Altamira Announces Closing of First Tranche of Non-Brokered Private Placement

Vancouver, British Columbia--(Newsfile Corp. - February 28, 2020) - Altamira Gold Corp. (TSXV: ALTA) (FSE: T6UP) (OTC Pink: EQTRF) ("Altamira" or the "Company") is pleased to announce that it has closed the first of two tranches of the non-brokered private placement announced on January 16, 2020. The Company also announces that the placement has been oversubscribed and it will increase the amount to be raised to a maximum of $1,650,000 through the issuance of 27,500,000 units in total, on the same terms and conditions as previously announced. The Company has been granted approval by the TSX to extend the deadline to file final materials in respect of the private placement until March 16, 2020 in order to accommodate the closing of the final tranche.

The Company has issued 21,026,554 units ("Units") at a price of $0.06 per Unit (the "Issue Price") for gross proceeds of $1,261,593.

Each Unit is comprised of one common share and one non-transferable share purchase warrant exercisable at $0.10 per warrant share for a period of two years from the issue date. In the event that the common shares of the Company trade at a closing price greater than $0.25 per share for a period of 10 consecutive days, then the Company may deliver a notice to the warrant holders that they must exercise their warrants within the next 30 days or the warrants will expire.

In connection with the Private Placement, the Company paid an aggregate cash finder's fee of $14,314 and issued an aggregate of 285,570 share purchase warrants ("Finder's Warrants") to certain finders in connection with the Private Placement. Each Finder's Warrant entitles the holder to purchase one common share of the Company at a purchase price of $0.10 for a period of two years following closing of the Private Placement.

All the securities will be subject to a four-month hold period from the date of closing. Altamira intends to use the net proceeds for its exploration program on the Company's mineral properties in Brazil, and for general working capital purposes.

Insiders subscribed for 4,979,598 units of for proceeds of $298,776. Each insider's subscription will be considered to be a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on an exemption available from the formal valuation requirements under Section 5.5(a) of MI 61-101 and an exemption available from minority approval requirements under Section 5.7(a) of MI 61-101 on the basis that the fair market value of the transactions with the insiders do not exceed 25% of the Company's market capitalization.

About Altamira Gold Corp.

The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 11 projects comprising approximately 300,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company's advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.

On Behalf of the Board of Directors,

ALTAMIRA GOLD CORP.

"Michael Bennett"

Michael Bennett
President & CEO

Tel: 604.676.5660
info@altamiragold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Except as required by law, we do not undertake to update these forward-looking statements.

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