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Trillium Gold Signs Agreement to Purchase Panama Lake Gold Project Located 80km from Kinross Gold’s Dixie Deposit in Red Lake, Ontario

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Vancouver, BC, Canada – June 1, 2022 – Trillium Gold Mines Inc. (TSXV:TGM, OTCQX:TGLDF, FRA:0702) (“Trillium Gold” or the “Company” - is pleased to announce that it has signed a Purchase and Sale Agreement (the “Purchase Agreement”) to acquire all of the rights and title to the Panama Lake Property (the “Property”) held by St. Anthony Gold Corp. (“St. Anthony Gold”). The Panama Lake Gold Project is located approximately 80km from, and on the same structural trend as, Kinross Gold’s Dixie deposit and effectively extends Trillium Gold’s dominant contiguous foothold along the Confederation belt by 9,882 hectares (see Figure 1). 

Pursuant to an assignment and assumption agreement to be entered into on the closing of the transactions contemplated by the Purchase Agreement (the “Assignment Agreement” together with the Original Option Agreement, the “Option Agreement”), among Trillium Gold and St. Anthony Gold, St. Anthony Gold will assign all of its rights and obligations under the Original Option Agreement to Trillium Gold. In addition, pursuant to the Assignment Agreement, Benton Resources Inc. (“Benton Resources”) will agree to consent to the assignment and will agree to register 100% of the Property’s title to Trillium Gold while retaining its 50% ownership interest in the Property until such time as Trillium Gold fulfils its option to earn 100% interest.

Terms of the Agreement

Pursuant to the terms of the Purchase Agreement, at closing, Trillium Gold will pay St. Anthony Gold, Cdn $500,000 in cash and issue 1,000,000 common shares in the capital of Trillium Gold (the “Common Shares”). In the event Trillium Gold acquires a 100% interest in the Property, St. Anthony Gold may cause Trillium Gold to exercise its Buy-Back Right under the Option Agreement (as further discussed below) to repurchase from Benton Resources one-half of the 2% Net Smelter Royalty on the Property and convey such repurchased 1% Net Smelter Royalty to St. Anthony Gold in exchange for a cash payment by St. Anthony Gold to Trillium Gold of $1,000,000.

Pursuant to the terms of the Option Agreement, in order for Trillium Gold to earn a 70% interest in the Property, it will pay to Benton Resources Cdn $100,000 in cash or the equivalent in Common Shares, based on the 10-day value weighted average price (“VWAP”) of Trillium Gold’s Common Shares traded on the TSXV prior to issuance by October 24, 2022, and complete $250,000 in exploration expenditures on the Project by April 24, 2023. Trillium Gold has the option to earn 100% ownership of the Property by paying Benton Resources a further $300,000 in cash or the equivalent in Common Shares, based on the 10-day VWAP of Trillium Gold’s Common Shares traded on the TSXV prior to issuance and complete $300,000 in exploration expenditures on the Project in each case by October 24, 2023. Benton Resources has the right to retain a 2.0% NSR on the Project, subject to the option of Trillium Gold to buy back one-half of such royalty (being 1.0%) for Cdn $1,000,000 (the “Buy Back Right”). In the event that Trillium Gold completes a NI 43-101 compliant resource estimate for the Property, Trillium Gold will issue to Benton Resources Common Shares with the amount of Common Shares issuable to be determined based on the number of ounces of gold in the NI 43-101 report and the market price of the Common Shares at the time.

The Common Shares of Trillium Gold issued under the Purchase Agreement will be subject to a four-month holding period from the closing date. The Purchase Agreement is subject to the approval of the TSXV and other applicable regulatory authorities. 

About the Panama Lake Property

The Panama Lake Gold project consists of 9,882 hectares in the historic Red Lake Mining district and displays very similar regional geology to that of the Dixie deposit located along strike approximately 80km to the west. A long history of exploration activity has occurred on the Panama Lake Gold project since the late 1960s. Recent diamond drilling completed by Benton Resources and St. Anthony Gold have continued to intercept anomalous gold values from the Panama Zone and north of a highly anomalous gold grain till sample collected by the Geological Survey of Canada (GSC Open File 3038). Recently completed interpretation of newly acquired airborne geophysics have identified several linear magnetic trends that appear coincident with the Panama Zone and other gold occurrences found on the Panama Lake Gold Project. This new geophysical interpretation and recently obtained anomalous gold values from 2019-2022 diamond drill programs will allow future exploration programs to be focused on areas of high mineral potential.

The technical information presented in this news release has been reviewed and approved by William Paterson QP, P.Geo, Vice President of Exploration of Trillium Gold Mines, as defined by NI 43-101.

Figure 1: Map showing Trillium Gold’s Panama Lake Gold Project

On behalf of the Board of Directors,

Trillium Gold Mines Inc.

Russell Starr

Interim Chairman, President & CEO

For further information, please contact Donna Yoshimatsu, VP Corporate Development and Investor Relations at [email protected], (416) 722-2456, or [email protected].

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