Mr. Keith Henderson reports

CENTENERA SIGNS DEFINITIVE OPTION FOR ESPERANZA COPPER-GOLD PROJECT, SAN JUAN PROVINCE, ARGENTINA

Centenera Mining Corp. has signed a definitive property option agreement for the Esperanza copper-gold project, consisting of 32 mining claims in San Juan province, Argentina. The company had previously entered into a binding letter of intent (previous news release dated Jan. 23, 2017) with an arm's-length vendor, whereby Centenera was granted the exclusive option to acquire a 100-per-cent interest in Esperanza.

"Signing a definitive option agreement for Esperanza is an important milestone for Centenera," stated Keith Henderson, Centenera's president and chief executive officer. "The recent drill program at the project returned excellent results, confirmed our belief that Esperanza has significant bulk tonnage potential and sets the stage for us to actively seek joint venture partners to advance the project."

Esperanza drilling highlights:

• Hole 18-ESP-025, ranked third best copper drill intersection globally in the first quarter of 2018, returned 0.81 per cent copper equivalent from surface to 368 metres;
• 2018 drill program intersected continuous mineralization from surface to end of hole -- 387 m in hole 18-ESP-025, 451 m in hole 18-ESP-0271;
• Deposit remains open both laterally and at depth;
• Four priority drill targets identified to assess bulk tonnage potential.

Esperanza option terms

Under the terms of the agreement and subject to acceptance by the TSX Venture Exchange, Centenera has the exclusive right and option to earn a 100-per-cent interest in the project through (i) the payment of $2,306,000 (U.S.) (of which $208,000 (U.S.) has been paid to date) and (ii) the issuance of common shares in the company valued at $500,000 (U.S.) (at the time of issuance) to the vendor.

Upon completion of the option payments, Centenera will be deemed to have exercised the option and will have earned an undivided 100-per-cent legal and beneficial interest in and to the project, subject to a 2-per-cent net smelter returns royalty to be granted to the vendor. Centenera will have a right to buy back 0.5 per cent of the NSR royalty for $1-million (U.S.), at which time the NSR royalty payable to the vendor shall be 1.5 per cent. During the option period, Centenera will be responsible for maintaining the exploration concession and permits comprising the project in good standing, paying all fees and assessments and taking such other steps as may be required to carry out the foregoing. There will be no other work commitments, and any work carried out on the project will be at the sole discretion of Centenera.

Debt settlement

The company has negotiated debt settlements with various arm's-length creditors. Pursuant to the debt settlements, and subject to acceptance by the TSX-V, the company has settled aggregate debt of $130,000 outstanding as at June 30, 2018, in consideration of the issuance to the creditors of 1,083,000 common shares of the company at a deemed issuance price of 12 cents per share.

                ESPERANZA OPTION TERMS
 
Date                  Cash (U.S.)     Value of shares (U.S.)

Effective date     $80,000 (paid)                         -                    
15 December 2017   $83,000 (paid)                         -                    
15 June 2018       $45,000 (paid)                         -                    
15 September 2018        $45,000                          -  
15 December 2018        $105,000                          -                    
15 June 2019            $106,000                          -                    
15 December 2019        $118,000                          -                    
15 June 2020            $120,000                          -                    
15 December 2020        $142,000                          -                    
15 June 2021            $142,000                          -                    
15 December 2021        $420,000                   $250,000             
15 December 2022        $900,000                   $250,000             
Total                 $2,306,000                   $500,000            

Adjusted loan term

The company also announces that, pursuant to loans of an aggregate of $200,000 from two lenders (previous news release June 15, 2018), the term of the loans has been increased from one year to three years. The interest rate remains unchanged at 5 per cent per annum compounded annually, payable at maturity, and the number of bonus common share purchase warrants that the company has agreed to issue to each of the lenders is confirmed at 714,286, each of which warrants will entitle the holder to purchase one common share of the company for a period of three years at an exercise price of 14 cents per share

Options issued

The company also announces that it has granted an aggregate of 1.4 million stock options to various directors, officers, employees and consultants of the company and its affiliates. The options are exercisable to purchase common shares of the company on or before July 9, 2021, at a price of 12 cents per share.

We seek Safe Harbor.