DMCU.V · 2020-07-20 12:00:00

Boreal Announces Private Placement

Financings

NEWS RELEASE

July 20, 2020

www.borealmetals.com page 1

BOREAL ANNOUNCES PRIVATE PLACEMENT

Vancouver, B.C., July 20, 2020. Boreal Metals Corp. ("Boreal" or the "Company") (TSXV:BMX) is

pleased to announce a non‐brokered private placement of up to 36,363,636 units of the

Company ("Units") at $0.055 per unit for total gross proceeds of up to approximately $2,000,000

(the "Private Placement"). Each Unit will consist of one common share (a "Common Share") and

one common share purchase warrant (a "Warrant"), with each Warrant being exercisable for one

additional Common Share at a price of $0.11 for a period of 24 months from the date of issue.

In connection with the Private Placement, the Company will pay finders' fees to certain arm's

length finders ("Finders") consisting of: (a) cash of up to 8% of proceeds raised under the Private

Placement from subscribers introduced to the Company by such Finders; and (b) warrants in an

amount equal to 8% of the number of Units acquired by subscribers introduced to the Company

by such Finders. All securities issued under the Private Placement will be subject to statutory hold

periods expiring four months and one day from the issue date.

The proceeds of the Private Placement will primarily be used to continue exploration and drilling

at the Company's 100% owned Gumsberg property, specifically to continue expansion of the

newly discovered high‐grade, mineralized ore body at the historic Östra Silvberg polymetallic

target, where Boreal intersected silver rich, high‐grade mineralization in recent drill programs

from 2017‐2019 (See Boreal News Releases dated Feb. 28, 2018, Jan. 28, 2019 and March 4,

2019). Some funds will also be used to explore elsewhere on the Gumsberg project area and for

general working capital purposes. The Private Placement is subject to TSX Venture Exchange

approval.

"Boreal will be quite active in its JV exploration programs with Boliden at its Burfjord copper‐gold

project in Norway, but this private placement will allow for continued advancement of our

flagship Gumsberg project. We are excited to continue drilling at Östra Silvberg, and to follow up

the impressive discoveries of new zones of silver rich mineralization adjacent to the historic mine,"

stated Patricio Varas, Chairman and CEO of the Company.

About Boreal Metals Corp.

Boreal is a mineral exploration company focused on the discovery of silver, zinc, copper, and gold

deposits in exceptional, historical mining project areas spanning Sweden and Norway. The

Company aims to discover new economic mineral deposits in known mining districts that have

seen little or no modern exploration techniques. The Company is led by an experienced

NEWS RELEASE

July 20, 2020

www.borealmetals.com page 2

management team and technical team, with successful track records in mineral discovery, mining

development and financing.

Qualified Person

Daniel MacNeil, P.Geo, a Qualified Person as defined by National Instrument 43‐101 Standards

of Disclosure for Mineral Projects, has read and approved all technical and scientific information

contained in this news release. Mr. MacNeil is Vice President Exploration for Boreal.

On behalf of Boreal Metals Corp.

Patricio Varas, Chief Executive Officer and CEO

For more information on Boreal please visit the Company website at www.borealmetals.com or

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.

Cautionary Note Regarding Forward‐Looking Statements

This news release contains certain statements that may be deemed "forward‐looking statements". Forward‐looking

statements are 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. Forward‐looking statements may

include, without limitation, statements relating to future outlook and anticipated events, such as the successful

completion of the Private Placement or the anticipated use of proceeds of the Private Placement by the Company.

Although Boreal believes the expectations expressed in such forward‐looking statements are based on reasonable

assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and

actual results or realities may differ materially from those in the forward‐looking statements. Such material risks

and uncertainties include, but are not limited to, Boreal's ability to raise sufficient capital to maintain its mineral

tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general

working capital purposes; changes in economic conditions or financial markets; the ability of Boreal to obtain the

necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such

permits and consents in a timely fashion relative to Boreal plans and business objectives for the projects; the general

ability of Boreal to drill test its projects and find mineral resources; if any mineral resources are discovered or

acquired, the Company's ability to monetize any such mineral resources; and changes in environmental and other

laws or regulations that could have an impact on the Company's operations. Forward‐looking statements are based

on the reasonable beliefs, estimates and opinions of Boreal management on the date the statements are made.

Except as required by law, Boreal undertakes no obligation to update these forward‐looking statements in the event

that management's beliefs, estimates or opinions, or other factors, should change.

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