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Damara Announces Completes Previously Announced Financing for $634,430

Financings

335 – 1632 Dickson Avenue • Kelowna, BC V1Y 7T2

Phone: (250) 717-1840 • www.damaragoldcorp.com

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES

OR FOR DISSEMINATION IN THE UNITED STATES

NEWS RELEASE

Damara Announces Completes Previously Announced Financing for $634,430

June 17, 2021 TSX-V: DMR

DAMARA GOLD CORP. (TSX-V:DMR) (“ Damara” or the “ Company”), announces it has

completed the previously announced financing ( see new releases of June 1, 2021 and June 2,

2021) today wherein the Company has issued 3,938,111 units of the Company on a flow-through

basis (the “ FT Units”) at a price of $0.09 per FT Unit for gross proceeds of $ 354,430 (the “FT

Proceeds”) and issued 3,500,000 units of the Company on a non -flow-through basis (the “NFT

Units”) at a price of $0.08 for gross proceeds of $280,000 (the “NFT Proceeds”) collectively the

“Offering”.

Each FT Unit consists of one common share in the capital of the Company (a “Common Share”)

issued on a flow-through basis under the Income Tax Act (Canada) (the “Tax Act”) and one-half

of one Common Share purchase warrant (each whole warrant a ”Warrant”). Each Warrant entitles

the holder thereof to purchase one non-flow-through Common Share at an exercise price of $0.15

until June 17, 2023.

Each NFT Unit consists of one Common Share in the capital of the Company and a Warrant as

described above.

The FT Proceeds will be used by the Company to incur eligible Canadian exploration expenses

that will qualify as flow -through mining expenditures as such terms are defined in the Tax Act

related to advance the Company’s Placer Mountain Gold Project in British Columbia. All qualifying

expenditures will be renounced in favour of the subscribers of the FT Units effective Dec. 31,

2021. The NFT Proceeds will be used by the Company for explor ation expenditures as well as

for general working capital and administrative purposes.

The Company has paid a n aggregate cash finders' fees of $29,699 cash and issued 350,820

finders warrants (“Finder Warrant”). Each Finder Warrant will entitle the holder to acquire one

additional common share in the capital of the Company at a price of $0.15 until June 17, 2023 on

the same terms as the Warrants.

All securities issued pursuant to the Offering are subject to a statutory four month and one day

hold period expiring on October 18, 2021.

None of the securities sold in connection with the Offering will be registered under the United States Securities Act of

1933, as amended, and no such securities may 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 jurisdiction in which such offer, solicitation

or sale would be unlawful.

335 – 1632 Dickson Avenue • Kelowna, BC V1Y 7T2

Phone: (250) 717-1840 • www.damaragoldcorp.com

About Damara

Damara Gold Corp. is a TSX Venture listed mineral exploration company actively focused on the

exploration of the Placer Mountain Gold Property, located in Princeton, BC, held by 75%/25% JV

with Universal Copper Ltd. Damara’s Board of Directors is seasoned in the mineral exploration

industry with extensive and successful international experience.

ON BEHALF OF THE BOARD OF DIRECTORS OF DAMARA

“Larry Nagy”

Larry Nagy, Chief Executive Officer

For additional information visit Damara’s website at www.damaragoldcorp.com or contact:

Damara Gold Corp.

Larry Nagy

Chief Executive Officer

Ph: (250-241-5692)

Disclaimer for Forward-Looking Information

This news release contains statements that constitute "forward-looking Information", as such term

is used in applicable Canadian securities laws. Such forward-looking information involves known

and unknown risks, uncertainties and other factors that may cause the Company’s actual results,

performance or achievements, or developments in the industry to differ materially from the

anticipated results, performance or achievements expressed or implied by such for ward-looking

information. Forward-looking information includes statements that are not historical facts and are

generally, but not always, identified by the words "expects," "plans," "anticipates," "believes,"

"intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions

"will," "would," "may," "could" or "should" occur.

Although the Company believes the forward-looking information contained in this news release is

reasonable based on information available on the da te hereof, by its nature forward -looking

information involves assumptions and known and unknown risks, uncertainties and other factors

which may cause our actual results, level of activity, 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 information.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions,

risks and uncertainties associate d with general economic conditions; the Covid -19 pandemic;

adverse industry events; the receipt of required regulatory approvals and the timing of such

approvals; that the Company maintains good relationships with the communities in which it

operates or pr oposes to operate, future legislative and regulatory developments in the mining

sector; the Company ’s ability to access sufficient capital from internal and external sources,

and/or inability to access sufficient capital on favorable terms; mining industry and markets in

Canada and generally; the ability of the Company to implement its business strategies;

competition; the risk that any of the assumptions prove not to be valid or reliable, which could

result in delays, or cessation in planned work, risks associated with the interpretation of data, the

geology, grade and continuity of mineral deposits, the possibility that results will not be consistent

335 – 1632 Dickson Avenue • Kelowna, BC V1Y 7T2

Phone: (250) 717-1840 • www.damaragoldcorp.com

with the Company’s expectations, as well as other assumptions risks and uncertainties applicable

to mineral exploration and development activities and to the Company, including as set forth in

the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.

THE FORWARD -LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE

REPRESENTS THE EXPECTATIONS OF DAMARA AS OF THE DATE OF THIS PRESS

RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS

SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD -LOOKING INFORMATION

AND SHOULD NOT RELY UPON THIS IN FORMATION AS OF ANY OTHER DATE. WHILE

DAMARA MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION

AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE

LAWS.

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