Valterra Resource Corporation has completed a number of requisite tasks prior to commencement of a 5,000-tonne bulk-sampling program at the Livramento gold project, located in the Poconé Mining District, Mato Grasso, Brazil. Acquisition - Poconé Mining Mineração Ltda, ("PMM") is a private Brazilian company that Valterra is acquiring, subject to regulatory approval, as a wholly owned Brazilian subsidiary (the "Transaction"). PMM is purchasing the Livramento property (see NR-09-20, 17 September 2020 for details of the transaction) and has assumed possession and full operational control of the gold project. Approval of the Transaction is taking longer than anticipated and supplemental submissions are currently being concluded to result in receipt of final approvals. In connection with the Transaction, the Company has advanced to PMM the aggregate amount of $2,103,500 by way of loans since June 3, 2020 for the purpose of property acquisition and exploration costs and for general working capital. In accordance with applicable loan agreements between the parties, the loans are interest free and must be repaid upon demand in the event that the Transaction is not concluded prior to June 1, 2021. Bulk Sampling - Prior to conducting the previously announced bulk sample, PMM had to recommission the moth-balled Livramento mill and expose areas of fresh mineralization. The bulk sample will better evaluate the grades of the existing veins and the recoveries of the existing processing facility. Permits - Exploration permit applications have been submitted to allow for more systematic exploration on Livramento. Exploration - Structures and veins for bulk sampling have already been identified; however, many other auriferous veins have been identified on the property, including several with prior production by garimpeiros. A drone survey has been flown and is being incorporated into base maps for geologic mapping and sampling. PMM has contracted a third-party topographical company to delineate the property boundaries, which have been completed, and to complete monthly surveys of the mined areas for conciliation, geological and planning purposes. Panning is an effective tool to identify particulate gold in the veins and was the primary ore control used by garimpeiros; PMM will continue to utilize this cost-effective tool along with verification by fire assay and which will be particularly useful during exploration trenching of vein projections.