Trillium Gold Mines Inc. and Pacton Gold Inc. announced that they have entered into an arrangement agreement dated March 15, 2023 (the "Agreement") to combine the two companies to create the leading gold explorer and dominant strategic land holder, over 15 projects covering over 1,260 km2 in the prolific Red Lake Mining District of Northern Ontario (the "Transaction"). Under the terms of the Agreement, Trillium and Pacton will merge on an at-market basis, with each common shareholder of Pacton (each, a "Pacton Shareholder") entitled to receive 1.275 common shares of Trillium (each whole such common share, a "Trillium Share") in exchange for each Pacton common share held. Upon completion of the Transaction, existing Trillium and Pacton shareholders will own 53% and 47%, respectively, of the combined company.

Transaction Highlights: Estab establishes dominant and strategic land position in the prolific Red Lake Mining district: With over 1,260 km2 of properties extending across the Red Lake Mining District, the combined company's property holdings will be larger than major gold producers in the district such as Evolution Mining Limited ("Evolution") and Kinross Gold Corporation ("Kinross"). Substantial synergies: The companies expect material cost savings and synergies from the consolidation of corporate overheads and exploration programs across this prolific mineral district. Trillium's Red Lake Gold Project is located within 20 km of Trillium's Newman Todd Complex and the western portion of its Confederation Belt properties.

In addition, Trillium's Leo and Pakwash properties are located immediately south of Pacton's Dixie and Pakwash properties. The new company shall be properly diversified and well positioned to achieve exploration success, while putting under one roof an extensive land position that The company expects will present strategic value to other players in the industry. Benefits to Trillium Shareholders: Increases Trillium's land holdings in the Red Lake.