Mr. Dusan Berka reports

MADORO EXERCISES OPTION TO ACQUIRE YAUTEPEC PROJECT AND PROVIDES UPDATE ON PROPERTIES

Madoro Metals Corp. has exercised its option to acquire a 100-per-cent interest in the Yautepec project, located in the state of Oaxaca, Mexico.

Pursuant to the option agreement dated June 1, 2018, as amended Aug. 10, 2020, Madoro has made total cash payments of $7,500 (U.S.) and issued a total of 1.55 million common shares of the company to the optionor of Yautepec and has incurred total work expenditures of at least $310,000 (U.S.).

A 2-per-cent net smelter return royalty is payable to the optionor, of which the company has the right to purchase 1 per cent of the royalty at any time for $1.65-million (U.S.).

Update on properties

The company has provided formal written notice to the optionor of the Rama de Oro and Magdalena projects, also in Oaxaca, declaring force majeure, as provided under the option agreements.

Access to the Rama de Oro property has been unavailable to the company since almost the onset of the agreement and access to the Magdalena property has been unavailable for more than two years for reasons beyond the control of the company.

The company subsequently received written notices from the optionor (i) rejecting the company's force majeure claim and (ii) purporting to terminate the Rama de Oro and Magdalena option agreements on the basis that the company failed to make the required work expenditures within the option periods specified in the agreements.

The company considers itself to be in compliance with the terms of the Rama de Oro and Magdalena option agreements, as amended, and intends to vigorously contest these termination notices. The company will provide further updates as the situation continues to evolve.

About Madoro Metals Corp.

Madoro Metals is a Mexico-focused precious metals company actively engaged in exploration and development of three gold-silver projects in the state of Oaxaca, Mexico. The Yautepec, Magdalena, and Rama de Oro projects each consist of large epithermal systems that are highly prospective for precious metals in structural and geologic settings like those of nearby producing mines. Systematic exploration has advanced two of the projects toward drilling with the intention of discovering an economic mineral deposit.

We seek Safe Harbor.