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Warrior Gold Arranges Flow-Through Financing for Kirkland Lake project

May 28, 2020

Warrior Gold Inc. has arranged a non-brokered private placement of up to 8,333,333 flow-through units at a price of $0.087 per, for aggregate gross proceeds of up to $725,000. 

Warrior Gold owns the Goodfish-Kirana Property located five km from the town of Kirkland Lake.

"The proceeds of this financing will be utilized to fund a summer field season of mapping, sampling, and a 2,000-metre drill program. Fieldwork is anticipated to start in mid-June 2020 and drilling soon thereafter.  The drill program will test the A Zone extensions identified during the Company's fall 2019 diamond drill program and will also test exploration targets identified during the Company's previous drilling and ongoing compilation work," Danièle Spethmann, President and CEO of Warrior Gold said. 

Each flow-through unit shall be comprised of one common share of the Company issued on a flow-through basis and one-half of one common share purchase warrant to be issued on a non-flow-through basis.  Each whole warrant shall entitle the holder thereof to acquire one common share of Warrior Gold at a price of $0.10 for a period of 18 months following the closing of the offering, subject to an accelerated expiry date. If at any time following the expiry of the statutory four-month and one-day hold period the closing price of Warrior Gold common shares on the TSX Venture Exchange is greater than $0.20 for 20 or more consecutive trading days, the Company may give notice to the holders of warrants that the expiry date of the warrants will be accelerated and will expire on the 30th business day following the date of such notice.

The flow-through shares issued in connection with the Offering will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec). 

Closing of the Offering is subject to approval of the TSX Venture Exchange ("TSXV").  The securities issued under the Offering, and any common shares that may be issuable on exercise of warrants, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such common shares.

Warrior Gold may pay a finder's fee of 7% cash and 7% compensation warrants on the Offering in accordance with applicable securities laws and the policies of the TSXV.  

In other news, the Company reports that it has granted a total of 400,000 options to purchase common shares of the Company to a new director and officer pursuant to the Company's Stock Option Plan. Each option is exercisable at a price of $0.10 until May 6, 2025.

The Property is located in the historic Kirkland Lake Gold Camp which is situated in the prolific Abitibi Greenstone Belt, recognized as one of the world's highest grade greenstone belts with over 200 million ounces of gold produced to date.

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