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Generation Mining Announces Closing of $240 Million Stream with Wheaton Precious Metals and Receipt of Initial $20 Million Deposit

Press Release

Toronto, Ontario – March 31, 2022 – Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce that it has received, through its wholly-owned subsidiary Generation PGM Inc. (“Gen PGM”), the first C$20 million payment from the previously announced Precious Metal Purchase Agreement (the “PMPA”) with Wheaton Precious Metals Corp. (“Wheaton”) in respect to the Marathon Palladium Copper project in Northwestern Ontario (the “Marathon Project”).

Under the terms of the PMPA, Wheaton will pay Gen PGM total cash consideration of C$240 million in return for a stream on all gold production and 22% of the platinum production from the Marathon Project.  Subject to the fulfillment of certain conditions precedent, the Company expects Gen PGM to receive the second C$20 million tranche later this year, on or before the end of the third quarter.  During construction of the Marathon Project the remaining C$200 million will be payable in four staged installments which are also subject to various customary conditions precedent being satisfied.  Further details are contained in the Gen Mining news release dated December 22, 2021.

Jamie Levy, the President and CEO commented “This represents a significant funding milestone towards the construction of the Marathon Project, one of North America’s largest undeveloped critical mineral deposits.  We are excited to be in a position to continue advancing the Marathon Project with this non-dilutive cash infusion, and to have gained the confidence and financial support of Wheaton’s highly skilled management, technical and investment teams.”

As detailed in the Marathon Feasibility Study released on March 4, 2021, over a 13-year mine life the Marathon Project is estimated to produce 1,905,000 ounces of palladium, 467 million lbs of copper, 537,000 ounces of platinum, 151,000 ounces of gold and 2,823,000 ounces of silver.

Endeavour Financial is acting as financial advisor and Cassels as legal advisor to Generation Mining for the PMPA.

Qualified Person

The scientific and technical content of this news release was reviewed, verified, and approved by Drew Anwyll, P.Eng., M.Eng, Chief Operating Officer of the Company, and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About the Company

Gen Mining’s focus is the development of its 100%-owned Marathon Project, a large undeveloped palladium-copper deposit in Northwestern Ontario. The Company released the results of the Feasibility Study on March 3, 2021 and published the NI43-101 Technical Report dated March 25, 2021. The Marathon property covers a land package of approximately 22,000 hectares, or 220 square kilometres.

The Feasibility Study in respect of the Marathon Project estimated that at US$1725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30%. Up front capital costs were estimated at C$665 million, net of equipment financing, and pre-completion operating costs and revenues. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at an All-In Sustaining Cost of US$809 per palladium-equivalent ounce. For more information, please review the detailed Feasibility Study dated March 25, 2021, filed under the Company’s profile at www.sedar.com.

For further information please contact:
Jamie Levy
President and Chief Executive Officer
(416) 640-2934
(416) 567-2440
[email protected]

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