Montan Mining agrees to acquire the Greater Las Huaquillas Project in Northern Peru
Montan Mining agrees to acquire the Greater Las Huaquillas Project in Northern
Peru
Vancouver, British Columbia (December 6, 2018)
Montan Mining Corp. (TSX-V: MNY, FSE: S5GM, SSE: MNYCL) (“Montan Mining”) has agreed to acquire a 44.5 - 100% interest in a
portfolio of mineral concessions which collectively constitute the Greater Las Huaquillas (GLH) project; a highly prospective
precious and base metal project in northern Peru. The concessions are located to the immediate south of the border
with Ecuador, where recent exploration success and corporate activity in the Ecuadorian mining sector, highlights the
increasing interest in this historically underexplored region. The GLH project is interpreted by Montan Mining to be located
within a key north-south trending mineralised belt that extends through southern Ecuador into northern Peru.
Based on historical exploration, 5 mineralised zones, consisting of 4 mineralisation types including epithermal and
porphyry style mineralisation types have been identified at the GLH project. The most advanced of these mineralised zones,
the Los Socavones Zone, was partially appraised by a previous operator (Sulliden 1996-1999).
In 1998, Sulliden (Gariepy & Vachon,1999) estimated that a 500m section of the 2,200m long Los Socavones Zone hosts a
geological resource of 6.57 Mt grading 2.12 g/t Au and 25.2 g/t Ag; equivalent to 446,000 ounces of gold and 5.3 million ounces of
silver at a 1 g/t Au cut-off. The resource was reported to remain open at depth and along strike. This historic resource, based
on 10 drill holes and 20 mineralized intercepts, was estimated by Sulliden to a depth of 200m, and is reported as an historic
resource estimate in an NI 43-101 Technical Report prepared for an unrelated party in 2011 (refer below). Montan Mining has
not conducted any work to establish the relevance & reliability of the historical estimate.
Disclaimer: A qualified person has not done sufficient work to classify the historic estimates as current mineral resources or
mineral reserves; and the Issuer (Montan Mining) is not treating the historic estimates as current mineral resources or mineral
reserves. Refer to the IMPORTANT INFORMATION section, outlined below.
The Los Socavones Zone is open down dip and along strike i n both directions (northeast and southwest). The mineralized zone
appears to have been offset by faults. Notwithstanding the significant base metal mineralisation identified during historical
exploration, the base metal potential within the Los Socavones Zone was not included in the historical resource estimate.
Project Overview
PROJECT TYPE
• Extensive historical exploration up until 1999 by Sulliden,
including soil sampling, geophysics and 5,742.9m of diamond
drilling (26 drill holes). Prior to Sulliden, 1,200m of adits were
excavated on three levels in the Los Socavones Zone.
• Broad gold, silver and copper mineralisation identified in
multiple epithermal and porphyry style deposits.
• Mineralisation extends greater than 1,000m along strike
with contiguous veins plus four further significant zones.
• Substantial high-grade potential at depth with
mineralisation identified at least 200m below surface.
• Near surface mineralisation provides potential opportunity
for initial open pit development.
LOCATION
• The GLH project is located within the Districts of San Ignacio
and Namballe; Province of San Ignacio; Department of
Cajamarca, in the Republic of Peru.
CONCESSIONS
• 5 concessions for 2,500 Ha on a 100% basis.
• 9 concessions for 3,600 Ha on a 44.5% basis.
IMPORTANT INFORMATION
There has not been sufficient drilling and/or sufficient previous exploration at Las Huaquillas upon which to base a mineral
resource or mineral reserve estimate compliant to the standards of National Instrument 43-101. It should be noted that the
historical resource related information outlined in this announcement has been derived from: NI 43-101 Technical Report (the
“Technical Report”) on the Las Huaquillas Au, Ag, Cu Property, Cajamarca, Peru (15 August 2011).
For additional information, refer to the Disclaimer & Forward Looking Statements section of this announcement. The technical
information in this announcement has been prepared in accordance with the Canadian regulatory requirements set out in National
Instrument
43-101 (“NI 43-101”) and has been reviewed and approved on behalf of the Company by Mr. Dean Pekeski, P. Geo., of
Kraven Geological Inc., a Qualified Person under NI 43-101.
Project Terrain - Greater Las Huaquillas (GLH) Project, Cajamarca, Peru
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 1
Fig 1: A ndean Copper Belts - Historical Interpretation
Adapted by Montan Mining, from Sillitoe and Perello (2005).
Chile
• The arid terrain has assisted in the identification of
large mineralised resources.
• Some of the largest copper projects in the world
• Largest copper producer globally.
Ecuador
• Vegetation resulting from the tropical environment
has disguised the extent of mineralisation at the
northern end of the Andean Copper Belt.
• Modern mapping in this relatively under-explored
terrain has resulted in several substantial
discoveries.
Tropical Terrain - SolGold’s Cascabel - Alpala Cu-Au project
Arid Terrain - BHP , Rio & JECO Corp’s Escondida Cu mine
Peru
• Peru ranks highly in Latin America and globally as a
leader in mined commodities.
• Largest gold producer in South America.
• Second largest copper producer globally.
Highly Prospective Regional Appraisal
• Montan Mining has identified two highly prospective
regions within the Andean Copper Belt.
• These regions/projects have been overlooked in the
past due to a range of challenges.
• Montan Mining is focused on high-impact appraisal.
Prospectivity of the Andean Copper Belt
Given the Andean Copper Belt hosts almost half the known global copper reserves, this belt has been extensively studied
and remains highly prospective for substantial additional mineralisation. At the southern end of the Andean Copper Belt in
Chile, many of the major copper deposits have visible surface manifestations including outcropping of mineralisation. Whereas,
further north along the Andean Copper Belt, countries closer to the equator are often characterised by higher rainfall tropical
environments, resulting in dense vegetation which masks the mineral prospectivity of the region.
Ongoing mineral exploration success, including in Ecuador more recently, provides strong evidence that the prospective regions
of the Andean Copper Belt extends well beyond Chile and further north into Peru, Ecuador and into Colombia. Recent advances
in exploration mapping, particularly with respect to advances in geophysical tools, is providing encouragement that Ecuador and
underexplored regions of northern Peru are highly prospective for the discovery of globally significant mineral resources.
GLH Project - Regional Setting
The Greater Las Huaquillas (GLH) project is located within the Cordillera Occidental belt of north central Peru and south east
Ecuador; the mineralised belt in Ecuador is known as the Cordillera del Condor. This region is interpreted to be a northern
extension of the Andean Copper Belts.
REGIONAL GEOLOGY - The GLH project is located within the Upper Jurassic Cu-Au porphyry and Skarn metallogenic province
and within the western Cordillera morphostructural and tectonic provinces of Northern Peru. Volcanic rocks are overlaid by the
Upper Jurassic Sarayaquillo Formation composed of reddish brown sandstone and limestone.
Cerro Dorado
• Rey Salomon gold mine adjacent to Cerro Dorado 45 TPD CIP
plant, located in mining province of Caraveli, Arequipa, Peru.
• Plant and mine owned by Montan Mining with Cerro Dorado
permitted capacity of 115 TPD. Strategic to unlocking value.
Greater Las Huaquillas (GLH) Project
• Extensive base and precious metal mineralisation.
• Five significant mineralised zones identified, with
mineralisation hosted within a range of mineralisation types
including epithermal and porphyry deposits.
• Substantial historical mineral resource previously reported.
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 2
Fig 2: The tectonic and geologic setting of porphyry Cu-Au/Mo,
epithermal Au/Ag and intrusion-related polymetallic Zn-Pb-Cu-Ag
deposits in Ecuador and the Peruvian Andes
Adapted by Montan Mining from Porter Geoconsultancy publication, after: National
Geological Map of the Republic of Ecuador, IGS and DGGM, 1982; Geological Map of the
Republic of Ecuador, BGS and CODIGEM, 1993; Aspden and Litherland, 1992; Cediel et al.,
2003; Schutte et al., 2012; Drobe et al., 2013; Instituto de Geologia y Minera, Peru, 1975;
INGEMMET, 2000; Chew et al., 2007; GIS Andes, BRGM, 2004.
Ecuador - Attracting the Majors
• After years of under-exploration, recent exploration success
in Ecuador is now attracting serious mining interest with 30
operating companies currently invested, including the majors.
• In recent times more than 300 new exploration concessions have
been granted in Ecuador.
Fruta del Norte - Approaching production
• Lundin Gold (TSX: LUG) purchased the Fruta del Norte asset from
Kinross in 2014 for US$240 million.
• Indicated mineral resource of 7.35Moz Au with 2.13Moz Au in
the inferred category. For more info refer to Lundin Gold FDN
Technical Report dated 30 April 2016.
• High-grade gold deposit with probable reserves of 5.02 million
ounces of gold grading at 8.74 grams per tonne. Forecast LOM:
15 years, AISC: US$583/oz.
• Construction began mid-2017 with first gold production
expected in the fourth quarter of 2019.
• In February 2018, Newcrest agreed to invest US$250 million to
acquire 27.1% of Lundin Gold.
SolGold’s Alpala Project - Ownership battle looming
• SolGold (TSX/LSE: SOLG) has been leading the way with using
state-of-the-art geophysics to see through cloud, jungle and
soil, to uncover Ecuador’s mineral potential.
• Alpala is the most significant copper-gold porphyry discovery
during the last decade as has attracted the attention of the majors.
• Mineral intersections amongst the top-10 porphyry copper-gold
intersection in the world, including a 1,560m interval grading
0.59% Cu, 0.55 g/t Au (1.16% CuEq).
• Indicated + Inferred Resource of 2,950Mt @ 0.52%CuEq
(15.4Mt CuEq) containing 10.9Mt Cu and 23.2Moz Au. For more
details refer to SolGold Mineral Resource statement, dated 16
November 2018.
• SolGold owns 85% of the Alpala project with the market
capitalisation recently expanding to almost US$1 billion.
• Newcrest (ASX: NCM) invested ~US$72 million in three tranches
during 2016-17 to acquire 13.58%.
• In September 2018, BHP (ASX: BHP) invested US$92 million to
acquire 11.18%.
Greater Las Huaquillas - Resource Appraisal
• Montan Mining has agreed to acquire a 44.5% interest in Las
Huaquillas project in Northern Peru.
• Montan Mining has also recently pegged 5 strategic mineral
concessions covering 2,500 ha surrounding the historical Las
Huaquillas project.
• Montan Mining is optimistic that appropriate appraisal work,
including the twinning of existing exploration holes, the
historical mineral resource estimates will be verified and
expanded further along strike and at depth.
Fruta del Norte
Epithermal Gold Deposit
Las Huaquillas
Epithermal Gold Deposit
Copper-Gold Porphyries
Alpala
Copper Gold Porphyries
Ecuador
Peru
Recent Discoveries Underpinning Corporate Activity
Based on the historical interpretation of the distribution of the Andean
Copper Belts (refer to Fig.1), these belts were not believed to be prominent in
Ecuador. Recent exploration successes in Ecuador have highlighted the
prospectivity of the region and has begun to attract the interest of major
global mining companies. The improved prospectivity of the region is
creating substantial opportunities for rapid resource exploration and
appraisal.
The Greater Las Huaquillas project is interpreted to be situated on the same
Upper Jurassic - Cretaceous - Tertiary porphyry copper belt that extends south
from Ecuador which hosts the Nambija, Mirador, Junin, Chinapintza and
Fruta del Norte deposits.
NOTE: The mines, advanced projects and recent discoveries in the Andean Copper Belt are
not necessarily reflective of the mineralization that is, or may be hosted on the Greater
Las Huaquillas (GLH) project.
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 3
GLH Project - Historical Resource Appraisal
In 1997 and 1998, Sulliden carried out an integrated two phase
exploration program including; line cutting, geophysics, soil,
stream, rock geochemical and geological surveys, and 26
diamond drill holes (DDH) were drilled by Sulliden, for a total of
5,671m (refer Fig. 4). The gold-silver epithermal mineralization
discovered along the Socavones trend was followed for at
least 2.1 kilometres via geophysics, soil and rock sampling and
drilling. Five significant mineralized zones were identified at
the project as follows: (i) Los Socavones, (ii) El Huabo, (iii) Las
Huaquillas, (iv) Cementerio and (v) San Antonio (refer Fig. 3).
GLH Project - Deposit Types
Four deposit types (refer Fig. 3) have been identified at the
Greater Las Huaquillas (GLH) project:
• Epithermal Au-Ag; low sulphidation at the El Huabo and Las
Huaquillas showings of the Los Socavones zone.
• Epithermal Au-Ag-Cu; high sulphidation at the Porvenir-
Huabo Alto silicified ridge.
• Au, Ag, Zn. Pb-quartz stockwork at the Los Socavones.
• Porphyry Cu ± Mo ± Au within the Cementerio and San
Antonio intrusions.
Fig 4: Historical Exploration Activities
Fig 3: Significant Mineralised Zones at Las Huaquillas
Significant Mineralised Zones - Historical
The Los Socavones anomaly is a major NE-SW trending
mineralized fault zone that extends for at least 2.5km and
has a width of approximately 100m. The anomalous zone
consists of two distinct Au-enriched pyrite-sphalerite-galena
quartz stock-work zones surrounded by a low-grade gold zone
composed of disseminated and narrow stringers of pyrite with
minor sphalerite and chalcopyrite.
To date, 1,000m of its strike length has been drill tested
and 400m underground workings including 100m vertical
development has been carried out. Drilling has intersected
the mineralization at a depth of approximately 200m. The
mineralized zone average true thickness is approximately 19
m with a maximum thickness of 65m within the zone’s centre.
The Cementerio Cu-Au porphyry system is located 1,000m
south of the Los Socavones zone. It comprises extensive
argillic, phyllic and hematitic alteration partly visible along the
road leading to the Las Huaquillas village. A 600m by 900m
sub-circular multi-phase diorite intrusion characterized by
equigranular and porphyritic textures is spatially-related with
the mineralization.
The San Antonio porphyry system is located 1,000m NW of
the Los Socavones zone. It coincides with a prominent copper-
gold soil geochemical anomaly and is hosted in a calc-alkaline
quartz diorite intrusion measuring 500m x 900m. The host
rock is massive, fairly homogeneous and is composed of 15%
well formed 2-mm plagioclase phenocrysts lying in a finer
groundmass composed of amphibolefeldspar-quartz-chlorite-
biotite-magnetite-sericite.
The El Huabo Au-Ag anomaly is located near the Los
Socavones structure within altered plagioclase porphyritic
volcanic rocks members of the Oyotún Formation.
The Las Huaquillas anomaly is located some 850m to the NE of
the El Huabo anomaly. The mineralization is hosted in strongly
sericitized and argillic altered Oyotún Formation rocks that are
cross-cut by narrow quartz veins and accompanied by fine
quartz vug filling. The geological similarities between the Las
Huaquillas and the El Huabo anomalies indicate that both are
part of the same low-sulphidation epithermal system developed
along the Los Socavones structure.
Significant Intercepts
Historical drilling at the Los Socavones Zone report significant
mineralized intercepts, the best of which is Sulliden DDH
intersection (LH97-08): 67.5m core length (approximately 53m
true width) grading 2.7 g/t Au and 15.3 g/t Ag. Hole LH-97-04,
which returned 0.47% Cu, 0.11 g/t Au and 4.5 g/t Ag over 99.5m
(drill length), demonstrated the size potential of Cementerio’s
phyllic ring. Similarly, San Antonio drilling (LH97-17) also
intersected significant mineralization; up to 0.32% Cu, 0.45 g/t
Au and 3.0 g/t Ag over 69.0 m (drill length), including an interval
grading 0.46 % Cu, 0.74 g/t Au and 4.9 g/t Ag over 21.0m.
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 4
NOTE: This section of the announcement has been adapted by Montan Mining,
from the: NI 43-101 Technical Report (the “Technical Report”) on the Las Huaquillas
Au, Ag, Cu Property, Cajamarca, Peru (15 Aug 2011).
IMPORTANT NOTE: Montan Mining has not undertaken any independent
verification of the Mineralized Zones as shown in Fig. 3, and extracted from the cited
historic report, by a Qualified Person/Persons acting for the Montan Mining.
GLH Project - Concession Details
The Greater Las Huaquillas project consists of two groups of mineral concessions (refer Fig. 5):
• The Core Las Huaquillas project, is made up of 9 concessions (3,600 Ha) which host the historical mineral resource.
• The Extension of the Las Huaquillas project, is made up of 5 concessions (2,500 Ha) and is contiguous with the Core Las Huaquillas
project. Montan Mining has applied for several additional concessions, also adjacent to the Core Las Huaquillas project.
Montan Mining has created the GLH project, by, i) acquiring a 100% interest in the Extension of Las Huaquillas by strategically
pegging the adjacent concessions, and ii) agreeing to acquire an initial 44.5% interest in the Core Las Huaquillas project.
Core Las Huaquillas Project - Transaction Terms
Following a due-diligence period, Montan Mining recently entered into a binding Sale Purchase Agreement (the “SPA”)with Lida
Resources Inc. (“Lida”, a British Columbia company) for Montan Mining to acquire 100% of Lida’s interest (and any associated
rights) in the Core Las Huaquillas project. At the time of execution of the SPA, Lida owned 44.5% of the Core Las Huaquillas
project, through a wholly-owned Peruvian subsidiary company, Minera LBJ SAC.
Key Terms
• At completion, Montan Mining will acquire Minera LBJ SAC from Lida.
• Consideration for Montan Mining’s purchase of Minera LBJ SAC will be the issue of 25,000,000 Montan Mining shares and
12,500,000 warrants ($0.08, 5 year term) to shareholders of Lida.
• The transaction is subject to customary conditions that are typical of transactions of this nature, including Montan Mining
shareholder and TSX Venture Exchange approval.
• Upon completion, President and CEO of Lida, Mr. Leonard de Melt, an experienced mining executive with extensive South
American mining experience, will be invited to join the board of Montan Mining.
Montan Mining’s largest shareholder and strategic partner, Lions Bay Capital Inc. (TSX-V: LBI) acted as a corporate advisor in relation
to the transaction outlined in this announcement, including in the origination, evaluation, structuring and financing of the Greater
Las Huaquillas project. In consideration of Lions Bay Capital’s role, Montan Mining will seek approval (where necessary) to issue Lions
Bay Capital (or its permitted assignee/s) $75,000 in new Montan Mining shares as a corporate advisory and finder’s fee.
Fig 5: G reater Las Huaquillas (GLH) - Concession Map
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 5
Ian Graham – Chief Executive Officer
Tel Canada: +1.604.671.1353
Luis F. Zapata – Executive Chairman
Tel Peru: +51.999.968.827
Tel Canada: +1.604.358.1382
Bahay Ozcakmak – Director
Tel Australia: +61.3.9236.2800
GLH Transaction Commentary
Director & CEO of Montan Mining, Mr. Ian Graham commented:
“We are pleased to announce our first material acquisition since the restructure of the company was initiated earlier this year. The
Greater Las Huaquillas project provides Montan Mining with the opportunity to systematically appraise a substantial historical
resource in Northern Peru. We are confident that the historical resource appraisal studies were performed by Sulliden to a very high
standard and are optimistic, with further appraisal, we will be able to grow the historical resource base and bring this in line with
the standards required to be able to declare a NI 43-101 compliant resource.
Based on our review of the historical studies, we understand that mineralisation at the Greater Las Huaquillas project remains
open both along strike and at depth. We also note that none of the historical base metal mineralisation was included in the
historical resource estimates. In addition to the historic gold resource, we are particularly excited about the copper porphyry
potential of the project and believe this provides a strong platform from which to build a significant resource base.
On behalf of the board of Montan Mining, we thank you as shareholders for your patience and support. Montan Mining has
always believed in our assets, our people and the opportunity in Peru. With the corporate support and network of Lions Bay
Capital, we are confident we are on the cusp of transforming the company into a profitable near-term gold producer with
potential for further expansion through continued value-accretive M&A activity.”
Director of Montan Mining and Executive Director of Lions Bay Capital Inc., Mr. Bahay Ozcakmak added:
“This transaction marks an important step in the transformation of Montan Mining from an under-capitalised junior, into a more
diversified company with material near-term growth prospects. Through the acquisition of the Greater Las Huaquillas project,
Montan Mining will have acquired a substantial interest in a highly mineralised system in Northern Peru.
Notwithstanding the potential of the Greater Las Huaquillas project, Lions Bay Capital remains strongly supportive of the near-term
restart of Cerro Dorado, Montan Mining’s initial 60TPD (expanding to 115TPD) toll-milling operation at Caravelli in Southern Peru. The
planned restart will provide Montan Mining with a non-dilutionary funding pathway, as the company progresses with pursuing
larger-scale opportunities. The Cerro Dorado plant and the adjacent Rey Salomon mine, both owned by Montan Mining, position the
company strongly to lead the acquisition and development of substantial regional resources that otherwise remain challenged or
economically stranded. In this regard, Montan Mining has maintained an active new ventures initiative for some time and expects to
update the market on additional acquisitions at the appropriate time.
During the 2015 downturn in the global mining sector, many large and mid-tier mining companies either downsized or in some
instances, completely axed their business development teams. This chronic under-investment during the 2015-17 period, has
resulted in increased M&A activity throughout 2018, a trend we expect to accelerate, as these larger mining companies now seek
to replenish their project pipelines and resource base. At Lions Bay Capital, we have actively sought to build and position Montan
Mining to benefit from this trend, by seeking to strategically acquire advanced, large-scale resource projects with the objective of
working these up to the stage where a major is willing to invest in the project/s to create and unlock substantial value. The
dramatically increased industry interest to the north of the Greater Las Huaquillas project in Ecuador by the majors is very
encouraging and provides Montan Mining with confidence that the company is pursuing the appropriate strategy for the current
stage of the mining cycle.
At completion of the acquisition of the Greater Las Huaquillas project, the board of Montan Mining will formally invite Len to join
the board. As founder of Lida, Len has been involved with the Las Huaquillas project for several years. Len’s history with the Las
Huaquillas project and significant mining experience, particularly in Peru, will be important in ensuring the successful appraisal of
the Greater Las Huaquillas project and the transformation of Montan Mining.”
Leonard (Len) De Melt. Bio
Mr. De Melt is widely recognized within the mining industry. In 2011, as chairman of Norsemont Mining, that
company was successfully sold to Hudbay Minerals for US$520 million. Mr. De Melt has been instrumental in bringing 10
mines into production, most importantly Hudbay’s Constancia mine in Peru (copper), Homestake’s Golden Bear mine
(gold), Goldust’s Croiner mine (gold), and BHP’s Ekati mine (diamonds).
On behalf of the Board of Montan.
Ian Graham
CEO and Director
Tel: +1.604.671.1353
Email: [email protected]
Montan M
ining Corp.
1201 - 1166 Alberni St.
Vancouver, B.C., V6E 3Z3
www.montanmining.ca
Contact Us
Transformation Underway
>> Near-term gold production
>> Advanced appraisal projects
>> Active business development
With the support of Lions Bay
Capital (TSX-V: LBI), strategically
building a South America
focused mining company.
The new Montan Mining
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 6
Disclaimer & Forward Looking Statements
This news release contains forward-looking statements. Forward-looking statements are statements that relate to future events or
future financial performance. In some cases, you can identify forward-looking statements by the use of terminology such as
“may” , “should” , “intend” , “expect” , “plan” , “anticipate” , “believe” , “estimate” , “project” , “predict” , “potential” , or “continue” or the
negative of these terms or other comparable terminology. These statements speak only as of the date of this news release. This
news release may also contain inferences to future oriented financial information (“FOFI”) within the meaning of applicable
securities laws. The information in this news release has been prepared by our management to provide a context for the project
acquisition and to provide the reader with an outlook for our future activities and anticipated key projects and may not be
appropriate for other purposes.
Forward-looking statements in this announcement include, (but are not limited to), i) that we will successfully start-up Montan
Mining’s Cerro Dorado plant, and that ii) we will be able to successfully appraise the Greater Las Huaquillas project.
The Cerro Dorado S.A.C. assets have not been the subject of a feasibility study and as such there is no certainty that the mine or the
mill will be able to produce a commercially marketable product. There is a significant risk that any production efforts from the
project will not be profitable with these risks elevated by the absence of a defined resource and economic study. The
Company’s reliance on historic production and third party gold recovery statistics is necessary under the circumstances, but is
not compliant with NI 43-101 reporting standards. There are increased risks and uncertainty in making a production decision
without such a study and an historically higher rate of failure for production decisions not based on a feasibility study. General
risks include the reliance on available data and assumptions and judgments used in the interpretation of such data, the speculative
and uncertain nature of exploration and development, exploration and development costs, capital requirements and the
ability to obtain financing, volatility of global and local economic climates, share price volatility, estimate price and
commodity price ,volatility, changes in equity markets, increases in costs, exchange rate fluctuations and other risks involved in
the mineral exploration and development industry. There can be no assurance that a forward-looking statement or information
referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in
such statements or information. Also, many factors, though considered, are beyond our control. Accordingly, readers should not
place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update
any forward-looking statements or information except as required by law.
This announcement is not, and under no circumstances is to be construed as, a solicitation or an offer of any kind. The matters set
forth in this announcement does not constitute an agreement or offer that may be accepted. Accordingly, no person may bring a
claim or action against another for a failure to negotiate, agree or enter into any agreement with respect to matters contained in
the announcement.
The technical information in this announcement relating to Cerro Dorado has been prepared in accordance with the Canadian
regulatory requirements set out in National Instrument 43-101 (“NI 43-101”) and has been reviewed and approved on behalf of the
Company by Mr. Dean Pekeski, P . Geo., of Kraven Geological Inc., a Qualified Person under NI 43-101.
The technical information in this announcement relating to the Greater Las Huaquillas project has been derived from: NI 43-101
Technical Report (the “Technical Report” ) on the Las Huaquillas Au, Ag, Cu Property, Cajamarca, Peru (15 August 2011) prepared by
Luc Pigeon, P.Geo., of Gateway Solutions SAC, a Qualified Person under NI 43-101. Montan Mining has not sought any form of
consent from either the Qualified Person, or the Issuer which commissioned the Technical Report, but rather references this
Technical Report in an historical context as the report was originally submitted for exchange approval on 15
August 2011. It should be noted that there has not been sufficient drilling and/or sufficient previous exploration at Las
Huaquillas upon which to base a mineral resource or mineral reserve estimate compliant to the current standards
of National Instrument 43-101, and Montan Mining has not undertaken any independent verification of the data contained in that
report by a Qualified Peron or Persons acting for the Montan Mining. There has been no additional or independent verification site
visits, sampling or analytical work undertaken by Montan Mining with respect to the Las Huaquillas property. Montan Mining has
relied entirely upon historic disclosure relating to the Las Huaquillas project in preparing this news release.
Montan Mining Corp. | Greater Las Huaquillas (GLH) Project Acquisition | 6 December 2018 7