O3 Mining Announces Upsized Bought Deal Private Placement of Flow-Through and Hard Units to C$35 million

This News Release is not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Toronto, Ontario, May 28, 2020 – O3 Mining Inc. (TSXV: OIII) (“O3” or the “Company”) is pleased to announce that in connection with its previously announced bought deal private placement financing, the Company and a syndicate of underwerwriters led by Cormark Securities Inc., Sprott Capital Partners LP and Canaccord Genuity Corp. (collectively, the “Underwriters”), have agreed to increase the size of the previously announced financing. The underwriters have agreed to purchase, on a “bought deal” private placement basis: (i) 4,651,200 flow-through units of the Company (the “FT Units”) at a price of C$4.30 per FT Unit, and (ii) 6,383,000 units of the Company (the “Units”) at a price of C$2.35 per Unit, for aggregate gross proceeds of C$35 million (the “Offering”).

Each FT Unit shall consist of one common share of the Company, which will qualify as a “flow-through share” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec)) and one-half of one transferable common share purchase warrant to be issued on a non-flow-through basis (each whole common share purchase warrant, a “Warrant”). Each Unit will consist of one common share of the Company and one-half of one Warrant. Each Warrant will entitle the holder thereof to purchase one common share of the Company (a “Warrant Share”) at an exercise price of C$3.25 for a period of 24 months following the closing of the Offering.

The Warrants shall be callable by the Company should the daily volume-weighted average trading price of the common shares of the Company on the TSX Venture Exchange exceeds C$3.85 for a period of ten (10) consecutive trading days, at any time during the period (i) beginning on the date that is four months and one day from the closing date of the Offering, and (ii) ending on the date the Warrants expire (“Call Trigger”). Following a Call Trigger, the Company may give notice in writing (“Call Notice”) to the holders of Warrants that any Warrant that remains unexercised by the holder thereof shall expire thirty (30) days following the date on which the Call Notice is given.

The Company has also granted the Underwriters an option to sell up to an additional 638,310 Units, which option may be exercised by the Underwriters up to 48 hours prior to the closing date of the Offering.

The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) related to the Company’s projects in Québec. The Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units with an effective date no later than December 31, 2020 and in the aggregate amount not less than the total amount of the gross proceeds raised from the issuance of the FT Units. The net proceeds from the sale of the Units will be used by the Company for working capital and general corporate purposes.

The Offering is scheduled to close on or about June 18, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the conditional approval of the TSX Venture Exchange.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.

O3 Mining is well-capitalized and holds a 100% interest in a number of properties in Québec (435,000 hectares) and Ontario (25,000 hectares). O3 Mining controls 61,000 hectares in Val D’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Faut. O3 Mining also has a portfolio of assets in the James Bay and Chibougamau regions of Québec.

For further information on O3 Mining, please contact:
Jose Vizquerra
President, CEO and Director
Telephone: (416) 363-8653

Cautionary Note Regarding Forward-Looking Information.

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the transaction; and any other information herein that is not a historical fact may be “forward-looking information”. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Corporation, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the completion of the transactions described herein. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the parties cannot assure shareholders and prospective purchasers of securities that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither party nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Neither party undertakes, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

O3 Mining Announces C$30 Million Bought Deal Private Placement of Flow-Through and Hard Units

This News Release is not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Toronto, Ontario, May 28, 2020 – O3 Mining Inc. (TSXV: OIII) (“O3 Mining” or the “Company”) is pleased to announce that it has entered into an agreement pursuant to which Cormark Securities Inc., Sprott Capital Partners LP and Canaccord Genuity Corp., as co-lead underwriters and joint bookrunners, on behalf of a syndicate of underwriters (collectively, the “Underwriters”) have agreed to purchase, on a “bought deal” private placement basis: (i) 4,651,200 flow-through units of the Company (the “FT Units”) at a price of C$4.30 per FT Unit, and (ii) 4,255,400 units of the Company (the “Units”) at a price of C$2.35 per Unit, for aggregate gross proceeds of C$30 million (the “Offering”).

Each FT Unit shall consist of one common share of the Company, which will qualify as a “flow-through share” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec)) and one-half of one transferable common share purchase warrant to be issued on a non-flow-through basis (each whole common share purchase warrant, a “Warrant”). Each Unit will consist of one common share of the Company and one-half of one Warrant. Each Warrant will entitle the holder thereof to purchase one common share of the Company (a “Warrant Share”) at an exercise price of C$3.25 for a period of 24 months following the closing of the Offering.

The Warrants shall be callable by the Company should the daily volume-weighted average trading price of the common shares of the Company on the TSX Venture Exchange exceed C$3.85 for a period of ten (10) consecutive trading days, at any time during the period (i) beginning on the date that is four months and one day from the closing date of the Offering, and (ii) ending on the date the Warrants expire (“Call Trigger”). Following a Call Trigger, the Company may give notice in writing (“Call Notice”) to the holders of Warrants that any Warrant that remains unexercised by the holder thereof shall expire thirty (30) days following the date on which the Call Notice is given.

The Company has also granted the Underwriters an option to sell up to an additional 638,310 Units, which option may be exercised by the Underwriters up to 48 hours prior to the closing date of the Offering. In addition to the Offering, the Company may issue up to $2 million of Units or FT Units to purchasers on a President’s List to be identified by the Company.

The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) related to the Company’s projects in Québec. The Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units with an effective date no later than December 31, 2020 and in the aggregate amount not less than the total amount of the gross proceeds raised from the issuance of the FT Units. The net proceeds from the sale of the Units will be used by the Company for working capital and general corporate purposes.

The Offering is scheduled to close on or about June 18, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the conditional approval of the TSX Venture Exchange.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

O3 Mining CEO Jose Vizquerra joined Steve Darling from Proactive Vancouver with news the company has completed a 30-million-dollar financing. Vizquerra discusses how the financing is broken up and why that is so important.

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.

O3 Mining is well-capitalized and holds a 100% interest in a number of properties in Québec (435,000 hectares) and Ontario (25,000 hectares). O3 Mining controls 61,000 hectares in Val D’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Faut. O3 Mining also has a portfolio of assets in the James Bay and Chibougamau regions of Québec. 

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the transaction; and any other information herein that is not a historical fact may be “forward-looking information”. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Corporation, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the completion of the transactions described herein. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the parties cannot assure shareholders and prospective purchasers of securities that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither party nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Neither party undertakes, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on O3 Mining, please contact:

José Vizquerra Benavides

President, CEO and Director

Telephone: (416) 363-8653

O3 Mining Signs Option Agreement to Acquire QMX’s Aurbel Mill, 10 km From Alpha Property

Toronto, May 14, 2020 – O3 Mining Inc. (TSX.V:OIII) (“O3 Mining” or the “Corporation”) is pleased to announce that it has signed an option agreement with QMX Gold Corporation (“QMX”) to acquire a 100% interest in the Aurbel Mill (a fully-permitted mining facility), located 10 kilometres from O3 Mining’s Alpha property (the “Mill Option”). The Mill Option grants O3 Mining the right to acquire the Aurbel Mill, the tailings and all associated permits and liabilities, for a purchase price of CDN $5 million (subject to adjustment in certain circumstances) at any time during a six-year term. The Corporation has paid a deposit of CDN $250,000 for the Mill Option and must contribute $87,500 per annum for maintenance costs associated with the Aurbel Mill in order to maintain the Mill Option during the six-year term of the Mill Option.

O3 Mining President and CEO Jose Vizquerra commented: “We are thrilled to have entered into this option agreement with QMX for the Aurbel Mill. Identifying this potential mill site for our Alpha property is a major milestone for the Corporation as we continue with our exploration initiatives in the near-term. The Mill Option allows us to secure existing infrastructure without additional environmental impact, secures the potential to expand the mill capacity as required, and strengthens our strategy of bringing the Alpha property into production in less than six years. We look forward to getting back to work!”

O3 Mining’s CEO, Jose Vizquerra, discusses entering into an option agreement to purchase QMX’s Aurbel Mill

The Aurbel Mill is strategically located 10 kilometres from the Corporation’s flagship Alpha property housing the Bulldog, Pontiac East and Epsilon zones, as well as the Orenada 2&4, Akasaba and Simkar deposits. The Aurbel Mill is also a potential site for the Malartic and East Cadillac properties. O3 Mining is committed to increasing shareholder value through a three-pillar strategy:

  • advancing the Marban project closer to development by publishing a Preliminary Economic Assessment and exploring the Malartic property (10,000 metre program);

  • expanding the mineral resources at the Alpha property with a 25,000 metre drill program; and

  • expanding mineralization at the East Cadillac property (15,000 metre program).

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.

O3 Mining is well-capitalized and holds a 100% interest in a number of properties in Québec (435,000 hectares) and Ontario (25,000 hectares). O3 Mining controls 61,000 hectares in Val D’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Faut. O3 Mining also has a portfolio of assets in the James Bay and Chibougamau regions of Québec. 

 

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on O3 Mining, please contact:

José Vizquerra Benavides

President, CEO and Director

Telephone: (416) 363-8653

O3 Mining Begins Exploration and Plans to Continue with Two Drill Rigs

Toronto, May 13, 2020 – O3 Mining Inc. (TSX.V:OIII) (“O3 Mining” or the “Corporation”) is pleased to announce it will resume exploration activities on it’s Val D’Or properties following an announcement from the Government of Quebec, which eases restrictions previously in place due to COVID-19.

Consistent with past practice, the Company’s priority in this resumption will be the health and safety of its employees and contractors, their families, and communities in which we operate.  The company is applying the recommendations that the National Institute of Public Health of Quebec (INSPQ) and the CNESST have published for preventive measures as well as a guide to sanitary standards for the mining sector. Personnel will be subject to heightened health and safety standards in accordance with precautions put in place by the Government of Quebec and the Corporation. Teleworking will continue for all staff and management not required at site. The Val D’Or office has the full suite of safety protocols in place, including active monitoring to ensure that all the work is performed respecting physical distancing protocols and the use of personal protective equipment. Additionally, the facilities have been thoroughly disinfected, with additional hygiene and sanitation stations and controls in place. Two drill rigs will be mobilized after spring break up in June to continue the planned 50,000 metres drilling program. One drill rig will be on the Alpha property focused on Bulldog and Orenada Zone 4 and the second will be on the East Cadillac property targeting the North Contact zone.

O3 Mining President and CEO Jose Vizquerra commented: “The health and safety of our employees and contractors, their families, and the entire Val D’Or community is our main priority. We have been diligent in temporarily closing, deep cleaning and establishing health and safety measures to ensure the safe and easy transition of our personnel back to the workplace. With the safety protocols in place, we are confident that we can adapt our business and continue to provide a safe and healthy workplace and create long-term value for our shareholders as we resume our drilling program”

O3 Mining’s CEO, Jose Vizquerra, discusses preparing the company’s back to work plan as they deal with the COVID-19 pandemic

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko Group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company. 

O3 Mining is well-capitalized and holds a 100% interest in a number of properties in Québec (435,000 hectares) and Ontario (25,000 hectares). O3 Mining controls 61,000 hectares in Val D’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Faut. O3 Mining also has a portfolio of assets in the James Bay and Chibougamau regions of Québec. 

 

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the transaction; and any other information herein that is not a historical fact may be “forward-looking information”. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Corporation, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the restart of operations; further steps that might be taken to mitigate the spread of COVID-19; the impact of COVID-19 related disruptions in relation to the Corporation’s business operations including upon its employees, suppliers, facilities and other stakeholders; uncertainties and risk that have arisen and may arise in relation to travel, and other financial market and social impacts from COVID-19 and responses to COVID 19. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the parties cannot assure shareholders and prospective purchasers of securities that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Corporation nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Corporation does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law. 

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on O3 Mining, please contact:

José Vizquerra Benavides

President, CEO and Director

Telephone: (416) 363-8653

O3 Mining Sells Its Hemlo Properties to Canadian Orebodies; Files Early Warning Report

Toronto, May 8, 2020 – O3 Mining Inc. (TSX.V:OIII) (“O3 Mining” or the “Corporation”) is pleased to announce that it has sold its Hemlo properties located in the Hemlo mining district of Ontario to Canadian Orebodies Inc. (“Orebodies”) in exchange for (i) 2,550,000 common shares of Orebodies (collectively, the “Consideration Shares”), and (ii) a discovery bonus of CDN $1,000,000, payable in cash or shares at Orebodies’ option, if ever, if in the future Orebodies publishes a feasibility study in respect of the Hemlo properties containing at least 2,000,000 ounces of gold categorized as Probable Mineral Reserves, Proven Mineral Reserves or a combination thereof (the “Hemlo Transaction”).

After giving effect to the issuance of the Consideration Shares, O3 Mining now holds an aggregate of 10,211,500 common shares of Orebodies (“Orebodies Shares”), representing approximately 15.4% of the issued and outstanding Orebodies Shares on a basic basis.

O3 Mining President and CEO Jose Vizquerra commented: “We are pleased to announce that we are continuing to maximize value for our shareholders by finding strategic partners for our non-core exploration assets. The structure of this all-stock deal, together with a discovery bonus on the Hemlo properties, will enable us to gain exposure to a much larger property package in what is a quickly becoming an emerging gold district in Ontario, as well as benefit from Orebodies’ success as we are a significant shareholder.”

 

Early Warning Report

As a result of its acquisition of the Consideration Shares, O3 Mining has filed an early warning report in respect of its holdings in Orebodies.

Prior to the Hemlo Transaction, O3 Mining, through its wholly-owned subsidiary, O3 Markets Inc. (“O3 Markets”), beneficially owned or controlled 7,661,500 Orebodies Shares, representing approximately 12.0% of the issued and outstanding Orebodies Shares. After giving effect to the Hemlo Transaction, and the acquisition of the Consideration Shares, O3 Mining, through O3 Markets, now beneficially owns or controls 10,211,500 Orebodies Shares, representing approximately 15.4% of the issued and outstanding Orebodies Shares (on the basis of there being 66,218,450 Orebodies Shares issued and outstanding as of the date hereof).

Pursuant to the Hemlo Transaction, O3 Mining transferred to Orebodies its entire interest in the Hemlo properties located in the Hemlo mining district of Ontario in exchange for the Consideration Shares, based on each Consideration Share having a deemed value of $0.09 per share based on the closing price of Orebodies Shares on the TSX Venture Exchange as of May 7, 2020 (being the date immediately preceding the closing of the Hemlo Transaction).

The Consideration Shares acquired pursuant to the Hemlo Transaction are held for investment purposes. O3 Mining has no current intention of increasing or decreasing its ownership of, or control or direction over, additional securities of Orebodies. However, depending on market conditions, general economic and industry conditions, the Orebodies’ business and financial condition and/or other relevant factors, O3 Mining may increase or decrease its beneficial ownership of securities of Orebodies through market transactions, private agreements or otherwise, in the future.

This news release is being issued in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report dated May 8, 2020. The early warning report respecting this transaction has been filed on SEDAR (www.sedar.com) under Orebodies’ issuer profile. To obtain a copy of the early warning report filed by the Corporation, please contact José Vizquerra Benavides at (416) 363-8653 or refer to SEDAR (www.sedar.com) under Orebodies’ issuer profile. 

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.

O3 Mining is well-capitalized and holds a 100% interest in a number of properties in Québec (435,000 hectares) and Ontario (25,000 hectares). O3 Mining controls 61,000 hectares in Val D’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Faut. O3 Mining also has a portfolio of assets in the James Bay and Chibougamau regions of Québec.

 

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on O3 Mining, please contact:

José Vizquerra Benavides

President, CEO and Director

Telephone: (416) 363-8653

The Corporation’s address is 155 University Avenue, Toronto, Ontario, M5H 3B7.

O3 Mining Initiates Preliminary Economic Assessment on Marban Project

Toronto, May 7, 2020 – O3 Mining Inc. (TSX.V:OIII) (“O3 Mining” or the “Corporation”) is pleased to announce the appointment of Ausenco Engineering Canada Inc. (“Ausenco”), as the lead consultant, to prepare a Preliminary Economic Assessment (“PEA”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) on its 100% owned Marban Project in Val D’Or, Québec.

The Marban Project is located in the Malartic mining camp in the Abitibi gold district of Québec, Canada. The Marban Project contains three past-producing mines (Marban, Norlartic and Kierens), which collectively produced 585,000 ounces of gold between 1959 and 1992. The land package owned by O3 Mining in the heart of the Cadillac, Malartic, and Val D’Or gold mining camps covers 125 square kilometres and is located 15 kilometres from the Canadian Malartic Mine, and lies along the same shear structure as Wesdome’s Kiena deposit. To date, there has been a total of 4,577 holes drilled on the Malartic Property for a total of 600,369 metres. The current mineral resource estimate on the Marban, Norlartic and Kierens deposits is 38.2Mt at a grade of 1.29 g/t Au for 1.59 Moz in the measured and indicated mineral resource categories and 4.1 Mt at a grade of 1.47 g/t Au for 195,000 oz in the inferred mineral resource category (see “Updated Mineral Resource Technical Report, Marban Block property, Québec, Canada”, dated July 28, 2016 (effective date of June 13, 2016) and filed on SEDAR (www.sedar.com) under the issuer profile of Osisko Mining Inc).

Ausenco has been engaged to support O3 Mining on cost-effective process plant and infrastructure design concepts, as well as managing the overall PEA in accordance with NI 43-101. Ausenco will be assisted by Moose Mountain Technical Services and Golder Associates Inc. The results of the PEA are expected to be available in the third quarter of 2020.

O3 Mining President and CEO Jose Vizquerra commented: “We are very pleased with the pace at which we were able to maximize the value of our projects and move closer to our goal of bringing the Marban Project into production as part of our staged development strategy. We are looking forward to partnering with Ausenco on the PEA to develop the best overall configuration for subsequent studies. The positive track record of the Ausenco team and their experience with other gold projects similar to ours inspires confidence in our collaboration efforts with them going forward.”

O3 Mining’s CEO, Jose Vizquerra announces the appointment of Ausenco as a lead consultant to conduct the PEA expected for Q3 2020.

Qualified Person

The scientific and technical content in this news release has been reviewed and approved by Mr. Louis Gariepy, Eng. (OIQ #107538), VP Exploration of the Corporation, who is a “qualified person” (as defined in NI 43-101).

About O3 Mining Inc.

O3 Mining, which forms part of the Osisko group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.

O3 Mining is well-capitalized and holds a 100% interest in a number of properties in Québec (435,000 hectares) and Ontario (25,000 hectares). O3 Mining controls 61,000 hectares in Val D’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Faut. O3 Mining also has a portfolio of assets in the James Bay and Chibougamau regions of Québec.

Cautionary note regarding forward-looking information

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about potential mineralization; the initiation of a PEA; the results of the PEA; the timing and ability of the Corporation to release the results of the PEA (if at all); the potential of the Marban Project; the ability of Marban to become a mine, if at all; the ability to realize upon any mineralization in a manner that is economic; the ability to complete any proposed exploration activities and the results of such activities; and any other information herein that is not a historical fact may be “forward-looking information”. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.

This forward-looking information is based on reasonable assumptions and estimates of management of O3 Mining, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of O3 Mining to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to delays and closures on account of covid-19; delays outside the control of the Corporation; cost over-runs; property interests; the ability of O3 Mining to complete further exploration activities, including drilling; the results of exploration activities; the ability of exploration (including drill results) to accurately predict mineralization; risks relating to mining activities; the global economic climate; metal prices; dilution; environmental risks; and community and non-governmental actions. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, O3 Mining cannot assure its shareholders or prospective purchasers of its securities that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended. Neither O3 Mining nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. O3 Mining does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

 

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on O3 Mining, please contact:

José Vizquerra Benavides

President, CEO and Director

Telephone: (416) 363-8653

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2020
A Year
in Review

To Our
O3 Mining
Investors

What a year it has been! I want to personally thank you for supporting O3 Mining throughout this unprecedented time. At O3 Mining we experienced a year of tremendous growth as our exploration campaigns surpassed all expectations and we invested significant capital into our projects.

Our Year In Review

2020
A Year
in Review

What a year it has been! I want to personally thank you for supporting O3 Mining throughout this unprecedented time. At O3 Mining we experienced a year of tremendous growth as our exploration campaigns surpassed all expectations and we invested significant capital into our projects.

Our Year In Review