Signature Resources Ltd. (SGGTF)

[dcbass]

SIGNATURE ANNOUNCES CLOSING OF OVERSUBSCRIBED PRIVATE PLACEMENT

FOR IMMEDIATE RELEASE September 14, 2020
Toronto, Ontario, September 14, 2020 – Signature Resources Ltd. (TSXV: SGU, OTCQB: SGGTF, FSE 3S3) ("Signature" or the "Company") is pleased to announce the closing of the second and final tranche (the "Second Tranche") of its non-brokered private placement announced on August 17, 2020 (the "Offering). In the Second Tranche, the Company raised an additional $375,000 by issuing 5,924,000 hard dollar units ("HD Units") at a price of $0.05 per HD Unit and 1,313,334 flow-through units ("FT Units") at a price of $0.06 per FT Unit, resulting in $1,545,034 of aggregate gross proceeds of the Offering.

Each HD Unit issued pursuant to the Offering, including the Second Tranche, consists of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each FT Unit consists of one common share of the Company issued on a flow-through basis ("FT Share") and one half of one (1/2) Warrant. Each whole Warrant issued pursuant to the Second Tranche will be exercisable into one Common Share at a price of $0.10 until September 11, 2022, provided that if after four months and one day following the closing of the Second Tranche, the closing price of the Company's Common Shares on the TSX Venture Exchange is equal to or greater than $0.20 for 10 consecutive trading days, then the Company may accelerate the expiry date of the Warrants by disseminating a press release and in such case the Warrants will expire on the 30th day after the date on which such press release is disseminated by the Company. The FT Shares will qualify as “flow-through shares” (within the meaning of the Income Tax Act (Canada)).

In connection with the Second Tranche. the Company paid aggregate cash finder's fees of $18,500 and issued 360,400 finder's warrants (each, a "Finder's Warrant"). Each Finder's Warrant is exercisable to acquire one Common Share at a price of $0.05 (for Finder's Warrants issued pursuant to the sale of HD Units) and $0.06 (for Finder's Warrants issued pursuant to the sale of FT Units) for a period of 24 months following closing of the Second Tranche.

All securities issued in the Second Tranche of the Offering, including the Finder's Warrants, are subject to a statutory hold period expiring on January 12, 2021.