Mountain Boy Closes $2,000,000 Unit Financing: Eric Sprott to Purchase 4 Million Units

Mr. Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 4,000,000 Units pursuant to the Private Placement for a total consideration of $1,000,000. Subsequent to the Private Placement, Mr. Sprott beneficially owns or controls 4,000,000 Shares of the Company and 2,000,000 Warrants representing approximately 8.9% of the issued and outstanding Shares of the Company on a non-diluted basis and approximately 12.9% of the issued and outstanding Shares of the Company on a partially diluted basis assuming exercise of the warrants acquired hereunder and forming part of the Units. Prior to the Financing, Mr. Sprott did not beneficially own or control any share of the Company.

The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Mountain Boy including on the open market or through private acquisitions or sell securities of Mountain Boy including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.

A copy of Mr. Sprott's early warning report will appear on Mountain Boy's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

The net proceeds of the Offering will be used for exploration of the Company's projects in BC's Golden Triangle, including planned drilling of the American Creek project, and general working capital purposes. The common shares issued under this placement are subject to a four-month hold period until November 8, 2020. Insiders purchased 310,000 units of this unit financing. Finder's fees of $18,570 in cash and 74,280 finder's warrants were paid to eligible parties.

Flow-through Financing Details:

The Flow-through financing announced July 3rd, 2020 is fully subscribed and expected to close shortly. Flow-through common shares are priced at $0.30 per common share (the "FT Offering"). The gross proceeds from the FT Offering of flow-through shares will be invested in eligible exploration expenditures in the province of British Columbia and certain British Columbia residents may be eligible for addition income tax deductions making this offering's shares commonly referred to as "super" flow through shares.

All securities will be subject to a four-month hold period from the date of closing. The Company may pay finder's fees and Insiders may be participating in this offering.

The offering is subject to the approval of the TSX Venture Exchange and applicable laws.

On behalf of the Board of Directors:

Lawrence Roulston

President & CEO

(604) 687-3520

For further information, contact:

Nancy Curry

VP Corporate Development
(604) 220-2971

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain certain "forward looking statements". Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Not for dissemination in the United States or through U.S. newswires

Copyright (c) 2020 TheNewswire - All rights reserved.