Magna Mining Provides Update on Activity at Crean Hill

Diamond Drilling Has Commenced and Intersected Semi-Massive to Massive Sulphides over 10.7 Metres

Sudbury, Ontario--(Newsfile Corp. - November 17, 2022) - Magna Mining Inc. (TSXV: NICU) ("Magna" or the "Company") is pleased to announce that drilling has commenced at the Crean Hill Mine, part of the Denison Project (see Figure 1). To date, three holes have been completed and each has intersected mineralization as expected, including massive sulphide mineralization in drillhole MCR-22-003. (See Figure 2). The Company expects to complete approximately 2000m of drilling prior to the Christmas break, and resume diamond drilling in January.

The Company is pleased to announce that it has awarded the contract to complete a Preliminary Economic Assessment("PEA") to Stantec Consulting Ltd. The PEA will be used to demonstrate the potential economics of the Denison Project, identify, and quantify synergies with the Company's Shakespeare Project and make recommendations for additional work which will support a future Pre-feasibility Study. The completion of the PEA is anticipated early in Q2 2023.

Dave King, Senior Vice President of Technical Services for Magna commented, "We are pleased to have secured a local drilling company for the Crean Hill diamond drilling so quickly after the closing of the acquisition of Lonmin Canada Inc. Our initial drilling has intersected massive sulphide mineralization, as expected, and demonstrates the quality of the mineral resources remaining at Crean Hill. The initial 1500-2000m in this drilling program at Crean Hill is designed to provide technical information to support the PEA, as well as provide material for metallurgical or other required testing as our technical studies progress."

The initial drilling program at Crean Hill is targeted within the current mineral resources, within areas that will be considered for advanced exploration and potential bulk sampling. To date, three drillholes have been completed, and have intersected mineralization as expected, confirming the accuracy of the historical stope models, geological models, and overall quality of mineral resources remaining at Crean Hill. The first two holes targeted near surface Cu-Ni Sudbury Igneous Complex ("SIC") contact style mineralization within the current open pit resource. The third drillhole, MCR-22-003, targeted the 101 Zone, which is associated with a breccia system trending southwest from the main SIC contact mineralization, into the footwall rocks. Sudbury footwall orebodies are commonly hosted within breccia systems, and often are elevated in copper and platinum group element ("PGE") mineralization, relative to typical SIC contact mineralization. Drillhole MCR-22-003 was targeting below and adjacent to historically mined stopes and confirms the mineralization continues down-dip and along strike to the southwest. The drillhole intersected approximately 70 m of footwall breccia, with local disseminated to stringer mineralization throughout, and includes massive sulphide mineralization from 168.1-169.8 and 173.1-178.8 metres downhole, (1.7 m and 5.7 m, respectively) (Figure 2). Additional drilling will be designed to further extend the 101 Zone mineralization.

In 2023, Magna is budgeting 12,000 to 15,000 metres of drilling that will be focused on expanding on the existing Mineral Resources and testing new exploration targets in the footwall of the SIC as well contact nickel and copper targets to the east of the current resource.

Figure 1: Denison Project Location, showing adjacent significant land tenure.

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/8002/144587_2dc1252934bdbafe_002full.jpg

Figure 2: MCR-22-003 Massive Sulphide.

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/8002/144587_2dc1252934bdbafe_003full.jpg

Restricted Share Unit (RSU) Plan update

As previously announced by the Company in its press release dated November 10, 2022, the Company granted restricted share units ("RSUs") to certain directors, officers and employees of the Company under its existing Restricted Share Unit Plan ("RSU Plan"). The Company further announces that, in connection with such prior grant of a portion of the RSUs, the Company also approved an amendment to the RSU Plan (the "Amended RSU Plan") to increase the fixed maximum number of shares reserved for issuance under the RSU Plan from 750,000 to 1,500,000 shares. The Amended RSU Plan and the grant of 78,000 RSUs under the Amended RSU Plan are subject to approval by the TSX Venture Exchange and ratification by the Company's shareholders at the next annual and special meeting of shareholders. Further details regarding the grant of the RSUs are set out in the Company's press release dated November 10, 2022 available on SEDAR.

Qualified Person

The technical information in this press release has been reviewed and approved by David King, M.Sc., P.Geo. Mr. King is the Senior Vice President, Technical Services for Magna Mining Inc. and is a qualified person under Canadian National Instrument 43-101.

About Magna Mining Inc.

Magna Mining is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The Company's flagship assets are the past producing Shakespeare and Crean Hill Mines. The Shakespeare mine has major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km² prospective land package. Crean Hill is a past producing nickel, copper and PGM mine with an updated technical report, prepared in accordance with NI 43-101, dated August 2022. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.magnamining.com).

For further information, please contact:
Jason Jessup
Chief Executive Officer
or
Paul Fowler, CFA
Senior Vice President
Email: [email protected]

Cautionary Statement

This press release contains certain forward-looking information or forward-looking statements as defined in applicable securities laws. Forward-looking statements are not historical facts and are subject to several risks and uncertainties beyond the Company's control, including statements regarding the production at the Shakespeare and Crean HIll Mines, the economic and operational potential of the Shakespeare and Crean Hill Mines, potential acquisitions, plans to complete exploration programs, potential mineralization, exploration results and statements regarding beliefs, plans, expectations, or intentions of the Company. Resource exploration and development is highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/144587