Labrador Gold Raises $2 Million From Exercise of Share Purchase Warrants

Fully funded for an aggressive exploration program at Kingsway

TORONTO, July 24, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce that it has raised $2,039,233 from the exercise of share purchase warrants (the “warrants”) with a strike price of $0.35 and $0.40. Evanachan Limited, a company owned by Mr. Rob McEwen, Chairman and Chief Owner of McEwen Mining Inc. elected to exercise 100% of warrants held. The warrant exercise increases the Company’s cash position to $7.1 million.

“I would like to thank all of our long-term shareholders for increasing their shareholding in the Company through the exercise of warrants. These new funds allow us to aggressively explore our Kingsway Project and position us for discovery,” said Roger Moss, President and CEO. “LabGold has a very prospective land position in what we believe will develop into a significant gold district with more discoveries to come. I invite you to continue this exciting journey with us.”

The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.

About Labrador Gold:

Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.

In early March 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The property is along strike to the northeast of New Found Gold’s discovery of 92.86 g/t Au over 19.0 metres on their Queensway property. (Note that mineralization hosted on adjacent or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property). In early July 2020, the Company signed an option agreement to acquire a third license to add to the property package which now covers approximately 77 km². The three licenses comprising the Kingsway project cover approximately 16km of the Appleton fault zone which is associated with gold occurrences in the region, including the New Found Gold discovery. Historical work over the area covered by the Kingsway licenses shows evidence of gold in till, vegetation, soil, stream sediments, lake sediments and float. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water.