Mr. Charles Desjardins of Pistol Bay reports

PISTOL BAY EXPEDITES ACQUISITION OF GARNET LAKE/ARROW ZONE AND FREDART/COPPERLOAD PROPERTIES.

Pistol Bay Mining Inc. has negotiated an agreement expediting the option agreement with Aurcrest Gold Inc. which includes the Garnet Lake/Arrow zone and the Fredart/Copperload properties subject to the Toronto Stock Exchange approval.

The Garnet Lake/Arrow zone and the Fredart/Copperload properties both have National Instrument 43-101 resources. Pistol Bay negotiated an expedited agreement for the final two years of the option agreement for 100-per-cent interest in the properties.

The Aurcrest option agreement includes other claims besides Fredart/Copperload and Garnet Lake/Arrow zone.

Garnet Lake/Arrow zone has an NI 43-101 resource of the following.

3-per-cent-zinc-equivalent cut-off:

• Indicated resource of 2,071,000 tonnes at 5.92 per cent Zn, 0.75 per cent copper, 21.1 grams per tonne silver and 0.58 g/t Au;
• Inferred resource of 120,550 tonnes at 2.60 per cent Zn, 0.56 per cent Cu, 18.6 g/t Ag and 0.40 g/t Au.

5-per-cent-Zn-equivalent cut-off:

• Indicated resource of 1,762,000 tonnes at 6.75 per cent Zn, 0.79 per cent Cu, 22.3 g/t Ag and 0.61 g/t Au;
• Inferred resource of 51,630 tonnes at 3.86 per cent Zn, 0.79 per cent Cu, 23.9 g/t Ag and 0.58 g/t Au.

10-per-cent-Zn-equivalent cut-off:

• Indicated resource of 633,000 tonnes at 14.3 per cent Zn, 1.11 per cent Cu, 31.7 g/t Ag and 0.85 g/t Au.

Copperlode A or Fredart zone has non-compliant NI 43-101:

• A historical mineral resource of 386,000 t grading 1.56 per cent copper and 33.6 g/t silver;
• Four conductors with lengths of 400, 850, 900 and 950 metres over a length of 6.5 kilometres.

Pistol Bay Mining option to earn a 100-per-cent interest in the Confederation Lake property from Aurcrest Gold

Referring to the option agreement dated Oct. 21, 2016, as amended Feb. 8, 2019, and Oct. 1, 2019, between the company and Aurcrest, the company and Aurcrest agree that Section 2 of the option agreement is hereby amended and the company shall exercise the option on the following basis:

1. Paying to Aurcrest $50,000 on or before Jan. 28, 2020;
2. Issuing to Aurcrest, effective Jan. 28, 2020, two million common shares of the company, 500,000 common shares of which shall be legended and restricted from trading for four months and one day from the effective date and 1.5 million common shares of which shall be legended and restricted from trading for six months from the effective date, with the final share issuance delivered to Aurcrest within three business days following the effective date;
3. Upon final payment, the title of the properties will be transferred to Pistol Bay Mining.

About Pistol Bay Mining Inc.

Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholders value.

We seek Safe Harbor.