GPAC.V · 2020-05-14 12:00:00

Fosterville South Closes $15 Million Financing

Financings

/NOT FOR DISTRIBUTION TO

UNITED STATES

NEWSWIRE SERVICES OR FOR

DISSEMINATION IN

THE UNITED STATES

Strong Participation from Current Large Shareholders

Multiple New Institutional Investors Added to Share Registry

Strong Balance Sheet and Cash Position and No Debt

VANCOUVER

May 14, 2020

/CNW/ -

Fosterville South Exploration Ltd.

("Fosterville South" or

the "Company", FSX:TSX Venture; FSXLF: OTC Markets) is pleased to announce that it has closed

its previously announced private placement financing (the "Offering") by issuing a total of 13,636,363

units (the "Units") at a price of

$1.10

per Unit for gross proceeds of

$14,999,996

Fosterville South Chief Executive Officer and director, Bryan Slusarchuk states,

"We thank existing

large shareholders, new investors and the syndicate of agents for their support of our exploration

efforts via this strongly oversubscribed financing. The high demand for this private placement is a

testament to the quality of assets assembled over a multi-year period, which provide a strong

foundation for our growth plans. Fosterville South is now entering a very active phase on the

ground, with multiple drills turning and a lot of field work occurring, and we are doing so with a

strong balance sheet, a strong cash position and no debt. We look forward to keeping you updated

as we progress on this premier land package."

Each Unit consists of one common share of the Company (each, a "Common Share") and one-half of

one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the

holder to purchase a Common Share at an exercise price of

$2.00

for a period of 24 months ending

May 14, 2022

Clarus Securities Inc acted as Lead Agent on behalf of a syndicate of agents that included

Canaccord Genuity Corp., Cormark Securities Inc., Eight Capital, Mackie Research Capital

Corporation, Haywood Securities Inc. and Eventus Capital Corp. Fosterville South paid the syndicate

of agents a cash commission of

$998,729

and issued a total of 907,937 common share purchase

warrants (the "Broker Warrants"), with each Broker Warrant exercisable at

$1.10

per Common

Share for a period of 24 months ending

May 14, 2022

The securities issued under the Offering will be subject to restrictions on resale expiring on

September 15

, 2020. Fosterville South intends to use the net proceeds of the Offering for

exploration and for general working capital purposes.

The securities referred to in this news release have not been, nor will they be, registered under the

United States Securities Act of 1933, as amended, and may not be offered or sold within

the United

States

or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable

exemption from the U.S. registration requirements. This release does not constitute an offer for sale

of, nor a solicitation for offers to buy, any securities in

the United States

About Fosterville South Exploration Ltd.

Fosterville South has two large, 100% owned, high-grade epizonal gold projects called the Lauriston

and Golden Mountain projects and one large group of tenement applications called the Providence

Project in the state of

Victoria, Australia

, including a 600 sq. km property immediately to the south

of, adjacent to, and within the same geological framework that hosts

Kirkland Lake Gold's

Fosterville

tenements.

Additionally, Fosterville South recently acquired three gold-focused projects called the Moormbool,

Timor and Avoca Projects, which are also located in the state of

Victoria, Australia

Five of Fosterville South's properties (Lauriston,

Providence

Golden Mountain

, Timor and Avoca)

have had historical gold production from hard rock sources despite limited modern exploration and

drilling.

On behalf of the Company

Bryan Slusarchuk

Chief Executive Officer and Director

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on

assumptions as of the date of this news release. These statements reflect management's current

estimates, beliefs, intentions and expectations. They are not guarantees of future performance.

Fosterville South cautions that all forward-looking statements are inherently uncertain and that

actual performance may be affected by many material factors, many of which are beyond their

respective control. Such factors include, among other things: the anticipated use of proceeds from

the Offering, risks and uncertainties relating to Fosterville South's limited operating history, its

proposed exploration and development activities on its Lauriston and Golden Mountain properties

and the need to comply with environmental and governmental regulations. Accordingly, actual and

future events, conditions and results may differ materially from the estimates, beliefs, intentions

and expectations expressed or implied in the forward-looking information. Except as required

under applicable securities legislation, Fosterville South does not undertake to publicly update or

revise forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined

in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this

release.

SOURCE

Fosterville South Exploration Ltd.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/May2020/14/c5959.html

%SEDAR: 00048753E

For further information:

Adam Ross, Investor Relations, Direct: (604) 229-9445, Toll Free: 1(833)

923-3334, Email: [email protected]

CO: Fosterville South Exploration Ltd.

CNW 11:19e 14-MAY-20

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