Mr. Kevin Bottomley reports

KING'S BAY TERMINATES NEWFOUNDLAND MINING PROJECT

King's Bay Resources Corp. has terminated the mineral property acquisition agreement for the Lynx Lake project in Newfoundland and Labrador. Pursuant to the 2016 acquisition agreement for the property, if the company decides to abandon the claims it acquired, it is obligated to transfer the claims back to the original vendors. In the termination agreement, the company has agreed to the transfer of all the remaining claims to the prior owners, without further obligations regarding the property or the claims.

Since February, 2018, the company has been considering business opportunities outside of the resource sector (see the company's Feb. 8, 2018, news release), particularly in the cannabis industry. On March 29, 2019, the company announced that it had entered into an arm's-length agreement to acquire all of the issued and outstanding equity of S&S Company LLC, which owns and operates the licensed S&S California cannabis production and extraction lab, with immediate plans for expansion with high-capacity extraction and distillation under the brand name Elicit Labs (see the company's March 29, 2019, news release for more details).

The company has limited resources and has decided to expend all its time and resources toward getting the S&S acquisition completed. The Lynx Lake project requires expenditure of time and company resources, which the directors have determined are better spent on completing the S&S acquisition and focusing on the company's new business going forward. The company's stock remains halted pending closing of the S&S acquisition. The company will not come back to trading on the TSX Venture Exchange. An application will be made to list the company's shares for trading on the Canadian Securities Exchange, in conjunction with the S&S closing.

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