Vancouver - Pegasus Resources Inc. (TSX-V - PEGA; Frankfurt - OQS2, OTC/Pink Sheet symbol SLTFF) ('Pegasus' or the 'Company') is pleased to announce results of the fall 2020 prospecting program carried out on its Gold Mountain and Punch Bowl properties (the 'Gold Mountain Property') located north of Golden, British Columbia.

The Company may earn a 100% interest in the Gold Mountain Property subject to the terms of an option agreement dated September 9, 2020.

GOLD MOUNTAIN

The Gold Mountain Property is located just north of Highway 1, about 50 km northwesterly from Golden, British Columbia. An exploration program carried out during fall 2020 at the Gold Mountain Property confirmed and identified the following: Polymetallic mineralization over 600 to 700 m strike and High grades of silver/gold with 4 samples returning from 1,000 to 6,670 g/t Ag.

The Ag-Au-Pb-Zn-Cu-Sb mineralized system described in a prior news release (January 6th, 2021) was confirmed over approximately 600 to 700 meters length on surface with individual mineralized veins ranging from 0.5 to 2 meters width. The mineralization is oriented southeast-northwest and is open in all directions. The limestone hosted polymetallic veins are postulated to originate from a magmatic intrusion that exsolved highly evolved, hydrothermal fluids that appear similar to intrusion related polymetallic veins of other well know mining districts such as the Black Forest, Germany. A total of twenty-eight (28) samples were collected from outcrop, boulders and float; eleven (11) returned assays that show the system is strongly mineralized. The full dimensions, extent and number of mineralized vein systems are currently not well constrained or are unknown.

Charles Desjardins, CEO of Pegasus, states, 'The style and grades of mineralization observed at the Gold Mountain Property imply the presence of a district scale mineralized system which requires both regional and detailed exploration during the summer of 2021. Our exploration confirmed the high grades of silver and significant grades of gold within the Gold Mountain Property polymetallic veins, but more importantly confirmed that the mineralization may be related to an unidentified intrusive.'

Given the results obtained during the 2020 exploration program and confirmation of historic exploration, the Company looks forward to conducting an aggressive program of both regional exploration and detailed follow up as soon as conditions permit in the second quarter of 2021.

PUNCH BOWL

A site visit of the Punch Bowl claims was completed in late September, during which fifty-three (53) samples were collected. Of the fifty-three (53) samples from the Punch Bowl claims, thirty-nine (39) returned anomalous Au values, of which fourteen (14) samples returned assays greater than 0.1 g/t with the highest assay returning at 3.41 g/t Au. The presence of anomalous gold identified in 74% of the collected samples with an average of 0.37 g/t Au from the visit confirms that follow up work is warranted during summer months, to better understand the potential for this property.

Samples were collected from multiple parallel northwest-southeast oriented linear trends, approximately 700 meters long and open in each direction. The gold appears hosted within recessive weathering, pyrite-bearing phyllite crosscut by quartz veins. Future prospecting will attempt to locate similar recessive weathering veins outside the know occurrences.

About Pegasus Resources Inc.

Pegasus Resources Inc. is a diversified Junior Canadian Mineral Exploration Company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholder value.

Contact:

Tel: 1-604-369-8973

Email: info@pegasusresourcesinc.com

Forward Looking Statements

Statements included in this announcement, including statements concerning the Company's plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, 'forward-looking statements'. Forward-looking statements may be identified by words including 'anticipates', 'believes', 'intends', 'estimates', 'expects' and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.

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