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Grid Metals Options Newly Discovered Lithium Pegmatite Property In NW Ontario

TORONTO, ON / ACCESSWIRE / October 5, 2021 / Grid Metals Corp. (TSXV:GRDM) (OTCQB:MSMGF) ( the "Company") is pleased to announce the signing of an option…

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TORONTO, ON / ACCESSWIRE / October 5, 2021 / Grid Metals Corp. (TSXV:GRDM) (OTCQB:MSMGF) ( the "Company") is pleased to announce the signing of an option agreement to acquire a 100% interest in a previously undiscovered and prospective spodumene and lepidolite-bearing pegmatite lithium property located approximately 250 km northwest of Thunder Bay (see Figure 1). The property (herein referred to as the "Campus Creek property" or the "Property") hosts at least one highly fractioned and rare metal-enriched pegmatite dyke (the "Highstone dyke") evidenced by high-grade lithium and highly anomalous cesium, rubidium and tantalum values obtained from Grid's initial surface grab sampling.

Highlights from analyses of samples taken from the initial showing of spodumene-bearing pegmatite:

Sample

Easting (m)

Northing (m)

Elevation

(m)

Li2O

(%)

Cs2O

(%)

Rb2O

(%)

Ta

(ppm)

Fe

(%)

B419026

599255

5462885

513

4.35

0.01

0.03

88

0.54

B419085

599257

5462880

514

1.50

0.08

0.19

179

0.49

B419088

599255

5462883

482

1.42

0.18

0.45

304

0.45

B419027

599257

5462883

513

0.88

0.12

0.45

71

0.37

B419089

599256

5462882

482

0.68

0.09

0.28

227

0.89

B419103

599256

5462874

516

0.22

0.02

0.11

33

0.53

Above: Selected analytical results for surface grab samples collected from the Highstone Dyke initial showing at the Campus Creek lithium property.

Campus Creek Property - Highlights

  • The Campus Creek property is located directly adjacent to the TransCanada highway (Figure 1) and is road accessible with the initial discovery attributable to the recent logging in the area.
  • Prospective geological setting for rare metal pegmatites, with property straddling a major tectonic boundary zone between three discrete structural domains in the western Superior Province
  • No previous lithium or rare metal exploration; a bona fide new discovery
  • Multiple fertile granite and granite pegmatite dyke outcrops identified by geochemistry over an initial reconnaissance prospecting area of ~4 km x ~2km
  • Outcropping spodumene and lepidolite bearing pegmatite with high-grade Li2O contents

Whole rock geochemical analyses from a suite of ~80 outcrop grab samples consistently returned highly fractionated incompatible element ratios indicative of a fertile environment for rare metal-enriched pegmatites. The property remains poorly explored with only a handful of historic drill holes occurring in the existing claim block - none of which were drilled for rare metals. Initial analytical highlights for grab samples from the Highstone dyke are given in the table above.

Preliminary investigations indicate there are a number of granitic pegmatite outcrops on the Property with apparent widths locally exceeding 100 metres. The project occurs in a highly prospective geological environment centered on a major regional tectonic boundary.

The Company believes the acquisition of a large land position with a highly encouraging initial lithium and rare metal occurrence, multiple outcropping pegmatite bodies and positive geochemistry is an exciting initial opportunity for Grid, particularly given the strong market fundamentals for lithium. The Company's exploration model for a lithium pegmatite project is the discovery of a large zone(s) of spodumene-rich granite pegmatite from one or more dykes displaying strong and consistent mineralogical zonation and having highly fractionated geochemistry. Grid's target tonnages are on the order of 10 million tonnes with grades exceeding 1% Li2O in a spodumene-rich resource capable of delivering a >6% Li2O spodumene concentrate.

Dr. Julie Selway, a foremost expert in rare metal pegmatite geology and exploration approaches, has been engaged by the Company to guide its ongoing exploration activities and provide interpretations on the results from initial due diligence work. Dr. Selway commented that "I am excited to be involved in advising exploration work on this discovery. This is the first time spodumene and lepidolite have been identified on the Campus Creek Property. The presence of both spodumene and lepidolite in the same pegmatite indicate a higher level of fractionation than a typical spodumene pegmatite. The spodumene in Highstone pegmatite is beige to pinkish indicating low iron content for future processing. The presence of fertile granites near the Highstone pegmatite indicates that there is a potential for more lithium pegmatite dykes to be found on the Property."

Figure 1: General geology and location of the Campus Creek lithium property

Above: Recent channel sampling at the initial spodumene discovery in the Highstone pegmatite dyke, Campus Creek property.

Above: Large spodumene crystal from the initial spodumene discovery in the Highstone pegmatite dyke, Campus Creek property.

Next Steps

The Company has commenced an initial geological mapping and additional outcrop sampling on the Property to map pegmatite occurrences and obtain additional geochemical information. Access to the property is very good via logging roads off the TransCanada highway. The sampling program is expected to cost approximately $50,000 and be completed over the next several weeks.

Strategic Review Underway

Between its Mayville Lithium and Campus Creek Lithium Properties, Grid has assembled a leading North American portfolio for hard rock lithium exploration and resource building. In Manitoba, the Mayville Lithium Property hosts four known lithium bearing dykes, two of which have a historical resource (see Company's news release dated September 14, 2021). Like Campus Creek, the Mayville Lithium Property has excellent access and infrastructure. The Company believes there is excellent potential to establish a significant 43-101 compliant lithium resource in Manitoba with limited drilling. The potential for the Mayville Lithium project is highlighted by its close proximity to the operating Tanco Mine (an active rare metals mining operation) and the recently announced New Age Metals/Mineral Resources Limited exploration joint venture.

The Campus Creek asset is in the developing Thunder Bay regional hub of lithium and rare metal exploration and development and is a positive complement to Mayville Lithium. It also has excellent geological fundamentals and significant blue sky potential.

The Board of Directors and Senior Management of the Company are currently evaluating strategic options to fund the newly emergent lithium assets going forward given the Company's competing requirements for funding for its base and precious metals assets. Regardless, the Company is focused on commencement of drilling activity in Manitoba utilizing its existing working capital .

Terms of Option

The Property consists of 239 single cell mining clams covering an area of 5,198 hectares measuring 15 km x 5 km. The Company can acquire 100% interest in the mining claims subject to an NSR interest by incurring annual work expenditures and making annual payments of cash and issuing common shares (subject to TSXV approval). The schedule of option payments and work commitments is as follows:

Due DateCashCommon SharesWork Commitments
On signing$10,000100,000 
1st Anniversary$20,000125,000$50,000
2nd Anniversary$40,000133,000$100,000
3rd Anniversary$60,000150,000$200,000
4th Anniversary$80,000150,000$400,000

The Vendor (an arm's length third party) will retain a 2% NSR on the property 1% of which can be purchased by the Company for $1,250,000.

Update on Other Corporate Exploration Activities

  1. Exploration permits have been submitted in Manitoba for Grid's PEA stage Makwa Mayville Ni-Cu-PGM-Co project and the nearby Mayville Lithium project in order to commence a comprehensive drill program as soon as possible. Drilling on both projects will focus on near deposit exploration targets, resource conversion and expansion and providing feed material for new metallurgical studies.
  2. Results for the Bannockburn Nickel Project near Timmins Ontario are anticipated soon and a decision on a second phase of drilling will be based on the success of the recently completed eight-hole program.
  3. The Company has completed a significant field program over priority targets at the East Bull Palladium Project near Sudbury and is compiling that data with other information to assess the priority of drill targets. At this time Company does not anticipate additional drilling at East Bull until at least later in 2021 given its competing priorities.

QA/QC, Analytical and Metallurgy Work

All samples referenced in this news release were analysed at Actlabs (Ancaster) using a sodium peroxide fusion digestion method and a variety of analytical finishes including atomic absorption, XRF, ICP and ICP-MS. Grid maintains a rigorous QA/QC protocol for all of its exploration programs including inserting of analytical blanks, duplicates and commercial standards at regular intervals (generally one QA/QC sample is inserted every ten samples). The results reported herein all passed Grid's QA/QC thresholds for standard and blank accuracy for the key rare metals of interest on the property, i.e., lithium, cesium and tantalum.

Dr. Dave Peck, P.Geo., has reviewed and approved the technical content of this release for purposes of National Instrument 43-101.

About Grid Metals Corp.
Grid Metals Corp. is an exploration and development Company that has projects focused on Nickel Copper-PGM-Cobalt and lithium. In addition to the East Bull Lake Palladium and Bannockburn Nickel properties Grid has a PEA stage Ni-Cu-PGM-Co project (Makwa-Mayville) in southeastern Manitoba. Grid has signed exploration agreements at all three of its properties with the affected First Nations.

To find out more about Grid Metals Corp., please visit www.gridmetalscorp.com.

On Behalf of the Board of Grid Metals Corp.
Robin Dunbar - President, CEO & Director Telephone: 416-955-4773 Email: [email protected]
David Black - Investor Relations Email: [email protected]

We seek safe harbour. This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its properties, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward- looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

SOURCE: Grid Metals Corp.



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Today’s News

Eldorado Gold Announces New Senior Secured Credit Facility

VANCOUVER, British Columbia, Oct. 15, 2021 (GLOBE NEWSWIRE) — Eldorado Gold Corporation (“Eldorado”, the “Company” or “We”) is pleased to…

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VANCOUVER, British Columbia, Oct. 15, 2021 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado”, the “Company” or “We”) is pleased to announce that the Company and its syndicate of lenders have executed an amended and restated senior secured credit facility (the “fourth amended and restated credit agreement” or “Fourth ARCA”).

The Fourth ARCA consists of a US$250 million revolving senior secured credit facility with an option to increase the available credit by US$100 million through an accordion feature, as well as a letter of credit facility. The Fourth ARCA amends and replaces the May 2019 US$450 million senior secured credit facility (the “2019 Facility”), which consisted of a US$200 million non-revolving term loan and a US$250 million revolving credit facility. Under the Fourth ARCA the revolving credit facility bears interest at LIBOR plus a margin of 2.125% to 3.25%, dependent on a net leverage ratio pricing grid. To be consistent with the 6.250% senior unsecured notes due 2029 (the “Notes”) issued by Eldorado on August 26, 2021, the Fourth ARCA allows for greater flexibility for a broad range of financing alternatives for the development of the Kassandra assets.

The net proceeds from the sale of Notes were used in part to redeem the outstanding 9.5% senior secured second lien notes due 2024 and to repay outstanding amounts under the 2019 Facility.

“We continue to strengthen our balance sheet and maintain a solid financial position,” said George Burns, President and CEO. “The amended and restated senior secured credit facility provides Eldorado greater financial flexibility as we pursue a broader range of funding alternatives for the development of our Kassandra assets in Greece.”

About Eldorado Gold

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania, and Brazil.  The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities.  Eldorado’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

Contacts

Investor Relations

Lisa Wilkinson, VP, Investor Relations
604.757 2237 or 1.888.353.8166
[email protected]

Media

Louise McMahon, Director Communications & Public Affairs
604.616 2296 or 1.888.363.8166
[email protected]

Cautionary Note Regarding Forward-Looking Statements

Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as “anticipates”, “believes”, “continue”, “expects”, “is expected” or “intends” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information contained in this release include, but are not limited to, statements or information with respect to our strengthened balance sheet and financial position and funding alternatives for the development of our Kassandra assets.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information, including assumptions about: funding alternatives for the development of our Kassandra assets; how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; the geopolitical, economic and legal climate that we operate in; the repayment of outstanding indebtedness; and anticipated costs and expenses. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this release. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: global outbreaks of infectious diseases, including COVID-19; geopolitical and economic climate (global and local) risks; financing risks; as well as those risk factors discussed in the sections titled “Forward-looking information and risks” and “Risk factors in our business” in the Company’s most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR and EDGAR under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.

Forward-looking statements and information are designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in Canada and the U.S.


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Today’s News

Spruce Ridge Oil & Gas Ships its First Load of Oil to a Refinery

 

October 15, 2021 – TheNewswire – Spruce Ridge Resources Ltd. (TSXV:SHL) (OTC:SRCGF) – (“Spruce Ridge” or the “Company”) is pleased to announce…

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October 15, 2021 – TheNewswire - Spruce Ridge Resources Ltd. (TSXV:SHL) (OTC:SRCGF) - (“Spruce Ridge” or the “Company”) is pleased to announce that its wholly owned subsidiary Spruce Ridge Oil & Gas Inc. (“SRO&G”) has shipped its first load of oil to a refinery.  The current contract we have with our customer is to supply 75m3 at $78.13 USD per barrel or   $491.44 USD per m3 less deductions and before royalties.  The revenue for the first shipment will be approximately $11,867 CDN.  A second delivery of oil is expected on Monday.  Subsequent contracts will be valued at the current spot price.

 

At this time, we currently have three oil wells operating and three wells are in the process of being started.  

 

John Ryan, CEO stated “We are thrilled with the progress made to date on this project and look forward to updating shareholders as we continue to bring new wells online.  In light of the current global market for oil, we believe this is an opportunity for Spruce Ridge to generate a consistent cash flow which will mitigate the need for financing to advance our very exciting exploration projects in Newfoundland and Timmins”.

  

About Spruce Ridge Resources Ltd.

 

Spruce Ridge holds a 100% interest in the Great Burnt Copper-Gold Property in Central Newfoundland which covers a series of copper ± gold rich VMS deposits.  Spruce Ridge recently acquired certain mineral leases with petroleum and natural gas rights, plus oil and gas wells, pipelines and facilities in the Unity area of southwestern Saskatchewan.  Included in the purchase are 793 ha of petroleum and natural gas rights from surface to the base of the Mannville Group with an average working interest of 84%.  The purchase includes 5 active oil wells, 10 suspended oil and gas wells, heavy oil facilities, pipelines, and an active produced water disposal well.  Spruce Ridge Resources sold its interest in in the Crawford Nickel-Cobalt Sulphide project to Canada Nickel Company Inc. but retained ground which contains VMS and gold targets.  Spruce Ridge’s Viking/Kramer gold properties in Western Newfoundland are optioned to Magna Terra Minerals Inc.

  

For further information please contact:

 

John Ryan, President and CEO

Spruce Ridge Resources Ltd.

Phone: 519-822-5904

Email: [email protected]

  

Forward-Looking Statements

 

Neither TSX Venture Exchange nor its Regulation 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.  This News Release includes certain "forward-looking statements" which are not comprised of historical facts.  Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations.  Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the intention to complete the transactions, and the Company’s objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to an inability to complete the transactions, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, delays in obtaining or failures to obtain required regulatory, governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

 

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

 

Copyright (c) 2021 TheNewswire - All rights reserved.

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Today’s News

PetroTal Issues Equity Vested Through PSU Plan and TVR

Calgary, Alberta and Houston, Texas–(Newsfile Corp. – October 15, 2021) – PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the…

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Calgary, Alberta and Houston, Texas--(Newsfile Corp. - October 15, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") announces that the Company has issued an aggregate of 3,103,716 Common Shares to employees (including 1,645,267 shares to a person discharging managerial responsibilities ("PDMR's") pursuant to the obligation to annually issue vested performance share units ("PSUs")) to acquire Common Shares under the Company's performance and restricted share unit plan, as approved by the TSX Venture Exchange on December 12, 2019.

Further details regarding the PSU plan are set out in the management information circular of the Company dated May 19, 2021 which is available on SEDAR at www.sedar.com.

Admission to Trading on AIM/TSXV and Total Voting Rights

Application will be made to the London Stock Exchange for the admission of 3,103,716 Common Shares to trading on AIM ("Admission") and to the TSXV for listing of 3,103,716 Common Shares for trading on the facilities of the TSXV. It is expected that Admission will become effective at 8.00 a.m. on or around October 21, 2021. Following Admission, the Company will have 823,309,231 Common Shares issued and there are no shares held in treasury. For purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company is 823,309,231 Common Shares. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:

Douglas Urch
Executive Vice President and Chief Financial Officer
[email protected]
T: (713) 609-9101

Manolo Zuniga
President and Chief Executive Officer
[email protected]
T: (713) 609-9101

PetroTal Investor Relations
[email protected]

Celicourt Communications
Mark Antelme / Jimmy Lea
[email protected]
T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494

Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; oil production levels, well payout production and the ability of the Company to achieve near term production targets; anticipated future production and revenue; continued operation of the ONP and PetroTal's access thereto, the Company's expectations regarding netbacks and free cash flow; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, the ability of the Ministry of Energy to effectively achieve its objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company's growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price volatility, price differentials and the actual prices received for products, exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the most recent management's discussion and analysis and the most recent annual information form which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: References in this press release to short‐term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. The Company cautions that such results should be considered to be preliminary.

RESERVES DISCLOSURE: The reserve estimates contained herein were derived from a reserves assessment and evaluation prepared by Netherland Sewell Associates, Inc., a qualified independent reserves evaluator, with an effective date of December 31, 2020 (the "NSAI Reserves Report"). The NSAI Reserves Report has been prepared in accordance with definitions, standards and procedures contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51 101") and the most recent publication of the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") The reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Volumes of reserves have been presented based on the Company's total working interest. Readers should give attention to the estimates of individual classes of reserves and appreciate the differing probabilities of recovery associated with each category. The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.

TYPE CURVES: Certain type curve disclosure presented herein represents estimates of the production decline and ultimate volumes expected to be recovered from wells over the life of the well. The type curves represent what management thinks an average well will achieve, based on methodology that is analogous to wells with similar geological features. Individual wells may be higher or lower but over a larger number of wells, management expects the average to come out to the type curve. Over time type curves can and will change based on achieving more production history on older wells or more recent completion information on newer wells. Additional details on well performance and management's type curves are available in the presentation on PetroTal's website at www.petrotal-corp.com.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in NI 51-101. All references to Brent indicate Intercontinental Exchange ("ICE") Brent.

NON-GAAP MEASURES: This press release contains financial terms that are not considered measures under generally accepted accounting principles ("GAAP") such as operating netback and free cash flow that do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. Management uses these non-GAAP measures for its own performance measurement and to provide shareholders and investors with additional measurements of the Company's efficiency and its ability to fund a portion of its future capital expenditures. Netback is calculated by dividing net operating income by barrels sold in the corresponding period. Free cash flow is operating cash flow before hedging minus maintenance capital expenditures. Please refer to the most recent management's discussion and analysis for additional information relating to non-GAAP measures.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production and well payout production, 2021 capital program and budget, free cash flow and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99760

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