Toronto, Ontario--(Newsfile Corp. - May 21, 2020) - Avalon Investment Holdings Ltd. ("Avalon") the holder of 100% interest in the Omai Gold Mine in Guyana, through a wholly owned subsidiary, is pleased to announce that it has raised additional gross proceeds of $2,318,610 in connection with a non-brokered private placement previously announced on October 10, 2019 (the "Offering") and gross proceeds of US$500,000 to Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) ("Sandstorm") as noted below (the "Sandstorm Placement"), for aggregate gross proceeds of US$2,818,610. In connection with the Offering and the Sandstorm Placement, Avalon has raised aggregate gross proceeds of US$6,133,467 to date.

Avalon issued 5,000,000 common shares (each, a "Common Share") to Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) ("Sandstorm") for consideration of US$500,000 bringing the total amount invested by Sandstorm to US$2,000,000 (see January 14, 2020 news release).

In addition, pursuant to the closing of the most recent tranches of the Offering, Avalon sold 23,186,095 units (each, a "Unit") for total consideration of $2,318,610 each Unit consisting of one Common Share and one-half of one whole common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder, on exercise, to purchase one additional Common Share for a period of 24 months at a price of US$0.35. The Company may close further tranches of the Offering in the future as it moves forward with its reverse takeover transaction with Anconia Resources Corp. (TSXV: ARA) ("Anconia").

Michael Smith, President and CEO of Avalon commented, "We are very pleased with the continued support of Sandstorm, our current and new investors. Omai is a unique opportunity with potential for high grade near surface mineralization as well as high grade mineralization to depth. Omai historically produced 3.8 million ounces of gold at 1.6 gpt open pit and historic unmined drill intercepts have been identified including 12 meters of 23.8 gpt gold, 61 meters of 3.7 gpt gold and 15 meters of 13.6 gpt gold. We believe Omai has the potential of developing into a tier one gold asset in the Americas."

The drill intercepts described here are historical in nature and have not been verified against core by a Qualified Person. There is no guarantee that future work would verify these results, and Avalon does not consider these results to be current.

As previously disclosed, Avalon has executed a definitive amalgamation agreement (the "Agreement") dated October 9, 2019 with Anconia. Pursuant to the Agreement, Anconia will acquire all of the issued and outstanding securities of Avalon by means of a three-cornered amalgamation (the "Proposed Transaction"). The Proposed Transaction constitutes a reverse takeover of Anconia under the policies of the TSX Venture Exchange (the "TSXV") and its completion is subject to the approval of the TSXV. For further information regarding the Proposed Transaction please refer to the SEDAR profile of Anconia at www.sedar.com.

Technical information in this press release has been reviewed and approved by Brian H. Newton P.Geo, who is a "Qualified Person" as defined by NI 43-101 "Standards of Disclosure for Mineral Projects".

This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

For further information, please see our website www.omaigoldmines.com