Toronto, ON (February 29, 2020) Maritime Resources (TSX.V: MAE) (“Maritime” or the “Company”) is pleased to announce results from a Preliminary Economic Assessment (“PEA”) completed for the Hammerdown gold project (“Hammerdown”, or the “Project”), including the satellite Orion deposit, located in the Baie Verte mining district of Newfoundland and Labrador near the towns of King’s Point and Springdale. The PEA was prepared in accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The PEA provides an updated resource estimate and a base case assessment of developing the Project as a combined open pit and underground ramp-access mine (the “Combined Project”)with an on-site gold pre-concentration plant and mineral processing through the Nugget Pond mill gold circuit. The PEA replaces the April 2017 Pre-feasibility Technical Report that was filed on SEDAR which is no longer current. A current PEA Technical Report will be filed on SEDAR under the Company's profile within 45 days of the date of this news release. All financial figures are presented in Canadian dollars (C$) unless otherwise noted.

Hammerdown PEA Highlights and life-of-mine plan (“LOM”) include*:
•After-tax NPV5% of $111.3M and 50.5% IRR (pre-tax NPV5% $191.8M and 75.4% IRR) at base case gold price of US$1,375/oz Au
•At US$1,500/oz gold the Project returns after-tax NPV5% of $154.1M and 65.1% IRR (pre-tax NPV5% $261.7M and 95.6% IRR)
•LOM total gold production of 521,500 oz, averaging 57,900 oz annually
•Average annual gold production of 69,500 oz in the first 5 years
•LOM cash costs of US$802.55/oz Au and LOM All-in sustaining costs (“AISC”) of US$938.80/oz Au
•Pre-production capital expenditures of $57.2M
•After-tax payback period of 1.5 years with base case pricing

The foregoing PEA highlights are based on the following:
1.Exchange Rate (US$/C$) of $0.75
2.Cash costs are inclusive of mining costs, processing costs, on-site general and administrative (“G&A”) costs, treatment and refining charges and royalties
3.AISC includes cash costs plus estimated corporate G&A, sustaining capital and closure costs

*Cautionary Statement: The reader is advised that the PEA summarized in this press release is preliminary in nature and is intended to provide only an initial, high-level review of the Project potential and design options. Readers are encouraged to read the PEA in its entirety, including all qualifications and assumptions. The PEA is intended to be read as a whole, and sections should not be read or relied upon out of context. The PEA mine plan and economic model include numerous assumptions and the use of Inferred Resources. Inferred Resources are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and to be used in an economic analysis except as allowed for by NI 43-101 in PEA studies. There is no guarantee that Inferred Resources can be converted to Indicated or Measured Resources, and as such, there is no guarantee the Combined Project economics described herein will be achieved. The PEA will replace the 2017 pre-feasibility study technical report.

Maritime’s President and CEO, Garett Macdonald, commented; “As a result of the extensive technical and environmental studies completed over the past 9 months, which included the updated mineral resource model for Hammerdown, an evaluation of open pit mining methods together with underground mining at both the Hammerdown and Orion deposits, and introducing pre-concentration technology to reduce dilution entering the mill feed, we completed a redesign of the project to better capture the value that this unique asset has to offer. Nearly 20 years ago, the former Hammerdown mine was one of the highest-grade gold mines in Canada with a LOM grade of 15.7 gpt Au and operated when gold prices averaged US$320/oz. Today, with gold prices above US$1,500/oz and the benefit of these important design elements we can evaluate gold deposits with lower cut-off grades and mining methods that unlock value to maximize economic returns. Our project concept envisions a combined open pit and underground operation at Hammerdown and, for the first time, has included the satellite Orion deposit (“Orion”) into the project’s design. Together, the Combined Project has the potential to produce an average of 57,900 ounces annually during a 9 year mine life, recovering 521,500 ounces in total. Run of mine (ROM) mineralization would be sorted on site and processed at the Nugget Pond mill with separate crushing and grinding infrastructure to decouple the gold circuit from the current base metals operations. The PEA demonstrates the potential to develop the Project with a low $57.2M initial capital cost with high operating margins. Strong project after-tax economics are indicated by a NPV5% of $111.3M, an IRR of 50.5% and a 1.5 year payback at base case gold pricing of US$1,375/oz. The first 5 years are especially strong with an average of 69,500 oz produced annually contributing approximately $130M of undiscounted cash flow. At a gold price of US$1,500/oz the project returns a NPV5%of $154.1M, a IRR of 65.1% with a 1.3 year payback. Hammerdown is a brownfield site and benefits from significant local infrastructure and a skilled local work force. Exploration potential at both Hammerdown and Orion is considered excellent with the primary targets being the offset of the Hammerdown deposit and the down dip extension of Orion”.

Table 1. PEA Parameters and Outputs – Base Case US$1375/oz Au, $0.755 FX, 5% Discount

After-tax NPV5% ($M) 111.3
After-tax IRR (%) 50.5
After-tax payback (years) 1.5
LOM tonnes processed (Mt) 2,138,000
LOM Au grade Au (gpt) 7.82
LOM Au mill recovery (%) 97.0
LOM Au production (oz) 521,500
Average annual Au production (oz) 57,900
Pre-Production Capital ($M) 57.2
LOM Sustaining Capital ($M) 84.8
LOM AISC (US$/oz) 938.80
Mine life (years) 9.0

Table 2. All-In Sustaining Costs
Area LOM ($M)
Open pit mining 168.34
Underground mining 214.16
Crushing, pre-concentration 50.57
Mineral processing incl. haulage 106.37
Water management 3.86
General & administrative 10.35
Surface handling 2.14
Total operating costs 555.79
Refining & smelting 1.20
Royalties 8.33
Sustaining capital, incl. closure 84.83
Total costs 650.15
LOM Au ounces recovered 521,500
All-in sustaining cost (US$/oz) 938.80
Sensitivities
After-tax economic sensitivities to gold prices and discount rates are presented in Tables 3 and 4, illustrating the effects of varying gold price and discount rates as compared to the base-case. Additional project sensitivities will be presented in the Technical Report that will be filed on SEDAR under the Company's profile within 45 days of the date of this news release.

Table 3. Sensitivity to gold price
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