Second Trial Mining License Approved for Altamira Gold at the Cajueiro Gold Project, Brazil

Vancouver, British Columbia--(Newsfile Corp. - July 15, 2020) - Altamira Gold Corp.'s (TSXV: ALTA) (FSE: T6UP) (OTC Pink: EQTRF) ("Altamira" or the "Company") is pleased to announce that the second Trial Mining License within the claim block 866070/2004 has been approved for its advanced Cajueiro Gold Project in northern Mato Grosso State in western Brazil.

Highlights:

• As recently announced, permits are in place for the construction of a 1000t/d processing plant at the Cajueiro gold project which is expected to commence during H2 2020

• The second Trial Mining License now grants Altamira Gold the right to process an additional 50,000 tonnes per year from the key Crente resource area, and is valid for 22 months

• The two Trial Mining Licenses which have been granted so far allow the Company to process a total of 100,000 tonnes of mineralized material per year from the entire Crente area

• Altamira is pursuing two additional Trial Mining Licenses which would cover the resources in the Baldo, Matrincha and Marines deposits within the Cajueiro Project area

Michael Bennett, President and CEO stated, "We are extremely pleased with our progress in all respects so far during 2020 at our Cajueiro Gold Project. With two bulk sampling licenses in place, feed for the processing plant is now guaranteed for 2021, and plant construction is planned to commence later this year. The changes effected by the Brazilian government over the last 18 months have accelerated permitting processes in both the mining and environmental agencies allowing us to keep the project on schedule for production in 2021"

Approval of Second Trial Mining License

The approval of the Trial Mining License within the claim block 866.070/2004 is another significant step forward as it allows Altamira to mine material from the northern part of the key Crente resource area (Figure 1). Permitting is ongoing for two additional Trial Mining Licenses for claims 850224/2009 and 866464/2017 which cover the northern Baldo, Marines and Matrincha areas.

Figure 1: Map showing claims covering the Cajueiro project area.

To view an enhanced version of Figure 1, please visit:
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Cajueiro Project Update

The initial first tranche payment of US$1M required pursuant to the Gold Forward Purchase Agreement (the "Agreement") signed with Metalstream Ltd. ("Metalstream") on April 24, 2020 (see April 27, 2020 news release for full description of the Agreement) is now expected to be completed after July 14, 2020 due to unforeseen banking delays experienced by Metalstream.

Despite these delays, Metalstream has confirmed that it remains fully committed to the Agreement, as does Altamira. There are no other changes to the Agreement and the US$1M first tranche payment is expected to be completed shortly. Metalstream has indicated that the subsequent US$5M payment will also be made in accordance with the terms of the Agreement.

Rohan Cavaliero Managing Director of Metalstream stated "Our private placement is progressing very well, and with these delays now behind us, we remain extremely confident of a full subscription by the close of the offering at the end of July, 2020. On that basis, we fully expect to make the initial tranche payment of US$1M to Altamira Gold shortly thereafter."

This delay has not impacted the engineering and design work phase of the Cajueiro project which is well underway and expected to be completed by the end of the month. Construction of the plant is still scheduled to commence during H2 2020.

The collection of several additional bulk samples of oxide material from the Cajueiro project is in progress (figures 2 and 3). Samples will be sent for further metallurgical evaluation in order to ensure that the plant design is optimised for maximum gold recovery. Samples are being sent to both Brazilian Metallurgical Test laboratories to maximise plant flow through processes and to the CSIRO lab in Australia to determine whether fine gold in the oxide material is amenable to recovery using thiosulphate solution which would avoid the requirement for cyanidation.

Figure 2: Excavator preparing trench for collection of bulk samples in the Cajueiro gold project.

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Figure 3: Trench exposing oxide material in the Cajueiro gold project ready for collection of bulk samples.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/4500/59796_9d36206c440bf905_003full.jpg

Additional soil sampling is also being carried out on areas outside of the Central resource area.

Cajueiro Gold Project

The Company's advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.

A total of 14,000m of drilling (105 holes) and over 4,000m of trenching have been completed to date within 285ha in the central part of the 28,577ha claim package (or 1% of the Cajueiro project area). Numerous other gold-in-soil anomalies remain untested.

A production decision at Cajueiro is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and as a result there is increased uncertainty and there are multiple technical and economic risks of failure which are associated with this production decision. These risks, among others, include areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. In accordance with NI 43-101 and the companion policy to that instrument, Altamira cannot provide any guidance either in terms of anticipated gold production or net cash flows.

Qualified Person

Guillermo Hughes, P. Geo., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Neither the TSX Venture Exchange nor it's 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.

About Altamira Gold Corp.

The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 9 projects comprising approximately 280,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company's advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.

On Behalf of the Board of Directors,

ALTAMIRA GOLD CORP.

"Michael Bennett"

Michael Bennett
President & CEO

Tel: 604.676.5660
Toll-Free: 1-833-606-6271
info@altamiragold.com
www.altamiragold.com

Forward-Looking Statements

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Except as required by law, we do not undertake to update these forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/59796