Arena Minerals Announces Closing of Pampa Paciencia Property Sale to Astra Exploration

TORONTO, May 14, 2021 (GLOBE NEWSWIRE) -- Arena Minerals Inc. ("Arena" or the "Company") (TSX-V: AN) is pleased to announce completion of the sale of the Pampa Paciencia epithermal gold property (the “Property”), located in the Atacama region of northern Chile, to Astra Exploration Ltd (“Astra”), a private mineral exploration company. In consideration for Arena’s 80% ownership of the Property the Company has received 5.82 million of shares of Astra, representing 40% of the issued and outstanding shares of Astra with a deemed value of $1.6 million.

Astra is a newly formed private mineral exploration company led by a proven management team with previous exploration success in discovering epithermal gold deposits. Astra intends to initiate a drill program on the Property and complete a going public transaction in 2021.

Under the Agreement, until the earlier of an Astra Going Public Transaction (which includes the listing of Arena’s shares on the TSX Venture Exchange or other recognized Canadian or U.S. stock exchange) and a change of control of Arena, Arena has the right to participate in future financings of Astra to maintain its percentage shareholding in Astra if it holds 5% to 25% of Astra’s outstanding shares, and has the right to nominate a director to the Astra board as long as it maintains at least a 5% shareholding in Astra. Prior to the earlier of completion by Astra of an Astra Going Public Transaction and 12 months from closing, Arena may not sell its Astra shares without Astra’s consent. Following completion of an Astra Going Public Transaction, and provided it holds at least 5% of Astra’s shares, Arena must provide Astra with an opportunity to identify purchasers for any Astra shares that it proposes to sell before it may sell them to third parties. Arena has also agreed to vote all Astra shares it holds in favour of Astra management’s proposals at any meeting of the shareholders of Astra held within 24 months of closing.

About Arena Minerals Inc.

Arena owns the Antofalla lithium brine project in Argentina, consisting of four claims covering a total of 6,000 hectares of the central portion of Salar de Antofalla, located immediately south of Albemarle Corporation's Antofalla project. Arena has developed a proprietary brine processing technology using brine type reagents derived from the Antofalla project with the objective of producing more competitive battery grade lithium products.

Arena also owns 80 percent of the Atacama Copper property consisting of two projects covering approximately 5,000 hectares within the Antofagasta region of Chile. The project is at low altitudes, within producing mining camps in infrastructure-rich areas, located in the heart of Chile's premier copper mining district.

The technical and scientific aspects of this news release have been reviewed and approved by Mr. William Randall, P.Geo, who is a qualified person pursuant to NI 43-101. As the President & CEO of the Company, Mr. Randall is not considered independent.

To view our website, please visit www.arenaminerals.com. In addition to featuring information regarding the Company, its management, and projects, the site also contains the latest corporate news, a long form text explaining the unique business model of the Company (under the tab “the Company Explained”) and an email registration allowing subscribers to receive news and updates directly.

For more information, contact William Randall, President and CEO, at +1-416-818-8711 or Simon Marcotte, Vice-President Corporate Development, at +1-647-801-7273 or smarcotte@arenaminerals.com.

On behalf of the Board of Directors of: Arena Minerals Inc.

William Randall, President and CEO

Cautionary Note Regarding Accuracy and Forward-Looking Information

This news release may contain forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements, projections and estimates relating to the future development of any of the Company's properties, the anticipating timing with respect to private placement financings, the ability of the Company to complete private placement financings, results of the exploration program, future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Atacama project in Chile, the Antofalla, Hombre Muerto or Pocitos Projects in Argentina , and the Company's ability to obtain financing. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The statements made herein are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Estimates underlying the results set out in this news release arise from work conducted by the previous owners and the Company. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Arena Minerals does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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