November 10, 2020, Vancouver, British Columbia— Gold Springs Resource Corp. (TSX: GRC, OTCQB: GRCAF) (the “Company), reports the release of its condensed interim consolidated financial statements for the three and nine months ended September 30, 2020 and the related management’s discussion and analysis of financial position and results of operations (“MD&A”). In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.

As at September 30, 2020, the Company has a working capital of $2.66 million, including $2.31 million in cash.

During the nine months ended September 30, 2020, the Company reported a net loss of $0.83 million ($0.00 loss per share) compared with a net loss of $11.37 million ($0.05 loss per share) for the nine months ended September 30, 2019. During the three months ended September 30, 2020, the Company reported a net loss of $0.24 million ($0.00 loss per share) compared with a loss of $0.05 million ($0.00 loss per share) for the three months ended September 30, 2019.

The primary drivers for the change in results for each of the three and nine month periods ended September 30, 2020 compared to the same periods of 2019 were the non-cash gain of $2.15 million and $3.31 million, respectively, recorded in the 2019 periods for changes in the fair value of the arbitration award asset, Class B shares and other arbitration award liabilities and the non-cash loss of $1.97 million and $13.36 million, respectively, recorded in the 2019 periods, arising from the loss on sale of the Escalones project.

During the period, the Company continued to manage and maintain its costs structure which resulted in general and administrative expenses (excluding non-cash share-based payments) of $0.56 million for the nine months ended September 30, 2020 compared to $1.03 million for the same period in 2019, and $0.15 million for the three months ended September 30, 2020 compared to $0.16 million for the same period in 2019.

Exploration spending during the nine months ended September 30, 2020 was $0.91 million, comprising expenditures incurred solely for Gold Springs. Principal activities revolved around target development, including rock-chip surface sampling of new and existing drill target areas, structural and geological mapping of those areas as well as updating the PEA and 2020 resource estimate. The Company also made the project ready for the re-start of drilling later this year.

Results of Annual Shareholders’ Meeting

The Company is pleased to announce that all of the resolutions that shareholders were asked to consider at its 2020 Annual Shareholders’ Meeting held in Vancouver, British Columbia, were approved. Details of the resolutions are contained in in the management information circular of the Company filed under the Company’s profile on SEDAR at www.sedar.com.

The number of directors of the Company was set at six and the six directors named in the management information circular of the Company were elected. Voting on the election of directors was conducted by ballot and the results reported by the scrutineer of the meeting are set out below.

Nominee Votes For % For Votes Withheld % Withheld
Antonio Canton 95,931,275 90.09% 10,550,037 9.91%
Victor Dario 87,601,038 82.27% 18,880,274 17.73%
Horst Daspersgruber 101,134,075 94.98% 5,347,237 5.02%
Roman Mironchik 87,551,504 82.22% 18,929,808 17.78%
Robert van Doorn 90,352,904 84.85% 16,128,408 15.15%
Tina Woodside-Shaw 106,317,875 99.85% 163,437 0.15%

Outlook

The Company’s focus for 2020 is on the exploration and expansion of the mineral resources at its Gold Springs project in Nevada and Utah, USA.

About Gold Springs Resource Corp.

Gold Springs Resource Corp. (TSX: GRC and OTCQB: GRCAF) is a growth-focused gold exploration company creating value through the exploration and development of the Gold Springs project in Nevada and Utah, U.S.A. Management has extensive experience in global exploration and the mining industry.