Mr. Charles Desjardins reports

PEGASUS RESOURCES INC. EXTENDS HIGH-GRADE POLYMETALLIC MINERALIZED SYSTEM TO OVER 900 METERS STRIKE LENGTH AT THE GOLD MOUNTAIN PROPERTY

Pegasus Resources Inc. has concluded the summer 2021 prospecting program carried out on its wholly owned (100 per cent Pegasus) Gold Mountain and Punch Bowl properties located north of Golden, B.C.

A brief exploration program was carried out at Gold Mountain during August, 2021, including:

• Extension of polymetallic mineralization from 600 metres to over 900 metres in strike length with sample 151659: 1.63 per cent copper, 76 grams per tonne silver, 2.34 g/t gold;
• Confirmation sampling of main zone with sample 151637: 0.37 per cent Cu, 2,260 g/t Ag, 0.99 g/t Au, 4.6 per cent zinc;
• Seven samples collected for petrographic analysis and characterization of mineralization, textures and alteration.

A brief exploration program was carried out at Punch Bowl during August, 2021, including:

• Additional confirmation of the historical work on the property, confirming mineralization within several separate gold-bearing veins with 24 samples collected at the main gold prospect, seven of which are greater than 0.1 g/t Au and two are greater than one g/t Au;
• Discovery of a new copper mineralized zone, located approximately 2.5 kilometres southeast of the main gold zone. Of the 13 samples of outcrop and float, six samples are greater than 0.1 per cent Cu and are up to 1.68 per cent Cu.

The Ag-Au-Pb-Zn-Cu-Sb (silver-gold-lead-zinc-copper-tin) mineralized system at Gold Mountain described in a prior news release (Jan. 13, 2021) was extended from approximately 600 metres length on surface to over 900 metres. The mineralized system is oriented southeast-northwest and is considered open in all directions. Mineralization consists of galena-chalcocite-malachite-azurite and coincides with the margins and intersections of quartz-carbonate veins, suggesting additional mineralized vein systems are located on the property. Irregular-shaped pods of mineralization form at these intersections, reaching 0.75 m long by 0.25 m wide. A total of 36 samples were collected from veined and altered outcrop and float/boulders during the summer 2021 program.

About Gold Mountain

Exploration during 1982 at the north showing, near the adit, identified a one m wide quartz vein, which returned grab samples of 4.87 g/t Au, 647 g/t Ag and 1.89 per cent Cu. At the south showing, five veins are exposed by trenches within a zone about four m wide, a peak value of 30.3 g/t Au, 123.1 g/t Ag and 32.54 per cent Cu was returned. Eight shallow backpack-style drill holes were completed in 1984, though poor recoveries were noted, results include:

• 4.04 m -- 59.04 g/t Au, 6,863.1 g/t Ag, 16.9 per cent Cu and 8.95 per cent Pb;
• 4.50 m -- 7.89 g/t Au, 942.2 g/t Ag, 2.3 per cent Cu and 5.26 per cent Pb.

Two thousand twenty sampling confirmed high-grade mineralization at the south showing with four samples returning from 1,000 to 6,670 g/t Ag.

About Punch Bowl

Historic work identified siliciclastic-hosted gold mineralization with variable quartz veins, which contain from background up to 500 g/t Au from grab samples.

Gold mineralization at the Punch Bowl claims was discovered in the late 1960s. Samples from this period returned a maximum value of 80 ounces per tonne Au. Exploration by Gamsan Resources in 1987/1989, confirmed the presence of numerous high-grade gold veins (Shaw and Morton, 1989).

Fifty-three samples were collected from a short property visit in 2020, with 39 returning anomalous Au values, of which 14 samples returned assays greater than 0.1 g/t with the highest assay returning at 3.41 g/t Au.

National Instrument 43-101 disclosure

The technical information in this news release was prepared and/or reviewed by Neil McCallum, PGeo, a qualified person as defined in National Instrument 43-101.

All rock samples from the 2021 season were shipped by ground to Activation Laboratories Ltd. in Kamloops, B.C., for multielement analysis (including silver) by aqua regia digestion with ICP-OES (inductively coupled plasma optical emission spectrometry) finish (code 1E3) and gold analysis by fire assay with atomic absorption finish (package 1A2B-50). Overlimit (greater than 10,000 parts per million) results for copper, lead and zinc were determined by the code-8 (peroxide fusion preparation with an ICP finish) analytical package. Overlimit (greater than 100 ppm Ag) results for silver was determined by code-8-Ag analytical package (fire-assay, gravimetric determination).

About Pegasus Resources Inc.

Pegasus Resources is a diversified junior Canadian mineral exploration company with a focus on uranium, gold and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholder value.

We seek Safe Harbor.