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Peruvian Metals Reports Third Quarter Throughput at the Aguila Norte Processing Plant and Announces Closing of Second Tranche of Private Placement

Financings Mine Development & Operations Metallurgy & Processing

Peruvian Metals Reports Third Quarter

Throughput at the Aguila Norte Processing

Plant and Announces Closing of Second

Tranche of Private Placement

Toronto, Ontario--(Newsfile Corp. - October 2, 2020) -

Peruvian Metals Corp. (TSXV: PER)

("Peruvian

Metals" or the "Company") is pleased to provide an update regarding the mineral processing at its 80%

owned fully permitted Aguila Norte Processing Plant ("Aguila Norte" or the "Plant") located in Northern

Peru.

During the third quarter of 2020, Peruvian Metals processed 4,240 metric tonnes ("mt") and as of

September 30th stockpiled a further 699 mt at Aguila Norte.The Company is very pleased to have

exceeded production levels compared to Q3 2019 production of 4,187 mt. Despite being shut down for

almost five months due to COVID restrictions, mineral processing at the Plant started July 28

th

after

establishing all health protocols required by the Peruvian Government.

Jeffrey Reeder, CEO of Peruvian Metals, comments: "The Company's Aguila Norte processing facility is

now fully operational and is achieving consistent production since the restart of the Peruvian economy.

Our mineral suppliers are pleased with the quality of concentrates being produced and are committed to

continue shipping more mineral for processing. Our Company continues to work towards increasing

profit margins and creating other revenue streams."

The Company is also pleased to close the second tranche of 1.6 million units of its previously announced

private placement offering of up to five million units at an offering price of five cents per unit (see the

Company's press release dated Aug. 18, 2020), to raise gross proceeds of $80,000. Each unit consists

of one common share of the company and one share purchase warrant to acquire one additional

common share at an exercise price of 10 cents per share until October 2, 2022. In the event that the

common shares of the Company trade at a closing price greater than 20 cents per share for a period of

10 consecutive days, then the Company may deliver a notice to the warrantholders that they must

exercise their warrants within the next 30 days or the warrants will expire. The net proceeds from the

offering will be used to finance further work on the Company's mineral resource properties in Peru, as

well as to provide the Company with working capital for general and administrative expenses.

The Aguila Norte processing plant has an environmental permit ("IGAC") from the Peruvian government

which provides the Plant with the ability to expand operations past the current 100 tonnes per day level.

Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared,

supervised the preparation or approved the scientific and technical disclosure contained in this news

release.

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business

model is to provide toll milling services for clients and to produce high grade concentrates from mineral

purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit

www.peruvianmetals.com

.

Peruvian Metals Corp. is a Canadian resource company listed on the

TSX Venture Exchange: Symbol "PER"

For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290

Website:

www.peruvianmetals.com

Email:

[email protected]

Neither the 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.

Disclosure Regarding Forward-Looking Statements:

This press release contains certain "Forward-

Looking Statements" within the meaning of applicable securities legislation. We use words such as

"might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar

terminology to identify forward looking statements and forward-looking information. Such statements and

information are based on assumptions, estimates, opinions and analysis made by management in light

of its experience, current conditions and its expectations of future developments as well as other factors

which it believes to be reasonable and relevant. Forward-looking statements and information involve

known and unknown risks, uncertainties and other factors that may cause our actual results to differ

materially from those expressed or implied in the forward-looking statements and information and

accordingly, readers should not place undue reliance on such statements and information. Risks and

uncertainties are more fully described in our annual and quarterly Management's Discussion and

Analysis and in other filings made by us with Canadian securities regulatory authorities and available at

www.sedar.com.While the Company believes that the expectations expressed by such forward-looking

statements and forward-looking information and the assumptions, estimates, opinions and analysis

underlying such expectations are reasonable, there can be no assurance that they will prove to be

correct. In evaluating forward-looking statements and information, readers should carefully consider the

various factors which could cause actual results or events to differ materially from those expressed or

implied in the forward looking statements and forward-looking information.

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

https://www.newsfilecorp.com/release/65103