Mr. Akiba Leisman reports

MAKO CLOSES US$15,150,000 TERM LOAN

Mako Mining Corp. has closed a $15.15-million (U.S.) unsecured term loan from Wexford Catalyst Trading Ltd., Wexford Spectrum Trading Ltd. and Debello Trading Ltd., each a private investment fund managed by the company's controlling shareholder, Wexford Capital LP. The loan was made pursuant to a loan agreement dated as of Feb. 20, 2020, among the company, Wexford Capital, as agent, and each of the lenders.

The company proposes to use the funds from the loan for: construction, development and exploration activities in Nicaragua; general corporate purposes; and fees and expenses incurred in connection with the loan.

Akiba Leisman, chief executive officer of Mako, commented: "The closing of the loan allows Mako to maintain the expected timeline to first gold pour at San Albino of late summer 2020. In addition to the financing, the company enjoyed another milestone this week with the commencement of mining at San Albino. Prestripping of waste has commenced, with mining of mineralized material expected in the second week of March, after blast hole samples are assayed and returned from an external lab. We can't thank our operating team enough for their effort in advancing the San Albino gold project toward production and our controlling shareholder, Wexford, for their continued support at a time when financing for junior mining companies continues to be a challenge. Specifically, the loan is expected to provide the funds necessary to complete construction of the mine without further equity dilution, without having to pledge security on the company's assets or restrict the return of capital to investors when the mine is able to support dividends and/or share buybacks."

The loan matures in August, 2022, and may be prepaid at any time, in whole or in part, at par plus accrued but unpaid interest, without penalty or premium. The loan bears interest at a rate of 8 per cent per year until the first anniversary of the closing date, increasing to 10 per cent per year thereafter, which interest is payable semi-annually on June 30 and Dec. 31 each year, with the first interest payment due on Dec. 31, 2020.

The loan will be made available in up to three drawdowns on dates to be selected by the company within 12 months of the closing date. Each drawdown will be for a maximum of $5-million (U.S.) (except that the first drawdown may be for a maximum of up to $5.15-million (U.S.)). To the extent a drawdown is less than $5-million (U.S.), the balance of the commitment under that drawdown tranche will be permanently cancelled, and any portion of the commitment that is not advanced within 12 months following the closing date will be permanently cancelled.

Mako has agreed to pay a non-refundable upfront fee of $150,000 (U.S.) to the lenders, pro rata, in accordance with their respective commitments, on the closing of the loan. In addition, if the loan is not repaid in full on or prior to the first anniversary of the closing date, then the borrower must pay to the lenders, on a pro rata basis, in accordance with their respective commitments, cash bonus interest on the first anniversary of the closing date and on each successive anniversary in an amount equal to the cash equivalent of 500 ounces of gold calculated based on the average gold fixing price in the London Bullion Market during the most recently completed calendar month at the time the payment is made, in accordance with the applicable formula set out in the loan agreement, which is available under the company's profile on SEDAR.

The company has received the conditional approval of the TSX Venture Exchange for the payment of the applicable fees to the Wexford funds, in accordance with TSX-V Policy 5.1.

The Wexford funds beneficially own an aggregate of 322,603,234 common shares of the company, representing approximately 55.27 per cent of the company's issued and outstanding common shares. Accordingly, the loan constitutes a related party transaction under Multilateral Instrument 61-101 as a result of the company entering into the loan agreement with the Wexford funds, which are related parties of the company. Pursuant to sections 5.5(b) and 5.7(1)(a) of MI 61-101, the company is exempt from obtaining a formal valuation and minority approval of the company's shareholders for the loan on the basis that the company's common shares trade on the TSX-V and the fair market value of the Wexford funds' participation in the loan is below 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

A material change report in respect of the loan will be filed by the company. The material change report will be filed less than 21 days prior to the closing of the loan transaction, which is consistent with market practice and the company deems reasonable in the circumstances.

About Mako Mining Corp.

Mako Mining is a publicly listed gold mining, development and exploration firm. The company is developing its high-grade San Albino gold project in Nueva Segovia, Nicaragua.

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