Mexican Gold Corp. Provides Update on Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

THUNDER BAY, Nov. 01, 2018 - MEXICAN GOLD CORP. (TSX-V: MEX; OTCQB: MEXGF; FRA: 4QW1) ("Mexican Gold" or the "Company") is pleased to report that it has received a positive response to the previously announced financing (see the Company’s October 22, 2018 news release), which proposed a non-brokered private placement of units (“Units”) at $0.20 per Unit for gross proceeds of up to $3,000,000 (the "Private Placement"). Accordingly, the Company wishes to extend the previously announced November 10, 2018 period for competing the Private Placement, to allow certain interested investor to participate in the Private Placement. The Company intends to complete the Private Placement in the coming weeks and, as previously announced, has the option to increase the size of the Private Placement by 25%.

Each Unit offered under the Private Placement will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share for a period of thirty-six months from the closing date of the Private Placement at a price of $0.30 per Common Share. The Company will have the right, but not the obligation, to accelerate the expiry date of the Warrants on notice to the holders of the Warrants, if at any time after four months and one day from the closing date of the Private Placement, the closing price of its Common Shares on a stock exchange in Canada is greater than $0.45 per Common Share for a period of 20 consecutive trading days, in which case the Warrants will expire 30 days after the date on which such notice is given.

The net proceeds from the Private Placement will be used to continue exploration on the Company’s Las Minas project located in the State of Veracruz, Mexico (up to approximately $1,100,000), property payments (US$866,666 plus Value Added Tax in Mexico), and general working capital purposes (up to approximately $600,000).

The Company may compensate certain eligible finders for their assistance in selling Units under the Private Placement, with such compensation being subject to approval of the TSX Venture Exchange.

The closing of the Private Placement is subject to receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. Units issued under the Private Placement will be subject to a four month and one day statutory hold period. As at the date hereof, there is no material fact or material change related to the Company that has not been generally disclosed.

About Mexican Gold Corp.

Mexican Gold Corp. is a Canadian based mineral exploration company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals and copper deposits in Mexico. Mexican Gold is exploring the Las Minas Project, which is located in the core of the Las Minas mining district in the Veracruz State, Mexico, and is host to one of the largest under-explored skarn systems known in Mexico.

For more information, please contact:
Carl Hering, PhD Geology, CEO
Brian E. Robertson, P. Eng., President
Phone: 807-474-4270 or 807-251-1816
Fax: 807-474-4272

E-mail: info@mexicangold.ca
Website at www.mexicangold.ca

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. “Forward-looking information” can often, but not always, be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to the Company, and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking information includes, but is not limited to, statements about the closing of the Private Placement, the future exploration results relating to the Las Minas project, and exploration plans for the Las Minas project and the exploration potential of the Las Minas project. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither 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 release.