Mr. David Anderson reports

AVIDIAN GOLD CLOSES $2M NON-BROKERED PRIVATE PLACEMENT WITH STRATEGIC PARTICIPATION FROM ERIC SPROTT

Avidian Gold Corp. has closed the previously announced (see July 6, 2020, and July 10, 2020, news releases) non-brokered private placement for gross proceeds of $2-million. The private placement consisted of units at 10 cents per unit. Each unit consists of one common share of the company and one common share purchase warrant, each exercisable into a common share at a price of 14 cents for 24 months following the warrant issuance. The terms of the warrants restrict the exercise of the warrants if such exercise would cause the warrantholder to hold 20 per cent or more of the common shares without having previously obtained required approvals in accordance with the policies of the TSX Venture Exchange.

The company advises that Eric Sprott has acquired the 20 million units pursuant to the offering and that the company has determined that it is in the best interest of its shareholders to decrease the size of the offering from the previously announced $2.5-million to $2-million.

David Anderson, chairman and chief executive officer of Avidian, states: "We are very pleased to welcome Eric on board as a major shareholder. Eric is a recognized gold expert and his investment in Avidian is, in our opinion, recognition of the potential of the advanced-stage exploration projects we hold in Alaska and Nevada. His investment is significant and timely as we launch our summer programs. We look forward to announcing detailed exploration plans in the coming days."

The net proceeds from the offering shall be primarily used for the development of Avidian's mineral properties and for general and administrative expenses. The securities issued pursuant to the offering will be subject to four-month-and-one-day statutory hold period in accordance with applicable Canadian securities laws.

Subsequent to the closing of the offering, Mr. Sprott, who previously held no securities of the company and who acquired 20 million units pursuant to the offering for a total consideration of $2-million through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, beneficially owns or controls 20 million common shares and 20 million warrants, representing approximately 17.48 per cent of the issued and outstanding common shares on a non-diluted basis, and approximately 29.76 per cent of the issued and outstanding common shares on a partially diluted basis assuming exercise of the warrants.

The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Avidian or dispose of securities of Avidian, including on the open market or through private acquisitions or disposition, in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time. For the purposes of this notice, the address of Mr. Sprott is 200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1.

In satisfaction of the requirements of the National Instrument 62-104, Take-Over Bids and Issuer Bids, and National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, an early warning report respecting the acquisition of units by and a copy of the early warning report may also be obtained by calling Mr. Sprott's office at 416-945-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).

About Avidian Gold Corp.

Avidian brings a disciplined, experienced exploration team together with a regional-scale, advanced-stage gold-copper exploration portfolio in Alaska. Avidian's Golden Zone project hosts an NI 43-101 indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 grams per tonne (g/t) gold (Au)) plus an inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au).

We seek Safe Harbor.