Ms. Andrea Laird reports

PARA RESOURCES PROVIDES A CORPORATE UPDATE

Para Resources Inc. has provided an update on operations as follows.

Gold Road

• Gold Road has completed 245 feet of development raise and incline to complete excavation of the new secondary escape route from the lowest levels of the mine as per the Mine Safety Health Administration (MSHA) request. Work continues on lining and landings to finalize this project by the end of August.
• As advised in June, 2019, the new surface fan and air doors were installed and commissioned in July, as anticipated.
• The work plan for the balance of Q3 2019 includes the completion of the development work accessing the 900 level by advancing 1,650 feet.
• In July, the 3750 decline to access the 900 level advanced 520 feet, including passing the first sublevel. The vein at 3310 west is four ft in width and channel sampling has yielded an average grade of 0.50 ounce per tonne (17 grams per tonne). The 3310E heading vein is also four ft in width with an average grade of 0.25 ounce per ton (8.6 g/t). These preliminary results are better than modelled and are at a width that allows for a conventional shrink stope mining method.
• Additional miners are currently being hired to restart mining on the 100 level and rehabilitate the 800 level.
• These three production faces will be producing by September, 2019.
• The 2019 Q4 plan anticipates the restart of the mill, at full capacity of 500 tonnes per day, by early November with a stockpile in place. Additional development work is also planned.
• Management is in discussions with the major shareholders and others to provide financing to bridge the working capital and capital expenditures requirements through the prolonged development timeline.
• Manpower at the mine will be ramped up as the development work has opened access to the additional headings.
• The exploration drilling program on the adjacent Tr-Ue vein began in June and was delayed by equipment failures. A new drilling contractor is on site and the program is expected to be completed by the end of August.

El Limon

• For current year to date to July, El Limon has produced 1,187 ounces of gold in dore which is a 26-per-cent increase of 2018.
• The mine is currently focusing on four main development projects including three new mine mouths.
• Level 9 of El Limon is a development project to deepen the lowest levels of the mine past the El Limon fault. The project to date has rehabilitated 140 metres of existing drift, re-established internal hoisting and all utilities, and advanced 32 metres of development, passing and establishing ground support in the fault zone. Eighty-three metres of waste development remains before drifting and raises begin in the vein for 320 metres of development to establish the first two production stopes.
• Renacer is a new mine mouth for the El Limon mine. A new mine mouth with concreted metal archways has been established, and development in the main decline has advanced 22 metres with 60 metres remaining, before beginning 440 metres of drifting and raises in the vein for 440 metres to establish the first two production stopes.
• Alacran is a modernization project on a formalized mine with support in engineering, design and supervision from the company. The 70 metres of the existing access incline were straightened by new excavation and 120 metres of drift rehabilitated. The incline is being extended and 15 metres remain. In parallel, construction is almost completed on a truck loadout with the new hoist. Once completed, work will begin on 340 metres of development in the vein to establish the first two production stopes.
• Diamantina is a modernization project on a formalized mine with support in engineering, design and supervision from the company. The mine mouth has been re-established with a concreted metal archway and 95 metres of incline rehabilitation including re-excavation of 15 metres. Fifty metres of incline extension remain before drifting and raises begin in the vein for 190 metres of development to establish the first production stope.

Geoff Hampson, Para's chief executive officer, states: "Mine development plans in both Colombia and Arizona are progressing well and are anticipated to allow the company to achieve full production at both mines by Q1 2020. The delay in the commencement of mining at Gold Road, as necessitated by the reversal of the original MSHA approval, has not changed the economic assessment of the Gold Road mine as published in the NI 43-101 technical report and preliminary economic assessment of the Gold Road mine by RPM Global on May 3, 2016. Recent increases in the price of gold improve projected cash flows but our forecast models continue to show significant cash flow at our base case of $1,250 per ounce."

The company's "NI 43-101 Technical Report, Preliminary Economic Assessment of the Gold Road Mine, Arizona, USA," dated May 3, 2018, 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 results included in the PEA will be realized. If the company were to bring the Gold Road mine into production without first establishing mineral reserves supported by a feasibility study, the company cautions that this could result in a higher risk of economic or technical failure of the operation than if a feasibility study had been prepared demonstrating economic and technical viability. There are no assurances that the Gold Road mine will be found to be economic.

About Para Resources Inc.

Para Resources is a junior gold mining and exploration company. The company owns two projects that both include existing or near-term mining and milling operations as well as highly prospective exploration properties. The company has acquired fully permitted mines and facilities with adjacent properties that have either been past producers or where there are an abundance of small artisanal miners, dramatically reducing the exploration risk. It is anticipated that the operating mines will be profitable in the short term, providing a return on capital, as a stand-alone entities and financing regional exploration to build out resources.

We seek Safe Harbor.