Magna Terra Samples up to 17.45 G/T Gold From Prospecting, Identifies New Prospective Structural Trends at the Cape Spencer Project

TORONTO, December 17, 2020 - Magna Terra Minerals Inc. (the "Company" or "Magna Terra") (TSXV:MTT) is pleased to announce preliminary results of a systematic prospecting and geological mapping program from the Cape Spencer Project ("Cape Spencer" or "Project"), located in southern New Brunswick (Exhibit A). Prospecting and geological mapping forms part of a larger initial exploration program for 2020/2021, focused on the Emilio Trend. It also comprises soil/till sampling and geophysical surveying to refine existing targets and generate new gold targets to be followed up by a planned winter diamond drilling program.

Program Highlights

• Assays up to 17.45 grams per tonne ("g/t") gold from boulder ("float") and outcrop grab samples including 2 separate occurrences of visible gold;
• 20 out of 152 float and grab samples assaying over 0.1 g/t gold and 6 out of 152 float and grab samples assaying over 0.5 g/t gold;
• Assays returned for 152 of 284 samples collected;
• Emilio Trend footprint expanded by 2.5 kilometres to 5.0 kilometres;
• Recognition of multiple NNE striking secondary fault splays that may form favourable hosts to gold mineralization; and
• Review of glacial geology indicated displacement of float is likely less than 100 metres from bedrock source.

*Grab and float samples are selected samples and are not necessarily representative of mineralization that may be hosted on the property.

"We are very pleased that initial work at the Emilio Trend has provided impressive early results. The discovery of high-grade float with similar grade to previous sampling and nearby drill results supports the potential of this area to host significant gold mineralization. The extension of the Emilio Trend footprint to a 5.0 kilometre strike extent, the identification of multiple second order fault splays off the Millican Lake Fault, and the likely close proximity of float to its bedrock source have us excited for the next phase of exploration at Cape Spencer. The focus of exploration will now turn to systematic soil and till sampling and geophysical surveys over the 5.0 kilometre Emilio Trend. We anticipate starting an initial diamond drilling program early in 2021 that will follow-up on some of the priority targets generated by these results, as well as the high-grade historic drill intercepts at Emilio."

~ Lew Lawrick, President and CEO, Magna Terra Minerals

Prospecting and Geological Mapping Program

Results have been received for 152 of 284 collected rock float and outcrop grab samples from the 5.0 kilometre long Emilio Trend; the focus of early exploration at the Cape Spencer Project. Assays up to 17.45 g/t gold have been received from mineralized quartz vein boulders from the Emilio Trend; two of which contain visible gold. 20 out of 152 (13%) float and grab samples assayed over 0.10 g/t gold, and 6 out of 152 (4%) float and grab samples assayed over 0.50 g/t gold, with values of 3.26 g/t gold, 4.75 g/t gold, 6.51 g/t gold and 17.45 g/t gold (Exhibit B). Assays are pending for 132 rock samples and prospecting is ongoing.

Mineralization comprises specular hematite and pyrite bearing quartz veins that are hosted within pervasively illite, pyrite and iron-carbonate altered and strongly deformed Millican Lake granite and Cape Spencer formation sediments, the same geological environment hosting the nearby Pit and Northeast Zones.

Prospecting and geological mapping, based on the presence of alteration and visible gold bearing float, has also extended the Emilio Trend footprint eastward by 2.5 kilometres for a total strike extent of 5.0 kilometres. Geological mapping/prospecting has identified a series of NNE striking 2^nd order fault splays off of the Millican Lake Fault that seem to represent favourable hosts to gold mineralization. These fault zones, in certain cases, show strong coincidence with gold-bearing float and grab samples and wallrock alteration expanding the potential host structures for gold mineralization (Exhibit B).

The Company has critically considered logistical matters given the ongoing COVID-19 pandemic, to ensure that this Exploration Program and all future programs are executed in a way that ensures the absolute health and safety of our personnel, contractors, and the communities where we operate.

The Company would like to thank the Government of New Brunswick for partial funding of the exploration program under the NBJMAP Program.

Project Highlights

• 5,045 hectares along 15 kilometres of strike of a regional-scale gold bearing structure - the Millican Lake Fault and associated structures;
• Newly expanded Project is host to large untested gold bearing alteration systems including:
  • 5.0 kilometre alteration and gold bearing Emilio Trend with drill intercepts up to 7.86 g/t gold over 7.4 metres;
  • Marigold Prospect with drill intercepts up to 8.71 g/t gold over 2.0 metres;
  • Birches Zone with drill intercepts up to 5.23 g/t gold over 4.0 metres;
• The Cape Spencer Deposit has an Inferred Mineral Resource Estimate of 1,720,000 tonnes at an average grade of 2.72 g/t gold for 151,000 contained ounces in two zones:
  • Northeast Zone - Inferred Mineral Resource of 740,000 tonnes at an average grade of 4.07 g/t gold, for 96,000 contained ounces at a cut-off grade of 2.5 g/t gold in a conceptual underground development; and
  • Pit Zone - Inferred Mineral Resource of 990,000 tonnes at an average grade of 1.71 g/t gold, for 54,000 contained ounces at a cut-off grade of 0.5 g/t gold in a conceptual open pit.

**Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All Mineral Resource Estimates were prepared in accordance with NI 43-101 and the CIM Standards (2014). Please refer to the NI 43-101 Technical Report with effective date January 23, 2019 by Harrington and Cullen (2019) as detailed below for the Cape Spencer Project. See further details on Technical Reports below.

About the Cape Spencer Project

The Cape Spencer Project is an exploration stage project that has a history of past-production and the potential for near-term discovery and resource growth. Cape Spencer is located 15 kilometres southeast of Saint John, New Brunswick, comprising 8 mineral claims (224 units) covering 5,045 hectares of land.

The Cape Spencer Project is centered along the gold bearing Millican Lake Fault, a regional splay of the Caledonia and Cobequid Fault zones. The Property is underlain by Precambrian Millican Lake granite, and Broad River and Cape Spencer volcanic and sedimentary rocks. The Precambrian stratigraphy is unconformably overlain by and in fault contact with younger Carboniferous sedimentary rocks of the Lancaster Formation.

Gold mineralization at Cape Spencer is hosted within Precambrian Millican Lake granite or bounding Broad River and Cape Spencer volcanic and sedimentary rocks, with mineralization and alteration focussed along strongly faulted and sheared contacts between the two lithologies. Alteration consists of pervasive and patchy illite + pyrite + quartz ± iron carbonate ± sulfide veins and stockworks with 2-5% total sulfides consisting of pyrite, with local chalcopyrite, minor galena and sphalerite, and locally show trace amounts of visible gold.

There are several gold prospects that warrant additional exploration over a 15-kilometre strike outside of the Pit and Northeast Zones particularly in the eastern half of the property that will initially be a primary focus for Magna Terra.

Highlights from historic exploration work outside of the main deposit areas from 1982 to 2004 include:

Emilio Trend - includes the Emilio Prospect at eastern end of the Property

• 7.86 g/t gold over 7.4 m (AB-04-06; near surface);
• 12.00 g/t gold over 1.4 m (chip) and 2.77 g/t gold over 3.0 m (chip);
• Surface grab samples up to 168.00 g/t gold;
• Zone A - Grab samples up to 53.50 g/t gold;
• Zone C - Grab samples up to 8.92 g/t gold and chip sample of 2.77 g/t gold over 3.0 m; and
• Zone D - Five occurrences of visible gold with grab samples up to 7.12 g/t gold.

Birches Zone - 300-metre-long gold-bearing alteration zone south of the Northeast Zone.

• 17.85 g/t gold over 1.0 metre within a zone grading 5.23 g/t gold over 4.0 metres (MR-150);
• 9.48 g/t gold over 1.0 metre within a zone grading 4.01 g/t gold over 4.0 metres (MR-149); and
• 3.60 g/t gold over 5.0 metres (AB-04-08).

Marigold Prospect

• Historic drill assays of 8.71 g/t gold over 2.0 metres (drillhole MGB-88-2); and
• Historic grab samples up to 4.41 g/t gold.

Note: Analytical results in this press release section are sourced in the Cape Spencer Project Technical Report (2019) - see "Technical Reports and Documentation Notes" below; "grab samples" are selected samples and are not necessarily representative of mineralization that may be hosted on the property.

Qualified Person and Technical Reports

This news release has been reviewed and approved by David A. Copeland, P. Geo., Chief Geologist with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 - Standard for Disclosure for Mineral Projects. Widths from drill core intervals reported in this press release are presented as core lengths only. True widths are unknown. All quoted drill core sample intervals, grades and production statistics have been compiled from historic assessment reports obtained from the Government of New Brunswick.

All rock float and grab samples referred to in this release were analyzed for gold at ALS Global in North Vancouver, BC ("ALS"), using standard fire assay (30 g) pre-concentration and Atomic Absorption finish methods (method AU-AA23). Overlimit samples were analysed at ALS via gravimetric finish using method AU-GRA21. ALS is a fully accredited firm within the meaning of NI 43-101 for provision of this service.

The Mineral Resource Estimate quoted in this press release regarding the Cape Spencer Project refers to the technical report: "NI 43-101 Technical Report and Mineral Resource Estimate on The Cape Spencer Gold Deposit, Saint John County, New Brunswick, Canada", with an effective date of January 23, 2019, and authored by Michael Cullen, P.Geo. (Independent Qualified Person), and Matthew Harrington, P.Geo. (Independent Qualified Person).

About Magna Terra

Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra owns three district-scale, advanced gold exploration projects in the world class mining jurisdictions of New Brunswick and Newfoundland and Labrador. Further, the Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its precious metals discovery on its Luna Roja Project, as well as an extensive portfolio of district scale drill ready projects available for option or joint venture.

Forward Looking Statements

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.

Cautionary Statements Regarding Forward Looking Information

Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

FOR FURTHER INFORMATION PLEASE CONTACT:

Magna Terra Minerals Inc.
Lewis Lawrick
President and CEO, Director
647-478-5307
Email: info@magnaterraminerals.com
Website: www.magnaterraminerals.com

Exhibit A: Cape Spencer Project Property Geology and Gold Occurrences

Exhibit B: Emilio Trend Geology and Rock Sample Locations

SOURCE: Magna Terra Minerals Inc.