Mr. Eric Sprott, investor, reports

AVIDIAN GOLD PROVIDES UPDATE ON NON-BROKERED $2.5M PRIVATE PLACEMENT INCLUDING STRATEGIC INVESTMENT BY ERIC SPROTT

Avidian Gold Corp. has provided an update to the previously announced (see July 6, 2020, news release) private placement of units of the company at 10 cents per unit for gross proceeds of up to $2.5-million. Each unit will consist of one common share of the company and one common share purchase warrant, with each warrant exercisable into a common share at a price of 14 cents for 24 months following the issuance of the warrants. The terms of the warrants restricts the exercise of the warrants in a manner that causes the warrantholder to hold 20 per cent or more of common shares without having previously obtained required approvals, in accordance with the policies of the TSX Venture Exchange.

The company advises that it has now received subscriptions for the entirety of the offering, including a subscription from Eric Sprott. The company expects to close the offering next week.

The net proceeds from the offering shall be primarily used for the development of Avidian's mineral properties and for general and administrative expenses.

The offering is conditional upon the receipt of required regulatory approvals, including the final approval of the TSX-V. The securities issued pursuant to the offering will be subject to a four-month-and-one-day statutory hold period, in accordance with applicable Canadian securities laws.

Pursuant to the offering, Mr. Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, will acquire 20 million units for a total consideration of $2-million. Subsequent to the closing of the offering, Mr. Sprott will beneficially own or control 20 million common shares and 20 million warrants, representing approximately 16.75 per cent of the issued and outstanding common shares on a non-diluted basis and approximately 28.69 per cent of the issued and outstanding common shares on a partially diluted basis, assuming exercise of the warrants. Prior to the offering, Mr. Sprott did not beneficially own or control any securities of the company.

The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Avidian, including on the open market or through private acquisitions, or sell securities of Avidian, including on the open market or through private dispositions, in the future, depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant, from time to time. For the purposes of this notice, the address of Mr. Sprott is 200 Bay St., suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1.

In satisfaction of the requirements of National Instrument 62-104 -- Take-Over Bids and Issuer Bids, and National Instrument 62-103 -- The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, an early warning report respecting the acquisition of units by and a copy of the early warning report may also be obtained by calling Mr. Sprott's office at 416-945-3294.

About Avidian Gold Corp.

Avidian brings a disciplined and veteran team of project managers together with a regional-scale, advanced-stage gold-copper exploration portfolio in Alaska.

We seek Safe Harbor.