ValOre Metals

Silver Dollar Resources Arranges $10.5 Million Non-Brokered Private Placement

Participants include Eric Sprott and First Majestic Silver Corp.

Vancouver, British Columbia--(Newsfile Corp. - September 2, 2020) - Silver Dollar Resources Inc. (CSE: SLV) ("Silver Dollar" or the "Company") has arranged a non-brokered private placement of up to 7,500,000 common shares at a price of $1.40 per share to raise up to $10.5 million in gross proceeds (the "Offering").

Mr. Eric Sprott has agreed to subscribe for 4,621,241 shares or $6,469,737 of the Offering. Assuming the Offering is fully subscribed, this investment will result in Mr. Sprott holding approximately 19.9 percent of Silver Dollar's issued and outstanding common shares upon closing.

First Majestic Silver Corp. ("First Majestic") has agreed to subscribe for 500,000 shares or $700,000 of the Offering. Assuming the Offering is fully subscribed, this investment will result in First Majestic holding approximately 16.4 percent of Silver Dollar's issued and outstanding common shares upon closing.

"We are very pleased that Eric Sprott has chosen to increase his ownership stake in the Company to 19.9%," said Mike Romanik, president of Silver Dollar. "We also view First Majestic's participation in this Offering as further validation of the exploration and development potential of the La Joya Silver Project."

The Company may pay a finder's fee of up to 7% in cash or shares to eligible finders. All securities issued pursuant to this Offering will have a hold period expiring four months after the closing date.

The net proceeds of this financing will be used to fund the Company's exploration and development work on its projects in Red Lake, Ontario, Canada and Durango, Mexico, and for general working capital purposes.

Silver Dollar will rely on subsections 5.5(c) and 5.7(1)(a) of Multilateral Instrument 61-101 to exempt the offering from the requirements for a formal valuation and minority shareholder approval. To the Company's knowledge, neither it nor the purchasers have knowledge of any material information concerning the Company or its securities that has not been generally disclosed.

About Silver Dollar Resources Inc.

Silver Dollar Resources Inc. is a mineral exploration company focused on creating shareholder value by finding and developing economic precious and base metal deposits. Having completed its initial public offering in May 2020, the Company trades on the Canadian Securities Exchange under the symbol "SLV". Silver Dollar's projects are located in two of the prolific mining jurisdictions in the world and include the advanced exploration/development stage La Joya Silver Project in Durango, Mexico, and the discovery-stage Pakwash Lake and the Longlegged Lake properties in the Red Lake Mining District of Ontario, Canada. The Company has an aggressive growth strategy and is actively reviewing projects in mining-friendly jurisdictions internationally for potential acquisition.


Signed "Michael Romanik"

Michael Romanik,
President, CEO & Director
Direct line: (204) 724-0613
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Silver Dollar Resources Inc.
108 - 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9

This news release, provided pursuant to applicable Canadian requirements, is not for distribution to United States news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. The offering in question has not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and the securities sold in such offering may not be offered or sold in the United States or to U.S. Persons absent registration or applicable exemption from registration requirements.


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