Colibri Resource to Sell 50% of Its "Jackie" Gold Exploration Project Located near the Santana Gold Mine Under Construction in Sierra Madre

Dieppe, New Brunswick--(Newsfile Corp. - October 15, 2020) - Colibri Resource Corporation ("Colibri" or the "Company") (TSXV: CBI) is pleased to announce that the Company has signed a Letter of Intent with Silver Spruce Resources Inc to sell a 50% interest in the Jackie Gold project ("the Property") located 5km to the south-southwest the town of Tepoca in Sonora, Mexico.

"We are enthusiastic about the prospect of working with the Silver Spruce team on the Jackie Gold project. This is the second project that they have taken a 50% interest in with us in less than six months. Their commitments to earn 50% of each of these projects significantly reduces Colibri shareholder's exploration risk, eliminates near term dilution of shares to provide funding for these two projects and also provides Colibri additional cash and equity upside," states Ron Goguen, President & CEO of Colibri.

The Jackie Project is located within the west-central portion of the Sierra Madre Occidental Volcanic Complex within the prominent northwest-trending "Sonora Gold Belt" of northern Mexico and parallel to the precious metals-rich Mojave-Sonora Megashear.

Terms of Agreement

In order to earn 50% interest in the Property, Silver Spruce will provide USD$100,000 in exploration and drilling expenses with a minimum of USD$50,000 within 12 months and pay to Colibri total cash payments of USD$50,000 and CAD$50,000 in common shares within 12 months.

Silver Spruce will also pay 50% of the requisite property taxes and surface rights agreements due.

Upon completion of these terms, Silver Spruce will hold a 50% interest in the Jackie property and a Joint Venture will be formed to direct all exploration and drilling expenses and thereafter will be shared 50% by Silver Spruce and 50% by Colibri, and subject to standard dilution terms to be defined within a Definitive Agreement.

There are no underlying royalties on the Property.

Phase 1 Exploration Plan

Phase 1 exploration program is expected to include geological mapping, soil and rock geochemistry with hyperspectral analysis, QA/QC program development, ASTER imagery analysis, ortho-mosaic drone photography, data compilation and Leapfrog modeling, and as warranted by the Phase 1 results, environmental permitting for drilling access and pads, and a first exploration drill campaign.

Evelyn Gold Project - Update

Exploration activities continue to progress on the Evelyn Gold Project. To date approximately 150 samples from the field trenching program and magnetic survey follow up activities have been submitted to ALS Global labs in Hermosillo for analysis. Assay results from these analyses will be reported in due course as they are received and reviewed. Trenching activities are still underway.

As a result of the suggested "Next Steps" in a recently reported high resolution magnetic survey report, Colibri has engaged a geophysical survey provider to complete a minimum 10km Induced Polarization survey at Evelyn which will cover the three areas of interest identified in their report. This survey will be scalable onsite and additional lines may be added as real-time results are interpreted. This survey is expected to begin in mid to late November. Results of this survey and the new sampling mentioned above will be added to our geological models which already includes geological mapping, a property wide high resolution magnetic survey, 341 chip and channel samples, property wide soil samples, and 5 drill holes. The combined data will be evaluated and interpreted to generate a series of drill targets for a near term drilling program.

All current exploration activities are fully funded. Colibri currently has in excess of $750,000 in working capital.

About Colibri Resource Corporation:

Colibri is a Canadian-based mineral exploration company listed on the TSX-V (CBI) focused on acquiring and exploring properties in Mexico. The Company currently has five active exploration properties at various stages of exploration. The "Flagship" Evelyn Gold Project is 100% owned and being actively explored by the Company and four additional projects Pilar, El Mezquite, Jackie and Pitaya are currently subject to joint venture or earn agreements to arms length parties. Three of these projects are actively being explored by partners at this time.

For more information about all Company projects please visit: www.colibriresource.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.

Notice Regarding Forward-Looking Statements:

This news release contains "forward-looking statements". Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate.

For further information: Ronald J. Goguen, President, Chairperson and Director, Tel: (506) 383-4274, rongoguen@colibriresource.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/66021