Provenance Gold Signs Definitive Joint Venture Agreement for the Drilling and Exploration of its Silver Bow Property

Vancouver, British Columbia--(Newsfile Corp. - January 13, 2021) - Provenance Gold Corp. (CSE: PAU) (FSE: 3PG) (the "Company" or "Provenance") is pleased to announce that the Company has signed a definitive Joint Venture Agreement (the "JV") with Palayan Resources, Inc. (OTC Pink: PLYN) ("Palayan"), to drill and explore its Silver Bow property in Nye County, Nevada. The companies believe the property hosts several excellent gold and silver exploration targets.

Under the terms of this definitive agreement 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 claim, within Silver Bow property. Under the terms of the agreement Palayan will commit up to USD$450,000.00 to earn its 49.5% interest in the property by way of a Phase I drill program anticipated to commence in February. Historically miners produced high-grade gold ores from veins on the claim. Provenance confirmed this with surface samples that returned 293 g/t Au, 12.4 g/t Au and 10.2 g/t Au, respectively, and silver values up to 785 g/t.

Rauno Perttu commented, "We are delighted to have entered into this JV which will enable us to drill and explore a strongly mineralized gold and silver system that is exposed on the surface for at least 500 meters before it goes under a shallow alluvial cover. This wide mineralized zone occurs along a structure that we have intermittently traced for more than two kilometers. We anticipate that our drilling will confirm strong continuous mineralization beginning at the surface along a width of up to 300 feet and extending the 1,500-foot length of the claim and beyond. We are excited about this program and believe it is the start of confirming a large gold and silver system on the Silver Bow property, while also enabling us to advance our White Rock property. This further helps to mitigate shareholder dilution while enabling us to explore and develop what we feel could become two very significant projects."

Because of slight delays related to weather and scheduling of the drill rig, drilling is planned to begin in mid-February.

The Company further announces that it intends to conduct a private placement of up to 3,000,000 units (each, a "Unit"), at a price of $0.10 per Unit. Each "Unit" will be comprised of one common share of the Company, and one common share purchase warrant exercisable at a price of $0.15 for a period of sixty months. Proceeds of this proposed placement will be used to advance its White Rock property and for general working capital purposes. In connection with the placement, the Company may pay finders' fees to eligible third parties that have assisted in introducing subscribers to the Company. All securities to be issued in connection with the placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.

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/71898

info