Mr. Collin Kim reports

ARCPACIFIC SIGNS OPTION AGREEMENT TO ACQUIRE BLACKDOME PROPERTY AND ANNOUNCES PRIVATE PLACEMENT OFFERING

Arcpacific Resources Corp. has entered into an option agreement to acquire 100 per cent of Blackdome property, located in the central Cariboo region of south-central British Columbia.

The Blackdome property is considered to be prospective for gold and silver mineralization and is located in the Clinton mining division approximately 120 kilometres southwest of the city of Williams Lake. The project area covers 586 hectares. The property has been explored since the 1980s but has never been drilled. Anomalous gold-silver mineralization is hosted in quartz veins subcropping over an area of approximately 1,300 by 700 metres. Quartz veins have typical low sulphidation, banded, vuggy, bladed and chalcedonic epithermal textures. The Blackdome project is underlined by Cretaceous Power Creek volcanics and sediments belonging to Tylor Creek group. These two units were intruded by hornblende feldspar porphyries (HFP). Gold-silver mineralization identified in the Blackdome property appears to be associated with intrusions that possibly served as a conduit for the hydrothermal mineralization.

The company plans to complete an extensive data compilation program on the Blackdome project in order to better define the target areas on the property.

Terms of the option agreement

Under the terms of the option agreement, ACP has the option to acquire a 100-per-cent interest in the property by making the following cash payments and share issuances:

• An initial cash payment of $20,000 and issuing 200,000 common shares within 14 days of the acceptance date of the TSX Venture Exchange;
• A cash payment of $30,000 on or before the first anniversary of the acceptance date;
• A cash payment of $40,000 and issuing 300,000 common shares on or before the second anniversary of the acceptance date;
• A cash payment of $60,000 and issuing 300,000 common shares on or before the third anniversary of the acceptance date;
• Issuing 400,000 common shares on or before the fourth anniversary of the acceptance date.

In addition, ACP will pay a 1.5-per-cent net smelter return royalty to the optionor on commencement of commercial production. The company will have the right, at any time prior to the commencement of commercial production, to purchase 1.0 per cent of the 1.5-per-cent net smelter royalty for $1-million.

To finance an initial expenditure on the project along with working capital of the company, ACP intends to raise up to $600,000 by way of a non-brokered private placement of units, where a unit consists of one common share of the company and one-half of warrant of the company to purchase one common share. The unit will be priced at five cents per unit. Each whole warrant entitles the holder to purchase one common share within one year from the closing date (as hereinafter defined) of the offering at a price of 10 cents per common share. A finder's fee may be paid as part of the financing. As part of this non-brokered financing, the warrants are subject to an acceleration clause. This clause states that if, four months and one day after the warrants are issued, the closing price of the common shares of the company, on the principal market on which such shares trade, is equal to, or exceeds, 20 cents for 10 consecutive trading days (with the 10th such trading date hereafter referred to as the eligible acceleration date), the warrant expiry date shall accelerate to a date 20 calendar days after issuance of a press release by ACP announcing the accelerated warrant term -- provided, no more than five business days following the eligible acceleration date, that the press release is issued; and written notices are sent to all warrantholders.

The offering is being made pursuant to certain Canadian prospectus exemptions, including the existing securityholder exemption and purchasers advised by investment dealers exemption, where applicable. Both the existing securityholder and purchasers advised by investment dealers exemptions are collectively referred to as the existing securityholder and retail investor exemptions. Existing shareholders of ACP who wish to subscribe for units pursuant to the offering, who held common shares of ACP as of July 17, 2020, and who continue to hold common shares of ACP, and who are permitted to subscribe under the existing securityholder and retail investor exemptions should contact the company pursuant to the contact information set forth below in order to participate in the offering. There are no other material facts or material changes regarding the company that has not been generally disclosed.

The closing for the offering is expected to close on or about Aug. 31, 2020, but may close earlier or later or not at all. Closing of the offering is also subject to TSX Venture Exchange final acceptance.

All securities issued will be subject to a four-month hold period.

About Arcpacific Resources Corp.

Arcpacific Resources is a Canadian-based company focused on creating shareholder value through discoveries and strategic development of mineral properties. The company is now seeking new business opportunities or mineral properties.

We seek Safe Harbor.