Superior Gold Inc.  (TSX-V: SGI) is pleased to announce that it has closed its previously announced “bought deal” public offering of 24,644,500 common shares of the Company, at a price of C$0.70 per Common Share for gross proceeds of C$17,251,150, which includes the full exercise of the Underwriters’ over-allotment option. The Common Shares were offered and sold through a syndicate of underwriters led by PI Financial Corp.

The Common Shares issued under the Offering were offered by way of a short form prospectus dated October 23, 2020 in each of the provinces of Canada, except Québec and by way of private placement in the United States. Copies of the final short form prospectus and documents incorporated by reference therein are available electronically under Superior Gold’s issuer profile on SEDAR at www.sedar.com.

The Underwriters were paid a cash commission of 6% on the gross proceeds of the Offering. The net proceeds of the Offering will be used for the advancement of the Company’s Plutonic Gold operations, to repurchase a royalty associated with the operations and for working capital and general corporate purposes.

Tamara Brown, Interim CEO of Superior Gold stated: “The strengthening of our balance sheet allows the Company to execute on its strategy of increasing production and cash flow from its Plutonic Gold operations.  We are very pleased to be in a position to exercise our option to repurchase the Northern Star Royalty, significantly improving our projected cash flow over the next two years. We will also continue to advance underground development, accelerate our exploration plans to follow up on our recent drilling success¹ and complete a preliminary economic assessment of a pushback at the Plutonic main open pit.”

An officer of the Company has purchased an aggregate of 86,000 Common Shares pursuant to the Offering. Participation of the Insider in the Offering is considered a “related party transaction” pursuant to Multilateral Instrument 61-101—Protection of Minority Holders in Special Transactions. The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insider’s participation in the Offering pursuant to sections 5.5(a), 5.5(b), and 5.7(1)(a) of MI 61-101.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Superior Gold

Superior Gold is a Canadian based gold producer that owns 100% of the Plutonic Gold operations located in Western Australia. The Plutonic Gold operations include the Plutonic underground gold mine and central mill, the Hermes open pit projects and an interest in the Bryah Basin joint venture. Superior Gold is focused on expanding production at the Plutonic Gold operations and building an intermediate gold producer with superior returns for shareholders.