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Shareholder Update – September 19, 2019

Detailed Information of September 18, 2019 (yesterday’s) CLM Diamond Drill Assay Results from the NW Zone of the Newmont Lake Gold Corridor – Responsible Exploration

HEG’s CEO Cole Evans explains in detail about Crystal Lake Mining’s intersection of shallow high-grade gold mineralization at Newmont Lake’s Gold Corridor

  1. In 2019 logging and sampling of unprocessed and abandoned drill core was undertaken in search of the controls on high-grade Au Mineralization. Sampling revealed previously unrecognized intervals of gold mineralization outside of the historic resource* (Figure 3). These results helped to establish a strategy to target higher grade mineralization over broader intervals in areas where the known gold mineralization was thought to have tapered out. The 2019 diamond drilling confirmed the continuity of high-grade gold over wide intervals like those located further to the southeast.  This information supports the idea that detailed exploration adjacent to the Historic Resource* can significantly expand the mineral system.
  2. The significance of the 2019 drill results is illustrated in Figure 1 where the understanding of grade distribution in 2019 is compared to the previously available data on gold distribution in the northern part of the Newmont Lake mineral zone along a north-facing section. Down-dip “step out” separation of intercepted mineralization relative to historic intercepts on this section are 22-30 metres.
  3. Sampling of historic unsampled drill core has expanded the extent of mineralization, and the new drill hole has demonstrated continuity of high-grade mineralization as well as deeper domain of mineralization.
  4. Work continues to better understand the location and extent of the Historic Resource* Our approach is designed to continue to identify high grade mineral zones that were not previously recognized, and to extend the hydrothermal breccia system and associated gold mineralization outside of the immediate footprint of known mineralization.
  5. Assays from the 2019 drillhole NWDDH19-012 are the widest, and highest grade to date.  The lower mineralized interval points to the potential for new discoveries including more high-grade mineralization at depth.  Moreover, the detailed geochemical work undertaken on the drill core shows that it has a favorable composition with no deleterious element content.

Figure 1 – Schematic Cross Section Looking North – North East: Left image is showing historic drilling within the known resource. Right image shows new 2019 drilling expanding the known resource. In addition, a deeper wide interval of disseminated gold mineralization (77 metres @ 0.29 g/t Au) starting 157 metres downhole which points to the potential for new discoveries including more high-grade mineralization at depth.

Figure 2 – Old Drill Pad and New Drill Pad at the NW Zone along the Newmont Lake Gold Corridor.

Figure 3 – HEG Chief Geologist & VP Exploration Maurizio Napoli Hand Inspect a Fraction of the Unsampled Drill Core Left at the Abandoned NW Zone Exploration Camp.

The Historic Resource* (historic inferred resource) that contains 1,406k tonnes at an average grade of 4.43 g/t Au, 0.22% Cu and 6.4 g/t Ag at a projected “base case” cut-off grade of 2 g/t Au containing 200,000 oz Au, 6.79 million lbs of copper and 291,000 oz of silver  (Mineral Resource Estimate on the North West Zone, Newmont Lake Property, submitted to Romios Gold Resource Inc., May 11, 2007). This resource estimate was based solely on the drill hole data collected by Gulf Minerals in the late 1980’s and early 1990’s.

Qualified Person

The technical information in this information circular has been reviewed and approved by Mr. Maurizio Napoli, P. Geo., VP Exploration for Crystal Lake Mining, a Qualified Person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.

Forward-Looking Statement

This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. 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 Statement of Historic Resource*

The mineral estimate cited above is presented as a historical estimate and uses historical terminology which does not conform to current NI 43-101 standards. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Although the historical estimates are believed to be based on reasonable assumptions, they were calculated prior to the implementation of National Instrument 43-101. These historical estimates do not meet current standards as defined under sections 1.2 and 1.3 of NI 43-101; consequently, the issuer is not treating the historical estimate as current mineral resources or mineral reserves.