Mr. Lewis Lawrick reports

MAGNA TERRA PROVIDES UPDATE ON RECENT EXPLORATION RESULTS BY PARTNER NEWMONT AT BOLEADORA

Through Magna Terra Minerals Inc.'s 100-per-cent-owned Argentinian subsidiary, Atala Resources S.A., Oroplata S.A., a subsidiary of Newmont Corp., has provided a detailed summary report of its initial exploration program undertaken to date on the Boleadora project. In addition, Oroplata has made the third anniversary option payment of $100,000 (U.S.) to Atala under the option agreement (see details below). The Boleadora project is a large greenfields exploration land package (approximately 55,000 hectares) encompassing 12 exploration licences situated 17 kilometres southeast of Newmont's Cerro Negro mine area in Santa Cruz province, Argentina.

According to Newmont geologists, Boleadora is underlain by extensive Jurassic volcanic sequences that include welded pumice crystal-rich rhyolitic ignimbrites cut by bimodal subvolcanic domes. Main structural trends include northwest, north-northwest and east-west corridors with chalcedonic and opaline silica veins with massive textures up to one metre wide and silica sinter up to 50-metre-by-50-metre exposures that might correspond to shallower levels of low-sulphidation epithermal system. This geology is favourable for hosting low-sulphidation epithermal gold mineralization similar in style to the nearby Cerro Negro and Cerro Vanguardia deposits.

Since first assessing the project in 2019, Newmont subsidiary Oroplata has collected 198 rock chip samples (surface float and outcrop) and 134 drainage sediment samples for analysis via bulk leach extractable gold (BLEG) and completed a hyperspectral survey covering the main geological areas of interest.

Based on fieldwork conducted to date and review of existing exploration data, Newmont geologists have identified 10 exploration targets on the property. Each of these target areas demonstrate anomalous precious metal (gold (Au), silver (Ag)) and pathfinder elements (arsenic (As), antimony (Sb), bismuth (Bi), mercury (Hg), thallium (Tl) and molybdenum (Mo)) that are associated with silica alteration, host fault zones and sinter that could relate to deeper hydrothermal activity. These areas have subtle favourable hyperspectral responses, indicative of zones of gold-associated hydrothermal alteration.

Project highlights:

• Large land package comprising approximately 55,000 hectares;
• 17 kilometres along strike from Newmont's Cerro Negro mine;
• Geological environment with potential to host low-sulphidation epithermal gold deposits;
• Recognition of 10 target areas for follow-up exploration with two noted as high priority based on geochemical sampling and hyperspectral surveying;
• Significant continuing financial commitment by Newmont on the nearby Cerro Negro mine.

"We are very pleased with the generative exploration field programs that Newmont has completed to date on Boleadora. Their initial work supports the existence of a geological environment that is favourable for hosting low-sulphidation epithermal gold deposits in north-northwest structural control along strike from Cerro Negro, including 10 geochemical and geological targets that require follow-up exploration. The trend associated with the north-northwest structural control that is an important geological feature to mineralization at Cerro Negro continues well into the Boleadora project area. The $100,000 (U.S.) payment will allow Magna Terra to sustain all property maintenance obligations on our Argentinian portfolio outside of Boleadora as we continue to seek strategic partners to advance these other assets," stated Lewis Lawrick, president and chief executive officer, Magna Terra.

Boleadora purchase agreement

Magna Terra entered into a purchase agreement with Oroplata (Newmont) (see news release dated June 9, 2020) that will pay Magna Terra (Atala) $1-million (U.S.) as follows: $25,000 (U.S.) on signing; and six instalments totalling $975,000 (U.S.) payable ($175,000 (U.S.) paid) within six years from the date of the agreement. In addition, Newmont (Oroplata) has granted a 2-per-cent net smelter return (NSR) royalty to Magna Terra (Atala) on the Boleadora project. The royalty can be reduced to 1 per cent by payment of $2.5-million (U.S.) by Oroplata to Atala at any time and the gross royalty payable is capped at $20-million (U.S.).

Qualified person

This news release has been reviewed and approved by David A. Copeland, PGeo, chief geologist with Signal Gold Inc., a qualified person under National Instrument 43-101, Standard for Disclosure for Mineral Projects.

About Magna Terra Minerals Inc.

Magna Terra is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra owns two district-scale, resource-stage gold exploration projects in the top-tier mining jurisdictions of New Brunswick and Newfoundland and Labrador. Further, the company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina, which includes its precious metals discovery on its Luna Roja project, as well as an extensive portfolio of district-scale drill-ready projects available for option or joint venture.

We seek Safe Harbor.