UrbanGold Announces a Loan Financing

Ottawa, Ontario--(Newsfile Corp. - December 30, 2019) - UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") announces the receipt of an unsecured loan (the "Loan") in the amount of $500,000 (the "Principal Amount") from a non-related party (the "Lender"). The Loan bears an annual interest rate of 8%, payable quarterly in cash.

The Principal Amount of the Loan shall be repaid to the Lender at the latest on January 31, 2021. It is agreed, however, that the Principal Amount will be payable by UrbanGold to the Lender as soon as possible but not later than three business days following the recovery of the Quebec refundable tax credits for resources for its fiscal year ended May 31, 2020. UrbanGold may at any time repay, in full or in part, the Loan without penalty or other costs. No commission or finder's fee were paid in relation to the Loan financing.

About UrbanGold

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

Forward Looking Information

This news release may contain certain forward-looking information and statements, including without limitation, the recovery of the tax credits. 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
mstephens@urbangoldminerals.com

Jens Hansen, Chairman of the Board
jhansen@urbangoldminerals.com

Phone (613) 721-2919
www.urbangoldminerals.com

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/50989

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