Mr. Scott Trebilcock reports

KORE MINING DEFINES GOLD EXPLORATION TARGETS ADJACENT TO IMPERIAL AND EXTENDING TO THE MESQUITE MINE

Kore Mining Ltd. has released the results from its ground geophysics program on the Mesquite-Imperial-Picacho district exploration project. Previously, Kore tuned the ground geophysics over its Imperial deposit and has now completed initial work using the tuned signatures to define exploration targets on the western half of the district exploration project. The district covers 28 kilometres of total strike length from the operating Mesquite mine (Equinox Gold Corp.) to the closed Picacho mine and including Kore's Imperial project.

Highlights:

• Confirms district scale: 19 km of anomalies from Imperial to the Mesquite mine;
• Eastern nine km of district to Picacho remains unexplored and a future opportunity for Kore;
• Structural preparation for low-sulphidation epithermal deposits like Mesquite, Imperial and Picacho are evident in interpreted northwest-trending faults and folding;
• Four targets areas defined, each with potential to host multimillion-ounce gold structures:
  • Mesquite East (six km in length): two northwest-trending fault structures coincident with regional folding, on strike from Mesquite's Vista and Rainbow deposits;
  • Ogilby (seven km in length): two parallel fault structures coincident with historic placer gold mining;
  • Imperial East and Imperial West (together, six km in length): direct extension of Imperial deposit thrust fault aligned with previously announced resource expansion targets.

Next steps (anticipated in Q2 2020):

• Mesquite East and Imperial East and West follow-up program will include:
  • Field mapping, soil sampling and additional ground geophysics to target drilling;
  • Drill testing highest priority targets.
• Ogilby will remain a future opportunity for Kore.

Scott Trebilcock, president and chief executive officer of Kore, stated, "Kore's recent work is the first step in the exploration process to tap the vast potential of the Mesquite-Imperial-Picacho district." Mr. Trebilcock continued: "Districts controlled by a single company are rare in the hypercompetitive gold-exploration world. Unlocking the potential of the Mesquite-Imperial-Picacho district could extend Imperial county's long history of gold mining for many decades to come."

Kore owns 100 per cent of the district, which consists of 26,323 acres on 1,007 claims and captures the entire 28 km trend. In the district, gold is hosted in local fault structures related to a series of regional faults connecting the known district deposits. Those three district deposits (Mesquite-Imperial-Picacho) were discovered in exposed outcrops and from placer workings. The rest of the district is covered by alluvium and has never been systematically explored. Having the intact Imperial deposit to tune or fingerprint geophysical signatures greatly enhances the ability to explore and target deposits under the alluvium and make new discoveries along the trend.

Ground geophysics program details

Q1 2020 exploration utilized induced polarization geophysics with 16 lines for a total of 45 line km, including those announced in the Jan. 7, 2020, news release. IP geophysics was the chosen method due to the success of the identified geophysical signature corresponding well with that of the intact Imperial gold deposit, also announced on Jan. 7, 2020. New ground geophysics lines consisted of 29.4 line km of induced polarization.

Results and conclusions

The district, in addition to the large Mesquite-Imperial-Picacho deposits, has a long history of placer gold mining from surficial gravels. Several Mesquite group deposits and the Imperial deposit were discovered from following the gold in gravels to the underlying hard-rock gold mineralization. Documented placer gold mining in the district goes as far back as the transcontinental railroad construction in the late 1800s, but archeological evidence goes back into the Spanish colonial period. Much of the district is covered in alluvium from the Colorado River Valley and there is little to no outcrop. Geophysics is the best way to target drilling under the gravels.

The Mesquite East target is interpreted as multiple near-vertical and parallel northwest-trending resistive fault structures on strike with the Vista and Rainbow pits of the adjacent Mesquite mine. These resistive structures are coincident with regional folding and are flanked by locally high-chargeability anomalies that could be indicative of remnant sulphide mineralization.

Follow-up work on Mesquite East will include ground reconnaissance soil sampling, additional ground geophysics and drill targeting on the interpreted structures.

The Ogilby target area sits between the Mesquite East and Imperial West target areas. The Ogilby target, much like the Mesquite mine and the Imperial deposit, has historic placer gold mining from surficial gravels. The interpreted near-vertical resistive structures (faults) appear to have good continuity through to both the Imperial deposit to the east and the Mesquite mine to the west. As with the Mesquite East target, the resistive structures appear to be flanked by higher chargeability zones, indicative of sulphides or partially oxidized sulphides.

The Imperial East and Imperial West target areas are a direct extension of the drilled resource of the Imperial deposit. The interpreted thrust fault structure underscores the Imperial deposit and continues for 2.5 km to the west and at least one km to the east for a total interpreted strike length of over six km. A second near-vertical fault structure has been interpreted on the north side of the drilled deposit and has not seen any drilling.

About Imperial project

The Mesquite-Imperial-Picacho trend centres on Kore's Imperial project. Imperial is a structurally controlled intermediate sulphidation epithermal gold deposit. The 100 per cent oxide gold deposit is currently defined at 2.44 km long and up to 0.75 km wide, and is open both along strike and down dip. It is hosted in a shallowly southwest dipping, amphibolite-grade metamorphic rock suite along a west-northwest trending low-angle regional thrust fault system. The thrust fault system controls the regional geometry of mineralization. East-west striking, postmineralization normal faults control the property-scale geometry of mineralization. Geophysical characterization of the deposit and regional controlling structures is an essential component of exploration for additional resources.

Imperial has a mineral resource estimate, published Dec. 30, 2019, and a positive preliminary economic assessment published April 6, 2020, with the following highlights:

• Robust economics: $343-million (U.S.) net present value 5 per cent posttax with 44-per-cent internal rate of return at $1,450 (U.S.) per ounce gold;
• Low capital intensity project with only $142-million (U.S.) preproduction capital cost;
• 146,000 ounces gold per year over eight years for 1.2 million ounces total production;
• Technically simple project: shallow open pit, run-of-mine heap leach with existing infrastructure;
• Value enhancement through Mesquite-Imperial-Picacho district exploration and resource expansion.

Other matters

Kore has granted stock options to its chief financial officer and its chief operating officer as part of the company's long-term incentive plan exercisable into 800,000 common shares of Kore at 43.5 cents per share with a five-year term. Kore has also retained Kin Communications to provide investor relations services to the company for a term of 12 months and, as part of its remuneration, has granted Kin Communications 200,000 stock options exercisable at 43.5 cents per share with a five-year term, vesting in stages pursuant to the requirements of the TSX Venture Exchange, in addition to a monthly fee of $7,500. All options have been granted pursuant to the company's stock option plan and subject to compliance with all applicable laws and the rules (and approval) of the TSX-V.

About Kore Mining Ltd.

Kore is 100 per cent owner of a portfolio of advanced gold exploration and development assets in California and British Columbia. Kore is supported by strategic investors Eric Sprott and Macquarie Bank, which, together with the management and board, own 66 per cent of the basic shares outstanding.

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