Labrador Gold Raises $2.94 Million from Exercise of Share Purchase Warrants

Fully funded for an aggressive exploration program at Kingsway through 2021

TORONTO, Nov. 24, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce that it has raised $2.94 million from the exercise of share purchase warrants (the “warrants”) with a strike price of $0.30 and $0.35. The warrant exercise increases the Company’s cash position to $12.37 million.

“These additional funds allow us to advance our growth strategy by continuing to aggressively explore our Kingsway Project. We are now fully funded for our anticipated 2021 exploration program,” said Roger Moss, President and CEO. “We look forward to a significant diamond drill program early in the new year on the quartz vein containing visible gold, exploring it along strike to the northeast and southwest, following up on the excellent work completed by our LabGold team to date.”

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.