Ms. Yoana Thomas of Augusta Investments reports
PRESS RELEASE FOR EARLY WARNING REPORT
REGARDING AUGUSTA GOLD CORP.
Since its initial
investment in Augusta Gold Corp., a company with an address at Suite 555, 999
Canada Place, Vancouver, B.C., V6C 3E1, on Oct. 26, 2020, to
Jan. 29, 2021, Augusta Investments Inc., a
company controlled and directed by Richard Warke, acquired an aggregate of 1,333,334 shares of common stock of
Augusta Gold by way of certain private transactions at a price of $1.38 (U.S.) per share for total consideration of $1.84-million (U.S.). The 1,333,334 shares represent 2.24 per cent of the
issued and outstanding shares as at Jan. 29, 2021. Based on the daily exchange rate provided by the
Bank of Canada of $1.2810 (Canadian) to $1 (U.S.) on Jan. 28, 2021, the shares were acquired at an equivalent
price of $1.77 (Canadian) per share for aggregate consideration of $2,357,040 (Canadian).
In Augusta Investments' early warning report filed in respect of its initial investment, Augusta
Investments reported that, after giving effect to the initial investment, it would own, directly or
indirectly, or exercise control or direction over, 17,375,000 shares and 17,375,000 share purchase
warrants, representing 32.0 per cent of the total number of issued and outstanding shares on a
non-diluted basis and 48.5 per cent of the issued and outstanding shares on a partially diluted basis (all after
giving effect to the share consolidation that occurred on Jan. 26, 2021).
After the transactions, Mr. Warke owns, directly or indirectly, or exercises control or direction over,
18,708,334 shares and 17,375,000 warrants, representing 31.4 per cent of the total number of issued and
outstanding shares on a non-diluted basis and 46.9 per cent of the total number of issued and outstanding
Shares on a partially diluted basis. Augusta Investments acquired the shares for investment purposes.
Depending on market conditions and other factors, Augusta Investments or one of its affiliates may,
from time to time, acquire additional shares or other securities of Augusta Gold, or dispose of some or
all of its shares or other securities of Augusta Gold.
The transactions were exempt from the formal bid requirements of National Instrument 62-104, Take-Over Bids and Issuer Bids, as the purchases were made from not more than five persons in the aggregate,
the bid was not made generally to Augusta Gold shareholders, and the value of the consideration paid
for the shares was not greater than 115 per cent of the market price of the shares as at the date of the bid.
Augusta Investments is an investment holding company organized under the laws of the British Virgin
Islands. For a copy of the early warning report to which this news release relates, please contact Yoana Thomas, Augusta Investments, Suite 555, 999 Canada Place, Vancouver, B.C., V6C 3E1, telephone at 604-687-1717.
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