Ms. Teo Dechev reports

MUNDORO COMMENCES DRILL PROGRAM ON VALE PROJECT IN TIMOK SERBIA

Mundoro Capital Inc. has mobilized drill rigs for drilling at the Skorusa licence.

Skorusa is one of the licences being solely financed by Vale Canada as part of the earn-in agreement announced October, 2019. Skorusa is located in the southern portion of the Timok magmatic complex directly southwest of the Bor mining camp. Timok is one of the most prolific metallogenic domains in the western portion of the Tethyan belt. Timok hosts the Cukaru-Peki deposit, the Bor copper porphyry underground mine, the Veliki Krivelj and Majdanpek copper-gold porphyry open-pit mines.

Highlights

• The Skorusa copper-gold porphyry is one of the five areas recently ranked as prospective for porphyry copper-molybdenum-gold deposits within the Vale-Mundoro projects (see Mundoro press release dated Dec. 7, 2020).
• A zoned hydrothermal alteration, covering an area of two kilometres by three km contains copper-gold porphyry-style mineralization and part of a broad (2.5 by five km) magnetic low anomaly with internal magnetic high and/or chargeability zones that will be drill tested.

Target area

The Skorusa porphyry system is part of a broad magnetic low anomaly with a footprint of 2.5 km by five km with internal magnetic high zones containing several additional interpreted drill targets that remain to be tested. Reinterpretation of a historical induced polarization (IP) survey indicates that the alteration area at Skorusa is relatively resistive, with the high-resistivity zones flanking an elevated chargeability zone. Elevated chargeability also coincides with magnetic low zones. The priority for the current phase 1 drill program is to test geophysical targets at the outer northeastern portion of the porphyry system that have not been previously tested. The three target areas will be drill tested to approximately 600 m depth. The program is expected to be completed by the end of February with assay results expected by the end of March.

Exploration overview

The Skorusa porphyry system comprises extensive phyllic alteration (two km by three km) surrounding two localized areas with potassic/inner propylitic and peripheral propylitic alteration -- the west zone and the east zone. The Skorusa porphyry system was partially tested in 2015 and 2016 in two separate drill campaigns, with exploration primarily concentrated in the Skorusa west zone which sits in the northwest corner of the licence. The initial exploration work program with Vale comprised a grid-based soil sampling and ground magnetic survey over the entire licence area to provide regional context for the Skorusa porphyry target area.

Skorusa west zone

At the Skorusa west zone, initial surface rock-chip sampling and geological mapping identified quartz stockwork-hosted mineralization in potassic altered diorite porphyry which returned 23 metres with 0.17 per cent copper and 0.72 gram per tonne gold. Follow-up drilling in 2016 proved the stockwork extended to depth and remains laterally open to west-northwest, hence further drill testing is required for this target area. Three main porphyry phases have been identified: early, intermineral and late mineral. The early and intermineral phases display potassic alteration defined by a biotite-magnetite assemblage. The intervals of an early porphyry contain magnetite and chalcopyrite-bearing A- and B-type quartz veinlet stockworks with potassic alteration. At depth, D-type veins with sericitic halos become more prominent and some are cut quartz-magnetite-chalcopyrite-pyrite veinlets indicating several vein generations related to different porphyry intrusions. Further evaluation of the geophysics, geochemistry and alteration at the Skorusa west zone is being performed in order to further refine drill targets in this area.

Skorusa east zone

At the Skorusa east zone limited work has been performed to date including two shallow RC drill holes and one diamond hole completed in a 2015 exploration program. Quartz and magnetite veinlets to stockwork mineralization found at surface were shown to extend to depth, but with lower copper and gold grades compared with the west zone. The Skorusa east zone is an annular magnetic high anomaly coincident with copper, molybdenum and gold anomalies in the soil geochemistry. Like the west zone, the Skorusa east zone has a zoned alteration pattern of phyllic surrounding an inner propylitic/potassic alteration core. Further evaluation of the geophysics, geochemistry and alteration at the Skorusa east zone is being performed in order to further develop drill targets in this area.

New Skorusa southeast zone

The 2020 alteration mapping program identified advanced argillic alteration approximately 3.5 km southeast of the Skorusa porphyry system, which likely represents a porphyry-related lithocap. The advanced argillic alteration was confirmed by the presence of sodium-alunite and will be followed up in the next field season with detailed sampling and alteration mapping as well as additional reinterpretation of a historical induced polarization (IP) survey.

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 as set out in National Instrument 43-101. The above technical disclosure in this press release has been reviewed, verified and approved by R. Jemielita, PhD, MIMMM, a qualified person as defined by NI 43-101 and consultant to the company.

About Mundoro Capital Inc.

Mundoro is a Canadian listed royalty generator company with a portfolio of projects focused on base and precious metals that generate royalties and near-term mineral revenue. To drive value for shareholders, Mundoro has generated a 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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