Mr. Teo Dechev reports

MUNDORO-VALE EXPLORATION PROGRAM EXPANDS TARGETING IN TIMOK SERBIA

Mundoro Capital Inc. has provided an update for the Vale-Mundoro JV (joint venture) program in Serbia, that includes (i) phase 1 drill program at the Skorusa copper-gold porphyry system and (ii) geophysical program at the Oblez licence. Both programs are located in the southern portion of the Timok magmatic complex west-southwest of the Cukaru Peki deposit and the Bor mining complex.

Highlights

• Diamond drilling is continuing at Skorusa copper-gold porphyry system, along with an audio-frequency magneto-telluric (AMT) geophysics program at the Tilva Mare prospect.
• One thousand eight hundred metres have been drilled over magnetic anomalies at Skorusa in three exploratory drill holes with an average depth of 600 metres.
• Technical committee has expanded the drill program for an additional 1,600 metres to test three additional targets within Skorusa at the West and East mineralized zones.
• The continuing AMT geophysical survey at the Tilva Mare prospect will identify drill targets under the cover units. The prospect area is outlined by copper-in-soil geochemistry covering approximately five kilometres by five km in the northern portion of the Oblez licence.

Teo Dechev, chief executive officer and president, commented: "The geophysical targets drill tested in the first three exploratory holes have provided valuable information to calibrate the understanding of the geophysical responses observed to the actual lithological units and mineralogy encountered. It is clear from the initial three drill holes that the targets drilled are in the periphery and distal to a porphyry system. The technical committee is expanding the target testing to additional targets focusing on depth extension at the West zone and depth extension at a geochemical anomaly at the East zone and a new geophysical ground magnetic anomaly south of the East zone.

"In addition to drilling, the AMT survey is continuing and is expected to be completed by the end of April with geophysical models expected by the end of May. The exploration team is excited to review the results to facilitate further targeting and to identify the source of the pervasive geochemical signature at Tilva Mare which is approximately five km by five km.

"From there, the team will follow up with additional field investigation of the newly identified alteration zone, Skorusa South target area, and the Markov Kamen East target area.

"The Vale-Mundoro JV program is expected to continue throughout the course of the year testing this prospective region for porphyry and related epithermal systems."

Vale-Mundoro projects

The approved exploration work program of $1.9-million (U.S.) is in progress and primarily focused on two of the four Vale-Mundoro JV projects -- Skorusa and Oblez. Both projects are located west-southwest of the Cukaru Peki epithermal-porphyry copper gold deposit and within the Timok magmatic complex. Exploration completed to date over the two projects includes:

• Grid-based soil sampling (1,345 samples collected);
• Geological and alteration mapping;
• Rock sampling;
• Ground magnetic survey (876 line/km surveyed)

The results obtained have identified five target areas prospective for porphyry copper-molybdenum-gold deposits for initial testing. The Skorusa porphyry system is one of the five targets ranked as prospective for porphyry copper-molybdenum-gold deposits within the Vale-Mundoro projects.

Skorusa porphyry

The Skorusa copper-gold porphyry system comprises extensive phyllic alteration (two km by three km) surrounding two localized areas with potassic/inner propylitic and peripheral propylitic alteration, in example, the Skorusa West zone and the Skorusa 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.

The current exploratory drill program with Vale has tested three geophysical targets to 600 m depth at the outer northeastern portion of the porphyry system that have not been previously tested. Drill core observation from recently completed drill holes suggests the elevated chargeability zones from the historical induced polarization (IP) survey are related to disseminated pyrite mineralization from the country rock environment. Although the mineralization observed in the first two holes was not significant in the northern portion of the system, further assays are still pending. The technical committee has expanded the drill program with an additional three targets to be tested:

• Target A -- Drill hole will test down dip of the mineralized porphyry at the West zone;
• Target B -- Drill hole will test the geochemical soil anomaly at depth at the East zone;
• Target C -- Drill hole will test a ground magnetic anomaly which may represent the southern extension of the East zone.

The technical committee is regularly reviewing the data and identifying further areas of testing. Assay results will be continuing throughout the program.

Skorusa West zone

Target delineation at the Skorusa West zone, includes surface rock chip sampling and geological mapping of identified quartz stockwork-hosted mineralization in potassic altered diorite porphyry which previously returned 23 m with 0.17 per cent copper and 0.72 gram per tonne gold. Follow-up drilling in 2016 proved the stockwork extends in depth and remains laterally open to west-northwest. 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 drill testing is warranted for this target area.

Skorusa East zone

At the Skorusa East zone limited work has been carried out to date including two shallow RC drill holes and one diamond hole completed during a 2015 exploration program. The quartz and magnetite veinlets to stockwork mineralization found at the surface was shown to extend in depth. 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 East zone has a zoned alteration pattern of phyllic surrounding an inner propylitic/potassic alteration core. What remains an area of open interest is the connection between the East zone and West zone at depth for a potential feeder zone.

Tilva Mare prospect

The prospect area is outlined by copper in the soil geochemistry in the northern portion of the Oblez licence. The upper Cretaceous cover rock of volcanic agglomerate contains a variety of mineralized clasts with malachite, native copper and locally chalcocite. These clasts occur at the surface along road cuts and to a depth of 250 metres through one tested drill hole. Potential exists here for concealed epithermal and porphyry copper-gold mineralization beneath the sediments and agglomerates from the upper Cretaceous stratigraphy. Audio-frequency magneto-telluric geophysical surveying is in progress at the property. The survey is expected to be completed by end of April with geophysical models expected by the end of May.

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 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 its 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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