UrbanGold Options Stargold to Crest Resources

Laval, Quebec--(Newsfile Corp. - February 3, 2021) -  UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") announces that it has signed an option agreement (the "Agreement") with Crest Resources Inc. (CSE: CRES) ("Crest"), pursuant to which and subject to the acceptance of the Canadian Stock Exchange, Crest has been granted an option (the "Option") to acquire a 100% interest in the Stargold project (the "Claims") located approximately 160 kilometres northeast of the Town of Val d'Or, in the Province of Quebec.

Pursuant to the terms of the Agreement, Crest shall have the right until the third anniversary of the Agreement to acquire 100% of UrbanGold's interest in the Claims (the "Acquisition") by:

(a) making a total cash payment of $25,000 to UrbanGold on the Closing Date (as defined in the Agreement); and

(b) issuing common shares in the capital stock of Crest (the "Option Shares") as follows:

(i) 400,000 Option Shares to UrbanGold on the Closing Date;

(ii) 400,000 Option Shares to UrbanGold within one year of the Closing Date;

(iii) 400,000 Option Shares to UrbanGold within two years of the Closing Date;

(iv) 1,250,000 Option Shares to UrbanGold within three years of the Closing Date.

A portion of the Claims are subject to a 1% net smelter returns ("NSR") royalty ("Existing Royalty"). Upon completion of the Option, UrbanGold will transfer a 100% stake in the Claims to Crest. At that time, Crest will grant a royalty to UrbanGold equal to 1% of the NSR on the Claims that are not subject to the Existing Royalty.

UrbanGold is focused on advancing its Troilus-Frotet area properties where it has recently completed a drilling program (see UrbanGold's January 26, 2021 news release) immediately south of the Kenorland Minerals Ltd. Regnault gold discovery (see Kenorland's July 29, 2020 news release). Assay results for the UrbanGold drill program are pending.

About UrbanGold
UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused on the Troilus-Frotet gold belt, Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company's common shares trade on the TSX Venture Exchange under the symbol "UGM".

About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the symbol CRES. Crest's principal business activity is the acquisition, exploration and evaluation of mineral property assets in Canada, Australia and Peru and the investment in mineral exploration companies and related mining technologies of merit. Crest's Canadian mineral property assets include various land and corporate ownership positions within the Exploits Subzone, the newest emerging district-scale gold exploration and mining district in the province of Newfoundland and Labrador.

Forward Looking Information
This news release may contain certain forward-looking information and statements, including without limitation, approval of the Canadian Stock Exchange, the closing of the Acquisition and the reception date of the assay results. 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

Investor Relations (English)
First Canadian Capital Corporation
Phone: 416-742-5600

Investor Relations (French)
Phone: 514-346-3813

Company Officers
Jens E. Hansen, P.Eng: / jeskhansen@gmail.com
Mathieu Stephens, P.Geo

Phone: 613-721-2919

Neither the 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/73603