Moss Gold Mine Produced 12,401 Gold Ounces For The Quarter

VANCOUVER - Northern Vertex Mining Corp. President and CEO, Ken Berry, said, "I am delighted to report continued robust production in a strong gold market.  In the last six months, we have generated $50.2 million in revenue on the production of 27.1 gold equivalent ounces. The exemplary performance of our operating team this quarter allowed us to maintain strong production and revenue levels while executing the transition from mining the center pit to pioneering and operating the west pit. With a strong balance sheet, an aggressive exploration program and 3 drill rigs onsite, I look forward to updating our shareholders with our upcoming drill results."

The company reported a revenue of $23.4 million and production of 12,401 gold equivalent ounces for the quarter ended December 31, 2020 from the Moss Gold Mine in NW Arizona. Gold equivalent production is calculated at realized gold and silver prices for the quarter of $1,888 and $24.66 respectively. All figures are US dollars unless otherwise noted.

During the quarter, mining operations transitioned from the centre pit into the west pit, where bulk disseminated stockworks dominate.  This transition enabled higher tonnage mining rates and more favorable strip ratios that are expected to lead to lower costs and lower cut-off grades as compared to the narrow-vein mining previously conducted in the centre-pit.

The Company's cash position of $8.3 million at December 31, 2020 is expected to be augmented by the C$22.6 million financing announced by Northern Vertex and Eclipse Gold in connection with the merger of Northern Vertex and Eclipse Gold.  Subject to the satisfaction of certain conditions, the merger between Northern Vertex and Eclipse Gold is expected to close on February 12, 2021.

The Company also reported that under the terms of the convertible debentures issued under the convertible debenture indenture dated July 31, 2020 between the Company and Computershare Trust Company of Canada, it has elected to satisfy its obligation to pay an aggregate of C$140,250 in interest accrued on the C$6.71 million convertible debentures by issuing to such debenture holders on the interest payment date of December 31, 2020 an aggregate of 269,712 common shares.

The Company will pay to each such debenture holder approximately 4.02 common shares per $100 principal amount of debentures held as at the applicable interest payment record date. Under the terms of the Indenture, no fractional common shares will be delivered upon payment of the interest obligation and the Company is not required to pay the cash equivalent of any amount less than $5.00. The issuance of common shares in payment of interest remains subject to Exchange approval.

The Company's policies have been recently modified, with new procedures put in place during the second fiscal quarter due to an onset of a number of COVID-19 cases among our team members.  Despite health concerns, our team was able overcome localized challenges and maintain full gold production at the Moss Mine. As at December 31, 2020, we have seen the benefits of our upgraded procedures and the Moss Mine had no known cases of COVID-19.