Mr. Christopher Reynolds reports

GOLCAP ANNOUNCES THE ACQUSITION OF AN ADVNACED GOLD PROJECT PORTFOLIO IN FINLAND

Golcap Resources Corp. has agreed to acquire a number of orogenic gold exploration projects in southern Finland. Finland is the largest producer of gold in Europe, and these projects represent a balance of advanced and early-stage exploration, with both high-grade and bulk-tonnage targets.

Highlights:

• Three advanced projects with historical drilling, each with impressive results;
• Select historical drilling:
  • Hopeavuori -- 11 metres with 19.4 grams per tonne (g/t) gold;
  • Satulinmaki -- 25 metres with 3.17 g/t gold;
  • Riukka -- one metre with 23.5 g/t gold.
• Nearby infrastructure such as gold mines and flotation plant;
• Six earlier-stage projects;
• Excellent in-country technical and administration team in place.

Historically, these projects were generated based on positive boulder and till geochemistry, near existing operating or historical gold mines, with structural controls and settings favourable based on the known gold mineralization. The alteration and geological settings are similar to economic deposits in the area. Known deposits are generally structurally controlled, often with multiple mineralized zones, and exhibit a relatively modest surface footprint. These zones however have significant vertical depth greater than one kilometre.

Satulinmaki

The Satulinmaki project has a strike length of 1.2 kilometres and a wide mineralized corridor, with 77 historical drill holes, mostly targeting near-surface mineralization, with recent drilling returning promising results to a depth of 200 metres. Controls on the higher-grade mineralization are still to be determined and will be a key priority for the company's exploration plans. Of note, a recent deeper intercept encountered native gold assayed at 45.6 grams per tonne (g/t) between 150 m and 151 m hole depth.

Drill holes were drilled in the main mineralization and targeting the down-dip position of the historical holes with two m at 16.6 g/t (Avalon Minerals, media release, 2016). Drill holes intersected the quartz veining system, but the intersected mineralization was weak. The best-reported interval was one m at 1.5 g/t (Avalon Minerals, media release, 2017).

In 2006, Satulinmaki Koistinen of the Finnish Geological Survey calculated historical indicated and inferred gold resources of 1.6 million tons at 0.86 g/t gold. The method used to calculate the 2006 resources is unknown.

Riukka

The 43 historical drill holes at Riukka have delineated an area 150 m long and five m to 20 m wide with a quartz vein system with locally high Au (maximum 35.45 parts per million (ppm) Au over one m). Outside this main zone is an alteration zone, characterized by arsenopyrite and tourmaline, where Au content is at most one ppm to three ppm.

Hopeavuori

The Hopeavuori project has a 30-metre-wide mineralized structure that has been drilled along 300 metres of strike, with another 500 metres of strike suggested by surface geophysics. Drilling at Hopeavuori has been shallow, with 54 historical holes totalling 3,341 metres, focusing only to 75 metres below surface. Some of the drill results include:

• R305: 11.5 m at 19.4 g/t gold from 30.6 m depth;
• R313: 10.7 m at 14.4 g/t gold from four m depth;
• R330: Three m at 106.7 g/t gold from 22 m depth.

In 2014, Parklunen (a Finnish geoconsulting firm) developed a 2012 JORC (Joint Ore Reserves Committee) inferred resource for the Hopeavuori project -- Hopeavuori East: 238,000 tons at 3.84 g/t gold, and Hopeavuori West: 51,000 tons at 1.34 g/t gold.

In 2014, the Finnish Geological Survey undertook bench-scale metallurgical work on Hopeavuori project which returned 92.9 per cent gold recoveries from sulphide flotation.

Regional geology

Archean greenstone belts of Finland are highly prospective for orogenic gold, much like the Abitibi greenstone belt in Canada. Nearly all gold occurrences in the Finnish Archean greenstone belts are typical orogenic gold. The gold is structurally controlled, low-sulphur deposits hosted by the locally most competent lithological units, enriched in arsenic, gold, bismuth, carbon dioxide, potassium, sulphur, tellurium and tungsten (As, Au, Bi, CO2, K, S, Te and W), and characterized by carbonatization, sericitization and biotitization. The known gold mineralization most probably took place during the deformation events during the Archean orogenesis at approximately 2.70 Ga (billion years ago) to 2.65 Ga.

Future plans

The company plans an immediate exploration program of district exploration, targeted geophysics, geochemistry, mapping and sampling, with reconnaissance drilling planned within eight months.

Deal terms

Acquisition terms for the entire project portfolio are as follows:

• Five million company common shares;
• Staged cash payments of $500,000 in the first 12 months;
• Success payments of $3-million upon the reporting of a 500,000-ounce indicated resource (JORC code), with half of the success payment payable in Golcap shares.

Note: Neither the qualified person nor the company has done sufficient work to classify all historical estimates described herein as current mineral resources. The calculation methods are not understood, and it is unclear what would be required to make them meet the current CIM (Canadian Institute of Mining, Metallurgy and Petroleum) standards of disclosure. The company is not treating any historical estimates as current mineral resources. The qualified person has been unable to verify the information on the adjacent properties and the information disclosed is not necessarily indicative of mineralization on the projects.

The technical information in this press release has been reviewed and approved by Derrick Strickland, PGeo (1000315), a qualified person under National Instrument 43-101.