Dr. Mathew Ball reports

GOLDEN DAWN RECEIVES EXPLORATION PERMIT FOR LEXINGTON AREA

Golden Dawn Minerals Inc. has received its multiyear exploration permit for the Lexington property in Greenwood, B.C., after the payment of the required reclamation bond.

The new five-year, area-based exploration permit is for ground geophysics and surface drilling on the Lexington group of claims held by 1086359 BC Ltd., a subsidiary of Golden Dawn. The Lexington group covers 2,020 hectares. The permit will allow exploration along a four-kilometre trend of favourable host rocks that stretches northwest from the border with Washington. This favourable corridor includes the current Lexington-Grenoble mine project, as well as other historic mines and prospects, with several historic drill holes that intersected copper-gold mineralization like that exposed within the Lexington mine.

The company is now permitted to conduct brownfields exploration drilling to expand the Lexington deposit and search for additional resources nearby within the mineralized corridor.

In the meantime, Golden Dawn's Lexington mine and Greenwood processing facility remain on care and maintenance.

The company also announces that it has closed the first tranche of the equity portion of the non-brokered private placement previously announced on Sept. 4, 2019, for gross proceeds of $332,000. Each unit will consist of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder to purchase one additional Golden Dawn common share at an exercise price of 35 cents during the 18-month period following the date of distribution of the units. The hold expiry date is Feb. 11, 2020.

The company paid a cash commission of $7,280 to Haywood Securities Inc. and $2,400 to Canaccord Genuity Corp., and issued 36,400 broker warrants to Haywood Securities and 12,000 broker warrants to Canaccord Genuity. The broker warrants have the same terms as the private placement warrants.

The net proceeds of the private placement will be applied to finance exploration of existing issuer properties, to pay down existing issuer debts, for mill site improvements and for general working capital purposes

Dr. Mathew Ball, PGeo, president of Golden Dawn and a qualified person as defined by National Instrument 43-101, approved the technical information contained in this news release.

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