Mr. Adrian Lamoureux reports

GAIA METALS CORP. ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE THE FREEMAN CREEK GOLD PROPERTY WITH HISTORICAL DRILL INTERCEPT OF 1.5 G/T AU AND 12.1 G/T AG OVER 44.2 M, IDAHO, USA

Further to its news release dated June 4, 2020, Gaia Metals Corp. has executed a definitive agreement with arm's-length vendors whereby the company may acquire a 100-per-cent undivided interest in the Freeman Creek property. The property consists of 76 claims covering approximately 599 hectares (1,481 acres) and is located on BLM (Bureau of Land Management) lands, outside of U.S. Forest Service lands and other protective areas within the state of Idaho, United States.

The Freeman Creek property is located approximately 15 kilometres northeast of Salmon, Idaho, and is accessible by paved highway and a network of gravel roads and trails. The property hosts two major advanced targets; the Gold Dyke prospect, with a historical drill intercept of 1.5 grams per tonne gold and 12.1 grams per tonne silver over 44.2 metres, and the Carmen Creek mine prospect, with a historical outcrop sample assay of 14.15 grams per tonne gold, 63 grams per tonne silver and 1.2 per cent copper.

Adrian Lamoureux, president, chief executive officer and a director of Gaia Metals, commented: "We are very pleased to have now executed this definitive agreement for Freeman Creek. The project offers the company an excellent opportunity in the gold space at a time when prices continue to advance towards all-time highs. The historical work has already highlighted the potential of the property and the relatively straightforward permitting process will allow us to aggressively explore and unlock the value of this opportunity for our shareholders."

Immediate exploration plans for the property include a phase I program of ground mapping and sampling of historical occurrences, confirmation of historical drill collar locations, prospecting, as well as potential soil sampling and ground geophysics. The phase I program is anticipated to be followed shortly thereafter by a drill program (phase II). The objective of the work will be to verify and expand upon historical results.

Transaction

Under the terms of the agreement, the company may acquire a 100-per-cent interest in the property by paying a total of $90,000, issuing an aggregate four million common shares and two million transferable common share purchase warrants, exercisable at 10 cents and expiring three years from issuance as follows:

• $10,000 upon signing the agreement;
• $40,000, two million consideration shares and one million consideration warrants upon receipt of TSX Venture Exchange approval of the agreement;
• $40,000, two million consideration shares and one million consideration warrants on the one-year anniversary of exchange approval of the agreement.

In the event that a gold equivalent resource of more than one million ounces is outlined within a National Instrument 43-101 resource estimate on the property, the company shall pay $1-million, payable in shares or cash or a combination of both, at the company's discretion. In the case of a share issuance, the shares shall be issued at a price using the average market price of the previous 30 trading days preceding the share issuance.

The vendors shall retain a 2.5-per-cent net smelter return royalty (NSR) on the property, of which the company shall have the right to purchase half (1.25 per cent) for $1.5-million.

Gold Dyke prospect

Gold and silver mineralization at the Gold Dyke prospect is hosted by Precambrian Lemhi group sediments and has seen early development and sporadic exploration from about 1910 to 1986. The base metal and precious metal mineralization is associated with a gossan at surface and has been traced over 1,500 feet (457 metres) along strike and 600 feet (183 metres) vertical.

Historical exploration (around 1910) included the completion of several open-cut trenches and adits into the known mineralization. Sampling from these trenches returned 6.86 grams per tonne gold and 199 grams per tonne silver over 7.0 metres, 5.49 grams per tonne gold and 130 grams per tonne silver over 5.8 metres as well as 19.9 grams per tonne gold, 65 grams per tonne silver and 1.05 per cent copper over 3.7 metres. In addition, a grab sample collected from one of the open cuts assayed 60.0 grams per tonne gold and 1,440 grams per tonne silver.

During the 1970s and 1980s, exploration included a limited number of drill holes along two north-south-orientated fences spaced less than 200 metres apart. The mineralization remains open to the east of drill holes RDH 8 and RDH 10, both reverse circulation drill holes respectively, which are the easternmost holes completed to date at the Gold Dyke prospect. A summary of historical drill results follows:

• Hole No. 1 (1970s): 0.46 gram per tonne gold, 7.1 grams per tonne silver and 0.10 per cent copper over 13.7 metres;
• RDH 8 (1980s): 1.5 grams per tonne gold and 12.1 grams per tonne silver over 44.2 metres;
• RDH 10 (1980s): 1.7 grams per tonne gold and 17.1 grams per tonne silver over 21.3 metres.

Subsequent to the drill testing in the 1980s, Cominco and BHP explored the property in the 1990s for large-scale copper potential; however, records of this exploration have not been located.

Carmen Creek mine prospect

The Freeman Creek property also hosts the past-producing Carmen Creek mine, located approximately three kilometres to the northeast of the Gold Dyke prospect. A small mill was installed at the site in 1910 to process gold ore from the mine, initially discovered in 1904; however, few records exist detailing the Carmen Creek mine's development, production or head grade. Historical samples from surface outcrop and mine workings assayed 14.15 grams per tonne gold, 63 grams per tonne silver and 1.2 per cent copper as well as 1.8 grams per tonne gold, 43 grams per tonne silver and 1 per cent copper respectively.

The style of mineralization at Carmen Creek is described as a gold- and copper-bearing exhalate zone -- a few tens of metres thick. At the mine, the gold and copper are concentrated in lenses of massive quartz and magnetite.

NI 43-101 disclosure

Darren L. Smith, MSc, PGeo, vice-president of exploration for the company and a qualified person as defined by NI 43-101, supervised the preparation of the technical information in this news release.

About Gaia Metals Corp.

Gaia Metals is a mineral exploration company focused on the acquisition and development of mineral projects containing base and precious metals, including platinum group elements and lithium.

The company's primary assets are the wholly owned Corvette property and the FCI property (held under option from O3 Mining Inc., a recent spinout from Osisko Mining Inc., for a 75-per-cent interest) located in the James Bay region of Quebec.

In addition, the company holds the Pontax lithium-gold property in Quebec, the Golden Silica property in British Columbia and the Hidden Lake lithium property in Northwest Territories (where the company maintains a 40-per-cent interest) as well as several other assets in Canada.

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