Stelmine Completes $2.5 Million Private Placement and Announces Strategic Investment by Michael Gentile, CFA

QUEBEC CITY, Dec. 09, 2021 - Stelmine Canada (TSXV: STH) ("Stelmine" or the "Company") is pleased to announce that it has closed a non-brokered private placement ("Offering") of flow-through units (the "FT Units") for gross proceeds of $2,500,000.

In conjunction with the offering, Michael Gentile has acquired 5,785,500 units of the Company with each unit comprising one common share of Stelmine and one-half of a common share purchase warrant representing approximately 9.9% of the issued and outstanding common shares of the Company on a partially diluted basis assuming full exercise of his warrants.

Stelmine CEO Ms. Isabelle Proulx commented: "We are very excited to welcome Michael Gentile as a major new investor. Michael's support comes at a pivotal time for the Company as we build out the Stelmine team in anticipation of initial results and more drilling at Courcy followed by maiden drilling at our very promising Mercator Project. Michael's confidence supports our strong belief that we're on track to prove the viability of a new gold district in Quebec."

Michael Gentile, CFA

Mr. Gentile who has an extensive institutional money management background is an active and strategic investor in the junior mining sector owning significant stakes in over 20 small cap exploration companies. Michael is currently a strategic advisor to Arizona Metals (AMC-V) and a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V).

Flow-Through Private Placement Details

The Company issued a total of 10,638,297 FT Units at a price of $0.235 per FT Unit. Each FT Unit consisted of one common share of the Company to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) (each, a "FT Share") and one-half of a non-flow-through common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one additional common share at a price of $0.30 per common share until December 9, 2024.

The Company intends to use the net proceeds of the Offering for continued exploration at Courcy and Mercator, specifically to incur "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada). ln addition, with respect to Quebec resident purchasers who are eligible individuals under the Taxation Act (Quebec), the "Canadian exploration expenses" will also qualify for inclusion in the "exploration base relating to certain Quebec exploration expenses" and for inclusion in the "exploration base relating to certain Quebec surface mining expenses or oil and gas exploration expenses" as both terms are defined in the Taxation Act (Quebec).

The securities issued pursuant to the Offering are subject to a statutory four month hold period ending on April 10, 2022 in accordance with applicable securities laws.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

Stock Options Granted

Stelmine has granted a total of 3,215,000 stock options, of which 2,715,000 options were granted to directors, an executive officer and an employee of the Company, and 500,000 options were granted to a consultant of the Company. The options are exercisable for a period of five years from the date of grant at an exercise price of $0.265 per share, being the closing price of the Company's shares on the TSX Venture Exchange the day preceding the grant. The options are subject to the approval of the TSX Venture Exchange.

About Stelmine Canada

Stelmine is a junior mining exploration company pioneering a new gold district (Caniapiscau) east of James Bay in the under-explored eastern part of the Opinaca metasedimentary basin where the geological context has similarities to the Eleonore mine. Stelmine has 100% ownership of 1,574 claims or 815 sq. km in this part of northern Quebec, highlighted by the Courcy and Mercator Projects.

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FORWARD LOOKING INFORMATION

Certain information in this press release and information linked herein may contain forward-looking statements, such as statements regarding the anticipated use of the proceeds from the Offering, future exploration and acquisition plans, and development of the Company generally. This information is based on current expectations and assumptions that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators. The filings are available at www.sedar.com.

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.