Magna Gold Produces 34,601 oz of Gold in its First Two Full Quarters of Commercial Production

TORONTO, Jan. 26, 2022 - Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the "Company") is pleased to report it achieved its previously stated production guidance for the fiscal year ("FY") 2021. The Company produced 56,099 oz of gold from its San Francisco Mine in Sonora, Mexico in 2021. In Q4 2021, the mine produced 15,499 oz of gold, which represents a production increase of 107% from the same quarter in 2020. Preliminary (un-audited) cash costs for Q4 2021 and FY 2021 were USD$1,123 and USD$1,299 per oz respectively. Additionally, the strip ratio during the quarter was 4.46, an increase from the previous quarter. This increase is in line with the current mine plan, and it is expected that the strip ratio will trend towards the life of mine average of 2.5 going forward. Gold sold during the quarter was 16,305 ounces at an average realized gold price of USD$1,780 per ounce ⁽¹⁾.

TABLE 1: Q4 2021 OPERATIONAL HIGHLIGHTS

Magna plans to release its full year and fourth quarter 2021 financial and operational results on or around March 31, 2022. Operating metrics will be reported with the quarterly results.

Arturo Bonillas, President & CEO of Magna, stated:

"When we began the year, a very aggressive production target of 55-65K ozs was set - aggressive considering we were in the process of re-establishing production and ramping up at San Francisco. I am proud of the team as they exceeded our production targets in what was a challenging year industry-wide."

Mr. Bonillas, continues:

"Looking forward, the future of this company excites me. 2022 will be a transformative year for Magna as we look to generate meaningful cash flow, increase production at our operation and continue our aggressive growth plans through both organic and M&A driven initiatives."

Margarita Silver Project

First phases of exploration drilling have been completed. Resource definition drilling is anticipated to be completed by mid-February for inclusion into the resource estimate. The exploration program and deep targeting is to continue. Results so far have been extremely encouraging and we look to share those results with the investment community once a more complete set of results is received by the Company. The Company is currently on schedule to release the maiden resource estimate which will lead to a PEA by the end of Q1 2022.

2022 Production Guidance

The Company would like to state its production guidance for FY 2022. After a successful restart of operations, we have increased our production guidance from 2021 to 65,000 - 75,000 oz of gold production at cash costs of USD $1,250- $1,350 per oz for the 2022 year.

Option grant

On December 31, 2021, and pursuant to the Company's stock option plan, a total of 2,500,000 stock options were granted to officers, directors and employees of the Company. Each option is exercisable at CAD $0.80 per common share of the Company until December 31, 2026, with the stock options vesting immediately.

About Magna Gold Corp.
Magna is a Mexico focused gold/silver production company engaged in acquiring, exploring, developing and operating quality precious metals properties in Mexico. It is committed to advancing its 100% owned flagship San Francisco Mine and other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength of the Company is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production. Magna employs community members and services in its operations.

Based on the NI-43-101 technical report "Pre-Feasibility study for the San Francisco Gold Project, Sonora, Mexico" prepared by Micon, dated August 8, 2020, San Francisco operations are estimated to have measured and indicated resources of 99,700,000 tonnes @ 0.446g/t Au containing 1,430,000 ounces of gold, and inferred resources of 11,374,000 tonnes @ 0.446 g/t containing 171,000 ounces of gold. The total proven and probable reserves is 47,629,000 tonnes @ 0.495 g/t Au containing 758,000 ounces of gold. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS

Arturo Bonillas

President and CEO

Neither the 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.

Qualified Person
James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by NI 43-101, has approved the scientific and technical information in this news release.

Cautionary Statements

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plans". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, exploration results, potential mineralization (including estimates of measured and indicated resources, inferred resources and probable reserves), exploration and mine development plans, production (including gold production expectations and guidance), processing and mining expectations (including statements regarding expansion and advancement of assets) and strip ratio trends and expectations. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, risks related to the effects of COVID-19 on the Company; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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SOURCE Magna Gold Corp.