Mexican Gold Corp. announced that on January 26, 2020, it entered into a binding letter agreement with Toronto based New Found Gold Corp. (NFGC) to acquire all of the issued and outstanding shares of NFGC (the Transaction).

It is anticipated that the transaction will constitute either a Fundamental Acquisition or a Reverse Takeover pursuant to TSXV policies, and as such the shares of the Company will remain halted pending TSXV approval. Closing is expected to occur on or before April 30, 2020. At closing, the Company's name will be changed to Bonanza King Mining Corp., or such other name that is acceptable to regulatory authorities.

The Board of Directors of the resulting issuer following the transaction is expected to consist of current Company directors Philip O'Neill and John Anderson as well as the current NFGC CEO Denis Laviolette, current NFGC Executive Chairman Collin Kettell, and current NFGC Director Craig Roberts P.Eng. Denis Laviolette will assume the position of CEO of the resulting issuer and Collin Kettell will assume the position of Executive Chairman. Greg Matheson will take position as Chief Operating Officer, Ken Rattee as VP of Exploration, and Michael Kanevsky as Chief Financial Officer.

Collin Kettell, Executive Chairman. Mr. Kettell is the Founder and Executive Chairman of Palisades Goldcorp, Canada's largest resource focused merchant bank, expected to make its public debut in 2020. Additionally, Mr. Kettell is a co-founder and Executive Chairman of New Found Gold, as well as the Founder and CEO of Victory Metals, a leading vanadium developer in Nevada.

Denis Laviolette, President & CEO. Mr. Laviolette is a co-founder, CEO and President of GoldSpot Discoveries, Mr. Laviolette is a co-founder, CEO, and President of New Found Gold. Mr. Laviolette currently serves as a director with GoldSpot Discoveries and Xtra-Gold Resources.

Craig Roberts, P.Eng, Director. He currently serves as President and CEO of Ethos Gold, and as a director of K2 Gold, Victory Metals, and Global Battery Metals. Philip O'Neill, Director.

Mr. O'Neill is COO and Director of Palisades Goldcorp. Additionally, Mr. O'Neill was a founder, Director, and CEO of TSX listed Sunward Resources where he raised $81 million to advance the Titiribi gold/copper project in Colombia ahead of negotiating Sunward's acquisition by Trilogy Metals at a +140% premium to market. He has also been a director of several TSX, TSX Venture, and ASX listed companies.

John Anderson, Director. Mr. Anderson has over 25 years of capital market experience specializing in the resource sector. He was a founder and financier of many startup companies with experience on the TSX, NYSE, NASDAQ, London AIM, and Swiss Stock Exchange.

He was a founder of Deep 6 and American Eagle Oil and Gas, as well a founding general partner in Aquastone Capital, a New York based gold fund. He is currently the Chairman and interim CEO of Triumph Gold, CEO of Parallel Mining, and Chairman of Fluidoil Corp. Greg Matheson, COO.

Mr. Matheson is a professional geologist with over 12 years managing grass roots exploration through to advanced exploration projects; former exploration manager of Northern Gold Mining, senior project manager for Oban Mining and Osisko Mining. Responsible for the discovery and delineation of the >2.0M oz. Garrison Gold project in NE Ontario managing exploration from early stage through trial production mining.

Ken Rattee, VP of Exploration. Mr. Rattee brings over 36 years' experience in base and precious metal mineral exploration in various management roles; former chief geologist for Kirkland Lake Gold's Macassa Mine with extensive experience developing, supervising and implementing exploration campaigns for several corporations, including Lac Minerals, Kirkland Lake Gold, Kinross Gold and Barrick Gold. Michael Kanevsky, CFO.

Mr. Kanevsky is a Chartered Professional Accountant with expertise in corporate reporting, financial processes, and risk management. Mr. Kanevsky is the CFO of Mexican Gold and New Found Gold Corp. as well as several private mining companies.

Additionally, Mr. Kanevsky is a co-founder of BM Strategic Capital Corp.