Abitibi Metals Corp. announced that it has signed a Definitive Agreement to acquire up to 80% of the B26 Deposit ("B26" or the "Project") from SOQUEM Inc. ("SOQUEM"), a subsidiary of Investissement Québec, and an entity at arms' length to the Company. Abitibi is the first public company with an option to earn into the B26 Polymetallic Copper Deposit (Cu-Zn-Au-Ag), one of Quebec's most promising mineral discoveries, with a current strike of 1 km and depth extent of 0.8 km, open for expansion.

The project is located 90 km west of Matagami and 100 km north of La Sarre, near the former Selbaie Mine. The Project represents a substantial opportunity to develop a copper, zinc, gold, and silver Polymetallic Deposit within the Abitibi Greenstone Belt, a belt known globally for its extensive mineral richness and size. The B26 Deposit has significant polymetallic growth potential with geological similarities to the historical Selbaie Mine, which is located 7 kilometers to the Northwest.

The Selbaie Mine had a historical resource of 56.9 Mt @ 0.87% Cu, 1.85% Zn, 0.55 g/t Au, 39 g/t Ag (CONSOREM 2012) and was in production for over 20 years. Reference to this nearby property is for information only and there are no assurances that the Company will achieve the same results at the B26 Deposit. The B26 mineralization is composed of a stacking of massive polymetallic and semi-massive polymetallic sulfide lenses extending over a kilometric strike length within a strongly dipping basin filled by felsic volcanism products.

Sulfide-rich mineralization is mostly hosted in rhyolite and associated tuffs. Two main types of mineralization characterize the B26 Deposit. The northern part of the mineralized system is characterized by chalcopyrite veins and veinlets hosted in sericitized and chloritized rhyolite.

The southern portion of the system contains mostly disseminated to massive sphalerite, pyrite and galena mineralization, hosted in a dome of massive rhyolite. The zones are stacked in a sub-parallel pattern, oriented generally east-west, and dip 87° to the south. Prior drilling has established the continuity down to a vertical depth of 800 meters.

Project Summary: Location: The Project comprises 66 claims covering 3,328 hectares in the Eeyou Istchee Baie-James territory, Nord du Québec region. There is year-round road access with a power line running through the Project. History: In 1997, SOQUEM drilled discovery hole B26-03, which intercepted 1.87 g/t Au and 2.89% Cu over 11.3 metres.

Since that time, the project has been systematically explored by SOQUEM by drilling 254 holes over 115,311 meters, which was included in their 2018 resource update. B26 was the object of detailed academic studies that defined the geological model. Work was carried out by a consortium of UQAC (Université du Québec à Chicoutimi), the Geological Survey of Canada and SOQUEM.

Resource: On March 4, 2018, SOQUEM announced its' updated resource on the B26 deposit prepared by SGS Canada Inc. (N.I. 43-101 Compliant), which consisted of indicated resources totaling 6.97 Mt grading 1.32 % Cu, 1.80 % Zn, 0.60 g/t Au and 43 g/t Ag and inferred resources totaling 4.41 Mt grading 2.03 % Cu, 0.22 % Zn, 1.07 g/t Au and 9 g/t Ag. Expansion Potential: The B26 Deposit has a continuous strike length of 1 km with additional mineralization drilled up to a strike length of 1.6 km and to a depth of 0.8 km. The deposit shows expansion potential laterally within the down dip inside the felsic unit hosting the deposit as highlighted in geoscientific works produced by SOQUEM and research partners; UQAC (University of Québec at Chicoutimi) and GSC (Geological Survey of Canada).

Given the nature of the VMS systems typically observed in the Abitibi, which are both deep-seated and occur in clusters and the proximal location of Selbaie, the Company, therefore, believes that the growth potential is significant and will provide further details in upcoming releases to highlight its exploration plan and the expansion opportunities laterally and at depth. Under the terms of the Definitive Agreement, Abitibi has the right to earn an 80% interest in the Project through a two-phase option, subject to a net smelter return royalty of 2% granted to SOQUEM. Abitibi will have the right to buyback 1% of the net smelter return royalty for CAD 2 million.

Phase 1: In order to earn an undivided 50% interest in the Property, Abitibi shall have made total cash payments of $400,000, issued 9.9% worth of common shares in the capital of Abitibi to SOQUEM and incurred Work Expenditures of $7,500,000. Phase 2: In order to exercise the Second Option to acquire an additional 30% interest for a total undivided 80% interest in the Property, Abitibi shall finance and deliver a PEA, as defined under National Instrument 43-101 ­ Standards of Disclosure for Mineral Projects (Canada), issue shares to top up SOQUEM's total Abitibi equity ownership to 9.9% of common shares, make a cash payment of $1,000,000 less the reduction calculated below and incur further Work Expenditures of $7,000,000 on the Property within 3 years of Abitibi exercising the 50% Option. Abitibi will determine the value of shares issued to top-up SOQUEM based on a 10-day weighted average preceding the date of issuance, which will be deducted from the $1 million cash requirement to exercise the 80% option.

All share issuances under the Definitive Agreement are subject to the Company's filing requirements with the Canadian Securities Exchange. Upon 80% Option Exercise: The project shall convert into a joint venture with Abitibi taking 80% of the future development expenditures and SOQUEM taking 20% of the future development expenditures.