Urbangold and Northcore Sign Option Agreement for the Monaco Property

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Ottawa, Ontario--(Newsfile Corp. - October 21, 2020) -  UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") and Northcore Resources Inc. ("Northcore") are pleased to announce the signing of an option agreement between the companies regarding the acquisition of the Monaco property ("The Property"). The Property is located in the Lower James Bay area of Quebec approximately 200 km ENE of Val d'Or and 80 km south of Chibougamau. The Property consists of one hundred and forty-nine (149) mostly contiguous Map-Designated Cells covering an area of 8,375.37 hectares.

As consideration for the acquisition of the Property (the "Acquisition") Northcore will make a cash payment of ten thousand dollars ($10,000) upon signature, issue two million eight hundred thousand (2,800,000) common shares of Northcore's capital, and make a final cash payment of ten thousand dollars ($10,000) within one (1) year from the signature date. Upon completion of the above and the listing of Northcore shares on an exchange within one year of the signature date, 100% ownership of the Property is to be transferred to Northcore.

In addition, Northcore has agreed to pay a one percent (1%) net smelter return ("NSR") royalty to Urbangold, of which one half can be bought back for a payment of one million dollars ($1,000,000), and they will honour a previously existing one percent (1%) NSR to third parties.

Monaco Property

The Property covers a 20-km segment of the Urban-Barry volcanic belt that stretches from Lebel-sur-Quevillon to the Grenville. The area is contiguous and on-strike to the west with the Urban-Barry Volcanic Belt and the Windfall Lake gold project that has seen an unprecedented amount of successful exploration work in recent years. Osisko Mining and Bonterra Resources are active in the area, having jointly drilled over 1,300,000 metres to date. In most cases, gold mineralization is locally related to porphyry intrusions associated with minor amounts of pyrite as stringers and disseminations in stock-work veinlets, but in other sectors of the volcanic belt gold has also been described as occurring in quartz veins in shear zones.

The Property is located in an area that received very limited prospecting and no drilling in the past, but covers the ¨trend¨ of the Urban-Barry "deformation zone", which appears to control the gold mineralization. An improved understanding of the geological, structural, and alteration features in the area will enable exploration geologists to better define metallogenic priorities and targets with the highest potential for discovery of a deposit of economic interest.

In 2017, a compilation of all available data was completed for the Property. This was followed-up with a reinterpretation of geophysical data which allowed for the identification of several electromagnetic anomalies. A till sampling program was conducted over select targets, along with line-cutting and ground geophysics consisting of high resolution MaxMin EM surveys. In the summer of 2018, the Property was visited by a geologist, and limited sampling was conducted with no values of note recorded.

In 2019, a four-week exploration program was conducted on the Property. Approximately one third of the geophysical anomalies were explained, mostly by the presence of pyrite and pyrrhotite. No gold values of note were recorded. A work report for the Property was completed and will aid in determining the next steps in the exploration of the Property.

Qualified Person

Technical aspects of this news release have been reviewed and approved by Mathieu Stephens, P.Geo., President and CEO for UrbanGold, the Qualified Person, as defined by National Instrument 43-101.

About UrbanGold

UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused in key gold prospective areas of Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company's common shares trade on the TSX Venture Exchange under the symbol "UGM".

Forward-Looking Information

This news release may contain certain forward-looking information and statements, including without limitation, the closing of the Acquisition and the listing of Northcore shares on an exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in UrbanGold's disclosure documents on the SEDAR website at www.sedar.com. UrbanGold does not undertake to update any forward-looking information except in accordance with applicable securities laws.

For further information

Investor Relations
First Canadian Capital Corporation
Phone: 416-742-5600

Phone: 514-346-3813

Mathieu Stephens, P.Geo
President and Chief Executive Officer
[email protected]

Phone 1-888-397-3566

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/66462

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