Mr. George Sookochoff reports

BELMONT SIGNS DEFINITIVE AGREEMENT TO ACQUIRE ATHELSTAN-JACKPOT CROWN GRANTS IN THE GREENWOOD GOLD CAMP, B.C.

Belmont Resources Inc. has signed a definitive agreement dated May 7, 2020, with Forty Ninth Ventures Ltd. for the company to acquire a 100-per-cent interest in the vendor's right, title and interest in and to the Crown-granted claims known as the Athelstan-Jackpot property, located in the Greenwood mining division, British Columbia.

The terms of a non-binding letter of intent to acquire the properties were announced on Feb. 24, 2020.

The Athelstan-Jackpot acquisition is part of the company's continued focus to acquire and develop strategic gold properties in the prolific Greenwood mining district.

The Athelstan gold property comprises 10 contiguous Crown-granted mineral claims and a private parcel of land covering an area of approximately 120 hectares. The claims are situated approximately eight kilometres northwest of Grand Forks, B.C., and three km southeast of the former Phoenix mine, which produced, during the period 1900 to 1976, 27 million tonnes at a grade of 0.9 per cent copper and 1.12 grams per tonne gold from a number of different ore bodies (Church, 1986). This amounts to over one million ounces of gold and 500 million pounds of copper produced from the Phoenix deposit.

George Sookochoff, chief executive officer and president, commented, "The signing of the agreement is an exciting milestone for the company and enhances Belmont's strategy of consolidating properties with known historic gold-copper mines in the prolific Greenwood mining district."

About the Athelstan property

The Athelstan property was staked in the late 1890s and was worked intermittently from 1901 through to 1940. The property has two past-producing gold mines, Athelstan and Jackpot, and total production during this period was in the order of 33,200 tonnes of direct smelting ore at an average grade of approximately 5.4 g/t Au (approximately 6,324 ounces) and 6.3 g/t silver (approximately 7,378 ounces) (Minfile 082ESE047).

More recently, extensive exploration has been carried out in 2003 by Linda Caron, MSc, PEng, of Grand Forks, who completed trench layout, geological mapping, soil and rock sampling.

A detailed property-scale geological mapping program was completed in 2004 again by Ms. Caron, MSc, PEng, and detailed in an August, 2004, assessment report written by the same.

The mandate of the program was to better understand the nature of mineralization, to understand the relationship between different zones of known mineralization and to evaluate the potential for discovery of additional mineralization on the property.

Belmont is currently compiling the extensive amount of both historic and recent exploration data from the Athelstan property into a GIS (geographic information system) digital database.

Three distinct styles of mineralization have been observed on the Athelstan property, one of which consists of low sulphidation epithermal quartz veinlets and silicification, and it is the potential epithermal gold deposits that Belmont is particularly focused on in the Greenwood district.

Predictive epithermal gold deposit modelling

Exploration and mining in the Greenwood camp had primarily focused on copper skarn veins/deposits and less on gold. One reason may have been that the nearby Grand Forks smelter (the second-largest in the world at the time) was readily available to process the copper in the region but was not necessarily equipped to efficiently extract the gold.

In the past 20 years, there have been significant gold discoveries just south of the border in Washington State. This area is known as the Republic mining district, which has a rich history in gold production (four million ounces of gold). Unlike the skarn deposits in Greenwood, the gold deposits in Washington were epithermal in nature.

Over the past years, geologists in Washington State and in particular the Republic graben have compiled an extensive database of information and modelling of epithermal gold deposits. This relatively new database provides valuable information on new geological modelling of epithermal gold deposits in Washington State and in delineating favourable areas for epithermal gold deposits as well as predicting areas of future exploration activity for similar deposits in Washington State.

Belmont is utilizing these epithermal prediction models of the Republic graben in Washington State and, combined with the recently assembled comprehensive Greenwood camp historic exploration database and the new Athelstan GIS database, are delineating favourable areas for epithermal gold deposits and predicting areas of future exploration activity for similar deposits in the Greenwood camp.

Definitive agreement between Belmont and Forty Ninth

Under the terms of the agreement, Belmont may acquire a 100-per-cent interest in the Athelstan-Jackpot Crown grants by making certain staged cash payments and share payments of common shares in the capital of Belmont to the vendor:

1. On TSX Venture Exchange approval, 200,000 common shares of Belmont Resources, subject to a four-month-plus-one-day hold period from issuance date, upon signing of a final agreement;
2. After a period of one year from the signing of the final binding agreement, a cash payment in the amount of $50,000 (U.S.) plus an additional 200,000 common shares of Belmont Resources, subject to a four-month-plus-one-day hold period from issuance date;
3. Belmont will have the option to issue common shares valued at $25,000 (U.S.) in lieu of the cash payment of $25,000 (U.S.) of the total $50,000 (U.S.) cash payment. Share price will be determined by a five-day trading average price preceding the one-year option anniversary date;
4. Upon Belmont acquiring 100-per-cent right, title and interest to the property, the owner will retain a 2-per-cent NSR (net smelter royalty) in the property. Belmont will have the right to buy back 1 per cent of the NSR for $500,000 (U.S.).

Qualified person

The scientific and technical information that forms the basis for parts of this press release was reviewed and approved by Laurence Sookochoff, PEng, who is a qualified person as defined by National Instrument 43-101.

About Belmont Resources Inc.

Belmont Resources is a Canadian-based resource company. The company is systematically exploring and acquiring gold properties in Southern B.C. and northern Washington State.

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