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Pure Gold Mining Inc. closes $17.3 Million in Flow-Through Shares

May 6, 2021

Pure Gold Mining Inc. has closed its previously-announced offering of “flow-through shares”. The closing is with respect to “Canadian development expenses” within the meaning of the Income Tax Act  at an issue price of $1.52 per CDE Flow-Through Share for gross proceeds of $17,250,024 which includes the full exercise of the underwriters’ over-allotment option.

The Offering was completed pursuant to an underwriting agreement dated April 14, 2021 entered into among the Company and a syndicate of underwriters led by Clarus Securities Inc., and including Canaccord Genuity Corp., Sprott Capital Partners L.P., Stifel Nicolaus Canada Inc., Haywood Securities Inc. and PI Financial Corp. Inc.

The gross proceeds from the sale of the CDE Flow-Through Shares will be used on development expenses on the PureGold Mine Project located in the Red Lake District in Ontario as permitted under the Tax Act to qualify as CDE. The Company will renounce all the CDE in favour of the subscribers of the CDE Flow-Through Shares effective on or before December 31, 2021.

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