Mr. Hernan Smith reports

VANGOLD MINING CONTINUES EXPLORATION OF EL PINGUICO SHAFT

Vangold Mining Corp. is continuing its summer exploration program of the El Pinguico silver and gold project located seven kilometres south of Guanajuato, Mexico, by re-entering the El Pinguico shaft. The company has also engaged the geological consulting services of Alegre Resources Corp. to assist in computer modelling of the El Pinguico vein systems, and to generate drill targets for its fall drill program.

El Pinguico shaft

Company crews have now entered the El Pinguico shaft and have safely accessed the No. 6 adit level. The company believes that this is the first time that the No. 6 level has been accessed in this location since the mine was closed in 1913. In the days ahead, crews intend to clean and refurbish the fifth and sixth adit levels before attempting to reach its goal of accessing the seventh (or Sangria) adit level. From the Sangria level, the company anticipates being able to sample the bottom of the underground stockpile (which crews are also able to view from the sixth level), as well as in situ vein material. It is anticipated that a large section of exposed vein material at the sixth level, unknown prior to this work, will be among the areas sampled by channel sampling.

The shaft entrance and surrounding area have been cleaned and prepared ahead of the installation of a one-tonne hoist onto the company's metal head frame, and the installation of a large winch which was accomplished last week. A diesel generator is scheduled to arrive today, which will power the winch, and crews can begin removing debris material from the bottom of the shaft. A protective cage has also been constructed, which will allow crews to operate safely while work is done on the hoist and head frame approximately 150 m directly above.

Geological work

Geological crews are expected to arrive on Monday, Aug. 24, to begin a series of exploration initiatives which will support drill hole targeting. Both underground and surface structural mapping will be undertaken on a 1:1,000 scale. This will allow interpretation of fault structures within the deposit and establish a greater understanding of how these fault structures may have displaced vein material. Crews will also begin systematically sampling exposures of vein material within the mine's old workings, and later begin a trenching campaign to target vein material immediately south of the main El Pinguico mine area. All of this work is in preparation for underground drilling anticipated to commence in mid-fall.

Alegre Resources Corp.

Vangold has engaged the services of geological consulting firm Alegre Resources Corp. Based in Vancouver, Canada, Alegre has earned a reputation for innovative, practical and cost-effective approaches to exploration. Alegre has developed programs in many countries, and with a focus on precious metals in Latin America. Vangold Mining director and geologist Bill Gehlen said: "We are delighted to have the team at Alegre involved in target recognition and target generation for this project. There is ample old data from El Pinguico to synthesize, and create drill targets, however there is no historic drill hole data base to start from. We therefore want to take the time and do the work necessary to ensure a strong start to our drilling when it commences."

COVID-19 delays

It should be noted that the above-mentioned work is now advancing on time, and at planned pace and budget, after several short COVID-19-related delays. In May and June, when the company undertook to send a 1,039-tonne bulk sample to Endeavour Silver's Bolanitos mill, it was able to accomplish that work with little or no disruption regarding COVID-19 protocols. Recently, during the commencement of underground work related to reopening the El Pinguico shaft, the company has experienced occasional short delays due to the practising of COVID-19-related procedures. The company views these delays as acceptable under the circumstances. Vangold will not put any of its employees or contractors in unnecessary jeopardy; and all reasonable precautions related to the spread of the virus continue to be adhered to.

The El Pinguico project

El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. Toward the end of that period it was mined exclusively by the Pinguico Mines Company of New York, whose shares traded on the Boston and New York stock exchanges. The mining was done principally from the El Pinguico and El Carmen veins, which are thought to be splays off the Mother vein, or Veta Madre.

The Veta Madre is associated with a megafault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. The Veta Madre may cross Vangold's property at depth, underneath the high-grade El Pinguico and El Carmen veins. Very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth.

Hernan Dorado Smith, a director of Vangold and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.

About Vangold Mining Corp.

Vangold Mining is an exploration and development company engaged in reactivating high-grade past-producing silver and gold mines near the city of Guanajuato, Mexico. The company's El Pinguico project is a significant past producer of both silver and gold located just seven km south of the city. The company remains focused on the near-term potential for development and monetization of its surface and underground stockpiles of mineralized material at El Pinguico, and in delineating silver and gold resources through underground and surface drilling on projects located in this historic mining camp.

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