Ms. Teo Dechev reports

MUNDORO ANNOUNCES EXTENSION OF DRILL PROGRAM ON JOGMEC-MUNDORO JV PROJECT IN TIMOK, SERBIA

Mundoro Capital Inc. has extended its previously announced drill program at the Borsko Jezero licence by 2,200 metres to a total of 7,200 metres over seven drill holes.

Borsko is one of the four licences being sole financed by Japan Oil, Gas and Metals National Corp. (JOGMEC) as part of the JOGMEC-Mundoro option agreement announced in August, 2016. Borsko is located directly west of the Serbian state-operated producing mines, RTB Group's Bor copper porphyry mine and the Veliki Krivelj copper-gold porphyry mine, all located in the central portion of the Timok magmatic complex. Timok is one of the most prolific metallogenic domains in the Tethyan belt and includes the following: the Cukaru-Peki deposit, the Serbian state-operated producing mines, the Bor copper porphyry underground mine and the Veliki Krivelj copper-gold porphyry open-pit mine.

Highlights:

• The current drill program, which includes approximately 5,000 metres of diamond drilling in five drill holes, aims to test:
  • Target No. 1 -- the lateral extension of the hydrothermal alteration and mineralization intersected in drill hole 17-BJ-11 (15 metres of 1.04 grams per tonne gold and 6.9 grams per tonne silver) farther to the east-northeast is supported by an induced polarization chargeability anomaly.
  • Target No. 5 -- this is a new target identified to test an induced polarization chargeability anomaly coincident with a magnetic low anomaly at a favourable structural intersection located 1,500 metres north-northeast of target No. 1.
  • Additional targets -- identified by both structural interpretation and geophysical programs using controlled-source audio-frequency magnetotelluric and ground magnetics within the exploration licence farther to the south.
• The extended drill program, which is estimated to increase by 2,200 metres of diamond drilling in two drill holes, aims to further test the target No. 1 and target No. 5 extensions to the north and northwest, respectively.

Teo Dechev, chief executive officer and president of Mundoro Capital, commented: "Due to the increase in drilling metres, we now expect to complete the extended drilling program on Borsko in December, 2018, and to announce results in February, 2019. JOGMEC and Mundoro are looking forward to the results of the current drill program at Borsko, which has continued to be the focus of drilling activity in the final year of phase 1 for the JOGMEC-Mundoro JV [joint venture] projects."

Overview of target No. 1 and target No. 5 at Borkso

The 2017 drilling program, which was focused on testing structural features with geophysical targets, discovered advanced argillic alteration hosted in andesite beneath 550 metres of agglomerate volcanic cover at target No. 1. The hydrothermal-altered andesites are moderate to strongly pyritized and alternate with pervasive silica, vuggy silica and alunite. The advance argillic alteration correlates with a resistivity-high and magnetic-low geophysical anomaly bounded by steep resistivity contacts. Two of the completed drill holes, 17-BJ-11 and 17-BJ-12, drilled into target No. 1 intersected epithermal gold-silver mineralization of:

• 1.04 grams per tonne gold and 6.9 grams per tonne silver over 15 metres in 17-BJ-11 (1.15 grams per tonne gold equivalent);
• 0.77 gram per tonne gold and 1.9 grams per tonne silver over 31.2 metres in 17-BJ-12 (0.85 gram per tonne gold equivalent).

A deep induced polarization resistivity survey was carried out over target No. 1 and target No. 5 in order to better define the upper contact of mineralization intersected in the drill holes. A gravity survey was used to assist controlled-source audio-frequency magnetotelluric, magnetic and induced polarization data in defining prominent structures. The induced polarization resistivity survey outlined a chargeable anomaly immediately east of the discovered advance argillic alteration at target No. 1 and extending toward the northeast over target No. 5. The extended drilling program aims to further test both targets.

Borsko is ideally situated to cover an area that has a prominent structural corridor with the Ruzana fault, which is running generally north-northwest through the licence and is striking generally parallel to the prolific Bor fault to the east. At target No. 1, the Ruzana fault splits into horsetail splay structures which coincide with the induced polarization anomaly at target No. 1. Of further interest is the structural features around target No. 5. The west-northwest fault that runs through the area of target No. 5 appears to also be cutting through the vicinity of the Bor mine located four kilometres to the east.

Qualified person

The technical information contained in this press release has been reviewed and approved by G. Magaranov, PGeo, a qualified person as defined by National Instrument 43-101.

Sampling and analysis

Drill hole orientations were surveyed at approximately 30-metre intervals. Mundoro Capital personnel monitored the drilling, with cores delivered daily to Mundoro Capital's core storage facility in the town of Bor, where it was logged, cut and sampled. Core recovery is recorded as 95 per cent to 100 per cent in most intervals, with the exception of the more intensely tectonized sections. The samples were collected in accordance with Mundoro Capital's protocols that are compatible with accepted industry procedures and best-practice standards. Most samples through the mineralized intervals were one metre in length, up to a maximum two metres. In sections of poorly mineralized or unaltered and unmineralized rocks, one two-metre sample was collected at every 15 metres core. The samples from the phase 3 drilling program were submitted to an SGS-managed laboratory in Bor, Serbia, for sample preparation and analysis. In addition to the laboratory's internal quality assurance and quality control procedures, Mundoro Capital conducted its own quality assurance and quality control with the systematic inclusion of certified reference materials every 20 samples, blank samples every 20 samples and field duplicates at every 25 samples. Drill core samples are assayed using a 50-gram charge for fire assay with atomic absorption finish and multielement method four-acid digestion ICP-AES package IMS40B.

About Mundoro Capital Inc.

Mundoro Capital is a Canadian mineral exploration and development public company focused on building value for its shareholders through directly investing in mineral projects that have the ability to generate future returns for shareholders. Mundoro Capital currently holds a diverse portfolio of projects in two European countries as well as an investment in a producing gold mine in Bulgaria and a feasibility-stage gold project in China. Mundoro Capital holds eight 100-per-cent-owned projects in Serbia, the four Timok North projects are in option to JOGMEC, and the four Timok South projects are being advanced by Mundoro Capital.

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