Mr. Lawrence Guy reports

EMERITA RESOURCES CLOSES FULLY-SUBSCRIBED PRIVATE PLACEMENT FINANCING AND ANNOUNCES NEW FINANCING DUE TO OVERWHELMING INTEREST

Emerita Resources Corp. has closed, on a fully subscribed basis, its previously announced private placement of common shares (see news releases dated May 14, 2020, and May 28, 2020). The company issued 27 million units pursuant to the offering at a price of five cents per unit for aggregate gross proceeds of $1.35-million.

Each unit comprises one common share of Emerita and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of 15 cents for a period of 24 months from the date hereof, subject to an acceleration provision whereby in the event that at any time after the expiry of the statutory hold period, the common shares trade at 25 cents or higher on the TSX Venture Exchange for a period of 20 consecutive days, the company shall have the right to accelerate the expiry date of the warrants to the date that is 30 days after the company issues a news release announcing that it has elected to exercise the acceleration right.

The proceeds of the offering are expected to be used to finance exploration activities at the company's properties in Spain and for general corporate purposes.

In connection with the closing of the offering, the company paid finder's fees of $70,160 in cash and issued 1,323,000 non-transferable finder's warrants. Each finder warrant will entitle the holder thereof to purchase one share at a price of 15 cents for a period of 24 months from the date hereof.

The offering is subject to the receipt of all necessary approvals, including the final approval of the TSX Venture Exchange.

All of the securities issued by the company pursuant to the offering will be subject to a four-month statutory hold period which expires on Nov. 11, 2020.

Each of the directors and officers of the company has subscribed for units pursuant to the offering. The insider participation will be considered to be a related party transaction as defined under Multilateral Instrument 61-101. The insider participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

Lawrence Guy, chairman of Emerita, states: "We would like to thank our long-term and new shareholders for their continuing support. We are excited to get to work on the Romanera/Paymogo project and will continue to update shareholders as the project develops. The response to the financing was overwhelmingly positive and as a result we are announcing a new offering below that will be open for investors with continued interest that unfortunately could not participate in the previous financing."

New offering

Due to overwhelming interest in the offering, many prospective investors were not able to participate in the offering or did not receive their desired allocations. The company is pleased to announce a new private placement financing to allow such investors an opportunity to invest in Emerita. Pursuant to the new offering, Emerita will issue up to 7,142,857 units of Emerita at a price of 14 cents per new unit for gross proceeds of up to $1-million.

Each new unit shall comprise one common share of Emerita and one-half of one common share purchase warrant. Each new warrant shall entitle the holder to acquire one common share at a price of 15 cents for a period of 24 months following the closing date of the new offering, subject to an acceleration provision whereby in the event that at any time after the expiry of the statutory hold period, the common shares trade at 25 cents or higher on the TSX Venture Exchange for a period of 20 consecutive days, the company shall have the right to accelerate the expiry date of the new warrants to the date that is 30 days after the company issues a news release announcing that it has elected to exercise the acceleration right.

The proceeds of the new offering are expected to be used to finance exploration activities at the company's properties in Spain and for general corporate purposes.

The closing date of the new offering is expected to occur on or about July 24, 2020. All securities issued by Emerita will be subject to a hold period of four months and one day. Emerita has agreed to pay a finder's fee of 8 per cent of the gross proceeds, payable in cash, and finder's warrants equal to 8 per cent of the new units sold by qualified finders. Each finder's unit shall be exercisable to acquire one common share of the company at an exercise price of 15 cents per common share, for a period of 24 months from the closing date of the new offering. Completion of the new offering is subject to customary closing conditions, including TSX Venture Exchange approval.

About Emerita Resources Corp.

Emerita is a natural resource company engaged in the acquisition, exploration and development of mineral properties in Europe, with a primary focus on exploring in Spain. The company's corporate office and technical team are based in Sevilla, Spain, with an administrative office in Toronto, Canada.

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