iMetal Closes $1.79-Million Tranche of Placement

iMetal Resources Inc. (TSXV:IMR) (OTCBB: ADTFF) (FRANKFURT: A7V2) (“iMetal” or the “Company”) is pleased to announce that it has closed an initial tranche of its non-brokered private placement through the issuance of 16,281,272 units (each, a “Unit”) at a price of $0.11 per Unit for gross proceeds of $1,790,940. Each “Unit” consists of one common share of the Company, and one common share purchase warrant (each, a “Warrant”) exercisable to acquire an additional common share of the Company at a price of $0.20 until September 30, 2022. The Company intends to complete a further tranche of the placement for up to 8,718,728 units, to raise a total of $2,750,000. The Company anticipates utilizing the proceeds of the placement to finance a drill program at its flagship Gowganda West property, and for general working capital purposes. In connection with completion of the initial tranche of the placement, the Company paid $69,195 and issued 629,040 Warrants to certain arms-length third-parties who assisted by introducing subscribers to the placement.

Finders’ fees or commissions to eligible parties in connection with a further tranche of the placement. All securities issued in connection with completion of the initial tranche of the placement are subject to a statutory hold period until February 1, 2021 in accordance with applicable securities laws. Completion of a further tranche of the placement remains subject to the approval of the TSX Venture Exchange. The initial tranche of the placement included subscriptions from directors and officers of the Company for an aggregate of 4,202,700 Units. The issuance of Units to directors and officers of the Company, pursuant to the placement, are considered related party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

The Company relied upon exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of insider participation, as neither the fair market value of, nor the fair market value of the consideration for, the placement, insofar as it involves directors and officers of the Company, exceed twenty-five percent of the market capitalization of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS,
Johan Grandin Chief Executive Officer iMetal Resources Inc. jgrandin@imetalresources.ca Tel. (604-739-9713)
588-580 Hornby St., Vancouver, BC, V6C 3B6. https://imetalresources.ca

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. This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

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