Provenance Gold Enters into Letter of Intent to Form Joint Venture for Development of Silver Bow Property with Drilling to Commence in January and Announces Drill Ready Status at its White Rock Property

Vancouver, British Columbia--(Newsfile Corp. - December 7, 2020) - Provenance Gold Corp. (CSE: PAU) (FSE: 3PG) (the "Company" or "Provenance") is pleased to announce that the Company is now drill ready on its newly acquired White Rock property in addition to its Silver Bow property, both in Nevada.

Provenance acquired the White Rock gold property in northeastern Nye County earlier this year and then expanded the property to a total of 258 claims comprising 5,160 acres. This expansion resulted from a new understanding of the gold system after review of historical drill logs and the Company's field work. This new understanding has identified what the Company anticipates being a major gold mineralization system that starts at the surface. The Company believes the property hosts a large structurally controlled, sediment-hosted gold system similar to the Black Pine mine in nearby Idaho. The property is now drill-ready with the initial program designed to verify and expand on the historically identified gold zones, and to confirm the new mineralization model.

Provenance also controls the Silver Bow property east of Tonopah, Nevada. Based on the Company's review of historic information, its subsequent field work and a new understanding of the extensive mineral system, the Company believes Silver Bow contains a major zoned gold and silver system with large specific exploration targets. Provenance has identified extensive areas of strong shallow gold and silver mineralization within a large caldera and flow-dome related gold and silver system that is exposed on the surface, plus additional deep high-grade targets. An initial staged drilling program has been prepared, and this property is also drill-ready with a drill program planned to commence in January.

In addition, Provenance has signed a Letter of Intent (the "LOI") dated December 4th, 2020 with Palayan Resources, Inc. (OTC PINK: PLYN) ("Palayan"), a publicly trading, US fully reporting emerging growth company. It is anticipated that Palayan and Provenance will form a Joint Venture in which Palayan will receive a 49.5% interest (the "Palayan JV Interest") upon funding of an initial 20-hole drill program on Provenance's Blue Horse property, within Silver Bow.

Rauno Perttu commented "We have worked diligently to get both these properties to the drill ready stage and are exited to have the opportunity through funding from Palayan to begin drilling the Silver Bow property in January. With the success of the Silver Bow drilling program, we should be in a good position to drill the White Rock property shortly thereafter. We believe both properties have the likelihood to contain large ore systems that will allow us to build a strong base for the longevity of the Company."

Completion of the transaction contemplated by the LOI, and the funding of the drill program at Silver Bow by Palayan, remains subject to ongoing due diligence and the negotiation of definitive documentation.

Please refer to the Company's website for further information and to review its reports on both the White Rock property and Silver Bow property in addition to assay and other key exploration data @ https://www.provenancegold.com .

Rauno Perttu, P. Geo., a Qualified Person (as defined by National Instrument 43-101), and the Chief Executive Officer of the Company, has reviewed and approved the technical contents of this News Release.

On behalf of the Board,

Provenance Gold Corp.

Rauno Perttu, Chief Executive Officer

For further information about the Company or this proposed private placement please contact the Company at: rclark@provenancegold.com

Neither the Canadian Securities Exchange, nor its regulation services provider, accepts responsibility for the adequacy or accuracy of this press release.

This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to proposed activities at the White Rock gold project, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69641

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