UrbanGold Consolidates Troilus Area Property by Acquiring Key Adjacent SOQUEM Ground

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Ottawa, Ontario--(Newsfile Corp. - July 9, 2020) - UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") is pleased to announce it is expanding its land position in the Troilus area by entering into a definitive agreement with SOQUEM pursuant to which it is acquiring 100% of the Dileo-Nord Property (the "Property"). The Property, consisting of 77 claims totaling 4,182 hectares, is adjacent to UrbanGold's Bullseye property on which it is in a joint venture with Argonaut Gold (see June 29, 2020 news release). As consideration for the acquisition of the Property (the "Acquisition"), UrbanGold is issuing to SOQUEM 2,154,725 common shares of the Company, valued at $400,000 and granting a 1% net smelter return royalty to SOQUEM. The Company has the right to buy back 50% of the royalty for $500,000. The Acquisition is subject to approval by the TSX Venture Exchange.

The new acquisition completes UrbanGold's expansion in the Troilus area where it has increased its land position by more than 400% over the past year bringing the total to 26,426 hectares. The SOQUEM ground is a key acquisition as it connects the four largest claims blocks that form the Bullseye property, hence now forming a single contiguous large block of claims centrally located in the greenstone belt. More importantly, the drill-ready Property includes the potential extension of the Cressida zone where recent drilling by UrbanGold had intersected 1.02 g/t Au over 22 metres (see February 4, 2020 news release). In 2018, SOQUEM had completed 22 kilometres of induced polarization on this portion of the Property and had identified a strong chargeability anomaly located on strike, and only 600 metres from the drilling completed on Cressida. This geophysical target along with several other chargeability anomalies remain untested and constitute priority drill targets.

In addition to above targets, several gold and copper occurrences are known to occur on the Property. Of particular interest is a 2007 drill intersection of 31 g/t Au over 1 metre within a silicified shear zone which has not been followed-up on and remains open along strike and at depth (MERN-Sigeom website). Approximately 2 kilometres east and on strike of this drill intersection, a grab sample having assayed 16 g/t Au is also located on the Property (MERN-Sigeom website). Finally, in another area, a gold bearing quartz-carbonate vein reported to be 3 metres wide and over 300 metres in length remains to be investigated. It is to be noted that values are historical pre-dating National Instrument 43-101 standards, may not represent true width and grab samples are selective in nature.

Located less than 20 kilometres southwest and along strike of the historic Troilus mine, the Property is also along strike of other important gold occurrences such as the Cressida and the Southwest zones. It is easily accessible by a network of forestry roads and recent logging in the area has created new access points. Further work is required in some areas to see if bedrock has now been exposed. The Property is located within the area of interest of the Bullseye property where Argonaut Gold is entitled to earn a 50% stake. A map showing the location of the Property in relation to the Company's assets in the area is adjoined.

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Map 1

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Qualified Persons

Mathieu Stephens, P. Geo., President and Chief Executive Officer of UrbanGold, a Qualified Person under NI 43-101, has prepared and approved the technical content of this release.

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 definitive agreement with SOQUEM and obtaining regulatory approval. 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:

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

Jens Hansen, P.Eng
Chairman of the Board
[email protected]

Phone (613) 299-0666

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/59410

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