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GSS.V ·

Gossan Announces Private Placement and Grant of Stock Options

Financings Share Capital & Compensation

Gossan Announces Private Placement and

Grant of Stock Options

Winnipeg, Manitoba--(Newsfile Corp. - August 17, 2020) -

Gossan Resources Limited

(TSXV: GSS)

& (FSE: GSR) will conduct a non-brokered private placement offering (the "

Offering

") of up to 3,400,000

units ("

Units

") at a purchase price of $0.05 per Unit, for aggregate gross proceeds of up to $170,000.

Each Unit consists of one common share ("

Common Share

") and one-half warrant (a "Warrant"). Each

whole warrant is exercisable to acquire one Common Share at a price of $0.08 for a period of 2 years

from the closing date.

Net proceeds from the Offering will be used for general corporate and working capital purposes. The

Offering is subject to TSX Venture Exchange acceptance of regulatory filings. The common shares

issued under the private placement will have a hold period of four months and one day from the closing

date. The Company may pay finder's fees to eligible persons in accordance with applicable securities

laws and regulatory policies.

The securities being offered 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 in the United states or to, or for the

account or benefit of, U.S. persons absent registration or an applicable exemption from the registration

requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy

nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale

would be unlawful.

Three officers and directors were granted a total of 425,000 stock options exercisable at $0.07

per

share with expiry dates of September 22, 2022 and September 23, 2023. This grant of options was

awarded after the close on August 14, 2020; is in compliance with the terms of the Company's Stock

Option Plan; and remains subject to the acceptance of the TSX Venture Exchange.

Gossan Resources Limited continues to seek new financeable resource projects in Manitoba & Ontario

and throughout North America. The Company has a broadly diversified portfolio of multi-element

properties prospective for hosting base metals and platinum group elements, as well as specialty

"green-battery metals", vanadium, titanium, tantalum, lithium and chromium. Gossan also has a deposit

of high-purity, magnesium-rich dolomite, and holds a $100,000-per-annum advance and production

royalty interest in a silica frac sand deposit. All of Gossan's mineral exploration and development

properties are located in Manitoba and Northwestern Ontario. The Company's current focus is the

exploration of its Sturgeon Lake Property, located in the zinc-copper-silver rich polymetallic Sturgeon

Lake Greenstone Belt of Northwestern Ontario. The Company trades on the TSX Venture and the

Frankfurt/Freiverkehr &Xetra Exchanges and currently has 34,252,900 common shares outstanding.

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 news release.

For further information, please bookmark

www.gossan.ca

or contact:

Douglas Reeson, Chairman & CEO

Gossan Resources Limited

Tel: (416) 533-9664

E-Mail:

[email protected]

Kathy Ringland, Office Manager

Tel : (204) 943-1990

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/61929