Signature Resources Announces Closing of Additional Private Placement

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TORONTO, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Signature Resources Ltd. (TSXV: SGU, OTCQB: SGGTF, FSE 3S3) ("Signature" or the "Company") is pleased to announce that his has closed a non-brokered private placement financing raising gross proceeds of $1,000,000 (the "Offering). Pursuant to the Offering, the Company issued 999,945 hard dollar units ("HD Units") at a price of $0.11 per HD Unit and 6,846,200 flow-through units ("FT Units") at a price of $0.13 per FT Unit.

“As a result of a sizable unsolicited interest, Signature is pleased to further enhance its balance sheet strength at a significant premium to its most recent financing. It is important to highlight that the additional funds will be used to further enhance the camp optimization and logistics for the upcoming field program. In addition, a reputable third-party group has been selected to prepare an updated technical report and will be announced shortly.”

Robert Vallis, P.Eng, MBA – President, CEO, & Director

Each HD Unit issued pursuant to the Offering, consists of one common share of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each FT Unit consists of one Common Share issued on a flow-through basis ("FT Share") and one half of one (1/2) Warrant. Each whole Warrant issued will be exercisable into one Common Share at a price of $0.20 until April 17, 2022. The FT Shares will qualify as “flow-through shares” (within the meaning of the Income Tax Act (Canada)).

In connection with the Offering, the Company paid aggregate cash finder's fees of $62,300 and issued 205,386 finder's warrants (each, a "Finder's Warrant"). Each Finder's Warrant is exercisable to acquire one Common Share at a price of $0.13 for a period of 16 months following closing of the Offering.

The use of proceeds will be mainly focused on exploration efforts at the Lingman Lake Gold Project in Ontario and general corporate purposes.

All securities issued in the Offering, including the Finder's Warrants, are subject to a statutory hold period expiring on April 18, 2021.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.