Mr. David Vincent reports

CONVERTIBLE DEBENTURES FORBEARANCE AGREEMENT

Canamex Gold Corp. has provided an update regarding the status of its secured convertible debentures issued by the company on Oct. 25, 2016, and Dec. 23, 2016, and which matured on Oct. 25, 2019, and Dec. 23, 2019, respectively.

A forbearance agreement dated Dec. 21, 2020, has been executed by the company and Concept Capital Management Ltd., Sinigual Sociedad SA and Golden Capital Consulting Ltd.

The majority debenture holders have agreed to further forbear from exercising their rights and remedies under the debentures and related security documents arising from the delays by the company in paying interest and repaying the principal of the debentures, provided that the outstanding obligations under the debentures are repaid on or before March 31, 2021.

If the company fails to make full payment, including any agreed penalties, on or before March 31, 2021, then the majority debenture holders shall be entitled in their sole discretion to enforce their rights under the loan documents.

Gold forward sale -- update

On July 15, 2020, the company provided an update regarding the status of its Gold forward sale agreement with MetalStream Ltd., originally announced Jan. 27, 2020, and an extension announced April 23, 2020.

The company advised that the initial first tranche payment was increased to $5.5-million (U.S.) and was delayed due to COVID-19-related banking and logistic delays, experienced by MetalStream. Despite these COVID-19-related delays, the company and MetalStream remain fully committed to the agreement; and the first tranche payment is expected to be completed before March 31, 2021.

The subsequent second and third tranches payable under the agreement were also amended as follows:

• Second tranche payment of $5-million (U.S.) was increased to $5.5-million (U.S.); and
• Third tranche payment of $25-million (U.S.) was reduced to $24-million (U.S.).

The company proposes to use the proceeds from its agreement with MetalStream to settle the interest and any penalties, and repaying the principal of the debentures, on or before March 31, 2021.

About Canamex Gold Corp.

Canamex is a public listed company registered in British Columbia, Canada, trading on the Canadian Securities Exchange and is engaged in predevelopment of the Bruner gold and silver project in the prolific gold jurisdiction of Nye county, Nevada. The region is home to several producing and past-producing mines along the Walker Lane trend. Canamex completed a positive preliminary economic assessment on the Bruner project in 2016. Based on additional drilling conducted on the property, the company completed an updated PEA in 2018, which increased the resources and improved the economics of the project.

The PEA is based primarily on indicated resources, but also included about 10 per cent inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

Canamex is planning to move the Bruner project forward into permitting and development using the proceeds from a gold stream forward sale to MetalStream Ltd.

Projects that proceed to construction based solely upon a PEA have a higher degree of risk associated with them than projects that have gone through a feasibility study of mineral reserves. Canamex is not basing its decision to proceed to permitting and construction on a feasibility study. Feasibility-level engineering will proceed in parallel with project permitting such that both should be completed simultaneously to allow project construction to commence after feasibility-level engineering has been completed.

We seek Safe Harbor.