Parallel Mining to acquire Mane II property

Jun 20, 2018

2018-06-19 16:18 ET – News Release

Mr. John Anderson reports

PARALLEL MINING ACQUIRES MANE II EXPLORATION PROPERTY IN BURKINA FASO

Parallel Mining Corp. has entered into an option agreement to acquire a 100-per-cent interest in the 163-square-kilometre Mane II property in Burkina Faso.

The Mane property is located in the Kaya-Goren greenstone belt, approximately 20 kilometres south of Nordgold’s Bissa gold mine and approximately 40 kilometres north-northeast of the capital city, Ouagadougou.

Artisanal mining is active in several areas on the property, with the most active group covering a strike length of over 200 metres and some shafts exceeding 50 metres in depth. Historical results from artisanal reject material, sampled and reported by High River Gold, include gold grades of 20 grams per tonne and 11.2 g/t. In 2017, Parallel Mining conducted a small grab sample program (27 samples) on the artisanal reject material and results included 16.7 g/t, 12.5 g/t, 7.9 g/t, 6.3 g/t and six g/t.

The vein being exploited by the artisanal workers is hosted in a felsic intrusive (granite) and bears similar characteristics to the vein type which hosts Roxgold’s high-grade Yaramoko mine.

To acquire a 100-per-cent interest in the Mane property, Parallel must pay the owner an initial payment of $5,000 (U.S.), a further $15,000 (U.S.) 90 days after signing, a further $25,000 (U.S.) 12 months after signing, a further $50,000 (U.S.) 24 months after signing, a further $125,000 (U.S.) 36 months after signing and a final payment of $250,000 (U.S.) 48 months after signing. The owner will retain a 2-per-cent royalty on commercial mineral production from the property, subject to a 50-per-cent buyback provision.

Qualified person: Julia Singh, PGeo, an independent qualified person under National Instrument 43-101, has reviewed and approved the technical data and contents of this release.

Samples obtained by Parallel Mining mentioned in this release were transported directly to Actlabs in Ouagadougou, Burkina Faso, by company personnel for sample preparation. Samples were sorted, dried, crushed and prepared for final chemical analysis using the fire assay atomic absorption method for gold. Samples that assayed above the 10 g/t over limit were further analyzed by Au Gravimetrics. Field duplicates were used for the grab sampling.

Sebedougou

The company has elected to discontinue its previously announced option to acquire the Sebedougou exploration permit (see news release dated April 6, 2017) to focus on Mane as well as the continued acquisition of high-potential projects in West Africa.

We seek Safe Harbor.

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