Ms. Teo Dechev reports

MUNDORO ANNOUNCES Q1-2020 EXPLORATION AND CORPORATE REPORT

Mundoro Capital Inc. has released its quarterly update for exploration and corporate activity for the three months ended March 31, 2020. The company has filed its quarterly consolidated financial statements and management's discussion and analysis on SEDAR and posted on the company's website.

Mundoro's objectives for 2020:

• Commence exploration on the Vale-Mundoro joint venture projects in the second half of 2020;
• Add partner(s) for Mundoro's projects available for optioning;
• Enter into exploration contract for the Svoboda project with the local government.

Corporate and business development

Mundoro continues to have discussions with interested third parties regarding Mundoro's projects, which are available for optioning, confirming the continued interest in exploring in Timok, Serbia, as well as Bulgaria.

Savinac and Bacevica

The two licences, Savinac and Bacevica, previously part of the Freeport earn-in from October, 2018, to April, 2020, have reverted 100 per cent to Mundoro for no consideration. Freeport informed Mundoro that it is restructuring its exploration programs and accordingly terminated its earn-in. Mundoro has since then set up a data room, signed confidentiality agreements and engaged in due diligence with third parties. Freeport solely financed a total of $3.2-million (U.S.) ($4.5-million (Canadian)) on these two licences; therefore, the current-term work commitments for the licences have been met. No further exploration expenditures are required to maintain the licences while Mundoro continues discussions with third parties.

Vale-Mundoro projects

For the Vale-Mundoro projects, compiled data sets are being reviewed for targeting and exploration planning. The parties await government approvals before exploration activity can be commenced.

JOGMEC-Mundoro JV project

To date, JOGMEC has solely financed a total of $5.8-million (U.S.) ($8.2-million (Canadian)) for the JOGMEC-Mundoro JV project, and has completed the earn-in for a 51-per-cent interest in the project. All work commitments have been met for the JOGMEC-Mundoro JV project during this term. The joint venture is now at a proportionate financing stage, with Mundoro entitled to exercise an option to acquire a 2-per-cent interest in the joint venture from JOGMEC (taking Mundoro to 51 per cent) for nominal consideration and maintain its role as the operator. The JV partners are discussing alternatives for further financing and exploration at Borsko. A data room for the project has been opened for interested third parties which have signed a confidentiality agreement with the company.

Zeleznik

A data room for the Zeleznik project has been opened for interested third parties which have a confidentiality agreement signed with the company.

Generative

The company has several areas under application in Serbia and Bulgaria as a result of the company's generative programs in these two jurisdictions.

Financial highlights and initiatives to manage costs:

• Earn-in parties financed exploration costs totalling $1,230,158, and operator fees earned totalled $108,636. Mundoro-financed exploration costs for generative programs totalled $136,916.
• Corporate expenses totalled $98,839, versus $120,346 in 2019.
• At March 31, 2020, Mundoro had a treasury position of $3.1-million and no debt.
• During continuing global impacts to commerce as a result of the COVID-19 health pandemic, the board of directors and management consider it prudent for the company to take steps to reduce non-essential expenditure pending a return to normal business conditions. The following initiatives are expected to result in cash preservation for 2020 whilst they are in effect:
  • Capital expenditures that are not essential to support continuing exploration programs have been reduced or deferred;
  • Corporate and marketing expenditures have been reduced.

Summary of completed drill programs in first quarter 2020

Savinac and Bacevica, Timok, Serbia (available for option)

In first quarter 2020, Mundoro completed the target testing drill program at the Savinac and Bacevica exploration licences in the Timok magmatic complex in eastern Serbia. The two licences are located within the southern portion of Timok, one of the most prolific metallogenic domains in the Tethyan belt with deposits such as the Cukaru-Peki, the Bor copper porphyry underground mine and the Veliki Krivelj copper-gold porphyry open-pit mine.

Following the results from the initial drilling program carried out between October, 2018, and February, 2019, as well as based on results from the completed alteration mapping and geophysical surveys, a second drilling campaign was initiated in October, 2019. Total drilling was originally planned for a 3,500-metre program and increased to a total of 8,735 metres. The three-drill-rig program tested four of the five target areas between October, 2019, and February, 2020. The fifth target to be tested, Markov Kamen, was scheduled to commence in March, 2020, but the program was suspended due to restrictions related to the COVID-19 pandemic.

Tilva Rosh (Savinac licence):

• The Tilva Rosh target is a large area of zoned argillic to advanced argillic alteration containing epithermal gold mineralization cropping out at surface as observed through trench sampling by Mundoro in 2013, which returned 12 metres of 30 grams per tonne gold and 171 g/t silver. Interpretation of prior drilling suggests the epithermal mineralization is proximal to a copper-gold porphyry system.
• The target is characterized by: a large 3.5-kilometre-by-one-kilometre alteration zone at surface, which correlates laterally with an induced polarization (IP) chargeability high. Beneath the IP chargeability high and resistivity high remains an untested intermediate to low CSAMT (controlled source audio frequency magnetotellurics)/NSAMT (natural source audio frequency magnetotellurics) resistivity anomaly.
• Interpretation models from both the IP resistivity and CSAMT/NSAMT were combined with additional layers of data to select targets for follow-up drilling.
• Drilling commenced in October, 2019, which drilled a total of 2,980 metres over four drill holes.
• Signs of a nearby porphyry system were found in the drill holes through observations of: minor banded quartz-specularite, centre-parting quartz-pyrite B veins and pyritic D veins.
• Zoned alteration pattern was recognized in drill holes FMSC19008 and FMSC20018 completed in the central portion of the target:
  • Core of inner propylitic alteration, presented by remnants of patchy hydrothermal magnetite and traces of chalcopyrite mineralization, was observed in drill hole FMSC19008, rimmed by a halo of phyllic alteration (sericite-chlorite-quartz). The inner propylitic alteration appears open and down plunging to the west. The advanced argillic alteration and gossano texture mapped at surface were confirmed in the first 200 metres of drill hole FMSC19008, right above the phyllic and the inner propylitic zones with elevated copper of 700 to 800 parts per million copper.
  • Drill hole FMSC20018 (east of FMSC19008) was drilled into dominantly argillic alteration and thereafter entered an epidote-rich zone, which suggests outward alteration zoning to the east. Therefore, the drill hole was terminated.
  • The area 500 m to the west of recent drill hole FMSC19008, as well as to the north and south, all along the mapped 3.5 kilometres of strong argillic to advanced argillic alteration zone, remains open for further drill testing based on drill core review, which is also supported by the geophysical and geochemical data.
• A broad zone of alteration and veining over several kilometres suggests that the Tilva Rosh target has potential to host a significant porphyry system.

Markov Kamen (Savinac licence):

• The Markov Kamen target is an epithermal target identified by several copper-gold-in-soil geochemical anomalies related to a four-kilometre-by-1.2-kilometre zone of argillic and advanced argillic alteration located two km south of the Tilva Rosh target.
• Five drill holes completed from previous programs at Markov Kamen intersected hydrothermal breccia and vuggy silica, signs of high-sulphidation-type epithermal mineralization controlled by northwest structures. Measured contacts to the country rock suggest the epithermal mineralization remains open toward the west.
• The Markov Kamen target is characterized by narrow IP anomalies that coincide spatially with narrow magnetic susceptibility low and intermediate resistivity anomalies. At depth, beneath the IP high anomaly, large intermediate resistivity CSAMT/NSAMT anomalies are observed associated with altered volcanic rocks.
• The priority target for drill testing is around drill hole FMSC19007, which is located in Markov Kamen South. This drill hole returned 36.0 m of 0.19 per cent copper and 0.25 g/t gold starting at 65 metres, related to quartz-pyrite-sphalerite-galena-chalcopyrite veins, and 35.6 m of 0.17 per cent copper and 0.16 g/t gold starting at 138.4 metres, related to black sulphides and chalcopyrite, among silicified breccia bodies.
• During this drill program, drilling did not commence at this target as the company was awaiting permits from the forestry department, and thereafter, the decision was made to terminate drilling due to the COVID-19-related restrictions.
• The Markov Kamen target requires further drill testing.

Prekostenski (Bacevica licence):

• A copper-gold porphyry target, identified by mapping and surface sampling, resulted in 55 m of 0.28 g/t gold and 0.21 per cent copper. The exploration work identified chalcopyrite-magnetite mineralization hosted in potassic-altered diorite at surface.
• One drill hole from 2018 confirmed the extension of the surface mineralization to a depth of 68.6 m. Quartz-pyrite-chalcopyrite veins were observed hosted in K-feldspar-altered diorite porphyry and returned an intercept of 49.8 metres of 0.14 g/t gold and 0.13 per cent copper from surface.
• Drilling commenced in November, 2019, which has drilled a total of 2,887 metres over six drill holes. Best results were obtained from drill hole FMSC19013 that returned:
  • 13.5 m of 0.14 per cent copper and 0.11 g/t gold from 34 metres;
  • 69.0 m of 0.14 per cent copper and 0.19 g/t gold from 75 metres, both within a much larger anomalous interval of 152 m of 0.11 per cent copper and 0.12 g/t gold from 20.0-metre depth.
• Drilling confirmed copper-gold porphyry system at Prekostenski related to subvertical diorite porphyry with quartz stockwork veining. Late faulting plays a role to displace the system, making it difficult to understand the directions and controls of the mineralization at that stage.
• Late diatreme (pebble dike) contains quartz stockwork porphyry clasts intersected next to the diorite porphyry, suggesting undiscovered mineralization at depth and around.
• Four additional drill targets have been interpreted within the property area and require further drilling to test the conceptual model.

Orlovo Brdo (Bacevica licence):

• This target is a broad zone of phyllic alteration of 3,000 m by 700 m with gold and copper anomalism.
• A drill hole from the 2018 drill program intersected a zone of quartz vein stockwork mineralization related to potassic-altered diorite from a depth of 458 m, returning 26 m of 0.10 per cent Cu and 0.23 g/t Au, overlain by strong phyllic alteration from surface.
• In 2019, the geophysics completed identified the target has high IP anomalies coincident with resistivity and magnetic susceptibility anomalies.
• After completion of geophysics, drilling commenced in November, 2019, which drilled a total of 2,325 metres over four drill holes. The drill program was designed to define the downdip extension and the geometry of the quartz-veined zone intersected in the drill hole from 2018. The zone was confirmed in holes FMSC19012 and FMSC19015, as well as in FMSC20020, to a depth of 793.8 m when the drill hole was abandoned due to technical difficulties.
• Drilling confirmed a porphyry copper-gold system with quartz veining, remnants of distal potassic alteration and at least two porphyry phases. The system remains open to north-northwest and northeast as supported by the drilling results and the soil Cu-Au anomalies.
• Further drilling was planned to test for the continuation of veining, stronger potassic alteration and increasing of copper-gold grades at Orlovo.
• This target requires further drill testing.

D-vein (Bacevica licence):

• This target covers an area of 1,000 m by 500 m of phyllic, argillic and advanced argillic alteration, located 2.3 km south-southeast of the Orlovo Brdo target. Adjacent to this zone, there are copper-gold mineralized D-veinlets, that could represent the top or lateral portion of a porphyry system. Mapping and rock sampling of the veins returned 2 per cent copper and 7.2 g/t gold in grab samples.
• The target is characterized by north-south-trending IP high anomaly from surface to 650 m. The IP anomaly appears on either side (to the west and to the east respectively) of a sharp resistivity contact interpreted as a north-south-trending fault.
• Drilling commenced in November, 2019, which drilled 542 metres in one drill hole. Drill hole FMSC19009 targeted the depth extension of the mapped D-veinlets on surface, which correlate with the IP chargeability high and the resistivity high/low contact.
• Although the continuation of outcropping D-veinlets was not confirmed at depth with this drill hole, the conclusion from the drill program is that further exploration and targeting are needed to understand the controls of the veins and their relation to a possible porphyry source.

                                     DRILL HOLE SUMMARY RESULTS

Drill hole ID        Total       From        To     Interval    Copper      Gold       CuEq*       AuEq*
                  depth (m)        (m)       (m)          (m)       (%)     (g/t)        (%)       (g/t)

Tilva Rosh
target

FMSC 19008           738.0      194.5     197.0          2.5      0.17      0.04       0.20
                                496.6     499.4          2.8      0.04      0.29       0.24        0.34
                                513.1     516.1          3.0      0.11      0.17       0.23        0.33
FMSC 19010         1,116.0       33.0      35.0          2.0      0.24      0.00       0.25
                                620.0     622.0          2.0      0.22      1.21       1.07        1.52
                                640.0     642.0          2.0      0.02      0.21       0.17        0.25
                                746.0     748.0          2.0      0.23      0.01       0.24
FMSC 19014           574.5       90.0      93.4          3.4      0.13      0.04       0.26
                                108.0     124.0         16.0      0.15      0.06       0.19
                                344.0     347.0          3.0      0.01      0.37       0.27        0.38
FMSC 20018           552.0       16.0      19.0          3.0      0.01      0.32       0.24        0.33
                                314.0     317.0          3.0      0.16      0.11       0.24
                                393.4     398.5          5.1      0.04      1.67       1.22        1.73
Prekostenski
target

FMSC 19011           158.5      20.00    114.00         94.0      0.10      0.09       0.17
                                61.50     85.50         24.0      0.20      0.20       0.34        0.49
                                93.50    104.00         10.5      0.13      0.07       0.19
FMSC 19013           302.0      20.00    172.00        152.0      0.11      0.12       0.20
                                34.00     47.50         13.5      0.14      0.11       0.22
                                75.00    144.00         69.0      0.14      0.19       0.28        0.40
                               160.00    172.00         12.0      0.12      0.19       0.26        0.37
FMSC 19016           529.7      448.4     459.6         11.2      0.12      0.15       0.23
FMSC 20019           521.3    No significant intercepts
FMSC 20021           893.3    No significant intercepts
FMSC 20022           482.7    No significant intercepts

Orlovo
target

FMSC 19012           492.5        0.0      31.0         31.0      0.02      0.14       0.13        0.18
                                 82.0     103.0         21.0      0.03      0.14       0.14        0.19
                                196.0     228.0         32.0      0.06      0.18       0.19        0.26
                                196.0     212.0         16.0      0.06      0.23       0.19        0.27
                                253.0     283.0         30.0      0.04      0.14       0.14        0.20
FMSC 19015           473.6        3.1      24.0         20.9      0.03      0.15       0.14        0.19
                                 54.7      60.0          5.3      0.03      0.14       0.13        0.18
                                115.0     119.0          4.0      0.02      0.12       0.11        0.15
                                127.0     131.0          4.0      0.02      0.19       0.15        0.22
                                201.0     314.0        113.0      0.05      0.15       0.16        0.22
                                201.0     209.8          8.8      0.04      0.14       0.14        0.20
                                216.6     289.0         72.4      0.07      0.18       0.20        0.28
                                216.6     230.5         13.9      0.11      0.27       0.30        0.43
                                239.3     250.0         10.7      0.09      0.31       0.31        0.44
                                260.0     289.0         29.0      0.07      0.19       0.20        0.29
                                308.0     314.0          6.0      0.07      0.11       0.11        0.15
                                320.0     328.0          8.0      0.03      0.11       0.11        0.15
FMSC 19017           563.5       21.5      28.0          6.5      0.03      0.16       0.14        0.20
                                 34.0      49.0         15.0      0.02      0.17       0.14        0.20
                                 74.0      85.0         11.0      0.03      0.19       0.16        0.23
                                144.0     165.0         21.0      0.05      0.14       0.15        0.21
                                194.6     201.5          6.9      0.02      0.16       0.13        0.19
                                307.7     311.0          3.3      0.02      0.22       0.18        0.25
                                378.0     381.0          3.0      0.01      1.02       0.73        1.03
FMSC 20020           795.8       37.0      46.0          9.0      0.02      0.15       0.13        0.18
                                 78.9      82.9          4.0      0.03      0.51       0.39        0.55
                                183.0     189.0          6.0      0.02      0.17       0.14        0.20
                                248.0     298.0         50.0      0.04      0.13       0.13        0.19
                                320.6     372.0         51.4      0.04      0.14       0.14        0.20
D-vein
target

FMSC 19009           542.0        7.3       8.6          1.4      1.29      6.76       6.05        8.60

* Copper equivalent is calculated using the formula CuEq equals (per cent copper) plus [(grams per 
tonne divided by gold equivalent) times (one-31.1035) times (dollars per ounce gold)] divided by
[(22.0462) times (dollars per pound copper)]. Metal prices used are: gold price of $1,357 (U.S.)
per ounce and copper price of $2.81 (U.S.) per pound, the average of the last-three-year period. 
All thicknesses from intersections from drill holes are downhole-drilled thicknesses and not true 
widths.

Zeleznik, Timok, Serbia (available for option)

Mundoro completed a 450-metre drill program in March, 2020, at the Zeleznik group of licences, which are 100 per cent owned by the company and available for optioning. Zeleznik is directly north of the Majdanpek mine at the north end of the Timok district. The drill program was designed to test the southern extension of the East zone by 200 m to the south with two inclined drill holes. After the state of emergency related to COVID-19 is lifted in Serbia, the company will send samples to the assay lab. In the meantime, the exploration team is completing detailed logging and core photo collection, along with XRF analysis and alteration analysis. The company expects to be able to report assay results in second quarter 2020.

Drilling, sampling, analysis, and quality assurance and control

The drilling technique was triple-tubed diamond drilling from surface for PQ and HQ while, for NQ, it was double tubed. The drill holes were generally cased from surface progressing from PQ to HQ at 260 m on average; however, exact depths vary from hole to hole. Drill hole orientations were surveyed at 30-metre intervals. Drill core was oriented using the Reflex EZ-Trac tool, the bottom of oriented core was marked by the drillers and this was used for marking the whole drill core with reference lines. Company personnel monitored the drilling, with drill core delivered daily to the company's core storage facility, where it was logged, cut and sampled.

Core recovery was measured and recorded continuously from the top to the end of the hole for every drill hole. Each run of three-metre length was marked by plastic core block, which provided the depth drilled. Core recovery is recorded as 96.3 to 100 per cent in most intervals.

The drill core was sawn into a quarter for PQ diameter and into two for HQ and NQ diameter, along a drill core orientation line using a core-cutter, left-half looking downhole was collected in a bag and submitted for analysis, and the other half is kept in tray and stored. Samples were collected at three-metre lengths from mineralized intervals and three- to five-metre lengths from non-mineralized intervals with brakes for major geological changes. The samples were submitted to ALS Prep Laboratory in Bor, Serbia, for sample preparation and then internally submitted to ALS Romania and ALS Ireland for analysis. The samples were fine crushed to two millimetres with 70 per cent pass, split by rotary splitter to produce a 1,000-gram subsample, which was pulverized with 85 per cent passing 75 micrometres. The samples were assayed using a 50-gram charge for gold fire assay with AES finish and multielement method ME-MS61 48-element four-acid ICP-MS. Samples returning greater than three parts per million Au, greater than 1 per cent Cu, greater than 1 per cent arsenic and greater than 100 ppm silver were additionally analyzed with method OG62.

In addition to the laboratory's internal QA/QC procedures, the company conducted its own QA/QC with the systematic inclusion of certified reference materials every 20 and 30 samples, blank samples every 50 samples, field duplicates every 50 samples, crush duplicates every 50 samples, and pulp duplicates at every 50 samples.

Qualified person

Technical information contained in this press release has been reviewed and approved by G. Magaranov, PGeo, qualified person as defined by National Instrument 43-101.

About Mundoro Capital Inc.

Mundoro is a Canadian-listed precious and base metal company, focused on building value for its shareholders through directly investing in mineral projects that have the ability to generate future returns for shareholders. Mundoro has generated an attractive mineral project pipeline in Serbia and Bulgaria, as well as an investment in a producing gold mine in Bulgaria, to drive long-term growth and achieve shareholder return. Potential future returns for shareholders from mineral properties can be in various forms such as discovery of mineral resources, royalties, advance royalty payments from partners, an interest in production, dividend payments or sale of an interest in a mineral property.

We seek Safe Harbor.