Baroyeca Signs LOI to Acquire 200ha Adjacent to Its High-Grade Gold Santa Barbara Project, Colombia

Vancouver, British Columbia--(Newsfile Corp. - December 15, 2021) - BAROYECA GOLD & SILVER INC. (TSXV: BGS) (the "Company") is pleased to announce it signed a Letter of Intent to acquire 200 hectares to the south of and contiguous to its Santa Barbara gold project in Bolivar, Colombia (See Fig. 1) bringing the total of the project to 310ha (the "Transaction"). The subject property includes a past-producing artisanal gold mine.

Raul Sanabria, President of Baroyeca says: "The acquisition of this additional ground secures the southwestern extension along strike of the already identified vein sets and increases an extra 60% our land position in the area to an approximately 2,100m by 1,800m block. The new area includes a past-producing gold mine that is known for recovering high-grade gold from near surface, from a parallel vein similar to the one Baroyeca is currently developing as an exploratory tunnel, and is less than 150m from our Pilot Processing Plant."

Under the LOI, in exchange for the Vendor transferring the approx. 200ha (NE ¼ quadrant of the 0-439 mining title) upon closing of the Transaction, Baroyeca agrees to pay to the Vendors a total of USD$250,000 in cash over three payments and to issue to the Vendor USD$250,000 worth of shares in the capital of Baroyeca in three tranches with the number of shares to be determined using the average closing price for the five trading days prior to each issuance date. Payments will be based on satisfaction of the following steps by, or on behalf, of the Vendor: 1. Filing the title transfer with the Colombian Mining Agency (the "ANM") in the name of Baroyeca's Colombia subsidiary company on signing of the definitive agreement; 2.The ANM issuing the Official Resolution approving the transfer of the mining rights to Baroyeca's Colombia subsidiary company; and 3. Registering the mining title in the name of Baroyeca's Colombia subsidiary company in the Colombian Mining Registry.

The LOI is non-binding and provides an exclusivity period until February 8, 2022 for the parties to negotiate a definitive agreement. The Transaction is subject to acceptance for filing by the TSX Venture Exchange. During the period of the processing of title transfer, the Company will be allowed to operate the project by means of an autonomous exclusive operation contract.

The projected southwest extension of some of the Santa Barbera veins continues onto the 0-439C2 property. Evidence consists of a series of pits and trenches made by artisanal miners in the past, which were recently mapped and georeferenced by Baroyeca's geologists. The 0-439C2 property is host to the abandoned Mariana mine which was previously sampled by a Qualified Person in 2013-2014. Results of the historical sampling are included in the company's NI43-101 report on the Santa Barbara project under the section "Adjacent Properties" and are in line with the Santa Barbara vein style of mineralization, grades and strike direction.

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Fig. 1. Location Map of the Santa Barbara project and 0-439-C2 property.

To view an enhanced version of Figure 1, please visit:
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About Baroyeca Gold & Silver Inc.

Baroyeca Gold & Silver Inc. is a mineral exploration company focused on high-grade silver and gold projects located in Colombia. Baroyeca's flagship asset is the high-grade Atocha Silver-Gold Project located in Tolima Department, Colombia. The Company also holds an option to acquire a 100% interest in the Santa Barbara Property, Bolivar Department, Colombia, which is renowned for its high-grade gold mineralization and vein density. Current exploration activities on the Santa Barbara Property involve the bulk sampling of vein structures, which material then feeds into a trial production facility which has consistently been producing gold for over a year. The revenue from the sale of produced gold defrays part of the operating costs. The Company is planning to expand these activities.

The Company's Board and senior management are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally and socially responsible mineral exploration.

Qualified Person

Raul Sanabria, M.Sc., P.Geo., President of Baroyeca Gold & Silver Inc. and a qualified person ("QP") as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

BAROYECA GOLD & SILVER INC.

Per: "Raul Sanabria"
Raul Sanabria, President

FOR INFORMATION CONTACT:

Rick Wilson - (604) 351-3599

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.

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