Ely Gold Royalties (TSX-V: ELY, OTCQX: ELYGF) Completes Royalty Purchase at Lincoln Hill

 

Coeur Mining files NI 43-101 Technical Report for the Expansion of the Rochester and Packard Mines, Nevada

 

Vancouver, British Columbia – January 7, 2021 – Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) (“Ely Gold” or the “Company”) is pleased to announce that it has acquired, from a private family trust (“the Seller”), 100% of all rights and interests to a one percent (1.00%) net smelter returns royalty (“NSR”) on the Lincoln Hill Property, located in Pershing County, Nevada (the “Lincoln Hill Royalty”), operated by Coeur Mining Inc. (“Coeur”) (NYSE: CDE). The Transaction was first announced by the Company in a press release dated July 21, 2020.

With this transaction, Ely Gold increases its Lincoln Hill Royalty interest to a two percent (2%) NSR. Coeur received Project Record of Decision for the Plan of Operations that includes a new 300-million-ton Stage VI leach pad at the Rochester Mine (“Rochester”). The Final Environmental Impact Statement analyzing the environmental effects of the proposed expansion of the Rochester and Packard Mines, was published in the Federal Register Feb. 24, 2020 and Coeur filed an updated NI 43-101 technical report for the Rochester expansion on SEDAR on December 16, 2020.

The Transaction

Ely Gold paid the Seller a total consideration as follows:

• US$1,000,000 at Closing
• Within 5 days of Closing, Ely Gold will issue to the Seller 1,000,000 common stock purchase warrants. Each full warrant will allow the Seller to purchase one share of Ely Gold common stock at CAD$1.69 for two years from Closing.

Trey Wasser, President and CEO of Ely Gold commented on the Transaction, “We are very pleased to add another 1% NSR of the Lincoln Hill Royalty to our royalty portfolio. Purchasing additional royalties on our Key Assets is a critical part of our near-term growth strategy. With permitting completed on the leach pad expansion, the higher gold grade Lincoln Hill ore will be in very close proximity to the operations and is expected to extend the life of mine at Rochester. We look forward to delivering more news as Coeur is now undertaking confirmation drilling at Lincoln Hill.”

Overview of Lincoln Hill

Lincoln Hill is adjacent to the Rochester open-pit, heap leach mine, providing significant operational synergies for Coeur. The Lincoln Hill Royalty covers ninety-seven (97) unpatented claims and one (1) patented lode claim. Coeur purchased the Lincoln Hill Property, as part of a larger property package, from Alio Gold Inc., in October 2018. The purchase was announced, by Coeur, in a press release dated October 16, 2018.

The Lincoln Hill property package also includes 23 unpatented claims known as the Rosal Claims, where Ely Gold currently holds a 1.5% NSR and is included in Ely Gold’s Development Assets. Development Assets are simply defined as properties “at or near” producing mines increasing the chance for the royalty to be productive.

Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
[email protected]

972-803-3087

Joanne Jobin, Investor Relations Officer
[email protected]

647 964 0292

FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forwardlooking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company’s inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Source: Ely Gold Royalties

Comstock Announces 2020 Achievements; Updates Progress on MCU Ownership, Philippines Deployment and Strategic Objectives

 

Virginia City, NV (January 7, 2021) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced 2020 business achievements, 2021-2023 strategic plan and the Company’s outlook for 2021:

Selected 2020 Strategic Achievements (unaudited)

• Completed corporate realignment, positioning Comstock for precious and strategic metal-based growth;
• Completed first phase of mercury remediation pilot, purchasing 15% of Mercury Clean Up LLC (“MCU”):
• Formed Philippine mercury remediation joint venture, receiving 50% of MCU Philippines Inc. (MCU-P”);
• Acquired 25% of Pelen LLC, 100% owner of the Sutro Tunnel Company mineral properties and royalties;
• Formed Comstock Royalty LLC for aggregating a growing portfolio of gold and silver NSR royalties;
• Completed the sale of the Lucerne mine, recognizing a gain of $18.3 million;
• Completed an airborne geophysical survey over all of the Company’s Comstock District properties;
• Leased the Daney Ranch with an option to sell for $2.7 million
• Reduced annual operating expenses by approximately $4 million per annum, as compared to 2017;
• Monetized $5.6 million in Tonogold common and preferred stock;
• Repaid the remaining $4.8 million portion of the Company’s former senior secured debenture;
• Ended 2020 with 34,980,766 shares outstanding, including 540,000 in restricted directors’ shares; and
• Ended 2020 with approximately $2.4 million in cash and cash equivalents.

Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “We sustained all of our scheduled cost reductions and subsidies, repaid our senior secured debt and implemented our realignment objectives in 2020, positioning ourselves for new, high-growth, activities. The successful sale of Lucerne enabled the repayment of all of our senior secured debt and, together with monetizing non-strategic assets, funds the implementation of our strategic plan.”

Comstock’s Corporate Realignment

 

Figure 1 – Comstock’s Corporate Realignment

Strategic Performance Objectives 2021-2023

The Company’s goal is to grow our equity value by commercializing environment-enhancing, precious and strategic-metal-based products and processes that generate a rate of predictable cash flow (throughput) from our metal processing operations and royalties and increase the long-term enterprise value of our mineral properties. The next three years are dedicated to delivering that value by achieving the performance objectives listed below:

Commercialize a global, ESG-compliant, profitable, mercury remediation system:

• Establish the technical efficacy of MCU’s mercury remediation system, and protect the intellectual property;
• Operate the second and third mercury remediation systems internationally, profitability, in the Philippines;
• Identify, evaluate and prioritize a pipeline of potential mercury remediation projects; then deploy the fourth and fifth mercury remediation projects, with the goal of producing significant cash flow returns; and
• Assess and capitalize on value enhancing expansion opportunities.

Establish and grow the value of our mineral properties:

• Establish the Dayton Resource area’s maiden, stand-alone mineral resource estimate;
• Expand the Dayton-Spring Valley Complex through geophysical modelling and exploration drilling;
• Develop the Dayton-Spring Valley Complex toward full economic feasibility, supporting a mine decision;
• Entitle the Dayton-Spring Complex with geotechnical, metallurgical, and environmental permitting; and
• Exploit the Comstock smelter royalty portfolio (e.g., Occidental Lode, Comstock Lode, Lucerne Mine).

Monetize non-strategic assets and build a quality organization:

• Monetize our third-party, junior mining securities responsibly, for $12.5 million or more;
• Monetize our non-mining assets for $12.5 million, excluding the Gold Hill Hotel;
• Grow the value of our Opportunity Zone investments to over $30 million; and
• Deploy a systemic organization, capable of accelerating growth and handling complexity.

On January 4, 2021, the Company granted 1,260,000 performance share units to key employees of the Company. Vesting of the awards is 100% conditioned upon the achievement of strategic performance objectives of the Company described in the Comstock 2020 Equity Incentive Plan, for half of the award, and achieving a per share price of $12 per share or greater, for the other half of the award. If the objectives and the values are not achieved, the shares will not vest and revert back to the Company. The Executive Chairman and CEO of the Company was among the recipients of such performance share units, with a grant of 500,000 of the performance share units.

Mr. De Gasperis continued, “We have sharpened our performance objectives, strengthened our alignment with all stakeholders, with our board taking the substantial majority of their compensation in stock over the next three years and all of our employees participating in a 100% performance-based, stock-based compensation plan. The Company’s leadership is fully aligned with shareholder interests and focused on the goal of delivering over $500 million of value, or at least $12 per share, from the Company’s existing assets and the commercialization of environmentally friendly precious and strategic metal processing technologies, partnerships and ventures.”

Commercialize a Global, ESG-compliant, Mercury Remediation System

On December 4, 2020, the Company’s closed on its first investment objective, purchasing 15% of MCU and adding Mr. De Gasperis to the MCU board, representing the Company’s 15% membership interest. The Company also received its full 50% interest in MCU-P, the Company’s first joint venture project for the commercialization of MCU’s mercury remediation technologies. The Company has committed to fund up to $3 million in secured loans for the Philippine joint venture and receives an additional 10% of MCU when the Company has loaned the initial $2 million to MCU-P (of which, approximately $1.2 million was funded during 2020).

Oro Industries Inc., MCU’s exclusive manufacturing partner, has delivered and MCU has now tested the 25-ton-per-hour mercury recovery plant for its pilot operations on Comstock mineral properties, including a 200 gallon-per-minute dissolved air flotation water treatment plant. These pilot trial operations continued into early December and achieved operating balance for all parts of the system, generally operating at 2-3 tons per hour. Our teams are currently sampling and validating mercury-contaminated materials throughout the Carson River Mercury Superfund Site, using a sampling protocol accepted by environmental regulatory bodies, with the objective of identifying and sourcing mercury-contaminated test materials for the continuance of the pilot program. MCU will resume pilot processing later in the first quarter, and continue throughout 2021, at the Company’s American Flat processing facility. The Company’s goals are to validate and fine-tune the mercury remediation process, with the objective of evaluating its economic feasibility on the Comstock materials and capitalizing on the global growth opportunities.

The first of those opportunities is in the Philippines. MCU-P has already delivered its first international system to the Philippines and has commenced operations, led by Mr. Paul Clift, MCU’s CEO, who is on the ground in the province of Davao D’ Oro. MCU-P is coordinating its efforts with its joint venture partner Clean Ore Solutions, a Philippine company, and the Department of Environment and Natural Resources. This represents the first real international opportunity for large-scale mercury remediation and environmental reclamation and for establishing MCU as a leader in mercury remediation, and in particular, contamination caused by small-scale artisanal miners.

Establish and Grow the Value of Our Mineral Properties

During the third and fourth quarter of 2020, the Company engaged Geotech Ltd (“Geotech”) of Aurora, Canada, to conduct an airborne geophysical survey of the Dayton resource area, Spring Valley exploration targets, and the rest of the Company’s Comstock District properties. The survey included both magnetic and Geotech’s proprietary Versatile Time-Domain Electromagnetic (“VTEM”) surveys. The three-dimensional results have been recently delivered to the Company and its geological team continues to assess a deep trove of geophysical and geological data. The results will greatly increase the Company’s understanding of the Dayton resource area, the Spring Valley resource expansion potential, and the rest of the Company’s Comstock District properties.

During the fourth quarter, the Company’s technical staff also completed a detailed structural interpretation of the Dayton resource area, which provides the framework for a completely new resource model. The detailed interpretation has resulted in a highly prospective drill targets to further define and expand the mineral resource.

The Company’s first performance objective includes establishing the Dayton Resource area’s maiden, stand-alone mineral resource estimate, with plans to initiate a stand-alone S-K 1300 compliant, initial assessment technical report for the Dayton resource area. We expect the new technical report to provide not only a new resource estimate, but also a phased drilling plan for further defining and expanding the resource for sustainable, profitable mining. The Company’s performance objectives will then include expanding the Dayton-Spring Valley Complex through exploration drilling and geophysical modelling, further developing the expanded Dayton-Spring Valley Complex toward full economic feasibility, and ultimately supporting a decision to mine.

Monetize Non-strategic Assets and Outlook

The Company’s most near-term performance objectives includes monetizing our third-party, junior mining securities responsibly, for $12.5 million or more, and monetize our non-strategic assets for $12.5 million, excluding the Gold Hill Hotel. During the third quarter of 2020, the Company began monetizing its investments in Tonogold. During the second half of 2020, the Company received over $5.6 million in cash proceeds from the sale of these shares and still holds over 13 million common shares in shares as of December 31, 2020. The Company also holds approximately $4.5 million, in Tonogold 12% senior secured notes receivable, due on September 20, 2021.

The Company expects to monetize the remainder of these non-strategic assets over the next three to nine months, expecting in excess of $18 million in gross proceeds. This includes closing on the sale of the Silver Springs properties for proceeds of over $10 million, to Sierra Springs Enterprises, Inc., monetizing the remainder of our Tonogold shares for total proceeds of over $4.1 million, and collecting on the Tonogold note of over $4.4 million. The Company will use the proceeds to extinguish over $3.5 million in debt and fund its growth initiatives.

At December 31, 2020, cash and cash equivalents were approximately $2.5 million and total common shares outstanding were 34,980,766 shares, including 540,000 unvested, restricted shares representing board compensation over the next three years, with one-third of such shares vesting on January 1, 2022, 2023 and 2024, respectively.

Mr. De Gasperis concluded, “All of our objectives are designed and aligned toward one goal, for creating over $500 million in value by commercializing environmentally friendly metal processing technologies, like those of MCU, and validating and expanding our mineral resources and royalties. Our monetization objectives allow us to fund and accelerate accretive growth toward our initial goal of $500 million of equity value, or at least $12 per share.”

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based, precious and strategic metal-based exploration, economic resource development, mineral production and metal processing business with a strategic focus on high-value, cash-generating, environmentally friendly, and economically enhancing mining and processing technologies and businesses. The Company has extensive, contiguous property in the historic Comstock and Silver City mining districts (collectively, the “Comstock District”), is an emerging leader in sustainable, responsible mining and processing, and is currently commercializing environment-enhancing, metal-based technologies, products, and processes for precious and strategic metals recovery.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information for

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
[email protected]

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
[email protected]

Source: Comstock Mining

Palladium One Massive Magmatic Sulphide Discovery Yields 8.7% Ni_Eq (193 lbs/tonne) over 3.8 Meters at Tyko

 

January 5, 2021 – Toronto, Ontario – The first two holes of the 2020 Tyko drill program intersected massive magmatic sulphides grading 8.7% Ni_Eq*(193 pounds per tonne) over 3.8 Meters (6.6% Ni, 3.7% Cu, 1.5g/t PGE) at less than 30 meters true-depth, at the Smoke Lake target of the Tyko Ni-Cu-PGE Project, in Ontario, Canada said Palladium One Mining (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today. The current market price of nickel is approximately US$7.90 per pound.

Key Highlights:

• Hole TK-20-016 returned 8.7% Ni_Eq(193 pounds per tonne) over 3.8 Meters (6.6% Ni, 3.7% Cu, 1.5g/t PGE) from 29.0 to 32.8 meters down hole.
• Including 10.1% Ni_Eq (221 pounds per tonne) over 0.5 meters (8.2% Ni, 3.1% Cu, 1.5g/t PGE).
• Hole TK-20-015, an up-dip hole, drilled from the same drill pad, returned 4.8% Ni_Eqover 2.3 meters (3.9% Ni, 1.4% Cu, 0.8g/t PGE) from 30 meters down hole.
• Including 8.0% Ni_Eq over 1.0 meters (7.3% Ni, 0.8% Cu, 1.0g/t PGE).
• All 13 holes drilled at Smoke Lake intersected magmatic sulphides with drilled widths ranging from 1 up to 15 meters.
• Multiple massive sulphide intercepts up to 4 metres were encountered.
• Assays for the remaining 11 holes are pending.
• A magmatic sulphide mineralized strike length of 270 meters has been defined by drilling and the deepest intercept to date has a true depth of only 100 meters.
• Mineralization remains open to the northwest and down dip.
• Drilling suggests a shallow southwest dipping body which plunges to the west-northwest.

“We are very pleased with the extremely high-value, near surface resource potential at Smoke Lake. This is the first discovery of massive sulphide mineralization at the Tyko Ni-Cu-PGE Project and provides significant encouragement for additional discoveries given Tyko is woefully underexplored. The Tyko project covers over 20,000 hectares, which includes the 7,000 hectare mafic-ultramafic Bulldozer intrusion, which has seen virtually no geological mapping nor exploration” said Derrick Weyrauch, President and CEO.

The 2020 Tyko drill program consisted of 14 drill holes totalling 1,123 meters, 13 holes were drilled into the Smoke Lake electromagnetic (“EM”) anomaly. This program was the first to drill test the Smoke Lake EM anomaly (see press release January 21, 2020, December 7, 2020, November 18, 2020). High-resolution drone-based magnetic and ground-based horizontal loop EM surveys, undertaken shortly before drilling, refined the anomaly resulting in the successful discovery of massive magmatic sulphides. A bore hole EM survey is scheduled to be completed in January 2021 to further delineate the Smoke Lake massive sulphide body.

Drilling to date indicates a mineralized ultramafic body at surface, transitioning to massive sulphides which dip shallowly (~32°) to the southwest. The massive sulphides occur as a consistent sheet with a possible fault near its base which could be controlling their emplacement in tonalite.

The lithologies at Smoke Lake closely resemble those found at both the Tyko and RJ showings, located 17-kilometers to the west, which returned up to 1.06% Ni and 0.35% Cu over 6.22 m including 4.71% Ni and 0.82% Cu over 0.87 m in hole TK-16-010 (see press release June 8, 2016).

Table 1: Initial Tyko 2020 Drill Results from the Smoke Lake Discovery

(1) Reported widths are “drilled widths” not true widths.

Figure 1. Massive magmatic sulphide intersection in hole TK-20-016. Wall rock is tonalite.

Figure 2. Closeup of massive magmatic sulphide in hole TK-20-016

Figure 3. Plan map of the Smoke Lake area with 1st Vertical Mag as the background showing soil samples, as well as the axial traces of the two closely spaced ground based horizontal loop EM anomalies, and 2020 drill holes.

*Nickel Equivalent (“Ni_Eq”)
Nickel equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne (US$3.00 per pound) for copper, US$15,432 per tonne (US$7.00 per pound) for nickel and US$30,865 per tonne (US$14 per pound) for Cobalt. This calculation is consistent with the commodity prices used in the Company’s September 2019 NI 43-101 Kaukua resource estimate.

About Tyko Ni-Cu-PGE Project
The Tyko Ni-Cu-PGE Project, is located approximately 65 kilometers northeast of Marathon Ontario, Canada. Tyko is an early stage, high sulphide tenor, nickel focused project with the most recent drill hole intercepts returning up to 1.06% Ni over 6.22 m including 4.71% Ni over 0.87m in hole TK-16-010 (see press release dated June 8, 2016).

About Tyko Ni-Cu-PGE Project
The Tyko Ni-Cu-PGE Project, is located approximately 65 kilometers northeast of Marathon Ontario, Canada. Tyko is an early stage, high sulphide tenor, nickel focused project with the most recent drill hole intercepts returning up to 1.06% Ni over 6.22 m including 4.71% Ni over 0.87m in hole TK-16-010 (see press release dated June 8, 2016).

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43- 101.

About Palladium One

Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-coppernickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladiumdominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact:
Derrick Weyrauch, President & CEO
Email:
[email protected]

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Source: Palladium One Mining Inc.

Monday, January 4, 2021

Minerals Industry Report

Metals & Mining Fourth Quarter 2020 Review and Outlook

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to end of report for Analyst Certification & Disclosures

• Mining companies outperformed the broader market. During the fourth quarter of 2020, mining companies (as measured by the XME) gained 43.9% compared to 11.7% for the broader market as measured by the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were down 8.0% and 2.0%, respectively. During the fourth quarter, gold futures prices were flat, while silver and palladium futures prices increased 12.4% and 5.6%, respectively. Copper, zinc, and lead futures prices were up 16.0%, 2.5%, and 8.9%, respectively. While it was perhaps a tougher quarter for gold stocks, the GDX and GDXJ were up 23.0% and 28.3% in 2020 with gold and silver prices gaining 22.2% and 46.0%, respectively. We expect strong fourth quarter 2020 financial results among metals producers.
• Outlook for precious metals remains constructive. While gold prices benefited in 2020 from investors looking for safety in times of uncertainty; a COVID vaccine, greater clarity with respect to a new Presidential administration, and an expected economic recovery in 2021 tilted the market towards greater risk. With continued low interest rates, an expanding money supply, increasing U.S. debt and a growing federal deficit, we think gold prices will continue to be supported by its appeal as a store of value and hedge against a weaker dollar and inflation. Potential headwinds include a tapering of monetary or fiscal policies and the potential for longer-term interest rates to rise. While cryptocurrencies have emerged as a speculative vehicle of choice for some, they do not have gold’s history as a monetary metal and store of value.
• Base metals respond to an improving economic outlook. With economic activity expected to rebound in 2021, base metals price have begun to reflect higher demand expectations. Copper, lead, and zinc prices were all up in the fourth quarter, led by copper and zinc prices which were up 25.0% and 19.7%, respectively in 2020. Secular trends associated with a transition to a greener economy, including more electric vehicles and a push toward electrification have elevated investor attention to longer-term supply and demand fundamentals for metals such as copper.
• Mining equities provide leverage to commodity price strength. In our view, the environment remains constructive for both precious and base metals although the recovery in precious metals prices has been longer in the making and the outcome of the Georgia Senate race may influence the trajectory and magnitude of stimulative policies. We still think it is early in the game for investors to gain exposure to mining companies given their leverage to commodity prices and our favorable outlook for earnings and cash flow growth.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
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Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	78%	34%
Market Perform: potential return is -15% to 15% of the current price	5%	1%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

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