UrbanGold Completes Drilling in the Troilus Area and Modifies Terms of Recently Announced Private Placement

Ottawa, Ontario--(Newsfile Corp. - November 21, 2019) - UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") is pleased to announce that it has completed its first phase of diamond core drilling on its Troilus area properties (the "Property") with a total of 3,562 metres. 2,537 samples were taken from the drill core and are currently at the laboratories in Val d'Or pending assaying.

The drill program focused on three different portions of the Property. 14 holes totalling 2,005 metres were completed on the Argonaut Gold ("Argonaut") ground, on which UrbanGold entered into an earn-in agreement (see September 13, 2019 news release). The program focused on potential extensions of historical mineralized zones, with a few holes aiming to verify historical intersections so they can be used for a potential future resource calculation under National Instrument ("NI") 43-101 guidelines. A list of select historical occurrences is shown in table 1 below.

Table 1: Main Occurrences on Argonaut Claims

Free Gold
  • Grab sample: 353 g/t Au
  • 42.1 g/t Au over 2.29 metres (Diamond Drill hole W-10, AQ Size)
  • including 175.0 g/t Au over 0.5 metres
  • 50.0 g/t Au, 1.1% Cu over 0.5 metres (Diamond Drill hole W-11, AQ Size)
  • 36.9 g/t Au over 1.2 metres (Diamond Drill hole T80-2, BQ Size)
  • 7.7 g/t Au over 3.4 metres (Diamond Drill hole T80-6, BQ Size)
T-38 Zone
  • 9.5 g/t Au over 4.75 metres (Diamond Drill hole 88-TN-08, BQ size)
Zone M
  • 3.1% Cu, 0.25 g/t Au and 42.0 g/t Ag over 5.1 metres (Diamond Drill hole W-2, AQ Size)
Lac Dauphin
  • 3.2 g/t Au and 104 g//t Ag over 1.9 metres (Diamond Drill hole 10, Unknown core size)
South Zone
  • 6.8 g/t Au over 0.5 metres (Diamond Drill hole 88-TF-01, BQ Size)
  • 2.2 g/t Au, 8.9 g/t Ag and 0.23% Cu over 1.0 metres (Channel Sample)
  • 2.3 g/t Au over 0.5 metres (Channel Sample)

*The reader is cautioned that the values presented are historic in nature and may not represent true widths. There is insufficient information at this time to determine true widths of the mineralized intercepts

Another portion of the program focused on UrbanGold's Bullseye block which surrounds the Argonaut claims. Nine holes totalling 1,164 metres targeted induced polarization anomalies, some of which were associated with mineralization discovered at surface during the summer program.

The third area of interest drilled was the Larabel block located in the northeastern portion of the Property. The summer exploration program uncovered a new gold occurrence in a favorable area, in geological context similar to the Troilus Mine mineralization. Three holes totalling 393 metres were completed on this portion of the property. Please refer to the September 26, 2019 news release regarding the surface sampling discoveries.

All assays are pending, and preparations are underway for a winter drill program which will follow-up on the fall drill results with deeper drilling, and target specific areas that could not be accessed this season due to terrain conditions.

UrbanGold also wishes to announce that, further to its news release of October 22, 2019 disclosing the terms of a brokered private placement (the "Offering"), it is reducing the minimum Offering of units to 2,000,000 units (the "Units") resulting in gross proceeds of $250,000 and reducing the maximum Offering of common shares issued on a flow-through basis (the "Flow-Through Shares") to 6,666,667 Flow-Through Shares resulting in gross proceeds of $1,000,000. All other terms of the Offering remain the same. The amendment is subject to acceptance by the TSX Venture Exchange.

Under the new terms, the Offering consists of a minimum of 2,000,000 Units to a maximum of 8,000,000 Units priced at $0.125 per Unit resulting in gross proceeds of a minimum of $250,000 to a maximum of $1,000,000 and a minimum of 5,000,000 Flow-Through Shares to a maximum of 6,666,667 Flow-Through Shares priced at $0.15 per Flow-Through Share resulting in gross proceeds of a minimum of $750,000 to a maximum of $1,000,000. The Units will be comprised of one (1) common share of the Company ("Common Share") and one-half of one (1/2) Common Share purchase warrant ("Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share for $0.18 expiring 18 months from the date of the closing of the Offering.

In the following order, depending on the proceeds raised, UrbanGold intends to use a minimum of $750,000 to a maximum of $1,000,000 to fund the Company's exploration program and a minimum of $250,000 to a maximum of $1,000,000 to fund working capital and general corporate purposes.

Qualified Person

This news release has been prepared by Mathieu Stephens, P.Geo., President and CEO for UrbanGold Minerals, the Qualified Person, as defined by NI 43-101.

About UrbanGold

UrbanGold Minerals Inc. is a gold and base-metals exploration company, federally incorporated and headquartered in Ottawa, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "UGM". UrbanGold is focussed on mineral exploration in Quebec.

Forward Looking Information

This news release may contain certain forward-looking information and statements, including without limitation, the follow-up winter drill program, the closing of the Offering, statements pertaining to the use of proceeds, and the Company's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in UrbanGold's disclosure documents on the SEDAR website at www.sedar.com. UrbanGold does not undertake to update any forward-looking information except in accordance with applicable securities laws.

For further information

Mathieu Stephens, President and Chief Executive Officer

Jens Hansen, Chairman of the Board

Phone (613) 721-2919

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/49963