Mr. Jonathan Hamel reports

MOSAIC ACQUIRES 100% OF THE AMANDA PROJECT

Mosaic Minerals Corp. has signed a letter of intent with Iamgold Corp. to acquire 100 per cent of the Amanda property, located in Jamesie, Que.

Terms of the agreement

The letter of intent signed between the two parties contains the following terms:

• Mosaic acquires a 100-per-cent interest in the Amanda property.
• Mosaic must fulfill its original commitments ($250,000 of work on Amanda by Oct. 31, 2024) or pay the difference in cash to Iamgold.
• Mosaic will issue three million shares to Iamgold.
• Mosaic will grant a 2-per-cent royalty to Iamgold.
• If Mosaic files a National Instrument 43-101 report with a resource of at least 300,000 indicated ounces of gold (with or without associated minerals), Mosaic will pay $250,000 cash to Iamgold within 90 days.
• Following the filing of an NI 43-101 report, including a resource of at least 300,000 indicated ounces of gold, Iamgold will have 180 days to secure a back-in right and acquire up to 75 per cent of the project under a standard joint venture agreement. This back-in right only applies to gold and/or silver as the primary deposit.

To exercise the back-in right, Iamgold will provide written notice to Mosaic to that effect and make exploration expenditures on the property equal to four times the exploration expenditures made on the property by Mosaic since acquiring a 100-per-cent undivided interest in the property within the following time periods:

1. Four years after the date of exercise of the back-in option, if Mosaic has incurred exploration expenditures of less than or equal to $2.5-million and, as a result, Iamgold must incur exploration expenditures of less than or equal to $10-million;
2. Or five years after the date of exercise of the back-in option, if Mosaic has incurred exploration expenditures greater than $2.5-million but less than or equal to $3.75-million, and, as a result, Iamgold must incur exploration expenditures greater than $10-million but less than or equal to $15-million;
3. Or six years after the date of exercise of the back-in option, if Mosaic has incurred exploration expenses of $3.75-million or more, as a result, Iamgold must incur exploration expenses of $15-million or more.

During the back-in right period, Iamgold will be the operator with overall responsibility for managing and carrying out all operations and activities associated with the property. Following the back-in right exercise date and satisfaction of the back-in right obligations, Iamgold will remain the operator of the property.

"The company's management is very pleased to have concluded this agreement with Iamgold Corp. This will allow us to consolidate our presence in Jamesie and to be able to plan our work on Amanda without a predetermined schedule. The Amanda project offers various possibilities by the presence of gold but also for base metals and lithium," concluded Jonathan Hamel, president and chief executive officer of Mosaic.

The Amanda project, consisting of 145 cells with an area of approximately 7,677 hectares, is accessible by a year-round forest road. The company's management is planning an exploration program that could be carried out during the summer period, with the primary objective of evaluating the importance of the new gold showings discovered in 2020.

Several gold occurrences associated with iron formations and paragneiss are known in the eastern part of the Amanda property. Mineralization consists of pyrite, pyrrhotite, disseminated arsenopyrite and gold in boudinaged quartz veins cutting iron formations or in paragneiss.

Following a prospecting program carried out in 2020, five new gold showings were identified on the Amanda project. The Raphy, Jako, Natel, Beryl and Marko showings all revealed significant gold grades of up to 1,835 parts per billion. These showings, associated with silicified biotite paragneisses mineralized with pyrite and/or quartz veins mineralized with pyrite or chalcopyrite, highlight the presence of a quartz-tourmaline alteration system and pyrite-chalcopyrite mineralization affecting the host rocks that could be responsible for the contribution of gold mineralization. The Natel gold showing located in the western part also presents gold anomalies associated with folded iron formations. To the north of the eastern sector, the Jako index is associated with a biotite paragneiss containing mineralized quartz veinlets near oxidized and silicate iron formations identified during the 2020 field campaign.

Several other areas of the property are of interest for the discovery of gold mineralization. An area located under Lac du Beryl combines several criteria favourable to the presence of gold mineralization. In the eastern sector, the presence of the late-tectonic Beryl-Sud pluton also provides a favourable context for the emplacement of mineralization associated with intrusions. This unit was never observed in outcrop during the 2020 drilling campaign, but the presence of gold-bearing pegmatites near this intrusion supports this model.

The agreement is subject to approval by the Canadian Securities Exchange and relevant authorities.

The scientific and technical information of Mosaic Minerals included in this press release has been reviewed and approved by Gilles Laverdiere, PGeo, vice-president, exploration, of Mosaic Minerals and a qualified person under National Instrument 43-101 respecting information concerning mining projects.

About Mosaic Minerals Corp.

Mosaic Minerals is a Canadian mining exploration company listed on the CSE focusing on the exploration of critical minerals such as nickel in the province of Quebec.

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