Pasofino Gold Limited Announces Exclusivity Agreement With ARX Resources Limited

Toronto, Ontario--(Newsfile Corp. - June 11, 2020) - Pasofino Gold Limited (TSXV: VEIN) (FSE: N071) ("Pasofino" or the "Company") is pleased to announce that it has entered into an Exclusivity Agreement with ARX Resources Limited ("ARX"). Subject to satisfactory due diligence, an agreement on terms with ARX and ARX's earn-in right becoming unconditional, the Company intends to acquire all the issued and outstanding shares of ARX.

ARX has a conditional earn-in agreement with Hummingbird Resources PLC ("Hummingbird") in respect of the Dugbe Gold Project (the "Project") located in Liberia. The terms of the conditional earn-in agreement require ARX to complete a Definitive Feasibility Study, carry out a significant exploration programme and cover all Project costs over the 2 year earn-in period (the "Earn-in"). The Earn-in entitles ARX to earn up to a 49% interest in the Project, and is subject to various conditions, including the payment by ARX to Hummingbird of a non-refundable deposit of US$2m. In order for the Earn-in to become effective, Hummingbird must receive a waiver from the Government of Liberia on its pre-emptive right over equity investment into Hummingbird's subsidiary, Hummingbird Resources (Liberia) Inc., which holds the Project, and consent from Anglo Pacific Group Plc (which holds a royalty interest over part of the Project) (the "Effective Conditions").

There is no assurance that the Effective Conditions will be satisfied, that the Company and ARX will agree on a transaction, or if agreed that a transaction will be completed.

Further information on the Project can be found at https://hummingbirdresources.co.uk/operations-projects/liberia/

About Pasofino Gold Ltd.

Pasofino Gold Ltd. is a Canadian-based mineral exploration company. For further information, please visit www.pasofinogold.com or contact:

Steve Dunn, President & CEO
T: (416) 361-2827
E: dunnsteve@protonmail.com

Neither the 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 news release.

This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "seek", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the proposed transaction with ARX, completion of the transactions described herein, the ability to raise the funds to finance its ongoing business activities including the acquisition of mineral projects and the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the results of exploration activities; the ability of the Company to complete further exploration activities; the ability of the Company to complete transactions on terms announced; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION OR DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/57701