Centenario enters LOI to option Los Reyes from Factor

Mr. Doug Fulcher reports CENTENARIO ANOUNCES SIGNING A LETTER OF INTENT ON THE LOS REYES COPPER GOLD PROJECT IN CHIHUAHUA, MEXICO Centenario Gold Corp. has entered into a letter of intent through its 100-per-cent-owned Mexican subsidiary company Durango Gold Corp SA de CV with the concession owner Vector Factor SA de CV to acquire a 100-per-cent interest in Los Reyes project, a highly prospective copper and gold exploration asset located near the city of Chihuahua, Mexico. The property consists of two mineral concessions totalling 45 hectares, which cover a highly prospective copper-gold skarn target within the Faja de Plata of north-central Mexico, one of the world's most productive regions for polymetallic skarn and carbonate replacement deposits. Los Reyes is strategically located along a northwest-trending structure formed along the western margin of the Sierra Madre Oriental that hosts numerous high-grade current and past operating mines, including Naica and the Velardena district. Pursuant to the terms of the LOI, the company will enter into a final project purchase option agreement with the concession owner, to which Centenario will have the option to acquire up to 100 per cent of the right, title and interest in and to Los Reyes project. The option can be entered into by Centenario by initiating a 1,000-metre drill program, making the initial cash payment of $15,000 (U.S.) and making the cash payment over a five-year term indicated below. Transaction terms To buy 100 per cent of the mining rights of the mining concessions that are part of the project: Pay an amount of $15,000 (U.S.) on or before Dec. 31, 2025; Initiate a diamond drilling program of a minimum 1,000 metres in the project within six months after the signing of the LOI; Depending on whether the drilling program is successful or not and no later than 45 days after receiving the results of the geochemical analysis of the drilling, Durango Gold may agree to sign the final project purchase option agreement; The scenario of payment for the purchase and sale of the project with a purchase option agreement, distributed in annual payments divided over a period of five years, and the delivery of a royalty goes ahead; The royalty of 2 per cent will also be delivered to Factor: this royalty will be permanent during the productive life of the project and Factor will be responsible for paying Minera Cascabel SA de CV the proportional part that corresponds to it according to what was agreed on Feb. 11, 2014; To pay the mining rights of the two mining concessions of the project during the period of validity of this intent agreement. Doug Fulcher, president and chief executive officer of Centenario Gold, said: "We are very excited about the acquisition of the Los Reyes project; it helps to back up our decision to work on developing copper gold project in North American. We are planning a drill program for the new year to test the historical information that we have on the project." Los Reyes project -- a highly prospective copper-gold asset in a proven and expanding mining district Los Reyes prospect is located 170 kilometres south-southeast of the city of Chihuahua, a few kilometres off a major highway connecting the cities of Chihuahua to the north and Durango, Torreon and Monterrey to the south. The property lies approximately eight km from the mid-size town of Jimenez and easily accessible only a few km off the main highway. The surface rights are held by a local rancher fully supportive of all of its exploration activities. Regionally, Los Reyes polymetallic skarn prospect occurs at the contact between a package of limestones and metasediments and the granodiorite batholith. Los Reyes prospect sits on the eastern flank 1.5 km in diameter, a semi-circular intrusive body. It is important to note that all of the ground covering the contact zone (skarn-replacement mineralization potential) on the periphery of this granodiorite body has been held and controlled by Minera Penoles for more than 25 years. Los Reyes prospect is the only zone that contains important old mining workings (estimated to be 50 to 60 metres deep). Valterra Resources Corp. conducted a sampling and geophysical programs in 2019. "The surface program comprised of a 4.8-line-kilometre 2-D/3-D DCIP geophysical survey and detailed surface mapping and sampling along an 800-metre strike length of a Cu-Au skarn target forming the eastern contact between a Tertiary-age granodiorite intrusive and Cretaceous-age limestones and shales. The exploration target is locally over 100 metres wide and contains multiple zones of strongly copper-enriched mineralization. Near-surface mineralization exposed in shallow artisanal workings and adjacent dump material is strongly oxidized (reported in Valterra Resource news release dated Dec. 2, 2019)." In a press release dated Dec. 2, 2019, Valterra Resource reported sampling of waste dumps related to the artisanal workings, and limited outcrop chip samples returned 22 of 28 samples with copper values greater than 1 per cent copper at an average grade of 3.1 per cent Cu and up to 5.9 per cent Cu. The anomalous samples contain elevated precious and base metal values up to 0.57 gram per tonne gold, 25.3 g/t silver, 0.47 per cent molybdenum and 1.7 per cent zinc. Anomalous samples were collected along the full 800-metre strike length of the exploration target on the property with most of the samples collected in five clusters adjacent to open cuts and pits related to the historically mined portions of the trend. Qualified person Derrick Strikland is an independent qualified person as defined by National Instrument 43-101, and has reviewed and approved the technical disclosure contained in this release. Reader caution: The qualified person has not verified the information on the adjacent properties nor mineralization found on adjacent and/or geologically similar properties, which is not necessarily indicative of mineralization found on the property. About Centenario Gold Corp. Centenario is a mineral exploration company incorporated in British Columbia and headquartered in Vancouver, Canada. The company is focused on the acquisition, exploration and development of high-potential mineral projects in the Americas, with a primary emphasis on gold, copper and silver. The company is committed to responsible exploration and development, working closely with local communities and stakeholders. Centenario's management team brings extensive experience in mineral exploration, project development and capital markets. Centenario is listed on the TSX Venture Exchange, and continues to evaluate new opportunities to expand its portfolio in both Mexico and Canada and deliver value to shareholders. We seek Safe Harbor.