MGX Minerals Reports Initial Gold Assays up to 6 Ounce per Tonne from Selected Bulk Samples at Heino Gold Deposit Underground

VANCOUVER, July 24, 2020 - MGX Minerals Inc. ("MGX" or the "Company") (CSE:XMG)(FKT:1MG)(OTC:MGXMF) is pleased to announce initial gold assays from the Heino Gold Deposit underground workings. Six 0.5kg to 1kg, samples were taken at the 2030 Portal of the Heino-Money Pit Zone during the SRK Consulting (Canada) Site Visit July 8^th, 2020. Samples were shipped under direct chain of custody to ALS Canada Ltd. in Kamloops, British Columbia, crushed and pulverized, with further shipment to ALS Canada Ltd, North Vancouver, BC under custody of ALS Canada Ltd. The samples have undergone gold analysis by fire assay and gravimetric finish up to 6 ounces per tonne Au are reported. Previous silver, lead, and zinc assays from press release issued July 20 are included. Bulk Samples are of selected mineralized material and are not representative of the deposit as no mineral resource estimate at any level of confidence has been completed:

Geology

Tillicum Mountain is underlain by metamorphosed siltstone, calcareous siltstone, arkose, and greywacke, with lesser amounts of basalt, tuff, argillite, impure carbonate and marble layers, that have been subjected to Lower Jurassic regional metamorphism and folding that predates Jurassic/Cretaceous intrusions. In addition to the regional metamorphism, the rocks were locally subjected to two episodes of contact metamorphism. The first is associated with swarms of dioritic sills that probably accompanied the regional deformation, the second is hornfelsing related to the intrusion of the large monzonitic stocks and postdates the regional deformation. The structure on the property is dominated by steep angle normal and reverse faults. Most faults have little offsets, however, several faults with major displacements divide the property into fault-bounded blocks. It is probable that the gold-bearing zones on Tillicum Mountain are en echelon configured, conjugate riedel shears, at oblique angles to the major faults.

The Heino-Money Zone features strata-bound, gold-bearing, siliceous calc-silicate skarn alteration that is hosted in a thin, wedge-shaped package of moderately metamorphosed basaltic tuff and tuffaceous sedimentary rocks, which is bounded to the west by metabasalts and to the east by a large, altered feldspar porphyritic diorite body.. The skarn assemblage includes quartz, tremolite-actinolite, clinozoisite, plagioclase, diopside, biotite, garnet and microcline, with minor amounts of sericite and carbonate. Free gold occurs as fine to coarse disseminations and fracture fillings within and along walls of the quartz sulphide veins; gold is generally associated with pyrrhotite, pyrite, galena and sphalerite. The Heino-Money zone involved two phases of precious metal deposition. The first phase included the introduction of gold, arsenopyrite and possibly sphalerite, accompanied by the crystallization of quartz, carbonate and calc-silicate minerals. This was followed by the deposition of argentiferous galena and the continued introduction of arsenopyrite and sphalerite.

Summary of recorded surface and underground drilling from the SRK Report.

Table 10-1: Summary of recorded drilling

Small scale production occurred in 1981, 1984, and 1993 from the Heino-Money Zone. Table 6-4 from the SRK Report summarizes tonnages and metal content recovered per year of extraction.

Table 6-4: Summary of bulk sampling conducted on the Heino-Money Zone

Project Summary

The Tillicum Mountain Property is an advanced mining property since it has substantial underground development in place, and many targets to explore via extensions of existing adits and drilling from underground and surface. Exploration within the property includes the Heino-Money, Grizzly, and East Ridge. The Heino-Money was mined in 1981-1993 (total 10,057 tonnes). The Heino-Money zone gold mineralization is contained in a near vertical structure which averages about six feet in width and which, to date, has been delineated over a strike length of approximately 600 feet and a vertical extent of 300 feet. The mineralized zone remains open both on strike and to depth. The East Ridge deposit contains the majority of presently defined gold-bearing mineralization, and the East Ridge Deposit remains open along strike and to depth. Based on previous deep drilling, there is potential for East Ridge (A, B, C & D Zones) mineralization to extend to depth over 400 meters, and based on previous geochemical sampling and geophysical surveys, the north and south lateral extension of the East Ridge Zone also has potential to extend several hundred meters. The Grizzly is at an early stage of exploration, located approximately 900 meters to the southeast of the East Ridge deposit, and represents a large gold-silver bearing mineralized system that requires further drill testing.

Management is planning to drill the depth extension of the steeply dipping Heino-Money Zone where it intersects the moderately dipping East Ridge A Zone and has filed a Notice of Work in this regard. This feature was noted in previous reports that include a recommendation to drill from underground (Shaun Dykes, 2003). It has been decided to target the same deep extensions of the Heino-Money by drilling from surface, and stepping out approximately 150 meters horizontally from the target and drilling at a shallow to moderate dip. The advantage of drilling from surface is additional testing of geotechnical aspects will be documented for the purpose of mine engineering. In addition to defining lithology, alteration, and mineralization, the oriented drill core mapping of fractures, faults, joints, rock mass strength, permeability, and static water level hydrology data will be gathered.

Management plans metallurgical testing of the East Ridge and Heino-Money Zones. A total of 3 X 50 kgs composite representative samples will be taken from each zone in order to test mineralogical, chemical, physical and metallurgical methodology and factors related to gold-silver bearing mineral and recover processing to confirm previously reported high levels of recovery from gravity separation of free gold and simple flotation.

Existing Infrastructure

Mine haulage road is in good condition with minor improvements completed with access to the the core shacks and primary base camp at 6500 foot elevation. A slide area located in an extremely steep section between the core shacks / base camp and the main haulage portal at the 2050 level was impassable by truck due to minor land slide but easily accessible by ATV and foot. Engineering and slope stabilization maybe required for truck access. Once this small section of slope has been stabilized access to all upper portals via existing mine haulage road appears possible. The 2050 main haulage portal and tunnel remains in excellent condition but upper portal appear are in various degrees of decay and immediate work is commencing on rehabilitation of the portals to allow access to known high grade gold mineralization. There are 5 existing portals inclusive of the 2050 main haulage. The existing rail, ore cars, and muckers will be removed from the main haulage in preparation for rubber tire mounted drill rig, mucker and ore carts as part of plans for underground drilling and bulk sampling program

Quality Control and Data Related to Historical Work

Due to the extensive work completed at the project a wide variety of historical data and reports have been acquired regarding the Heino Gold Deposit and Tillicum Claims. This includes proposed locations of mill site and tailings pond. For example, a Preliminary Engineering and Environmental Report by Knight and Piesbold Ltd. was completed in 1987 and Preliminary Economic Feasibility Study by Orcan Mineral Associates was completed in 1989 on the Heino Deposit and has provided the primary basis for potential location of mill and tailings pond. Extensive previous work has laid out mining blocks in detail and provided the basis for the successful 1993 bulk sample. Due to the acquisition of almost all known historical documents in their original form, due to preservation by the original construction contractor, MGX has retained in excess of 10,000 pages of original drill logs, assays and reports and over 100 original maps and surveys that are now being compiled by SRK Consulting (Canada) as part of the Quality Data and Assurance protocol of the upcoming NI 43-101 Resource Estimate.

COVID_19

The Company does not foresee COVID_19 impacting initial confirmatory exploration as recommended by the SRK Report or impairing the asset value of Tillicum Claims and Heino Gold Deposit at this time. Exploration and construction teams will be limited to 3-6 personnel. At such time that significant labor is needed MGX will prepare a comprehensive COVID_19 plan and will rely on distancing, hand washing, and symptom monitoring to control the spread. As required by Transport Canada, masks will be required on all flight operations, which will be limited to 6 personnel including pilot. The West Kootenays is not an area of significant COVID_19 outbreak at this time and it is not expected COVID _19 would not be transferred from local population to miners as long as basic hygiene protocol is maintained.

Qualified Person

Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. Mr. Kikauka is a non-independent Qualified Person within the meaning of NI 43-101.

Advisors

Kingsdale Advisors is acting as strategic shareholder and communications advisor and Norton Rose Fulbright Canada LLP is acting as legal advisor to MGX Minerals Inc.

About MGX Minerals Inc.

MGX Minerals Inc. invests in commodity and technology companies and projects focusing on battery and energy mass storage technology, extraction of minerals from fluids, and exploration for industrial minerals and precious metals.

Contact Information

Neil Foran
Chief Financial Officer
neil@mgxminerals.com

Web: www.mgxminerals.com

Andy Radia
Director, Communications and Marketing
Kingsdale Advisors
Ph: 416-867-2357
aradia@kingsdaleadvisors.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward?looking information. Forward-looking information in this press release include, but are not limited to, statements with respect to plans for assessment and other activities conducted and proposed to be conducted at the Heino-Money Deposit and Tillicum Claims, the preparation and filing of the Technical Report, and the preparation for structural engineering review for the purpose of underground bulk sampling. Forward?looking information is generally, but not always, identified by the words "expects", "plans", "anticipates", "in the event", "if", "believes", "asserts", "position", "intends", "envisages", "assumes", "recommends", "estimates", "approximate", "projects", "potential", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

The Company's forward-looking information are based on the applicable assumptions and factors the Company considers reasonable as of the date hereof, based on the information available to the Company at such time, including without limitation, the receipt of any necessary permits, licenses and regulatory approvals, and the Company's ability to comply with environmental, health and safety laws. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various risk factors. These factors include, among others, geological and environmental factors, operating or technical difficulties in connection with the activities contemplated in this press release, general economic conditions, or conditions in the financial markets. The reader is referred to the Company's public filings for a more complete discussion of such risk factors, and their potential effects, which may be accessed through the Company's profile on SEDAR at www.sedar.com. Except as required by securities law, the Company does not intend, and does not assume any obligation, to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

SOURCE: MGX Minerals Inc.