Update on Bear Creek Mining's Acquisition of Mercedes Mine

(All dollar amounts are in United States dollars unless otherwise specified)

Vancouver, British Columbia--(Newsfile Corp. - January 26, 2022) - Bear Creek Mining Corporation (TSXV: BCM) (OTCQX: BCEKF) (BVL: BCM) ("Bear Creek" or the "Company") is pleased to update the status of its acquisition ("Acquisition") from Equinox Gold Corp. ("Equinox") of a 100% interest in the Mercedes gold-silver mine ("Mercedes") located in Sonora, Mexico, which was originally announced in the Company's press release dated December 17, 2021.

The TSX Venture Exchange (the "TSXV") has granted its conditional approval for the Acquisition, as well as for: (i) the Company's gold purchase agreement (the "Gold Purchase Agreement") with Sandstorm Gold Ltd. ("Sandstorm"), pursuant to which Sandstorm will provide the Company with $37.5 million and in exchange Bear Creek will sell to Sandstorm 600 ounces of refined gold per month for 42 months (a total of 25,200 ounces) at a price equal to 7.5% of the spot gold price at the time of delivery and thereafter the Company will sell to Sandstorm 4.4% of gold produced by Mercedes at a price equal to 25% of the spot price at the time of delivery; and (ii) the private placement by the Company to Sandstorm of a 6%, three-year convertible debenture ("Convertible Debenture") having a principal amount of $22.5 million. Proceeds from the Gold Purchase Agreement and the Convertible Debenture will be applied to partially fund the purchase price of the Acquisition.

The Acquisition, the Gold Purchase Agreement and the Convertible Debenture private placement are expected to close during the first quarter of 2022, subject to customary closing conditions, including final approval from the TSXV and Mexican authorities.

On behalf of the Board of Directors,

Anthony Hawkshaw
President and CEO

For further information contact:
Barbara Henderson - VP Corporate Communications
Direct: 604-628-1111
E-mail: barb@bearcreekmining.com
www.bearcreekmining.com

Forward-looking Statements

This news release contains forward-looking statements regarding: the anticipated closing date, customary closing conditions and regulatory approvals of the Acquisition, the Gold Purchase Agreement and the Convertible Debenture; and other statements regarding future plans, expectations, guidance, projections, objectives, estimates and forecasts as well as the Company's expectations with respect to such matters. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company's beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to: that the Acquisition, the Gold Purchase Agreement and the Convertible Debenture will be approved by regulators; and, that customary closing conditions will be met. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to general market conditions and the additional risks described in the Company's latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.

Neither the TSX Venture Exchange nor its Regulatory 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/111799