Pure Gold Mining Inc.

Annual Information Form

for the fiscal year-ended December 31, 2020

Dated March 31, 2021

Suite 1900, 1055 West Hastings Street

Vancouver, B.C.

Canada V6E 2E9

1604646-8000 info@puregoldmining.ca

TSX-V: PGM

December 2020 Annual Information Form

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December 2020 Annual Information Form

TABLE OF CONTENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS....................

1

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF

MEASURED, INDICATED AND INFERRED RESOURCES.........................................................

4

PRELIMINARY NOTES ...............................................................................................................

5

CORPORATE STRUCTURE OF THE CORPORATION ..............................................................

6

GENERAL DEVELOPMENT OF THE BUSINESS .......................................................................

7

DESCRIPTION OF THE BUSINESS..........................................................................................

15

RISK FACTORS ........................................................................................................................

17

MINERAL PROPERTIES ...........................................................................................................

38

SHAREHOLDER INFORMATION ..............................................................................................

18

GOVERNANCE .........................................................................................................................

21

ADDITIONAL INFORMATION....................................................................................................

29

SCHEDULE A - CHARTER OF THE AUDIT COMMITTEE OF PUREGOLD MINING INC. ........

31

SCHEDULE B - CODE OF BUSINESS CONDUCT AND ETHICS .............................................

39

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December 2020 Annual Information Form

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

All statements in this AIF, other than statements of historical fact, are "forward-looking information" with respect to PureGold within the meaning of applicable securities laws, including, but not limited to, statements with respect to those that address potential effect of the COVID-19 pandemic, timing of commercial production, the quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the PureGold Mine Project (the "PureGold Mine") (formerly called the Madsen Gold Project or the PureGold Red Lake Mine) and opportunities for scalability, the potential to increase after-tax net present value to the PureGold Mine, the potential for Russet South, Fork and Wedge deposits to be economically viable, planned mining methods, mineral processing and sources of power, expected annual production, potential profitability of the PureGold Mine at lower metal prices, expected capital costs, expected internal rate of return ("IRR"), anticipated permitting requirements and timing thereof, expected development schedule, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Corporation in the coming months. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or states that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resource and mineral reserve estimates, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that are not within the control of PureGold and could thus cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking statements and forward-looking information and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PureGold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information, including, without limitation, the following:

  • risks related to operations as a result of the COVID-19 pandemic
  • risks related to the operations, exploration and development of a mineral property, including the speculative nature of exploration and development projects, the possibility of diminishing quantities or grades of mineralization, the inability to recover certain expenditures and the exposure to operational hazards typically encountered in the exploration, development and production of mineral properties
  • risks that the mineral reserve and resource estimates may prove to be incorrect

December 2020 Annual Information Form

  • risk of decreases in commodity prices and commodity price risks could impact the Corporation and feasibility of its projects
  • risks of decreases in exchange rates that could impact the Corporation and feasibility of its projects
  • risk of failure to achieve estimates or material increases in costs could affect future cash flows, business results, results of operations and financial condition
  • the ability of the Corporation to retain skilled and experienced personnel and contractors
  • risks related to volatility in the market price of the Corporation's common shares ("Common Shares")
  • failure or delays in obtaining or renewing, or a failure to obtain or renew, permits and licenses necessary for current or future operations, or failure to comply with the terms of such permits
  • risks related to government regulation and government and community approvals, including the ability to obtain required government and community approvals, the impact of changing government regulations and shifting political attitudes, and the ability of Canadian regulatory authorities to impose fines or shut down operations in cases of non-compliance
  • risks inherent in mining operations and underground development, including accidents, labour disputes, environmental hazards and unfavourable operating conditions
  • uncertainty related to the performance of contractors
  • uncertainty regarding the impact of certain amendments to the Mining Act (Ontario)
  • risks associated with reclamation costs
  • costs, delays and other risks associated with statutory and regulatory compliance
  • reliance on a limited number of operations to drive the success of the Corporation
  • the Corporation's history of negative operating cash flow and incurred losses
  • potential dilution of Common Share voting power or earnings per share as a result of the exercise of convertible securities of the Corporation, future financings or future acquisitions financed by the issuance of equity
  • the risk that the Corporation may not be able to make sufficient payments to retire its debt, which may make the Corporation insolvent
  • the risk that the Corporation may not be able to replenish reserves at its PureGold Mine or make new discoveries or acquire other reserves, which could lead to the Corporation having a limited life

December 2020 Annual Information Form

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Pure Gold Mining Inc. published this content on 31 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2021 09:25:06 UTC.