Jaxon Locates Contact Zone at Red Springs, Sends Samples to Assay Lab and Completes Payments Under Option Agreement, Securing 100% Control of Red Springs

Vancouver, British Columbia--(Newsfile Corp. - August 4, 2020) -  Jaxon Mining Inc. (TSXV: JAX) (FSE: OU31) (OTC: JXMNF) ("Jaxon" or the "Company") is pleased to report field geologists have discovered two new diorite porphyry intrusives within a strongly silicified tourmaline-bearing hornfels area at Red Springs, establishing a potential connection at depth between the previously defined Backbone quartz tourmaline breccia mineralization zone at Main Cirque (https://bit.ly/30r3y50) and the newly discovered diorite porphyry intrusives at Northwest Cirque. The team also discovered an extensive hydrothermal pebble associated with the diorite porphyry intrusives.

The surface prospecting and rock outcrops chip or grab sampling program has concluded at the Northwest Cirque area at Red Springs AOI. 24 rock samples (Table 1) were collected from either outcrops, sub-outcrops or rocks flow at Northwest Cirque and its down slope valley (Figure 1, Table 1). The first batch of rock samples has been delivered to MSALABS in Langley, B.C., Canada, for expedited assaying and other rock analysis.

The field team confirmed a first priority target on Line East-West (L-EW) and a second priority target on Line L-800 (Figure 1), identified as the locations of the porphyry diorite intrusives. The targets were initially delineated in a 2018 IP survey by Simcoe Geoscience of Toronto, Canada. Tourmaline veins can cross-cut the hornfels and diorite porphyry intrusions or occur within the diorite porphyries (Figure 2), confirming they were formed after the intrusions and are a part of hydrothermal solution events in the Red Springs porphyry mineralization system. Closer spaced work is being conducted over the area where strong IP chargeability and medium DC resistivity anomalies were first identified in 2018.

The well-developed hydrothermal pebbles (Figure 3) and tourmaline breccia/veins (Figure 4) associated with the diorite porphyries at Northwest Cirque are products of the major hydrothermal events that mineralized the area.

The newly discovered diorite porphyry intrusives show both well developed disseminated and fracture fillings sulfide minerals, veinlets or stockworks in the fresh rocks, and strong limonite oxidization on the outcrops (Figure 5).

The 2020 ground magnetic survey and rock sampling program commenced July 21 (Figure 1) and is expected to be completed mid August.

Figure 1. Modified IP Anomalies Target Map and 2020 Work Area. GPS tracking lines in black, sample locations in light blue and samples numbered in red. (After Simcoe Geoscience, 2018)

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Figure 2. Hornfels with Tourmaline Veins and Diorite with Disseminated Sulfides

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Figure 3. Hydrothermal Pebbles Associated with Diorite Porphyry Intrusive at Northwest Cirque at Red Springs AOI

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Figure 4. Tourmaline Veins/Breccia within Diorite Porphyry Intrusive at Northwest Cirque at Red Springs AOI

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Figure 5. Diorite Porphyry Intrusive Rock Showing Well Developed Sulfide Mineralization

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Table 1. Samples from Northwest Cirque at Red Springs AOI

Hazelton Property Option to Purchase Agreement

The final option payment of CAD $25,000 has been made under the Hazelton Property Option to Purchase Agreement dated October 7, 2016, and 125,000 common shares have been issued. The Company now holds 100% control of the Hazelton Property.

Mr. John King Burns, Chairman, and CEO commented, "We are increasingly confident in our geological understanding of the orogeny and scope of the systems we are exploring at Hazelton. Red Springs represents a major porphyry system marked by an extensive tourmaline breccia occurrence and hydrothermal pebble event. We are pleased to have located the new diorite porphyries and contact zone between diorite and hornfels. These new observations, once added to our geological model, will be applied to the design of the drill program to test the Red Springs porphyry system. Drilling will determine the extent and grades of Cu, Au, Ag mineralization indicated by surface samples but carried deeper in the system. Each drill hole will vector in on the structural boundaries, and the IP and magnetic anomalies."

"Results from the Phase One mapping, geophysical and geochemical survey programs will be released as they become available. Phase One results will complete the information we need to select the drill targets planned for 2020 Phase Two and field programs for 2021."

Qualified Person

Yingting (Tony) Guo, P.Geo., President of Jaxon Mining Inc., a Qualified Person as defined by National Instrument 43-101, has reviewed and prepared the scientific and technical information and verified the data supporting such scientific and technical information contained in this news release.

About Jaxon Mining Inc.

Jaxon is a precious and base metals exploration company with a regional focus on Western Canada. The Company is currently focused on advancing the Red Springs Project at its 466 km2 Hazelton Property located near Smithers, British Columbia. In addition to Red Springs, Hazelton hosts three other areas of interest (AOIs): Blunt Mountain, Max and Netalzul Mountain. For more information, please visit https://jaxonmining.com.

ON BEHALF OF THE BOARD OF DIRECTORS
JAXON MINING INC.

"John King Burns"

John King Burns, Chairman

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This news release may contain forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties, and other factors that could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release may include but is not limited to, the Company's objectives, goals, or plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. No assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Neither TSX Venture Exchange nor its Regulations 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.

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