Stellar Africagold Closes Tranche I of $1.6M Private Placement

Private Placement

Stellar announces that it has closed on Tranche I of a non-brokered private placement and issued 11,391,667 units for gross proceeds of $683,500.

The private placement financing is ongoing with the Company intending to issue up to 26,666,667 units at $0.06 per unit for gross proceeds of C$1,600,000. Each unit is comprised of one common share and one share purchase warrant exercisable at $0.15 for 24 months. The placement will be marketed to all Canadian provinces and select European countries as permitted by law. The net proceeds of the private placement will be used to advance exploration on the Company's Tichka Est gold property in Morocco and on its Prikro gold property in Côte d'Ivoire, and for general corporate purposes including advancing the Company's other pending property acquisitions and seeking potential new acquisitions.

The Units issued pursuant to Tranche I are subject to an investment hold period until June 26, 2021. The share purchase warrants issued pursuant to Tranche I may be exercised until February 26, 2023. Finder's fees will be paid in respect of this Tranche I and in respect of subsequent tranches of this financing.

About Tichka Est Project, Morocco

The Tichka Est property is comprised of three contiguous prospecting permits covering an area of 44.6 km2. It is located in the Atlas Mountain about 160 km SSW of the city of Marrakech. The area is accessible year-round via a national road to the village of Analghi located near the mineralized gold zone.

On August 19, 2020, Stellar AfricaGold Inc. announced the signature of the final agreement for the acquisition of 90% interest in the Tichka Est Gold Project where anomalous gold concentrations were first discovered during a 2009 regional stream sediments sampling program conducted by Office National des Hydrocarbures et des Mines of Morocco ("ONHYM"). Follow-up geological prospecting and trench sampling indicated that gold mineralization developed along a regional shear zone with high grade samples over significant width including 8.03 g/t Au over 6.30 m and 5.14 g/t Au over 4.9 m.

An independent summary compilation report* (see news release January 5, 2020) commissioned by Stellar reviewed available historical data and the results of a June 2020 due diligence validation program completed by Stellar identified 6 anomalous gold zones with two zone, Zones A and B, warranting priority attention. The Zone A and Zone B prospects are host to multiple high-grade gold intercepts with grades (chip samples in trenches) above 2.0 g/t Au, across widths exceeding 2.0 m and extending along strike for a minimum of 300 meters. Although the property remains at an early stage of development, these two prospects have, individually, the potential to develop a significant gold resource base if mineralization extends vertically and laterally with similar characteristics. A 3-phase exploration program totaling US$ 2,080.000 was recommended.

The Zone A prospect was outlined by a cluster of 85 anomalous gold-in-stream sediment samples over an area of 27.15km2 with assay values ranging from 21 ppb to 17.06 g/t Au. It was prospected with 9 trenches distributed at regular intervals along a strike length of 400 m.

The gold mineralization was found along a steeply dipping ENE-WSW striking regional shear zone that was traced on surface for about 400 m along strike. The shear zone is injected with narrow quartz veins (0.4 to 1.2 m wide) and swarms of veinlets running near and parallel to the intrusive contact with a micro-granitic porphyry dyke. They are, strongly brecciated and mineralized with disseminated and locally semi-massive pockets of pyrite and arseno-pyrite. In outcrops, the sulfide minerals are strongly altered to hematite, goethite, limonite and other alteration products.

The Zone B gold prospect is located about 3.0 km north of the village of Analghi. It was outlined by 27 anomalous stream sediment samples with grades ranging from 33 ppb to 22.33 g/t Au over an area of 6.38 km2. The area was prospected and 10 trenches excavated across the structure over a strike length of 300 m. The trenches exposed a wide brecciated fault zone running ENE-WSW in a highly deformed, altered and fractured sedimentary sequence. Anomalous grades of 0.1 to 4.0 g/t Au over 1.0 m are reported. Within the brecciated sections of the shear zone, the best gold assays are in gossans.

Summary Map of Stellar Validation Survey

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About the Prikro Permit, Côte d'Ivoire

The Prikro permit comprises a 369.5 km2 exploration licence located in the Prikro and Koun-Fao Departments in eastern Côte d'Ivoire, approximately 240 km northeast of Abidjan. Originally, the licence was selected due to the presence of historical reported gold occurrences, prospective geology, and the existence of artisanal workings in the surrounding areas including along strike of a major NE-SW trending shear zone which is interpreted to traverse the licence area across its southern half. Birimian-age greenstone rocks reportedly crop out extensively across the Prikro licence which are the dominant host setting for gold deposits across West Africa.

A preliminary reconnaissance program by a local team lead by Dr. Lionel Boya and under a daily supervision by Maurice Giroux, the Company's COO and V.P. Exploration is underway on the Prikro permit. This initial program has two main objectives:

1. a) to establish the social protocols with all local authorities in the region and to introduce Stellar as the new owner and operator on the Prikro permit, and

2. b) to conduct a preliminary prospection and a geological overview of the permit area with a special attention to any indication of present and past artisanal gold mining in the area.

The establishment of social protocols is essential to the smooth operation of all future exploration programs. Dr. Boya has met with all Préfets, Sous-Préfets and village Chiefs who were briefed about the new owners of the Prikro Permit and Stellar's plans for future exploration programs were explained. Stellar's delegation was warmly welcomed and permissions were granted for future exploration within the permit boundaries.

The technical objectives of this initial field visit are to survey for new or historical artisanal mining activities, to provide a general description of prevailing geology and to begin sampling the gold bearing structures observed in those historical mining sites. Dr. Boya reported observing and being informed of both significant mechanized gold dredging and artisanal placer mining activity along the Comoé River that transverses the Prikro Permit NW-SE dividing the Permit into the east and west sides. The presence of sufficient coarse gold in river sediments to warrant dredging and artisanal placer mining was encouraging for future exploration.

The conclusion and recommendations of this initial program will be the base of the planning for the next phase of a more extensive exploration program that Stellar intends to start as soon as sampling assay results and the final reconnaissance report is available.

ABOUT STELLAR AFRICAGOLD INC.

*The Report titled "Preliminary Technical Evaluation Report of the Gold Potential of the Tichka Est Gold Project, High Atlas Mountains Region, Kingdom of Morocco" by Benoit M. Violette, P.Geo., is effective November 15, 2020. Mr. Violette is an independent consulting geologist to Stellar.

Stellar AfricaGold Inc. is a Canadian gold company with offices in Vancouver, BC and Montreal, QC. Stellar President John Cumming can be contacted at 604-618-4262 or by email at cumming@stellarafricagold.com.

The technical content of this press release has been reviewed and approved by Yassine Belkabir, MScDIC, CEng, MIMMM, a Stellar director and a Qualified Person as defined in NI 43-101.

On Behalf of the Board

John Cumming, LLM,

President & CEO

This release contains certain "forward-looking information" under applicable Canadian securities laws concerning the Arrangement. Forward-looking information reflects the Company's current internal expectations or beliefs and is based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Assumptions upon which such forward-looking information is based includes, among others, that the conditions to closing of the Arrangement will be satisfied and that the Arrangement will be completed on the terms set out in the definitive agreement. Many of these assumptions are based on factors and events that are not within the control of the Company, and there is no assurance they will prove to be correct or accurate. Risk factors that could cause actual results to differ materially from those predicted herein include, without limitation: that the remaining conditions to the Arrangement will not be satisfied; that the business prospects and opportunities of the Company will not proceed as anticipated; changes in the global prices for gold or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals.

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 release.

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