Mr. Regan Isenor reports

MEGUMAGOLD TO ACQUIRE PALLADIUM PROJECT IN BRITISH COLUMBIA

Megumagold Corp. has agreed to acquire five mineral claims for a total of 3,067 hectares, located in the Similkameen mining division, approximately seven and 20 kilometres northwest of Copper Mountain, and which host the potential for palladium and platinum associated with both the alkalic intrusives of the Okanagan.

A number of platinum-group-element mineral occurrences are associated with alkalic intrusive porphyries, such as New Gold's New Afton and Copper Mountain, which both contain significant concentrations of palladium and platinum. At Copper Mountain, the sulphide concentrate from the mine yielded up to 2.8 grams per tonne palladium and 0.155 gram per tonne platinum, and a sample of a bornite-chalcopyrite vein from the glory hole yielded 3.25 g/t palladium (after Nixion). The latest resource estimate from New Afton mentions grades of (0.10 g/t) palladium. Both New Afton and Copper Mountain are in or planning major expansion and exploration in the area. New Gold recently announced a robust $460-million exploration initiative to further discoveries, allowing extension of its New Afton mine life (1).

Company president Theo van der Linde commented: "Megumagold is pleased to add to its B.C. land package, which is strategically among large producers who have demonstrated high-grade platinum and palladium from similar intrusives. The district at one time was the principal producer of palladium in North America. Being palladium is at an all-time high and not expected to slow down, due to the recent realization of the massive shortfall of the metal, we feel Meguma has substantial means to aggressively explore the recent acquisition. Being the region and its geological setting are known for palladium yet has been relatively underlooked and underexplored."

The company intends to immediately commence surface work, mapping and sampling on the claims to start planning for a larger work program. An aggressive sampling program will commence within the coming weeks to gain samples for assay. The claims will be acquired from arm's-length vendors in consideration of the sum of $125,000 and six million fully paid and non-assessable shares, subject to submitting necessary filings and obtaining any necessary approvals from the Canadian Securities Exchange.

Why palladium?

Spot palladium traded as high as $2,829.75 an ounce, meaning that, at the peak, the metal was roughly $275 above the old record high, which was achieved last month. At the all-time high, palladium was already up 46 per cent for the year to date, which was nearing 2019's gain of 54 per cent. The palladium market has been in an annual supply/demand deficit for several years now. Earlier this month, Johnson Matthey issued a report saying auto-related demand rose to a record 9.7 million ounces last year even though auto sales fell in some countries, with more palladium needed for each auto catalyst in some regions due to stricter emissions regulations. The firm put the 2019 supply deficit at 1.19 million ounces and said it was "likely to deepen in 2020."

TD Securities said, "Palladium is stealing the spotlight," and "Metal scarcity will likely continue to push prices higher."

Review and qualified person

Chris M. Healey, PGeo, of Healex Consulting Ltd., an independent qualified person as defined under National Instrument 43-101, has reviewed and approved the scientific and technical information disclosed in this press release.

About Megumagold Corp.

Megumagold is a Canadian junior gold exploration company engaged in the business of acquiring, exploring and developing natural resource properties. Since 2018, the company has centred its exploration focus on the developing Meguma supergroup gold district of Nova Scotia. As a result, the company has assembled a strategically positioned land position of approximately 105,000 hectares within this promising geological domain.

(1) The reader is cautioned that resources that exist on adjacent properties are not necessarily indicative of potential on the PD 1 to 5 claims.

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