Avalon Investment Holdings Announces an Additional US$ 2,753,513 in Proceeds and Closing of Its Non-Brokered Private Placement

Toronto, Ontario--(Newsfile Corp. - July 2, 2020) - Avalon Investment Holdings Ltd. ("Avalon") the holder of 100% interest in the Omai Gold Mine in Guyana, through a wholly owned subsidiary, is pleased to announce that it has raised additional gross proceeds of US$2,753,513 to complete its pre-RTO non-brokered private placement initially announced on October 10, 2019 (the "Offering").

Pursuant to the closing of this final tranche of the Offering, Avalon issued 27,535,134 units (each, a "Unit") for total consideration of US$2,753,513 each Unit consisting of one Common Share and one-half of one whole common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder, on exercise, to purchase one additional Common Share for a period of 24 months at a price of US$0.35.

Avalon closed an aggregate of US$8,886,980 as part of its the pre-RTO financing.

Michael Smith, President and CEO of Avalon commented, "We are very pleased with the strong support from investors to advance the Omai Gold Mine project. Significant progress has been made at Omai to refurbish the camp in preparation for planned drilling in the latter half of 2020. The Company has also secured and transported to the Omai mine-site over 4,500 metres of historical drill core for logging and assaying from the Guyana Geology and Mines Commissions. We believe Omai has the ability to develop into a tier one gold asset in the Americas with significant potential for both high grade open pittable mineralization and high-grade mineralization to depth."

As previously disclosed, Avalon has executed a definitive amalgamation agreement (the "Agreement") dated October 9, 2019 with Anconia Resources Corp. (TSXV: ARA) ("Anconia"). Pursuant to the Agreement, Anconia will acquire all of the issued and outstanding securities of Avalon by means of a three-cornered amalgamation (the "Proposed Transaction"). The Proposed Transaction constitutes a reverse takeover of Anconia under the policies of the TSX Venture Exchange (the "TSXV") and its completion is subject to the approval of the TSXV. For further information regarding the Proposed Transaction please refer to the SEDAR profile of Anconia at www.sedar.com.

Technical information in this press release has been reviewed and approved by Brian H. Newton P.Geo, who is a "Qualified Person" as defined by NI 43-101 "Standards of Disclosure for Mineral Projects"

This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

For further information, please see our website www.omaigoldmines.com or contact:

Michael Smith
President and Chief Executive Officer
msmith@omaigoldmines.com
239-404-8593

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the potential increase of the size of the Offering, the closing of additional financings and the completion of the Proposed Transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; the price of gold and copper; and the results of current exploration. There can be no assurance that such statements 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 statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Not for distribution to United States news wire services or for dissemination in the United States

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/59064