Cascada Silver Corp. (CSE: CSS) (OTCQB: CSSCF) is pleased to announce that it has signed non-binding memorandum of understandings for the acquisition of three advanced copper-gold properties: the Frontera; Clinton; and Taruca properties. The Properties overlie multiple copper-gold porphyries comprising a portion of the Totora Cu/Au Porphyry Cluster located 60 kilometres south of Vallenar in Chile’s Region III (see Figures 1 and 2) near the Pan American Highway (HWY 5) and high voltage power lines.

Historical Highlights^*

• Frontera deposit historical resource:
  • 16 Mt indicated grading 0.66% copper equivalent (“CuEq”) (0.38% Cu & 0.22 g/t Au)
  • 34 Mt inferred grading 0.64% CuEq (0.36% Cu & 0.22 g/t Au).
• Totora historical drilling highlights include:
  • 142 m grading 0.69% CuEq (0.47% Cu & 0.17 g/t Au), hole DDHTP-02
  • 114 m grading 0.61% CuEq (0.23% Cu & 0.31 g/t Au), hole DDHTO-07
• Clinton historical drilling highlights include:
  • 166 m grading 0.62% CuEq (0.23% Cu & 0.31 g/t Au), hole RCCL-01
  • 278 m grading 0.61% CuEq (0.23% Cu & 0.30 g/t Au), hole DDHCL-06

“After an exhaustive review process, we are very pleased to announce that we have entered into agreements to acquire three advanced properties which host significant porphyry-related copper-gold mineralization,” said Carl Hansen, CEO of Cascada. “While the MOUs are non-binding, terms have been negotiated and option agreements are being finalized”.

“These MOUs provide Cascada with a strategic foothold in one of Chile’s prospective copper-gold porphyry belts. The Properties collectively host multiple mineralized systems, including the near-surface Frontera deposit and two advanced porphyry prospects on Taruca and Clinton. Our immediate objective is to convert the historical work into current resource estimates and define the scale potential across the Totora Porphyry Cluster. Our goal is to build a multi-deposit copper-gold camp with total economically viable resources exceeding 250 million tonnes.”

* Historical Results: Cascada has not undertaken any independent investigation of any historical results from the Properties nor has it verified the underlying technical basis for the historical resources and drilling results, including assays, geology and hole orientation. The reader is cautioned upon relying on the accuracy of the historical results presented; however, Cascada considers all historical results relevant as those results will be used as a guide to plan future exploration programs: the Company considers the data to be reliable for these purposes.

Copper Equivalent Calculation: Copper equivalent grades were calculated using a copper price of $4.00 per pound and a gold price of $3,500 per ounce ($112.53 per gram). CuEq grades are calculated as follows: CuEq% = (((Au grade * 112.53) / 4.00 / 2,204.6)) * 100 + Cu grade. No recovery factors are used in this calculation. Metal prices are in US$.

The known copper-gold mineralization within the Properties is hosted by Cretaceous dioritic porphyries and associated breccias within a NE-SW structural corridor. These porphyries, which intrude felsic to intermediate volcanics, display colour anomalies related to potassic and phyllic alteration. The principal copper mineral is chalcopyrite, with occasional bornite, associated with strong potassic alteration and stockworks of A and B -type veins. The gold is likely associated with chalcopyrite but is also known to be associated with siliceous structures.

Frontera Property

The Frontera property hosts historic resources (Table 1) of 16 million indicated tonnes grading 0.66% copper equivalent (“CuEq”) (0.38% copper and 0.22 grams per tonne gold) and 34 million inferred tonnes grading 0.64% CuEq (0.36% copper and 0.22 g/t gold). The resource estimate was prepared by Hot Chili Limited based on 16,175 metres of drilling completed 2013. Hot Chili’s option for the Frontera property expired in 2015. Copper prices during this period averaged less than $3.00 per pound.

The Frontera exploitation concessions cover 11 hectares hosting the entire historic resource. The mineralized porphyry extends onto concessions owned by Compañía Minera del Pacífico (CMP, a subsidiary of CAP S.A., the Chilean Iron Ore Company).

The Frontera MOU contemplates total option payments of US$10,000,000 paid over 7 years as follows: $50,000 on signing; $100,000 on the 1^st anniversary; $300,000 on the 2^nd anniversary; $400,000 on the 3^rd; $700,000 on the 4^th; $1,000,000 on the 5^th; $2,000,000 on the 6^th and a final payment of $5,450,000 on the 7^th anniversary. The payments after year 5 are subject to a CPI adjustment. There are no royalties.

Clinton Property

The Clinton copper-gold porphyry is hosted within an altered quartz diorite intruded along the regional Pajonales Fault. During 2018-2019, Sociedad Química y Minera de Chile S.A. a major Chilean lithium producer, drilled 6,194 metres outlining a mineralized porphyry extending to depths of over 500 metres downhole. A summary of the drill highlights from the SQM program is presented in Table 2. Geophysics is under consideration to examine structural controls on the emplacement of the porphyry. No resource estimate has been prepared for the Clinton Porphyry.

The Clinton concessions cover an area of 300 hectares. The MOU on the Clinton property contemplates option payments totaling US$4,000,000 paid over four years: $50,000 on signing; $100,000 on the first anniversary; $200,000 on the 2^nd anniversary; $800,000 on the 3^rd anniversary; $2,850,000 on the 4^th anniversary. The third and fourth anniversary payments may be paid 50% in Cascada common shares. There is a 1.5% net smelter royalty to the vendor with Cascada retaining a right of first refusal on any sale of the NSR.

Taruca Property

The 1,300-hectare Taruca Property hosts several porphyry targets in various stages of exploration from early stage (Conico and Conico Sur) to more advanced (Totora). The Totora porphyry has been the focus of a number of drill programs with approximately 10,140 metres completed (see Table 3 for Totora historical drill assay highlights). Drilling outlined a structurally controlled mineralized system traced along a strike length of 800 metres on surface and extending to depths of up to 500 metres downhole. No resource estimate has been completed for the Totora porphyry.

Approximately 1 kilometre south of Totora lies the Algarrobilla porphyry. SQM drilled 3,140 metres during 2018-2019 and Freeport drilled 806 metres in 2014 (see Table 4 for drill assay highlights). Historical drilling outlined a 700-metre mineralized corridor. No resources are reported. Two bornite-bearing high grade intervals were intersected at depth in drill hole DDHCL-13 including 8 m grading 1.64% Cu and 0.39g/t Au suggesting the potential for a higher-grade porphyry at depth. Drilling is wide-spaced with the nearest drill hole to DDHCL-13 300 metres to the northeast. Deep penetrating electromagnetics is being considered to outline any potential porphyry at depth.

In addition to the advanced Totora and Algarrobilla prospects, three emerging targets have been identified: Represa, Conico and Conico Sur. Represa has two historical drill holes: one of which did not hit the target; and the second which cut 60 metres grading 0.24% CuEq before intersecting an unmineralized fault block. The Conico target is overlain by a large area of anomalous bismuth and antimony potentially related to remnants of an advanced argillic lithocap overlying a porphyry. At the Conico Sur target, there is evidence of small-scale mining activities with mineralization in pits and trenches. Initial exploration will be conducted on these targets in preparation for drilling, if warranted.

The Taruca MOU contemplates total option payments of US$18,500,000 paid over seven years as follows: $150,000 on signing; $250,000 on the 1^st anniversary; $500,000 on the 2^nd anniversary; $1,500,000 on the 3^rd; $3,600,000 on the 4^th; $4,000,000 on the 5^th; $4,250,000 on the 6^th and a final payment of $4,250,000 on the 7^th anniversary. Upon paying $10 million, Cascada will earn a 40% interest in the Taruca property. There are drilling commitments of 4,000 metres during the first two years and an additional 4,000 metres during the second two years. There are no royalties.

NI 43-101 Disclosure

As defined by National Instrument 43-101 (“NI 43-101”) of the Canadian Securities Administrators, the Qualified Person for Cascada Silver Corp.’s exploration activities in Chile is Francisco Bravo, a resident of Santiago, Chile. Mr. Bravo is a Public Registered Person for Reserves and Resources N° 515, in Chile, and is also registered in the Colegio de Geólogos de Chile under N° 725.

About Cascada Silver Corp.

Cascada is a mineral exploration company focused on exploration opportunities in Chile. Cascada’s team of successful exploration professionals are dedicated to the discovery of mineral deposits that can be progressed into economically viable development projects creating value for all stakeholders.