Mr. Greg Gibson reports

BONTERRA PROVIDES UPDATE ON LEGAL MATTERS

Bonterra Resources Inc. has become aware that a notice of claim has been filed with the Supreme Court of British Columbia by three consultants seeking payments in the aggregate amount of $246,000 in connection with their consulting agreements entered into in February, 2017, and March, 2017.

Pursuant to the notice of claim: (i) Mr. Meagher, together with Meagher Consulting Inc., is seeking $90,000, representing the termination fee payable in connection with his management consulting agreement. The company received his invoice on May 6, 2019, and, as this amount was never in dispute, payment was promptly made; (ii) Mr. Verdejo, together with 0910978 B.C. Ltd., is seeking $66,000, representing the termination fee payable under his consulting agreement for marketing, financing and corporate development services. His invoice was received on May 8, 2019, and, as this amount was never in dispute, full payment was promptly made; and (iii) Ms. Cesarone, together with Athena Ventures Inc., is claiming $90,000 in connection with her consulting agreement for corporate secretarial services. However, this claim is without merit, as Ms. Cesarone chose to resign.

Greg Gibson, a director and interim chief executive officer, commented: "We take our obligations very seriously and value the people who are and have contributed in building this company. However, we will contest wrongful claims and will not be deterred by concerted efforts to pressure the company. More importantly, the development of Bonterra's three main projects in the Urban Barry camp (please see the corporate update dated May 1, 2019) and the expansion of the mill to allow for multiple feed sources and to triple its output capacity is moving along nicely. The overall resource calculation is on track and is expected to be completed this month. Shareholders will be kept informed of all corporate developments."

As announced on April 16, 2019, Navjit Dhaliwal, the former chief executive officer and director of the company, and Richard Dale Ginn, the former vice-president of exploration and director of the company, have jointly filed a notice of claim seeking payments of $1,092,000 each, alleging a contractual breach and unjust enrichment by the company, in connection with their resignations from their executive positions in February, 2018. The company considers these claims to be unfounded and is contesting them.

We seek Safe Harbor.