Mr. Greg Smith reports

CALIBRE MINING AND ROSITA MINING CONCLUDE AGREEMENT WITH NEW PARTNER FOR A US$8.5 MILLION INVESTMENT IN THE ROSITA D JOINT VENTURE, NORTHEASTERN NICARAGUA

Calibre Mining Corp., together with its joint venture (JV) partner, Rosita Mining Corp., has entered into a joint venture agreement with Century Mining for the further development and advancement of the Rosita D joint venture in northeastern Nicaragua.

Pursuant to the JV agreement, Calibre and Rosita Mining have agreed with Century that they will form a new Nicaraguan joint venture company, Santa Rita Mining, with Century ultimately holding 75 per cent of the outstanding shares, and Rosita Mining and Calibre holding 17.5 per cent and 7.5 per cent of the outstanding shares, respectively. Century will contribute a total of $8.5-million (U.S.) to Santa Rita Mining in tranches of $1.5-million and $7.0-million, which funds will be used for the construction, commissioning and operation of the processing facility to treat the Santa Rita stockpile resource on the Rosita D project.

Calibre and Rosita Mining will transfer the Rosita D concession as well as all technical know-how of the project to Santa Rita Mining for their interest in the joint venture company. Calibre will also receive a one-time payment of $50,000 for certain surface rights associated with the project.

As previously announced via press release by Rosita Mining on Oct. 11, the project has received the environmental permit to proceed with the processing plant. With financing concluded, further engineering, final land status work and other technical aspects of project development can proceed.

A preliminary economic assessment on the Rosita D project and the processing of the Santa Rita stockpile resource was completed by Rosita Mining in 2016. The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. The reporting of the investment by Century is not an indication that a production decision has been made by Calibre, and the company confirms that it has not made a production decision with respect to the project. The company has not completed a feasibility study or established the economic viability of the project or proposed operations on the project, and no mineral reserves have been established for the project that would support a production decision. Projects which are put into production without first establishing mineral reserves and completing a feasibility study have historically had a higher risk of economic or technical failure.

The Rosita D mineral resource includes 70.9 million pounds of copper and 96,660 ounces of gold and 46.2 million pounds of copper and 50,330 ounces of gold in the indicated and inferred categories, respectively. Indicated resources total 6.46 million tonnes grading 0.47 gram per tonne gold and 0.5 per cent copper per tonne, while inferred resources total 3.44 million tonnes grading 0.46 gram gold per tonne gold and 0.61% per cent copper per tonne in a series of stockpiles located near the former-producing Santa Rita gold-copper open-pit mine. These estimates have been based on a $10 (U.S.) net smelter return (NSR) cut-off. In addition, inferred resources total 1.96 million tonnes grading 0.56 gram per tonne gold at cut-off of 0.3 g/t gold in tailings located proximal to the Santa Rita stockpiles.

Notes

The resource estimates were prepared by Yungang Wu, PGeo, an independent qualified person as defined by National Instrument 43-101. The quantity and grade of reported inferred resources in this estimation are uncertain in nature, and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource, and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. A gold price of $1,200 (U.S.) per ounce, a copper price of $2.5 (U.S.) per pound and a silver price of $16 (U.S.) per ounce were used in the NSR calculations of block values with process recoveries of 80 per cent for gold, 35 per cent for copper (10 per cent deducted for smelting) and 65 per cent for silver. These values were equated against a cut-off grade of $10 (U.S.) for stockpiles and 0.3 g/t gold for tailing mineral resources. For the cut-off grade, mining costs were assumed at $1 (U.S.) per tonne, process costs at $7.50 (U.S.) per tonne, and general and administrative costs at $1.50 (U.S.) per tonne.

Rosita D joint venture

Calibre and Rosita Mining have a joint venture agreement on the Rosita D project signed in September, 2016. Rosita Mining spent $4-million (Canadian) to earn an initial 65-per-cent interest in the Rosita D concession and through further expenditures since 2016 has increased its interest to 70 per cent. Calibre currently holds a 30-per-cent JV interest in the Rosita D concession. Rosita Mining signed a memorandum of understanding (MOU) in July, 2018, with Century, a private Nicaraguan company with private Chinese financing.

Calibre Mining best practice

Calibre is committed to best practice standards for all exploration, sampling and drilling. The technical content in this news release was read and approved by Gregory Smith, PGeo, president and chief executive officer of the company, who is the qualified person as defined by NI 43-101.

About Calibre Mining Corp .

Calibre owns a 100-per-cent interest in over 413 square kilometres of mineral concessions in the mining triangle of northeast Nicaragua, including the Primavera gold-copper project and Santa Maria gold project. Additionally, the company has optioned to Iamgold (176 square kilometres) and Centerra Gold (253 square kilometres) concessions covering an aggregate area of 429 square kilometres, and is party to a joint venture on the 33.6-square-kilometre Rosita D gold-copper-silver project with Rosita Mining. Major shareholders of Calibre include gold producer B2Gold Corp., Pierre Lassonde and management.

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