Medallion Resources Announces $798,000 Private Placement

Medallion Resources Announces $798,000 Private Placement

NOT FOR RELEASE IN THE UNITED STATES

VANCOUVER, British Columbia, Aug. 02, 2019 -- Medallion Resources Ltd. (TSX-V: MDL; OTCPK: MLLOF; Frankfurt: MRDN)

– “Medallion” or the “Company”), pursuing smart production of magnet metals, today announces that it has arranged a non-

brokered private placement (the “Private Placement”) of 7,600,000 units (each a “Unit”) at a purchase price of $0.105 per Unit

for gross proceeds of $798,000.

Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one-half of one

transferable Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable to acquire

one additional Common Share at an exercise price of $0.165 for a period of 36 months following the closing of the Private

Placement (the “Closing Date”). Certain Medallion directors and officers have arranged to partially fund subscriptions under the

Private Placement with proceeds from the sale of Common Shares of Medallion at a price of $0.105 per share through the

facilities of the TSX Venture Exchange (the “Exchange”).

The proceeds of the Private Placement will be used to implement trade-off and process engineering design studies, pilot plant

planning, customer and feedstock supply development, and general working capital. The completion of the Private Placement

is subject to the acceptance of the Exchange.

Medallion has agreed to pay finders’ fees to arm’s length finders of up to 8% of the gross proceeds funded by outside parties,

payable in cash or Units, at the election of the finder, and will also grant finders’ options (“Finders’ Options”) equal to up to 8%

of the Units sold through qualified finders. Each Finders’ Option will be exercisable to acquire one Common Share at an

exercise price of $0.165 for a period of 36 months from the Closing Date.

All securities issued in connection with the Private Placement will be subject to a four-month hold period from the Closing

Date, pursuant to applicable securities laws and the policies of the Exchange. The securities issued in connection with the

Private Placement have not been nor will they be registered under the United States Securities Act of 1933, as amended, or

state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons,

absent such registration or an exemption from registration. This press release shall not constitute an offer to sell or the

solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale, or solicitation

would be unlawful.

About Medallion Resources

Medallion is preparing for near-term production of rare-earth magnet materials in North America through the processing of by-

product monazite sand—in a modern, clean, and automated process. Monazite sand is rich in rare-earth elements neodymium

and praseodymium (also known as “NdPr”) which are critical input for lightweight and powerful rare-earth magnets. Rare-earth

magnets are essential to Automotive and Robotics (electric motors), Defense (Missile Guidance Systems), and Clean Energy

(Wind Turbines) industries. Given the dominance of China as a rare-earth producer and tense global trade relations,

automakers and other industry groups are seeking non-China sources to meet increasing demands for NdPr. Medallion is

committed to following best practices and accepted international standards in all aspects of mineral transportation, processing

and safe management of waste materials. More about Medallion (TSX-V: MDL; OTCPK: MLLOF; Frankfurt: MRDN) can be

found at medallionresources.com.

Contact: Donald Lay , President & CEO at +1.604.681.9558 or [email protected]

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.

Medallion management takes full responsibility for content and has prepared this news release. Some of the statements

contained in this release are forward-looking statements, such as statements that describe Medallion’s plans with respect to

the completion and the use of the proceeds of the Private Placement. Since forward-looking statements address future events

and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks related to market

conditions and regulatory approval and other risks outlined in the Company’s management discussions and analysis of

financial results. Actual results in each case could differ materially from those currently anticipated in these statements. Also,

in order to proceed with Medallion’s plans, additional funding will be necessary and, depending on market conditions, this

funding may not be forthcoming on a schedule or on terms that facilitate Medallion’s plans. These forward looking statements

are made as of the date of this press release, and, other than as required by applicable securities laws, Medallion disclaims

any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future

events or results or otherwise.