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MG Capital Corp and DLP Resources Announce Commencement of Drilling on the DD Property and Appointment of New Director

Management Changes Exploration Programs

MG Capital Corp and DLP Resources Announce Commencement of Drilling on

the DD Property and Appointment of New Director

Cranbrook, British Columbia, (Newsfile Corp.–July 30, 2020)– DLP Resources Inc. (TSXV:DLP) the wholly

owned subsidiary of MG Capital Corporation is pleased to announce that drilling has commenced on the

DD property which was recently optioned from PJX Resources Inc. (see news release of July 20, 2020).

Ian Gendall, President of DLP commented “We have re -entered the Pan -18-01 hole and commenced

drilling the Sullivan -type Pb-Zn-Ag target which we expect to be below the gabbro sill intersected at a

depth of 1425m in a previous 2018 drill campaign. Pan-18-01 stopped short of the Lower-Middle Aldridge

Contact or “LMC” horizon and we are excited to be extending this hole to test this target.” (see previous

news release of July 20, 2020).

APPOINTMENT OF NEW DIRECTOR

MG Capital is pleased to announce the appointment of Don Njegovan to the Board of Directors of the

Company. Mr. Njegovan is currently the Chief Operating Officer of Osisko Mining Inc. He was a director

of St. Andrews Goldfields until it was acquired by Kirkland Lake Gold in 2016 and is currently on the Board

of Directors of Ascot Resources Ltd. and Cornish Metals Inc. He was formerly Managing Director of Global

Mining at Scotiabank from August 2010 to June 2014. Mr. Njegovan is a mining engineer and has over 25

years of experience in the mining industry.

The company has granted to Mr. Njegovan 150,000 incentive stock options. The options will have a

term of 5 years expiring July 30, 2025. The options shall vest over a 24 month period with one third

vesting immediately, one third after 12 months and one third after 24 months. Each option will allow

the holder to purchase one common share in the company at a price of $0.29 per share.

David L. Pighin, consulting geologist and co -founder of DLP Resources, is the qualified person (“QP”) of

the Corporation as defined by National Instrument 43 -101. Mr. Pighin has rev iewed and approved the

technical contents of this news release.

About DLP Resources Inc.

DLP Resources Inc. is a mineral exploration company operating in Southeastern British Columbia,

exploring for Base Metals and Cobalt. DLP is a wholly-owned subsidiary of MG Capital Corporation listed

on the TSX-V, trading symbol DLP. Please refer to our w eb site www.dlpresourcesinc.com for additional

information.

FOR FURTHER INFORMATION PLEASE CONTACT: MG Capital Corporation & DLP Resources Inc.

Ian Gendall, President

Jim Stypula, Chief Executive Officer

Robin Sudo, Chief Financial Officer and Corporate Secretary

Telephone: 250-426-7808

Email: [email protected]

Email: [email protected]

Email: [email protected]

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 Information

This News Release contains forward -looking statements. Forward looking statements are statements which relate

to future events. Forward-looking statements include, but are not limited to, statements with respect to exploration

results, the success of exploration activities, mine development prospects, completion of economic assessments,

and future gold production. In some cases, you can identi fy forward-looking statements by terminology such as

“may”, “appears to”, “should”, “expects”, “plans”, “anticipates”, believes”, “estimates”, “predicts”, “potential”, or

“continue” or the negative of these terms or other comparable terminology. These statements are only predictions

and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of

activity, performance or achievements to be materially different from any future results, levels of activity,

performance, or achievements expressed or implied by these forward-looking-statements.

Although DLP has attempted to identify important factors that could cause actual actions, events or results to differ

materially from those described in forward -looking stat ements, there may be other factors that cause actions,

events or results not to be as anticipated, estimated or intended. There can be no assurance that forward -looking

statements will prove to be accurate, as actual results and future events could differ materially from those

anticipated in such statements. Accordingly, readers should not place undue reliance on forward -looking

statements.