TRUE GRIT ENTERS INTO OPTION AGREEMENT WITH METALS EXPLORATIONS AND MINERAL PROJECT UPDATES

Vancouver, British Columbia (March 12, 2020) – True Grit Resources Ltd. (the “Company”) is pleased to announce that, further to its news release of December 20, 2019, it has entered into a Mineral Option Agreement (the “Option Agreement”) with Metals Explorations Inc. (“Metals Explorations”), an arm’s length private company incorporated under the laws of the state of Nevada, whereby Metals Explorations has granted the Company the right to acquire up to a 100% interest (the “Option”) in and to certain mineral claims and interests in leases owned by Metals Explorations known as the Black Rock Canyon property (the “Property”).

The Option

Under the terms of the Option Agreement, the Company may earn an initial undivided 75% interest in the Property by issuing to Metals Explorations and incurring exploration expenditures at the Property as follows:

• issuing 16,000,000 post-Consolidation common shares of the Company (the “Initial Consideration Shares”) at the deemed price of CDN$0.10 per share.  The Initial Consideration Share shall be issued to Metals Explorations as follows:
  • issuing 4,000,000 Initial Consideration Shares upon the effective date of the Option (“Option Date”);
  • issuing 8,000,000 Initial Consideration Share by the 6-month anniversary of the Option Date; and
  • issuing 4,000,000 common shares of the Company at the deemed price of CDN$0.10 per share by the 13-month anniversary of the Option Date; 
• completing minimum expenditures of US$2,100,000 on the Property as follows:
  • on or before the 12-month anniversary of the Option Date incurring expenditures on the Property in the amount of US$600,000; and
  • on or before the 24-month anniversary of the Option Date incurring expenditures on the Property in the amount of US$1,500,000.

Upon completion of the above share issuances and completing the minimum expenditures, the Company will hold an undivided 75% interest in the Property. 

Upon earning a 75% interest in the Property, the Company has the option to increase its interest in the Property to a 100% undivided interest in the Property by issuing to Metals Explorations by the 36-month anniversary of the Option Date  an additional 15,000,000 post-Consolidation common shares of the Company at the deemed price of CDN$0.10 per share. 

The Black Rock Canyon Property

As previously disclosed, the Property is located in the Bullion mining district approximately 55 mile southwest of Elko, Nevada.  The Property comprises about 3,894 acres, 31 lode claims totaling 620 acres, and 440 acres of fee minerals lease.  Metals Explorations acquired the Property from New Gold Nevada, Incorporated (“NGN”) in late 2019.  The Company has engaged Mine Development Associates to prepare a National Instrument 43-101 technical report in respect of the Property.

Private Placement of Units

Prior to or concurrently with the closing of the Option, the Company will complete a non-brokered private placement of post-Consolidation units (the “Units”) at a price of $0.10 per Unit for gross proceeds of up to $1,000,000 (the “Offering”).  Each Unit will consist of one post-Consolidation Common Share (each, a “Share”) and one Common Share purchase warrant (each, a “Warrant”).  Each Warrant entitles the holder thereof to acquire one Share at $0.15 per Share for 36 months from the date of issuance. 

Consolidation

Prior to or concurrently with the closing of the Option, the Company will consolidate its issued and outstanding share capital on a six Shares for one new Share basis.  The Shares to be issued in connection with the Option Agreement, the Debt Settlement (as defined below) and the Offering will be issued on a post-Consolidation basis. 

Debt Settlement

Prior to or concurrently with the closing of the Option, the Company intends to settle at least $400,000 and a maximum of $500,000 in debts by issuing to the creditors the Units (the “Debt Settlement”).

Graduation to TSX Venture Exchange Tier 2

In connection with the acquisition of the Property, the Company intends to apply to have the listing of its common shares transferred from the NEX board to Tier 2 of the TSX Venture Exchange (the “Graduation”).

Completion of the Option is Subject to TSX Venture Exchange Approval

Closing of the proposed transaction is subject to the TSX Venture Exchange acceptance of a filing required to be made in respect of the Option, the Consolidation, the Debt Settlement, the Graduation and all other necessary regulatory approvals and acceptances, as well as other conditions precedents.  There can be no assurance that the proposed transactions will be completed as proposed, or, at all. 

All securities issued in connection with the Offering, the Option Agreement and the Debt Settlements will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities laws.  

None of the securities issued in connection with the Option will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act.  This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

Mineral Project Updates

The Company terminated the Golden Triangle Project and the Moose Breath Project during the year ended March 31, 2019.

True Grit Resources Ltd.

Per: “Byron Coulthard” 

Byron Coulthard

President & CEO

Tel: 1.604.657.7004

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.