Mr. Jeremy Crozier reports

MEDGOLD PROVIDES UPDATE ON PROPOSED ACQUISITION OF BALKAN METALS CORP.

Medgold Resources Corp. has provided an update on its proposed acquisition of Balkan Metals Corp., a private British Columbia company which holds a portfolio of exploration licences in Serbia, some of which are contiguous to Medgold's existing Serbian exploration permits. With mineral rights covering close to 1,000 square kilometres, the resulting company will be the largest holder of highly prospective exploration ground in the Republic of Serbia.

Balkan Metals shareholders have approved the acquisition, and Medgold and Balkan Metals have signed an amendment to the amalgamation agreement between the parties, which reflects:

• The extension of the deadline for closing the acquisition to July 31, 2023. Upon the written request of Medgold, Balkan Metals will make non-refundable cash payments to Medgold in the amount of $20,000 in each of the months of May, June and July, 2023, such funds to be used for general working capital purposes.
• Balkan Metals' right to extend the closing deadline for up to three additional one-month periods ending Aug. 31, Sept. 30 and Oct. 31, 2023. In the case of such extension(s), Balkan Metals will make additional non-refundable cash payments to Medgold of $20,000 for each such extended period.
• The removal from the transaction of the contingent value rights to receive a cash or share payment equal to $8 (U.S.) for every ounce of gold mineral reserves calculated for Medgold's Tlamino project in Serbia, which rights were to have been issued to the Medgold shareholders on closing of the transaction.

The parties are continuing to work closely together to satisfy the conditions precedent to completion of the acquisition, including seeking conditional approval of the TSX Venture Exchange and approval by the Medgold shareholders, as well as arranging the proposed $2-million private placement financing, the net proceeds of which will be used by the resulting issuer to finance exploration of its Serbian properties (principally, the Timok East project) and for working capital and general corporate purposes.

Trading in the company's common shares continues to be halted and is expected to remain halted until completion of the acquisition.

We seek Safe Harbor.