Mistango River Resources Announces $3 Million Private Placement of Flow-Through Units

Mistango River Resources Announces $3 Million Private

Placement of Flow-Through Units

NOT FOR DISSEMINATION, DISTRIBUTION, RELEASE, OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED

STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

TORONTO, ONTARIO – August 31, 2020 – Mistango River Resources Inc. (“Mistango” or the “Company”)

(CSE: MIS) is pleased to announce that it has entered into an agreement with Echelon Wealth Partners

Inc. (“Echelon”), that have agreed to sell, on a “best efforts” private placement basis, up to approximately

C$3,000,000 of FT units (the “FT Units”) of the Company (the “Offering”) at a price of C$0.28 per FT Unit

(the “Issue Price”).

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

common share purchase warrant (each whole warrant a “ Warrant”), with each Warrant entitling the

holder thereof to acquire one common share of the Company (a “Warrant Share”) at a price C$0.35 for a

period of 2 years following the closing of the Offering.

The Company has also granted Echelon an option to purchase up to an additional 15% of FT Units, in such

proportion as the underwriters may determine, exercisable at any time until 48 hours prior to Closing.

The gross proceeds received by the Company from the sale of the FT Units will be used to incur Canadian

Exploration Expenses (“CEE”) that are “flow-through mining expenditures” (as such terms are defined in

the Income Tax Act (Canada)) on the Company’s properties in Ontario, which will be renounced to the

subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less

than the total amount of the gross proceeds raised from the issue of FT Units.

Echelon will receive a cash commission (the “Commission”) equal to 7.0% of the gross proceeds from the

Offering, excluding gross proceeds from the issuance of FT Units on a president's list to be agreed upon

by the Company and Echelon (the " President's List ") for which a commission of 3.5% of such gro ss

proceeds will be paid by the Company to Echelon. The Company shall issue to Echelon compensation

options (the “Compensation Options”) equal to 7.0% of the number of FT Units sold under the Offering

excluding the President’s List and 3.5% of the number of FT Units sold under the Offering to subscribers

on the President's List. Each Compensation Option shall entitle the holder thereof to subscribe for one

unit (the “Unit”) at C$0.24 for a period of 24 months from the Closing Date. Each Unit will compris e of a

common share and one-half of one purchase Warrant.

The Offering is scheduled to close on or about September 22, 2020 and is subject to certain conditions

including, but not limited to, the receipt of all necessary regulatory and other approvals including the

approval of the Canadian Securities Exchange and the securities regulatory authorities.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the

U.S. Securities Act of 1933, as amen ded (the “U.S. Securities Act”) or any U.S. state securities laws, and

may not be offered or sold in the United States or to, or for the account or benefit of, United States

persons absent registration or any applicable exemption from the registration requ irements of the U.S.

Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to

sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these

securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Mistango River Resources Inc.

Mistango is a Canadian -based exploration and development company focused on its EbyBaldwin and

Omega projects in the Kirkland Lake District of Ontario’s Abitibi Greenstone Belt.

The Company is listed on the Canadian Securities Exchange under the symbol MIS.

To Speak to the Company directly, please contact:

Stephen Stewart, Director

Phone: 416.644.1567

Email: [email protected]

www.Mistango.com