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MG Capital Corp and DLP Resources Announces Completion of Drilling PAN-18-01-EX on the DD Property

Exploration Programs

MG Capital Corp and DLP Resources Announces Completion of Drilling

PAN-18-01-EX on the DD Property

Cranbrook, British Columbia, (Newsfile Corp.–Aug 06, 2020)– DLP Resources Inc. (TSXV:DLP) the wholly

owned subsidiary of MG Capital Corporation is pleased to announce that drilling the extension of the

original PAN-18-01 hole on the DD property, which was recently optioned from PJX Resources Inc., has

been completed.

PAN-18-01-EX commenced at a depth of 1425.00m in a gabbro sill above the base of the Middle Aldridge

Formation and ended at 1711.00m in the Lower Aldridge Formation. The Sullivan Horizon was intersected

at the base of a faulted contact with the gabbro sill at 1529.00m and consisted of moderately to intensely

altered siltstone/argillite. The alteration consisted of sericite, garnets, silicification, chlorite and minor

albite to a dep th of 1655.20m. Trace sphalerite was noted in a 24.80m interval from 1562.40m to

1589.42m.

Ian Gendall, President of DLP commented: “Although no significant zinc mineralization was observed in

the moderately to intensely altered siltstones of the Sullivan Horizon there is a possibility that PAN-18-01-

EX is in a distal part of a mineralized system. Further interpretation of historic drill hole data combined

with doing a geophysical survey such as MT, electromagnetic geophysical method, will now be reviewed

for assisting in identifying additional exploration targets on the DD property”.

The drill rig will now move to the 100% wholly owned Aldridge 1 property of DLP and drilling of the first

proposed hole to a depth of 800-900m with a very intense MT target will commence shortly (see Figure 1

below). This hole is planned to drill a Sullivan-type Pb-Zn-Ag target at the Lower-Middle Aldridge Contact

or “LMC” horizon.

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 reviewed 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 identify 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 compara ble 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 descri bed in forward -looking statements, 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.

Figure 1: Titan 24 MT Section L2400N with Proposed Holes