Mr. Dan Omeniuk reports

MX GOLD CORP. ENTERS INTO AGREEMENT TO ACQUIRE MIDAS GOLD PROJECT IN BRITISH COLUMBIA'S GOLDEN TRIANGLE; ADJACENT TO ABEN RESOURCES LTD. AND ANNOUNCES PRIVATE PLACEMENT

MX Gold Corp. has entered into an agreement to acquire the Midas gold property, a large and prospective exploration project located in British Columbia's Golden Triangle.

The Midas gold project shares more than 40 kilometres of contiguous claim boundaries with Aben Resources Ltd.'s Forrest Kerr gold project. The Midas gold project is located immediately north of projects owned by Garibaldi Resources Ltd. and Colorado Resources Ltd.

Highlights

• Positions MX Gold in the Golden Triangle;
• Claims are contiguous with Aben Resources in the Golden Triangle;
• Known skarn-style mineralization on western property containing historic rock grab samples of up to 2.9 grams per tonne gold (Minfile No. 104B367) and 9.0 per cent copper (Minfile No. 104B493);
• Eastern claims overlie Hazelton volcanics/volcanoclastics.

"The Golden Triangle has emerged as a leading gold discovery district and the Midas gold project complements our existing advanced properties in British Columbia. By consolidating a project area that has not only attracted the historic attention of senior gold producers such as Barrick Gold but also new promise through the exploration results of juniors in the area, we believe MX Gold is now well positioned for new opportunities in the Golden Triangle. Following the closing of the agreement, we look forward to growing our presence in the Golden Triangle and commencing a field exploration program," stated Dan Omeniuk, chief executive officer of the company.

About the Midas gold project

The Midas gold project consists of 12 mineral claims structured into three tenure blocks. The district-scale project comprises a total of approximately 9,264 hectares (about 22,881 acres). The project offers close proximity to the Essay Creek access road and the newly constructed Alta Gas McLymont hydro power facility.

The Midas gold project also represents the largest claim package contiguous with Aben Resources' Forrest Kerr gold project which recently disclosed mineralogical similarities between sulphide horizons on its adjacent project to those of GT Gold Corp.'s Tatogga property (see Aben Resources news release dated Sept. 5, 2017).

The specific location of the Midas gold project is of interest as it not only surrounds much of the Forrest Kerr gold project being advanced by Aben Resources, but it also contains significant tenure held in the past by Barrick Gold. The Barrick Gold area is of interest to the Midas gold project as it is situated in a comparable environment to the Carcass Creek and Boundary zones recently drilled by Aben Resources, being both situated east of the Forrest Kerr fault structure and mapped within Hazelton group volcanics, specifically the Hazelton group volcanics. The target environment at the Midas gold project is the volcanic settings (Stuhini group and Hazelton group volcanics) known to host mineralization elsewhere in the immediate area.

Receding glaciation within the Golden Triangle has opened new exploration opportunities and physical access not previously available under historic exploration activity.

Exploration plans

Reflecting the active exploration at nearby projects, and following the closing of the agreement, the company intends to review all historical data and develop a systematic exploration plan which may initially include undertaking geophysical airborne surveys to identify prospective exploration targets.

Terms of the transaction

On Sept. 15, 2017, the company entered into the Midas asset purchase and sale agreement with arm's-length parties, whereby the company agreed to acquire the Midas gold project. In consideration for the acquisition, the company agreed to pay $50,000, issue a total of 12 million common shares in the capital of the company and grant a 2-per-cent net smelter return royalty interest derived from the Midas gold project. Completion of the acquisition is subject to the approval of the TSX Venture Exchange. All securities issued pursuant to the terms of the Midas agreement will be subject to a statutory hold period expiring four months and one day following the closing of the acquisition.

Lorne Warner, PGeo, director of MX Gold, has reviewed and approved the technical aspects of this news release and is the qualified person as defined by National Instrument 43-101.

Private placement

MX Gold is also pleased to announce a non-brokered private placement of up to 40 million units at a price of 10 cents per unit for proceeds of up to $4-million. Each unit is expected to consist of one share and one transferable common share purchase warrant, with each warrant expected to entitle the holder thereof to purchase one additional share at a price of 20 cents per share for a period of five years.

About MX Gold Corp.

MX Gold is a junior mining company focused on the exploration and development of advanced projects located in Mexico and British Columbia. The company's primary focus is the Magistral del Oro tailings project located 392 kilometres southwest of Chihuahua and includes a fully permitted, 500-tonne-per-day dynamic cyanide countercurrent system plant constructed in 2013 and tailings containing a historical estimate of 1.25 million tonnes averaging 2.06 grams per tonne gold. The company is currently expanding to 1,000 tonnes per day, which is scheduled to be completed by the fourth quarter of 2017.

We seek Safe Harbor.