Mr. Jonathon Deluce reports

MELKIOR RECEIVES PRELIMINARY IP AND HIGH-RESOLUTION MAG SURVEYS AT VAL-D'OR PROPERTY

Melkior Resources Inc. has received preliminary data for the induced polarization (IP) survey and high-resolution magnetic (Mag) surveys it completed in December, 2020.

The IP survey consisted of approximately 13.9 line kilometres along the western extension of the Bruell showing, located less than 250 metres from the property. The showing is on strike with three other gold showing on the same structural trend, outside of the property and being developed by Eldorado Gold. The western extension of that trend is located on the property, where soil anomalies (see news release dated Aug. 27, 2020) indicate a potential source on strike with the aforementioned showings. The IP results show a total of 44 IP axes.

The Mag survey (see news release dated Nov. 10, 2020) consisted of a high-resolution Mag survey on the entire Val d'Or property. This survey was done at a low altitude using tight line spacing, which is a configuration that has seen a lot of success by the company's neighbouring companies in the Val d'Or district. Final technical information and interpretation will be provided in a subsequent news release once the final report is received.

The company will continue its review of targets to plan its drilling by using IP and Mag data in comparison with geology and adjacent showings. Of particular interest are the following targets on Melkior's western extension of the Bruell showing:

• An isolated high-mag anomaly associated with a medium conductor, near a regional contact;
• A regional magnetic contrast associated with an orogenic gold exploration target defined by the Ministry of Energy and Natural Resources (MERN);
• A series of magnetic highs and weak IP anomalies located on strike with the Bruell showing;
• A resistive unit located on strike with the Bruell showing and in the same magnetic body;
• A low-mag anomaly associated with a VMS (volcanogenic massive sulphide) exploration target defined by the MERN;
• An isolated high-mag anomaly associated with a weak conductor, close to a VMS exploration target defined by the MERN.

Jonathon Deluce, chief executive officer of Melkior, commented: "We look forward to drilling on the possible Bruell western extension in March and to follow up on our other soil targets this spring/summer. The IP and Mag surveys provide us with high-quality data to design our drill program through comparison with the known mineralization located adjacent to the property, which increases this program's chances of success."

The Mag data cover the entire property, allowing a comparison between the soil and Mag results to design a follow-up survey for next summer to find the source of till anomalies previously found.

Of particular interest, outside of target 4, which will be subject to drilling in March, 2021, is a large magnetic anomaly located directly on an interpreted possible source to gold, silver and tungsten, named target 3, in the northern part of the property. At the Bruell showing, tungsten and silver are always associated with gold and silver (while gold is not always associated to tungsten). This led the company to believe that mineralization similar to Bruell might be the source of the till anomaly. Significant efforts will be pursued this summer to follow up on this soil anomaly target to find its source. The same will be done for the other regional targets on the property.

Warrant extension

The company intends to extend the term of an aggregate of two million common share purchase warrants, which were issued in connection with Melkior's June, 2018, private placement financing. The warrants were issued with a three-year term at an exercise price of 8.5 cents per common share. The company's February, 2020, share consolidation on a 1:10 basis, resulted in the warrants being adjusted to an exercise price of 85 cents per common share. None of the warrants have been exercised and certain insiders of the company hold warrants.

The company will apply to the TSX Venture Exchange for an extension of the warrant term by two years, until June, 2023. The proposed warrant term extensions are subject to TSX-V approval.

Qualified person

This press release was prepared by Steven Lauzier, vice-president, exploration, for Quebec, PGeo, OGQ, who is a qualified person as defined under National Instrument 43-101 and who has reviewed and approved the geological information provided in this news release.