Replies to post #127 on Troilus Mining Corp (CHXMF)

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TROILUS CLOSES PRIVATE PLACEMENT OF FLOW-THROUGH SHARES AND COMMON SHARES FOR TOTAL PROCEEDS OF C$12,832,683

Not for distribution to United States newswire services or for dissemination in the United States

February 28, 2020, Toronto, Ontario – Troilus Gold Corp. (TSX: TLG; OTCQB: CHXMF) (“Troilus” or the “Company”) is pleased to announce that it has closed its previously announced non-brokered private placement of an aggregate of 6,449,188 common shares of the Company that will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”) (collectively, the “Flow-Through Shares“).

The Flow-Through Shares were issued in three tranches as follows:

Tranche 1: 2,000,000 Flow-Through Shares issued to investors resident in the Province of Québec at an issue price of C$1.00 per Flow-Through Share for aggregate gross proceeds of C$2,000,000 (the “T1 Offering”);

Tranche 2: 2,070,617 Flow-Through Shares issued to investors resident in the Province of Québec at an issue price of C$0.81 per Flow-Through Share for aggregate gross proceeds of C$1,677,200 (the “T2 Offering”); and

Tranche 3: 2,378,571 Flow-Through Shares issued to investors resident outside of the Province of Québec at an issue price of C$0.77 per Flow-Through Share for aggregate gross proceeds of C$1,831,500 (the “T3 Offering” and, collectively with the T1 Offering and the T2 Offering, the “Flow-Through Offering”).

The Flow-Through Shares issued in connection with the T1 Offering and the T2 Offering also qualify as “flow-through shares” within the meaning of section 359.1 of the Taxation Act (Québec).

The Company is also pleased to announce that it has closed its previously announced non-brokered private placement of an aggregate of 11,267,667 common shares of the Company (the “Offered Shares”) which were issued at a price of C$0.65 per Offered Share for aggregate gross proceeds of C$7,323,983 (the “Common Share Offering”).

The aggregate gross proceeds raised pursuant to the Flow-Through Offering and the Common Share Offering (collectively, the “Offering”) total C$12,832,683.

The gross proceeds from the issue and sale of the Flow-Through Shares will be used by the Company to incur eligible “Canadian exploration expenses”, within the meaning of the Tax Act, that will qualify as “flow-through mining expenditures” as defined in the Tax Act (the “Qualifying Expenditures”) related to the Company's Troilus gold project located within the Frotêt-Evans Greenstone Belt in Québec, on or before December 31, 2021. The Company will renounce the Qualifying Expenditures to the subscribers of the Flow-Through Shares with an effective date of no later than December 31, 2020.

The Company intends to use the net proceeds of the Common Share Offering to continue exploration and definition drilling at its Troilus gold project, and for general corporate purposes.

The Offering remains subject to final approval of the Toronto Stock Exchange (“TSX”). The Flow-Through Shares and Offered Shares issued under the Offering are subject to a hold period in Canada expiring four months and one day from the closing date of the Offering.

In connection with the Offering, the Company has paid financial advisory fees to Cormark Securities Inc., Stifel GMP, Canaccord Genuity Corp., Haywood Securities Inc., Laurentian Bank Securities Inc. and Red Cloud Securities Inc.. In addition, in connection with the Offering, the Company has paid finder’s fees in respect of certain subscriptions to Tamesis Partners LLP and other finders.

The securities offered have not been, nor will they 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 the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Troilus Gold Corp.

Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development company focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine. The 16,000-hectare Troilus property is located northeast of Chibougamau within the Frotêt-Evans Greenstone Belt in Quebec, Canada. From 1996 to 2010, Inmet Mining Corporation operated the Troilus project as an open pit mine, producing more than 2,000,000 ounces of gold and nearly 70,000 tonnes of copper.

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TROILUS FILES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT

TECHNICAL REPORT FOR THE TROILUS GOLD PROJECT

October 15, 2020, Toronto, Ontario – Troilus Gold Corp. (TSX: TLG) (OTCQB: CHXMF) (“Troilus” or the “Company”) reports that it has filed the technical report supporting the Preliminary Economic Assessment (“PEA”) for the Company’s 100%-owned Troilus Gold Project, located within the Frôtet-Evans Greenstone Belt of northern Quebec (the “Technical Report”). The Technical Report, titled “Preliminary Economic Assessment of the Troilus Gold Project, Quebec, Canada” dated October 14, 2020 (the mineral resource has an effective date of July 20, 2020 and the PEA has an effective date of August 31, 2020) was prepared by Gordon Zurowski, P. Eng. Principal Mining Engineer, AGP Mining Consultants Inc. (“AGP”), Paul Daigle, P. Geo, Senior Associate Geologist, AGP and Mr. Andy Holloway, P. Eng. Principal Processing Engineer, AGP.

The positive PEA, announced August 31, 2020, demonstrates the potential for Troilus to rank among the top gold producing assets in Canada.

Troilus Gold Project PEA Highlights (all results are reported in U.S. Dollars*):

After-tax IRR of 22.9% and NPV5% of $576 million based on $1,475/oz gold, increasing to 32.2% and $915 million at $1,750/oz gold
Projected average annual gold production of 220,000 oz for the first 5 years and 246,000 oz for the first 14 years
Open pit mine life of 14 years and total mine life of 22 years with future underground development
Initial capital of (“CAPEX”) of $333 million, including all mine pre-production costs, net of existing infrastructure (access road, power line, tailings facility, substation, camp, water treatment plant)
After-tax payback of 4.0 years at base case $1,475/oz gold
Average cash operating costs of $919/oz gold and all-in sustaining costs of $1,051/oz gold
Cumulative cashflow of $1.27 billion after tax and $2.04 billion pre-tax over 22 years on base case assumptions
Payable Gold of 3.8 million ounces, payable Copper of 265 million lbs and payable Silver of 1.5 million ounces
Average strip ratio for the open pit life of the mine estimated at 3.9:1

*Assuming a US$:C$ exchange of $0.74. All figures reported in US$ unless stated otherwise

The Technical Report can be found on the Company’s website at www.troilusgold.com and under the Company’s profile on SEDAR at www.sedar.com.

Qualified Person

Mr. Gordon Zurowski, P. Eng. Principal Mining Engineer, AGP Consultants, who is an independent Qualified Person as defined under NI 43-101, has reviewed and approved the technical information pertaining to the PEA disclosed in this press release.

Non-IFRS Financial Measures

The Company has included certain non-IFRS financial measures in this news release, such as Initial Capital Cost, Cash Operating Costs ,Total Cash Cost, All-In Sustaining Cost, Expansion Capital and Capital Intensity, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. As a result, these measures may not be comparable to similar measures reported by other corporations. Each of these measures used are intended to provide additional information to the user and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

Non-IFRS financial measures used in this news release and common to the gold mining industry are defined below.

Total Cash Costs and Total Cash Costs per Ounce

Total Cash Costs are reflective of the cost of production. Total Cash Costs reported in the PEA include mining costs, processing & water treatment costs, general and administrative costs of the mine, off-site costs, refining costs, transportation costs and royalties. Total Cash Costs per Ounce is calculated as Total Cash Costs divided by payable gold ounces.

All-in Sustaining Costs (“AISC”) and AISC per Ounce

AISC is reflective of all of the expenditures that are required to produce an ounce of gold from operations. AISC reported in the PEAS includes total cash costs, sustaining capital, expansion capital and closure costs, but excludes corporate general and administrative costs and salvage. AISC per Ounce is calculated as AISC divided by payable gold ounces.

About Troilus Gold Corp.

Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development company focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine. The 107,326 hectare Troilus property is located within the Frotêt-Evans Greenstone Belt in Quebec, Canada. From 1996 to 2010, Inmet Mining Corporation operated the Troilus project as an open pit mine, producing more than 2,000,000 ounces of gold and nearly 70,000 tonnes of copper