October 20, 2022

From Mark Trevisiol, President, CEO and Chair of the Board 

When we founded McFarlane Lake Mining, our strategy was to fast-track shareholder value by targeting properties with a history of mineralization and gold production and prove them up to NI 43-101 compliant resources. What’s more, we are focused on regions favourable to mining and with nearby infrastructure that will aid future mine development. Our results to date prove this is the right approach.

Since our last update, we have continued to move forward on our strategic plan by expanding our land position, preparing for a drilling campaign at High Lake, and planning further exploration at West Hawk Lake.

We haven’t stopped there in generating value for our Company. In July, we began trading in the United States on the OTCQB Venture Market – this broadens our exposure in the world’s largest capital trading market. To support this listing, we participated in the Battery & Precious Metals Virtual Investor Conference on October 19.

DRILLING CAMPAIGN AT HIGH LAKE

High Lake is one of our most promising targets. It is located near Kenora, Ontario, close to power and roads, including the Trans-Canada Highway. High Lake was last explored in 1988 and recorded a historical resource of 270,000 tonnes at 9.8 g/t gold. Note that this estimate is not NI 43-101 compliant and should not be compared to current methodologies of resource estimation.

We have recently received an exploration permit and are ramping up for an exploration program at High Lake this year. A key focus will be the Purdex Zone at the property. It has only been tested to a depth of 100 metres and has significant potential for further exploration. In 2006, a 10-metre panel sample from a trench on the Purdex Zone averaged 9.84 g/t gold. We expect the drilling campaign to be complete by February 2023, with initial assay results by late 2023.

Last month, we bolstered the exploration opportunity at High Lake by acquiring and staking 14 claims adjacent to our property, expanding the exploration area from 341.5 hectares to 584.4 hectares. Some of these new claims lie on the same geological trends as our existing claims, which have known gold mineralization. In particular, we are encouraged by the exploration drilling opportunity that exists around our Purdex Zone, with the mineralization in this area trending towards our newly acquired claims in the northeast.

Figure 1: The Purdex Zone trench at High Lake – a 10-metre panel sample from the trench averaged 9.84 g/t gold.

Figure 2: Newly acquired claims at High Lake

Figure 3: Soil survey and various gold assay intersects

PLANS TO FURTHER EXPLORE WEST HAWK LAKE

West Hawk Lake is located in Manitoba, about eight kilometres west of High Lake. We completed a drill campaign there in February that consisted of 3,000 metres over 14 holes. The results were announced in May and supported the historical reports of gold mineralization. The highlights included:

• Showed the existence of high-grade gold mineralization 100 metres below historical gold mineralization at the Waverly Raise Zone on the property;
• Demonstrated the potential at the Waverly Zone for a gold zone with a mineralized strike length of 200 metres and down to over 200 metres remaining open at depth;
• Successfully intersected gold at the Sunbeam Breccia below known gold mineralization; and
• Identified strong geological structures extending beyond the previously explored areas
• Drilling highlights of the Waverly Raise Zone include:
  • MLWH-22-01 intersected two zones, 22.17g/t over 1.27m including 49.4 g/t over 0.55m and 9.85g/t over 1.62m.
  • MLWH-22-02 intersected a single zone of 9.85g/t over 1.00m.
  • MLWH-22-08 intersected two zones, 19.40g/t over 0.64m (Letain C) and 8.62g/t over 1.00m (Waverly).
• Drilling highlights of the Sunbeam Zone include:
  • MLWH-22-05 intersected two zones, 3.81g/t gold over 4.00m and 7.85g/t gold over 2.00m including 11.30g/t gold over 1.00m.

The results of our program were better than anticipated, and we intend to return to West Hawk Lake in the future for further drilling to further define the resource and gather information for a NI 43-101 report.

Figure 4: Zimex A5 Drill at West Hawk Lake, February 2022

Figure 5: MLWK-22.01 drill core from West Hawk Lake drilling showing 22.17 g/t of gold over 1.27 metres.

Figure 6: Drill Intersections at West Hawk Lake Project – Plan View

Figure 7: Drill Intersections at West Hawk Lake Project – Waverly Zone Section

IMPROVING COMMON SHARE LIQUIDITY

On July 19, we announced that our common shares were eligible for electronic trading and settlement in the United States through the Depository Trust Company (“DTC”). DTC eligibility simplifies trading and enhances the liquidity of McFarlane Lake shares in the United States. It enables our shares to be traded over a more comprehensive selection of brokerage firms by complying with their requirements. Since obtaining DTC eligibility, McFarlane Lake’s shares began trading on the OTCQB® Venture Market under the ticker symbol MLMLF.

FUNDING FUTURE EXPLORATION

On September 19, we announced closing a private placement of C$1.29 million to fund the drilling campaign at High Lake. As well as bringing in the funds required to support our exploration programs at High Lake and West Hawk Lake, the offering brought the McFarlane Lake story to more people and broadened our investor base.   

OPPORTUNITIES ACROSS OUR PORTFOLIO

McFarlane Lake has four other properties in addition to those discussed above. Like High Lake and West Hawk Lake, these have historic gold resources with opportunities for further exploration. The McMillan and Mongowin properties are located west of Sudbury, Ontario, in a region consistently on the top gold exploration opportunities identified by the Ontario Geological Survey (reports of 2011 and 2018). On October 11, we announced that we had acquired 16 new claims at McMillan/Mongowin. These new claims substantially increase the Company’s land holdings in the area by 352.5 hectares to 3,247.5 hectares.

Figure 8: McMillan Mine area with additional claims and gold showings

These newly acquired claims extend McFarlane Lake’s coverage of the favourable gold mineralizing contact between the Espanola and Gowganda Formations by 1.9 kilometres. In the late 1930s and early 1940s, several historic gold mining operations were located along this structure. A working gold mine was present on the Company’s McMillan property which between 1934 and 1937 reported production of 60,139 tons of ore for a recovered grade of 0.176 ounces per ton (6.03 grams per tonne) (NI 43-101 Report, Butler 2006). In addition, Bob Tough Gold Mines explored an area immediately west of the current claims in 1935 with test pitting and shaft sinking to a depth of 150 feet and crosscutting for 118 feet on the 150-foot level. They reported grades of up to 3.61 ounces per ton of gold (123.77 grams per tonne) (Assessment Work Report 41I04NW0045, Filo 1984).

Figure 9: Gold mine at McMillan, 1934-1938, which reported production of 60,139 tons at 0.176 ounces per ton of gold.

Near Timmins, Ontario, are our Michaud and Munro properties. They are located along the prolific Porcupine Destor fault, home to dozens of mines over the last century and several currently producing mines. Later this year, we will be preparing exploration programs for these properties.

LOOKING AHEAD

I’m excited about what McFarlane Lake Mining will achieve over the next year. We have a high-quality property portfolio with two properties with past gold production. There is significant potential to define economic resources, with infrastructure (roads, powerlines) nearby, providing the necessary support for exploration and any potential mine development. We also have the right team in place – with decades of experience in exploration, resource development and mining development. Together these provide a great value creation opportunity.

If you have any questions or want more information, please visit our website or contact us – the details are below.

Regards,

Mark

QUALIFIED PERSON

The technical contents of this message have been reviewed and approved by Robert Kusins, Vice President of Geology of McFarlane Lake. Mr. Kusins is a qualified person as defined by NI 43-101. However, Mr. Kusins is not independent of the Company by virtue of his position.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This message contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of McFarlane Lake to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption “Risks Factors” in the Company’s Filing Statement dated as of January 14, 2022  which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and McFarlane Lake disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

McFarlane Lake’s operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of illness caused by COVID-19. It is not possible to accurately predict the impact COVID-19 will have on operations and the ability of others to meet their obligations, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect operations and the ability to finance its operations.

To learn more, visit https://mcfarlanelakemining.com or McFarlane Lake’s profile on SEDAR at www.sedar.com.

Contacts:

Mark Trevisiol,
Chief Executive Officer, President and Director
McFarlane Lake Mining Limited
mtrevisiol@mcfarlanelakemining.com
1 705-562-8520

Craig MacPhail
NATIONAL Capital Markets
cmacphail@national.ca
1 416-525-5709