Colombian gold miner sets sights on Juby Project in Gowganda

Caldas Gold Corp. has announced that it has entered into a definitive agreement to which Caldas will acquire all of the issued and outstanding shares of privately-held South American Resources Corp., to be effected by way of a three-cornered amalgamation between Caldas Gold, SARC and a wholly-owned subsidiary of Caldas Gold.

The Juby Project is an advanced exploration-stage gold project located in Ontario, Canada, approximately 15 km west-southwest of the town of Gowganda and 100 km south-southeast of the Timmins gold camp within the Shining Tree area in the southern part of the Abitibi greenstone belt. Over 14,000 acres are controlled through the patented claims of the Juby Project covering 10 km strike length on the mineralized trend.

Pursuant to the terms of the Acquisition Agreement, Caldas Gold will issue twenty million common shares of the Company to current shareholders of SARC. Certain shareholders of SARC have entered into voluntary lock-up agreements with SARC pursuant to which such security holders, holding approximately 87% of the Consideration Shares, have agreed to voluntarily lock-up their Consideration Shares for a period of two years from the closing date of the Transaction.

SARC is party to an acquisition agreement pursuant to which SARC will acquire certain mining exploration assets in Northeastern Ontario (the "Juby Acquisition") held by Lake Shore Gold Corp. ("LSGC"), a wholly owned subsidiary of Pan American Silver Corp. The mining exploration assets comprise a 100% interest in the Juby Project. In addition, SARC is party to an acquisition agreement pursuant to which it will acquire from LSGC a 25% joint venture interest in certain claims adjoining the Juby Project (the "Knight JV Acquisition"). The completion of the Transaction is conditional on, among other things, the completion by SARC of the Juby Acquisition and the Knight JV Acquisition. Caldas Gold will be responsible for funding the cash payment of US$9.5 million due to LSGC on closing of the Juby Acquisition and the cash payment of US$0.5 million due to LSGC on closing of the Knight JV Acquisition.

The Transaction has been unanimously approved by each of the boards of directors of Caldas Gold and SARC. It is anticipated that Gran Colombia Gold Corp. will complete a private placement with Caldas Gold prior to the closing of the Transaction to fund the completion of the Juby Acquisition and the Knight JV Acquisition.

The closing of the Transaction is subject to customary closing conditions for a transaction of this nature including, among other things, the listing of the Consideration Shares on the TSX Venture Exchange ("TSX-V"). The closing of the Transaction is expected to occur on or about June 15, 2020.

A copy of the Acquisition Agreement will be filed by Caldas Gold with the Canadian securities regulators and will be available for viewing on the Company's profile on SEDAR at www.sedar.com. A description of the Acquisition Agreement will also be set forth in Caldas Gold's material change report to be filed on SEDAR.