the El Dorado prospect as well as continue field evaluation work at selected regional prospects (Ventura, Sirio, Orion and Titan).

YAMANA EXPLORATION:

During the three years of exploration at Gorbea, Yamana focused its drilling activity exclusively on the Atlas and Titan projects. The best drilling results on the Atlas project were received in 2017 from holes 15 and 16:

CLATDH0015: 1.07 g/t Au and 1.78 g/t Ag over 114.1m (from 347m), including:
- 36 m at 2.49 g/t Au and 3.08 g/t Ag
CLATDH0016: 0.32 g/t Au and 0.81 g/t Ag over 45.8m

To learn more about the project and recent exploration results see all current and historical news releases.

Significant Intersections from the 2019/2020 Drilling Program:

Hole ID	Total Depth (m)	From (m)	To (m)	Interval (m)	Au (ppm)	Ag (ppm)	Cut Off*
ATL-DH-001A	560m	372	536	164	0.52	6.81	0.3 g/t AuEq
	Incl.	372	386	14	1.07	7.18	1 g/t AuEq
	Incl.	402.5	419	16.5	1.31	7.82	1 g/t AuEq
ATL-DH-002	512.3m	274	333	59	0.39	6.6	0.3 g/t AuEq
	Incl.	289	299	10	1	8.6	1 g/t AuEq
ATL-DH-003	167.8m	Hole did not reach target area.	Hole did not reach target area.	Hole did not reach target area.	Hole did not reach target area.	Hole did not reach target area.	Hole did not reach target area.
ATL-DH-003A	436m	Twin hole - no mineralization to report	Twin hole - no mineralization to report	Twin hole - no mineralization to report	Twin hole - no mineralization to report	Twin hole - no mineralization to report	Twin hole - no mineralization to report
ATL-DH-004	530.2m	393	413	20	0.28	15.96	0.3 g/t AuEq
		462	467	5	0.31	4.22	0.3 g/t AuEq
ATL-DH-005	379.45m	Hole did not reach target area. No Mineralization to report	Hole did not reach target area. No Mineralization to report	Hole did not reach target area. No Mineralization to report	Hole did not reach target area. No Mineralization to report	Hole did not reach target area. No Mineralization to report	Hole did not reach target area. No Mineralization to report
ATL-DH-006	575.1m	No mineralization to report	No mineralization to report	No mineralization to report	No mineralization to report	No mineralization to report	No mineralization to report
ATL-DH-007	500m	459	472	13	0.35	0.70	0.3 g/t AuEq
		485	494	9	0.43	1.72	0.3 g/t AuEq
ATL-DH-008	440.2m	No mineralization to report	No mineralization to report	No mineralization to report	No mineralization to report	No mineralization to report	No mineralization to report
ATL-DH-009	434.3m	85	88	3	0.64	2.96	0.3 g/t AuEq
		284	287	3	0.32	2.16	0.3 g/t AuEq
		343	346	3	0.04	27.15	0.3 g/t AuEq
ATL-DH-010	499.8m	363	499.8	128.8	0.54	2.65	0.3 g/t AuEq
	Incl.	364	381	17	1.4	2.08	0.5 g/t AuEq
	Incl.	371	381	10	2.09	3.00	1 g/t AuEq
	Incl.	425	428	3	1.84	3.57	1 g/t AuEq

*AuEq is the sum of the value of Au and Ag calculated as an Au equivalent g/t value via the formula: Au assay in g/t + (Ag assay in g/t ÷ 80)

PRESS RELEASES

December 29, 2020

Mirasol Resources and Newcrest Mining Amend Gorbea Agreement: Newcrest Exercises Farm-in Option