McFarlane Lake Mining Exercises Option to Acquire Mongowin Property

Toronto, Ontario--(Newsfile Corp. - February 1, 2022) - McFarlane Lake Mining Limited (NEO: MLM) ("McFarlane Lake" or "the Company"), a Canadian gold exploration and development company, today announced that it has exercised its exclusive option to acquire a 100% interest in the Mongowin property (the "Mongowin Property").

Located in northeastern Ontario, approximately 13 kilometres south of Espanola and 70 kilometres southwest of Sudbury, the Mongowin Property is adjacent to McFarlane Lake's past producing McMillan property. The Mongowin Property is comprised of 122 mining and three patented claims, totaling 2,605 hectares.

"Being adjacent to our past producing property (McMillan) the Mongowin Property comes with another past producing property, namely the Fox Lake Mine. The Mongowin Property is complementary to our asset portfolio," said Mark Trevisiol, President and Chief Executive Officer of McFarlane Lake. "This region has been explored for over a century, and we believe it remains highly prospective in nature, both along strike and at depth."

Pursuant to the purchase agreement (the "Purchase Agreement") with Transition Metals Corp. ("Transition"), McFarlane Lake's total consideration for the Mongowin Property was: (i) $15,000 cash payment for a 5-month period exclusivity to transact, (ii) $45,000 to affect a 3-month extension of the period of exclusivity, (iii) $585,000, of which $85,000 was payable in cash and $500,000 was payable in common shares of the Company; and (iv) a 1.5% net smelter royalty. A small portion of the Mongowin Property includes an additional, underlying 1% royalty, of which 0.5% can be acquired for $600,000. Additionally, beginning on the fifth anniversary of the Purchase Agreement, McFarlane Lake will pay Transition advanced royalty payments of $25,000 per year (in cash or common shares) to a maximum total of $250,000 (in cash or shares) this will be offset by exploration expenditures. Lastly, upon the commercial exploitation of mineral products on the Mongowin Property, Transition will be entitled to a one-time payment of $2,500,000.

About McFarlane Lake Mining

McFarlane Lake is a Canadian gold exploration and development company focused on the acquisition and assessment of six gold properties; two east of Sudbury in a region consistently on the top gold exploration opportunities as identified by Ontario Geological Survey, an additional two straddling the Ontario - Manitoba border which are part of an executed purchase agreement and which are geologically similar to a number of significant gold deposits in Ontario. The two remaining properties under option are located in the historic Timmins area along the prolific Porcupine Destor fault, home to dozens of mines over the last century and several current producing mines. Three of the properties are past producers of gold and all six properties are near infrastructure (roads, power), significant population bases and in a geo-politically stable environment. McFarlane Lake has option agreements to acquire 100% of all six properties.

To learn more visit: https://mcfarlanelakemining.com/

Additional information on McFarlane Lake can be found by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information:

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of McFarlane Lake to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risks Factors" in the Company's Filing Statement dated as of January 14, 2022 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and McFarlane Lake disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

McFarlane Lake's' operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of illness caused by COVID-19. It is not possible to accurately predict the impact COVID-19 will have on operations and the ability of others to meet their obligations, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect operations and the ability to finance its operations.

Further Information

For further information regarding McFarlane Lake, please contact:

Mark Trevisiol, Chief Executive Officer, President and Director
McFarlane Lake Mining Limited
mtrevisiol@mcfarlanelakemining.com

Ryan Volk
NATIONAL Public Relations Inc.
rvolk@national.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112300