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BTU.V ·

BTU Exploration Update

Exploration Programs

Suite 1240, 789 West Pender St. Vancouver, British Columbia

Phone: 604-683-3995/ Toll Free: 888-945-4770/Fax: 604-683-3988

BTU EXPLORATION UPDATE

August 27, 2021 Vancouver, BC, Canada – BTU METALS CORP. ("BTU" or the "Company") (BTU -

TSX:V; BTUMF -OTC PINK) announces assay results from the most recent ten drill holes covering

3086.5 meters have been received. This program was focused on the northeast portion of the Dixie Halo

property in the general area of the southeast extension of the stratigraphic units that host the LP fault gold

mineralization on the adjacent Great Bear Resources (Great Bear) Dixie project . While all ten holes

intersected anomalous gold, assays were not significant. It should be noted that the anomalous values are

located in association with alteration and sulphide mineralization that includes pyrite, arsenopyrite and

pyrrhotite. These 10 drill holes were widely spaced in areas of little to no o utcrop and they provide

important geological information and there remains good potential to find higher gold values in the areas

where anomalous up to over 1 gram per tonne gold were intersected. For more detailed drill hole data

please visit the BTU website at www.btumetals.com/2021drillresults.

Numerous new drill targets have been identified in the west and central portions of the property where the

company has undertaken no drilling and there is very little historical drilling (Figure 1).

Figure 1: Geology of the Dixie Lake area with BTU drill holes, historic drill holes, and GBR LP Fault drill holes

The area south of Hiewall Lake is geologically characterized by the contact between felsic volcanic rocks

and clastic metasediments, similar to the geological setting of the LP Fault system of gold mineralization.

The gold-in-till results in the area, and ‘down-ice’ of the area, contain high counts of gold grains and high

proportions of pristine gold grains . Initial stripping and prospecting in the area has revealed some

gossanous areas mineralized with sulphides (Figure 2). Grid lines were established and ongoing Induced

Polarization surveys conducted in the area have identified targets that will be tested in the upcoming drill

campaign.

Figure 2: Aerial view of one of the gossanous areas south of Hiewall Lake. Note the people for scale on the left of the photo. The reddish-

brown gossan is a result of oxidizing sulphides.

TNT Area

BTU awaits results of hole BTU -21-66 in the TNT target area (see PR dated June 1, 2021) . Minor

sphalerite and chalcopyrite mineralization was intersected supporting a possible VMS (“Volcanogenic

Massive Sulphide”) thesis and the possibility that more abundant copper and zinc sulphides may be present

nearby. Large VMS type targets have been identified to the northeast and these priority drill targets remain

untested.

The Company is pleased to announce the discovery of numerous mineralized outcrops in the TNT area of

BTU’s prominent land position in Red Lake , on the Pakwash North property. The strongest geophysical

targets from the TNT geochemical/geophysical study are on the recently acquired Pakwash North

property. Pakwash North has been the subject of much focus for the summer field program and has now

yielded outcrops with quartz veining and sulphides (e.g. Figure 3) . These outcrops have been mapped ,

sampled and sent for assay which will assist in determining orientation and dip to the siz eable, nearby

geophysical target identified in late winter of this year (see PR dated May 11, 2021). The Company expects

to drill test this laterally extensive and strongly conductive and chargeable feature for its base metal and

gold potential as soon as the logistics for this drilling are resolved.

Paul Wood, BTU CEO stated, “Although we have not yet seen the higher gold values that we had hoped

for, our confidence grows that we are defining the best targets for success. In addition to refining our

targets at Dixie Halo, we look forward to resuming drilling at new gold targets as well as our newer

Pakwash North property which is looking very encouraging.”

With the suspension of drilling activities in the Red Lake area lifted, BTU is now working with contractors

to ascertain scheduling for follow-up drilling and looks forward to updating shareholders as the program

gets underway.

Red Lake Activities

The Red Lake mining area is extremely busy with the highlights being the purchase of the Newmont

Mining assets in the camp by Evolution Mining, their recent purchase of Battle North Gold Corporation,

the progression of several local properties toward commercial production, as well as the establishment of

the gold discoveries of Great Bear as significant new areas and styles of gold mineralization that have the

potential to rewrite the geology of this high -grade gold camp that has already produced more than 28

million ounces of gold. The area where Great Bear has been busy outlining strong gold mineralization on

the Dixie property which is close to the BTU Dixie Halo property in an area that was historically under -

explored and poorly understood largely due to the extensive overburden cover. As exploration by Great

Bear and others progresses in the area, and the geology a s well as controls on gold mineralization are

better understood, new gold discoveries will almost certainly be outlined. Great Bear continues to define

gold mineralization along the LP Fault as they prepare for upcoming resource evaluation work which

clearly makes the Dixie area a focus for gold exploration in Ontario. BTU is the largest landholder in the

immediate area of the Great Bear discoveries.

COVID-19

The Company’s exploration work at its Red Lake, Ontario projects remains largely on schedule with no

major disruption due to the COVID-19 government guidelines. The Company continues to monitor this

situation, continues to be careful to conduct all work in compliance with COVID-19 guidelines, and will

adjust its activities and timelines as deemed appropriate.

Bruce Durham, P. Geo., a qualified person as defined by National Instrument 43-101 has reviewed and

approved the technical information in this press release.

ON BEHALF OF THE BOARD

“Paul Wood”

Paul Wood, CEO, Director

[email protected]

FOR FURTHER INFORMATION, PLEASE CONTACT:

Andreas Curkovic, Investor Relations

Telephone 1-416-577-9927

BTU Metals Corp.

Telephone: 1-604-683-3995

Toll Free: 1-888-945-4770

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 release.

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or

future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect

management’s current beliefs and are based on assumptions made by and using information currently available to the Company.

Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and they are subject to risks and

uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of

the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update

or revise them to reflect new events or circumstances. All forward-looking statements made in this press release are qualified by these

cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).