Fredonia Mining Inc. Drilling and Exploration Update

Six HQ diamond drill core holes were drilled at each of La Herradura and Monserrat Oeste. In total 12 holes were drilled for 3,424.3m.

The field base at EDM will be reoccupied commencing January 31, 2022 after the holiday recess. Preparations are underway for the next follow-up drilling phase, as well as further exploration and drilling.

Geological interpretation of the drilling sections will assist in determining the next phases of exploration. This information in parallel with the assay data will allow realistic planning of the future drilling that will target identified structures to maximise discovery along strike / dip and focus on potential high grade zones.

Two geological mineralised zones are becoming evident. In the northern sector of the property, the zone from Monserrat Oeste(west) extending east through Bajo Perdernal, Main Veins to Monserrat Este (east), (including Gladys and Anita) and in the southern sector the trend west from Beethoven and including La Herradura. These trends are subparallel to the regional mineralised trend that control the mineralisation at Cerro Vanguardia.

La Herradura is located on a mineralised regional structural trend which extends west from the Beethoven prospect (a vein swarm of 5km strike by up to 2km wide) and further west there are other named prospects, such as Pamela-los Domos, which are yet to be fully explored.

The remaining assay results for La Herradura are now available. The highlights are tabled below. The drilling has added further credibility that the potential for a large tonnage Au-Ag occurrence with included high grade zones exists at La Herradura. The model being developed has been refined after recent mapping and in conjunction with the drilling, which identified a potential diatreme surrounded by an extensive brecciated host system, the dimensions of which are as yet undefined being geologically open in all directions. The Fredonia geological team believe further drilling is warranted to exploit this model.

Currently drill sections are being interpreted and integrated with the recent geophysics survey to define the next drill programme.

Table of best intersections

Drill hole statistics have previously been reported for the recent drilling at La Herradura.

Historical drillholes in the same prospect area are:

Table of (selected) historic drill intersections, La Herradura

The recent drill holes at La Herradura were drilled to target both the roughly east west mineralised trend including the central diatreme at La Herradura 'hill' and to expand the gold anomalism identified in the historic drilling which extends over 1,100m of strike to depths of >200m.

Drill holes have intercepted hydrothermal breccias, veins and stockworks, hosted in a phreatomagmatic breccias, felsic domes and dikes that intrude the andesite flows which form the country rock.

Gold mineralisation is related to a quartz + sericite alteration and minor bladed calcite and adularia, interpreted as evidence of a boiling zone in an epithermal system. The shallow and distal zones show a chlorite + hematite + pyrite alteration, while in the deeper sections there are veins of platy calcite + fluorite. Superimposed on the system is an alteration halo of kaolinite + alunite and vuggy quartz, which occurs in shallow and medium-deep sectors.

The drilling whilst of limited meters has enhanced the project's potential and confirmed the presence of wide intersections of mineralised material with higher grade inclusions. The system is interpreted to remain open in all directions and Fredonia believes more drilling is warranted.

Monserrat Oeste (west)

The recent drilling at Monserrat Oeste consisted of five HQ diamond drill holes and an additional one drill hole in Bajo Pedernal (subparallel and ~200m west of Monserrat Oeste), for a total of 1,841m. More than 567 samples (including standards, blanks, and duplicates) were submitted for gold and silver fire assays and multielement ICP to Alex Stewart (a certified laboratory independent of Fredonia).

Table of drill-hole statistics

The Monserrat Oeste area is located on a northwest dilational 1.6km corridor that contains the mineralized zones expressed as veining and brecciation with a north to north-northeast attitude, dipping 55? to 75? to the east. The mineralised structure is open in both directions and at depth.

The sparce surface expression is characterised by a silica cap, secondary oxidation, leaching, breccia and residual quartz textures. The relative anomalism of pathfinder elements (As, Sb) over anomalous gold values at surface is considered a significant vector to the depth potential. Interpretation of historical drilling suggests that the mineralized zones are characterized by argillic alteration with veins composed of variably barite, calcite, pyrite, sphalerite, galena, secondary silver minerals, iron oxides, limonite, and clays, and a second silica-rich alteration, (silicification) which is further interpreted as the predominant event for the gold mineralization.

All six holes drilled intersected the target structure and contained anomalous to significant gold / silver with isolated high grade intervals. The drilling has confirmed the geological model has merit. The gold-silver intersections have enlarged the area of known mineralisation identified by historic drilling and demonstrate the potential for further strike and down dip extension and the possibility of further high grade Au-Ag zones.

Table of best intersections

1. Reported interval length are down hole widths and not true widths.
2. Gold equivalent ("AuEq") is calculated using metal prices of US$ 1,800/oz for Au and US$ 24/oz for Ag.
The equation used is: AuEq g/t = Au g/t + (Ag g/t ? 75).
3. Au eq assumes Au recovery of 90%. The limited metallurgical studies by Fredonia (selective Bottle rolls from Main Veins material) have indicated high >90% recovery of gold in oxide material. The Cerro Vanguardia mine to the east of EDM with similar mineralisation reports recoveries in the high 90% for Au.

Historic drill hole intersections of note

1. Reported interval length are down hole widths and not true widths.
2. Gold equivalent ("AuEq") is calculated using metal prices of US$ 1,800/oz for Au and US$ 24/oz for Ag.
The equation used is: AuEq g/t = Au g/t + (Ag g/t ? 75).
3. Au eq assumes a recovery of 90%. The limited metallurgical studies by Fredonia (selective Bottle rolls from Main Veins material) have indicated high >90% recovery of gold in oxide material. The Cerro Vanguardia mine to the east of EDM with similar mineralisation reports recoveries in the high 90% for Au.

Monserrat Oeste requires further drilling to define the project's true extent - currently open all directions. Interpretation of drill sections, integrating historic drilling into the new sections is underway. This will provide the foundation for further exploration drilling and the targeting of potential high grade zones.

Main Veins

The Main Veins extend for over 250m roughly north-south and contains multiple veins forming a package of 25m and greater in width with additional hanging wall veining. This composite structure is open to the north and merges with the Abanico prospect area in the south. Historic drilling on the Main Veins (including in 2018 2,121m drill programme by Fredonia) was used by ACA Howe International to prepare a technical report in the form of NI 43-101F1 which outlined the potential for a metal content estimated up to 200,000ozs Au and 6Mozs of Ag; the block model only extending to -150m depth. Additional drill core sampling was recommended which potentially could increase the current estimate by 20%. This report supports the economic potential of the area.

The potential quantity, grade, and metal content of the Main Veins exploration target disclosed is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Fredonia intends to undertake a resampling programme of the 'shoulders' of the historic drill intersections of significance as well as projections of these intervals to adjacent drill holes with insufficient or no sampling.

A three line IP survey conducted in 2012 to the north of the Main Veins identified the interpreted extension of the mineralised structure under the quaternary basalt over 1.5km north of the most northern drill hole at Main Veins.

There are several other significant areas of identified Au-Ag anomalism with varying levels of exploration which Fredonia will evaluate and consider for drilling in early 2022. These include:

Abanico

This southerly extension of the Main Veins comprises at least three distinct veins traceable over 1,000m of strike. Sporadic historic channel sampling and limited drilling have returned encouraging results which warrant further systematic exploration.

Bajo Perdernal

The Bajo Perdernal system has very little surface expression (jasperoidal veins) and was once considered part of the Monserrat Oeste structure. However, mapping, soil 'lag' sampling and geophysical evidence suggests it is a separate mineralised structure and potentially occupies geological break juxtaposing the Chon Aike and Bajo Pobre formations which hosts Monserrat Oeste and Main Veins.

The structure remains unexplored and on the basis of geological / structural setting, ground geochemistry and drill information potentially gold bearing system.

Monserrat Este (East)

This silicified trend reaching 8m in width is located 2.5km east of Main Veins, within the trend is a series of chalcedonic veins which extend discontinuously over 1,200m before merging in the south east into the 'Anita' prospect for a further 600m. Neither areas have been drilled. Detailed geological mapping (1: 1,000) and sawn channel sampling will be completed in Q1 2022.

(see attached map)

https://www.globenewswire.com/NewsRoom/AttachmentNg/e88057b4-2b28-4d10-8add-f6350d2b570d

Southern trend:

This west north west mineralised corridor extending westerly from Cerro Vanguardia is interpreted as a subparallel, regional mineralised trend that extends east ward continuing through to Beethoven and Herradura then on further west to a relatively underexplored area: Pamala-Los Domos.

A recent discovery compounding the potential of this merging trend is the 'Sinter zone prospect' located less than 500m to the north east of La Herradura. An east north east trending float train culminates in a sinter zone of 5-10m in width mapped over 200m. The orientation of the Sinter zone is considered very significant as this orientation is usually post mineralisation. The identification of another prospective zone in this trend further emphasises the potential of the area.

"We are very pleased with the results of the first stage in our exploration program and encouraged by the significant percentage of successes in our drill holes," commented Estanislao Auriemma, Fredonia's CEO. "Drilling to date has confirmed both in La Herradura and Monserrat Oeste the previously interpreted theoretical models based on historical drilling. We anticipate further drilling will not only increase the size of these prospects, but the grades intersected."

"The results support the confidence to initiate the second stage of the exploration program to begin at the end of January, and to also include other prospective areas preceding a second round of drilling to begin at the end of February. The objective remains to continue to confirm and increase the potential of the El Dorado Monserrat Property."

Quality Assurance/Quality Control

All core samples were submitted to the principal Alex Stewart Laboratories in San Juli?n city for preparation, and in Mendoza city for the analysis. Alex Stewart Laboratories is independent of Fredonia. All samples were analyzed for Au and Ag by fire assay/ AA finish 50 g, plus a 39-element ICP-AR finish. Fredonia followed industry standard procedures for the work with a quality assurance/quality control (QA/QC) program. Blanks and reference material of High grade/ Low grade Gold and High grade/ Low grade Silver standards were included with all sample shipments to the principal laboratory. Field duplicates were made from Coarse Reject. Fredonia detected no significant QA/QC issues during review of the data. Mr. Marc J. Sale, is a qualified person as defined by Canadian National Instrument 43-101 and has read and approved the technical contents of this release.

Data Verification

Mr. Sale has previous experience with the EDM property and the historical QA/QC procedures undertaken for the preparation of previous results, and has previously conducted the verification activities on drilling and sampling results described in Fredonia's technical report entitled "Technical Report on the El Dorado-Monserrat Property In Santa Cruz Province, Argentina" dated February 15, 2021 (the "EDM Technical Report"), subject to the limitations described therein. Mr. Sale was not physically present to inspect and take verification samples from drill core in the most recent drilling campaign, but did conduct desktop-based verification of drill results against data-base information provided by management to ensure the assays results presented are those in the database. Assay reports were not available to the QP at the time of disclosure for verification.

About Fredonia

Fredonia, incorporated under the laws of the British Virgin Islands, directly or indirectly, owns 100% interest in certain license areas (totaling approximately 18,300 ha.) (collectively, the "Project"), all within the Deseado Massif geological region in the Province of Santa Cruz, Argentina, including the following principal areas: El Aguila, approx. 9,100ha, Petrificados, approx. 3,000ha, and the flagship, advanced El Dorado-Monserrat property covering approx. 6,200ha located close to Anglo Gold Ashanti's Cerro Vanguardia mine, subject to a 1.5% net smelter return royalty on the EDM project, 0.5% net profits interest on Winki II, El Aguila I, El Aguila II and Petrificados.

For further information: Please visit the Company website www.fredoniamanagement.com or contact: Carlos Espinosa, Chief Financial Officer, Direct: +1-647-401-9292, Email: cespinosa@slgmexico.com

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation relating to the Company and the EDM project, including statements regarding the prospectivity of the EDM project for gold and silver mineralization, including the potential for metal recoveries any mineral processing activity, and the Company's future exploration plans. Words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology are used to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by the Company in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors, including, without limitation, the factors described in the Company's filing statement dated June 22, 2021 available on SEDAR at www.sedar.com under the heading "Risk Factors" that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information and the Company can give no assurance that they will prove to be correct. The statements in this press release are made as of the date of this release. The Company undertakes no obligation to update forward-looking statement made herein, or comment on analyses, expectations or statements made by third parties in respect of the Company or its securities, other than as required by law.