Ms. Teo Dechev reports

MUNDORO ANNOUNCES MOU WITH VALE FOR TWO ADDITIONAL EXPLORATION LICENSES IN TIMOK, SERBIA

Mundoro Capital Inc. has entered into a binding memorandum of understanding (MOU) with Vale Canada Ltd., as outlined herein.

Teo Dechev, chief executive officer of Mundoro, commented: "Mundoro is pleased to expand its relationship with Vale by signing this binding MOU for the option of two of Mundoro's projects in Timok, Serbia. This broadening relationship reflects: (i) the quality projects Mundoro's exploration team has generated and advanced; (ii) the company's commitment to bring value to the local mineral industry and communities where we operate; and (iii) the added value to Mundoro shareholders through generating prospective royalties and near-term revenue from our portfolio of projects. Mundoro's business strategy has raised $13.6-million (U.S.) in partner-financed exploration expenditures invested in the local mineral industries where we operate and has generated revenues of $1.3-million (U.S.) for Mundoro shareholders."

Transaction overview

Mundoro has signed a binding MOU with Vale setting out the commercial terms for an option on two exploration licences in Serbia. The MOU has an exclusivity period for the parties to complete a definitive agreement on the projects. Pursuant to the option, Vale can earn a 100-per-cent interest in each project.

Property expenditures and operator's fee

To exercise the option, Vale must complete the following exploration expenditures:

• $2-million (U.S.) over two years, and if Vale extends the option period for an additional year, $1-million (U.S.) during such extension year;
• Mundoro will be the operator of the projects during the option period and receive an operator's fee.

Option payments

During the option period, Vale will make annual option payments of $200,000 (U.S.) per year.

Net smelter return royalty

Upon exercise of the option, Mundoro will retain a 2-per-cent net smelter return royalty on the projects, of which Vale will have an option to purchase up to 1 per cent of the net smelter return royalty (subject to certain conditions), with payments tied to the gold price at that time. At the current gold price, the value of the 1-per-cent net smelter return royalty is estimated at $9.2-million (U.S.).

Advance royalty payments

After the exercise of the option, Vale must make annual advance royalty payments to Mundoro of $200,000 (U.S.) per year until commercial production commencement.

Milestone payments

After the exercise of the option, Vale must make milestone payments to Mundoro totalling $9-million (U.S.) upon completion of four major milestones, commencing with a resource estimate filing and ending with the attainment of a development permit.

Project information

The two licences are located in the southern portion of Timok, which is one of the most prolific metallogenic domains in the Tethyan belt, which extends from Eastern Europe, through Turkey to Iran and Pakistan. Timok hosts the recently discovered Cukaru-Peki deposit and the following producing mines: the Bor copper porphyry underground mine, the Majdanpek copper-gold porphyry open-pit mine and the Veliki Krivelj copper-gold porphyry open-pit mine. The two licences, Savinac and Bacevica, reverted 100 per cent to Mundoro for no consideration in the second quarter of 2020.

Savinac

The Savinac licence is located 15 kilometres southwest of the Bor mine complex. The property contains a significant elongated north-south area of hydrothermal alteration covering 14 square kilometres, which hosts epithermal and porphyry targets marked by copper-molybdenum-gold-silver-lead-zinc geochemical anomalies. The hydrothermal alteration defined over a nine-kilometre strike in mapping coincides with an elongate zone of demagnetization of the host volcanic rocks. Within the hydrothermal alteration, exploration work identified the Tilva Rosh epithermal gold target, which contains a trench assaying 30 grams per tonne gold and 171 grams per tonne silver over 12 metres. Drill results from Tilva Rosh identified the continuation of the main north-south-trending mineralized structure, which strikes toward the north and under a lithocap that remains untested.

Bacevica

The Bacevica licence is located directly south of the Savinac licence. The property contains eight km of hydrothermal alteration directly linked to the Savinac hydrothermal alteration to the north. The project has four identified targets that have geological mapping, rock/soil sampling, ground magnetics, induced polarization and CSAMT (controlled-source audio-frequency magnetotelluric) geophysical surveys, limited reverse circulation scout drilling, and diamond drilling.

Qualified person

The exploration work programs described herein were supervised by Y. Khrischev, the company's exploration manager in Serbia and Bulgaria, who has also prepared the above technical information in this press release, in accordance with Canadian regulatory requirements set out in National Instrument 43-101. The above technical disclosure in this press release has been reviewed, verified and approved by Dr. R. Jemielita, PhD, MIMMM, a qualified person as defined by NI 43-101, a consultant of the company.

About Mundoro Capital Inc.

Mundoro Capital is a Canadian-listed generator company with a portfolio of projects focused on base metals and precious metals that generate royalties and near-term mineral revenue. To drive value for shareholders, Mundoro has generated an attractive portfolio of mineral projects primarily focused on copper and gold in Serbia and Bulgaria. Value generated from the company's mineral properties is through near-term revenues from various forms of payments from partners and long term through the generated royalties.

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