Silver Dollar Considers Spinout of Red Lake Gold Projects

FOR IMMEDIATE RELEASE

Silver Dollar Considers Spinout of Red Lake Gold

Projects

VANCOUVER, BC – October 7, 2020 – Silver Dollar Resources Inc. (CSE: SLV) (OTCQB:

SLVDF) (“Silver Dollar” or the “Company”) reports that the Board of Directors is evaluating

the merits of a transaction to transfer its Canadian exploratio n projects to a new subsidiary

(“SpinCo”) that would be spun out to Silver Dollar shareholders . The intent of the transaction

would be twofold: (1) position Silver Dollar to focus on the ex ploration and development of the

advanced stage La Joya Silver Project in Durango, Mexico and to pursue similar assets for potential

acquisition; and (2) position SpinCo to operate as an independe nt company that would seek a

separate public listing and focus on building a pure-play gold exploration company around its

discovery-stage Red Lake projects.

Since the inception of Silver Dollar in November 2018, the Red Lake Gold Camp has seen a

resurgence in activity with major discoveries and new mines coming online. Based on the current

market caps of several other junior exploration companies with similar stage Red Lake projects,

the Board feels that a spinout of the Red Lake assets would jus tify a material valuation and be

beneficial to Silver Dollar shareholders.

The Company can make no assuran ce that a spinout will take plac e as it would be subject to

several conditions that include satisfying stock exchange listing requirements, the assessment of

legal and tax ramifications, dete rmining final details of the t ransaction, receipt of all regulatory

approvals, any required shareholder approval, the availability of financing for the new subsidiary,

and market conditions. The compa ny will provide further details if and when available in

accordance with the policies of the Canadian Securities Exchange (“CSE”).

“We are actively pursuing additi onal advanced-stage silver proj ects for acquisition and as the

Company matures there may come a time when a spin out of our Re d Lake gold projects is an

appropriate step to maximize shareholder value,” said Mike Romanik, President of Silver Dollar.

About Silver Dollar Resources Inc.

Silver Dollar Resources Inc. is a mineral exploration company f ocused on creating shareholder

value by finding and developing economic precious and base metal deposits. Having completed its

initial public offering in May 2020, the Company trades on the CSE under the symbol "SLV" and

on the OTCQB under “SLVDF”. Silver Dollar’s projects are locate d in two of the prolific mining

jurisdictions in the world and include the advanced exploration and development stage La Joya

Silver Project in Durango, Mexico, and the discovery-stage Pakw ash Lake and the Longlegged

Lake properties in the Red Lake Mining District of Ontario, Can ada. The Company has an

aggressive growth strategy and is actively reviewing projects i n mining-friendly jurisdictions

internationally for potential acquisition.

For additional information: contact investor relations, you can download our latest presentation

by clicking here and you can follow us on Twitter by clicking here.

Joseph Cullen,

Investor Relations Manager

Direct line: (778) 919-8615

Email: [email protected]

ON BEHALF OF THE BOARD

Signed “Michael Romanik”

Michael Romanik,

President, CEO & Director

Silver Dollar Resources Inc.

Suite 108 - 800 Kelly Road, Suite 416

Victoria, BC, V9B 6J9

Forward-Looking Statements:

This news release contains forwa rd-looking statements and forwa rd-looking information (collectively, "forward-

looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than

statements of historical fact, included herein including, without limitation, statements regarding the planned spinout of

the Company’s Canadian exploration projects to a new subsidiary, the listing of the shares of the new subsidiary on a

stock exchange, the future value of such shares and the acquisi tion of additional exploration projects, are forward-

looking statements. Often, but not always, forward looking information can be identified by words such as "pro forma",

"plans", "expects", "will", "may", "should", "budget", "schedul ed", "estimates", "forecasts", "intends", "anticipates",

"believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain

actions, events or results that may, could, would, might or will occur or be taken or achieved.

In making the forward-looking statements in this news release, the Company has made certain assumptions, including

without limitation, the receipt o f all necessary permissions an d regulatory approvals in connection with the planned

spinout and exploration project acquisitions, that the COVID-19 global pandemic will not affect the ability of the

Company to carry out its plans, and the availability of financing on suitable terms.

Forward-looking statements involve known and unknown risks, unc ertainties and other factors which may cause the

actual results, performance or achievements of the Company to differ materially from any future results, performance

or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among

others, the ability of the Company’s proposed subsidiary to obt ain sufficient financing to fund its operations and

planned exploration and to meet stock exchange listing requirem ents, delays in obtaining regulatory and other

approvals, changes in laws, regulations and policies affecting mining operations and public companies, title disputes

or claims, and environmental issues and liabilities.

Readers are cautioned not to pl ace undue reliance on forward-lo oking statements. The Company undertakes no

obligation to update any of the forward-looking statements in this news release except as otherwise required by law.