EMNT.V · 2021-01-27 12:00:00

Navy Acquires Spanish Moon District in Nevada and P lans to Change Company Name to Eminent Gold

Corporate Updates

NAVY RESOURCES CORP.

Suite 1740 -1177 West Hastings Street

Vancouver, BC V6E 2K3

FOR IMMEDIATE RELEASE January 27, 2021

Navy Acquires Spanish Moon District in Nevada and P lans to Change Company Name to

Eminent Gold

Navy Resources Corp. (TSX-V: NVY) (the “ Company ”) is pleased to announce that it has acquired an

option to purchase the Spanish Moon Project (“Spani sh Moon”) and Barcelona Property (“Barcelona”),

collectively the “Spanish Moon District” or the “Pr operty,” located approximately 13 km SE from the

active Round Mountain mine that has produced over 1 5 million ounces of gold (Figure 1). The Property

has been consolidated for the first time and is cha racterized by an 8 kilometer trend of skarn and

epithermal styles of mineralization with four main zones of mineralization recognized to date (Figure 2).

The Property has seen sporadic historical high-grad e silver production from 1879 – 1922 at a reported

grade of 25 ounces per tonne as well as limited his torical drilling from the 1980s and 1990s that

produced significant gold intercepts of 13.5 meters of 7.6 g/t Au, 25.2 meters of 2.2 g/t Au, and 1.5

meters of 24.5 g/t Au (See Table 1).

Navy has entered into an option agreement (the “Agreement”) with Nevada Select Royalty Inc (“Nevada

Select”), a wholly owned subsidiary of Ely Gold Roy alties Inc. (TSX-V: ELY, OTC-QX: ELYGF) (“Ely Gold” ),

whereby the Company will have the option to purchase 100% of Spanish Moon. It has also entered into

a lease-option agreement with patent holders who ow n 87.25% of the contiguous Barcelona. The

Company has up to five years to acquire a 100% inte rest in the Property, totaling approximately 600

hectares, consisting of 70 unpatented claims at Spa nish Moon and 2 patented claims at Barcelona, by

making cumulative cash payments of USD $1,395,000 a nd cumulative share payments of 1,250,000

common shares in the capital of the Company.

Paul Sun, President and CEO of the Company commented:

"The Spanish Moon and Barcelona properties represen t an exceptional opportunity to explore a well-

known historic gold district which has never been consolidated or explored systematically. The 8km land

position sits on the other side of the Round Mounta in pluton from the Round Mountain Mine and has

numerous high grade silver and gold occurrences which provide multiple targets for a major discovery.”

“This acquisition marks our third project in Nevada that supports our goal of developing a high-qualit y

exploration company that is pursuing major discoveries using new geological concepts within the Great

Basin. The Spanish Moon District is an excellent co mplement to our Weepah and Hot Spring Range

projects as the company considers it highly underex plored with multiple high-grade silver and gold

occurrences.”

The property of The Spanish Moon District

Infrastructure:

The Property is located in Nye County, Nevada. The Property lies approximately 97 km north-northeast

from the town of Tonopah, Nevada and thus has proxi mal infrastructure and is easily accessible, being

within 1.5 hours drive of the town.

Geology:

• Property situated between two intrusions providing the heat, structural preparation and fluid

flow required for major deposits. The later emplace d calderas in the area likely provided

additional heat and fluid flow, leading to the mult iple styles of mineralization seen on the

property. (Figure 2)

• Sedimentary rocks that characterize the property ar e deformed and contain abundant

mineralized veins. (Figure 3)

• Preferred host rock is a unit of silty limestone th at has been delineated across the property

package, which is consistent with large Carlin style systems.

• There are two primary targets (Barcelona and Antone Canyon) and two secondary targets

(Flower and Van Ness) outlined to date.

The Targets:

Barcelona:

The Barcelona Target is centered on a historical hi gh-grade silver mine that produced approximately

200,000 ounces of silver between 1871 and 1922 at a reported grade of 700 g/t from quartz veins that

overprint skarn mineralization. Significant exposur es of lower grade (+400g/t) silver were reported to

have been left in the ground due to the high cost o f milling and transportation and low silver prices at

the time of production. In addition, field notes fr om that time indicate five mineralized bodies were

encountered during the development of a long underg round drainage tunnel. The two largest, the

Oriental and Barcelona veins, have reported true widths of 31 and 26 meters respectively. It was further

reported that these mineralized quartz sulphide veins extend for at least 1.1 km from the historical mine

workings. There has been no modern systematic grid sampling or trenching programs to test these

targets, which represent a significantly large, near surface bulk mineable target.

Antone Canyon Target:

The Antone Canyon Target is characterized by a weakly metamorphosed limestone that hosts high grade

epithermal style gold mineralization that has been encountered in drilling, trenching, and rock chip

sampling programs. Freeport-McMoran (1983-1985), Ro yal Standard Minerals with JV partner North

Mining Corp. (1996 – 2000), and Golden Spike/Bullio n River Gold/Antone Canyon Mining collectively

took 1000 soil samples, completed 19 trenches total ing 5088 meters, and 63 drill holes for a total of

6430 meters. The majority of this work focused on f inding Carlin-style deposits in silty limestones

(Freeport-McMoran); however subsequent junior compa nies targeted high grade veins but faced low

gold prices and lack of funding and were never able to expand on their successful trench and drill

programs. The last drill hole on the property delivered one of its best intercepts delivered 13.5meters of

7.6g/t gold (see table 1). Currently the Antone Can yon Target has a gold in soil anomaly over 1.5

kilometers long that will be the focus of Navy’s exploration effort at the target area (Figure 4).

Van Ness and Flower Targets:

These targets are characterized by strong Mercury and Antimony mineralization that may represent the

higher levels of an underlying precious metals syst em (Figure 3). Importantly these target areas have

never been explored for precious metals.

As the district has never previously been consolidated and explored as a package, the company expects

that a large, integrated exploration program, encom passing the entire district, may uncover the

potential for large, high value precious metal deposits.

The Agreement

The Company will have the option to purchase 100% in the following:

(a) The seventy (70) unpatented claims known as the “Spanish Moon Claims”;

(b) 87.25% of 2 patented claims known as the “Barcelona Property”; and

certain data in the possession of Ely Gold and Nevada Select on the Closing (the “Existing Data”)

There is a Net Smelter Royalty (NSR) of 3% on the P roperty. The Company may make cumulative

payments of US$1.0 million to reduce the royalties payable on the entirety of the Property to 2%. The

Company is responsible for Property holding costs during the duration of the Agreement.

For the Ely Agreement, the total purchase price of USD $750,000 and 750,000 Navy Shares are payable

as follows:

(a) USD$50,000 Cash Payment upon entering into the Ely Agreement (for the purposes of

this paragraph, the “Effective Date”);

(b) The issue of 150,000 Navy Shares within 5 business days of the receipt of TSX Venture

Exchange (“TSXV”) approval for the agreement.

of the Effective Date;

(d) USD$125,000 Cash Payment and 200,000 Navy Shares on or before the second

anniversary of the Effective Date;

(e) USD$250,000 Cash Payment and 250,000 Navy Shares on or before the third anniversary

of the Effective Date; and

(f) USD$250,000 Cash Payment on or before the fourth an niversary of the Effective Date,

upon which the Option Exercise will be complete.

For the Barcelona Agreement, the total purchase price of USD $645,000 and 500,000 Navy Shares are

payable as follows:

(a) USD$20,000 Cash Payment upon entering into the Barcelona Agreement (for the purpose of this

paragraph, the “Effective Date”);

(b) The issue of 50,000 Navy Shares within 5 business days of the receipt of TSXV approval

for the Barcelona Agreement.

the Effective Date;

(d) USD$25,000 Cash Payment and 100,000 Navy Shares on or before the second

anniversary of the Effective Date;

(e) USD$25,000 Cash Payment and 100,000 Navy Shares on or before the third anniversary

of the Effective Date; and

(f) USD$25,000 Cash Payment and 200,000 Navy Shares on or before the fourth

anniversary of the Effective Date;

(g) USD$25,000 Cash Payment on or before the fifth anniversary of the Effective Date;

(h) USD$500,000 Cash Payment on or before the fifth ann iversary of the Effective Date,

upon which the Option Exercise will be complete.

The Company is also pleased to announce that it int ends to proceed with a name change to “Eminent

Gold Corp.” (the “Name Change”) given the Company’s focus is on gold exploration. The Name Change is

subject to TSX Venture Exchange approval and the Co mpany will provide further updates regarding the

Name Change, including the effective date.

All scientific and technical information in this ne ws release has been prepared by, or approved by Jus tin

Milliard, PGeo. Mr. Milliard is a qualified person for the purposes of National Instrument 43-101 -

Standards of Disclosure for Mineral Projects. The f ollowing information is provided by 1) historical

reports that describe mining activities, geology and potential, published by the Nevada Bureau of Mine s

as well as historical field notes and reports recor ded in the Nye County records, 2) publically availa ble

reports from Royal Standard Minerals (annual report s and news releases) published on SEDAR between

the years of 1997 and 2000 and 3) unpublished summa ry reports and news releases from Bullion River

Resources describing exploration performed between 2003 and 2004. It should be noted that the

Company believes that all of these reports are reliable; however, the Company’s qualified person has not

conducted verification procedures and therefore has not confirmed them.

Figure 1. Location map showing the Spanish Moon District is adjacent to the Walker Lane Trend, Nevada.

Figure 2. Regional Geology Map from ArcMap Online data sources showing the Spanish Moon District

that encompasses Spanish Moon, Barcelona, and numerous historic mines.

Figure 3. Local Geology

Figure 4. Antone Canyon Target Map Showing Intercepts

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