Fidelity Minerals Corp. announced that it has engaged SGS Geological Services to complete a historic data review, validation, 3D modelling, and drill hole planning to support the Las Huaquillas Project (the ‘Project') in Northern Peru. Fidelity is planning and currently permitting a 5,000m drilling program at the Las Huaquillas Project which is expected to be completed by fourth quarter of 2022.

As part of their mandate and at the conclusion of the drilling program, SGS will complete a mineral resource estimate and publish an NI 43-101 technical report. SGS has over 35 years of experience providing the mining industry with computer-assisted mineral resource estimation services using cutting edge geostatistical techniques. SGS is known globally as the expert in ore body modelling and reserve evaluation, and brings the disciplines of geology, geostatistics, and mining engineering together to provide accurate and timely mineral project evaluation solutions.

SGS has a very strong team, with valuable experience, known, renowned and respected in the international mining industry. A multidisciplinary group of qualified persons with a strong understanding of the disclosure requirements for Mineral Resources set out in the NI 43-101 Standards of Disclosure for Mineral Projects (2016), CIM Definition Standards - For Mineral Resources and Mineral Reserves (2014) and a strong understanding of the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (2019). The Las Huaquillas Project features extensive historical exploration completed by Sulliden Exploration Inc. (‘Sulliden') and others through 1999.

This work included soil sampling, geophysics and over 5,700m of diamond drilling (26 drill holes), and the excavation of approx. 1,200m of underground development on three levels in the Los Socavones Zone. This work defined five (5) mineralised zones, consisting of four (4) mineralisation types including epithermal Au-Ag (Los Socavones), and porphyry Cu style mineralization (Cementerio and San Antonio) at the Project.

The most recent historical resource estimate completed on the Project was prepared by Sulliden's geologists Gariepy & Vachon (1999) who disclose what they call ‘geological resource' which is not a category accepted under section 2.2 of NI 43-101. It best corresponds to an Inferred Resource in today's nomenclature. The estimate was performed using the vertical longitudinal section method using seventeen (17) mineralized intersections obtained through drilling.

The parameters used were a specific gravity of 2.8 g/cm³ and a cut-off grade of 1.0 g/t Au over a minimum width of 3 metres. Gariepy & Vachon (1999) estimated that the Los Socavones zone hosts 6,570,000 metric tonnes grading 2.12 g/t Au and 25.2 g/t Ag; equivalent to 446,000 ounces of gold and 5.3 million ounces of silver. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves.

Fidelity is not treating the historical estimates as current mineral resources. The Company has not conducted any work to establish the relevance & reliability of the historical resource estimate. Fidelity is currently executing an exploration program at Las Huaquillas that includes the following: Community relations program and obtain surface access to exploration areas.

Re-opening of the historic underground workings within the Los Socavones zone to collect channel and metallurgical test samples. XMG is completing the environmental monitoring DIA, water use permit, CIRA archaeological report, and all other activities to obtain the permit required to conduct drilling operations at the Project. It is anticipated that permits will be available for drilling during late second quarter - early third quarter of 2022.

A 5,000m drilling program to be carried out at Los Socavones where historical drilling suggest that significant gold mineralization occurs at depth. A similar amount of drilling should also be carried out at the Cementerio zone where significant Cu mineralization was intersected by Sulliden however Fidelity's current priority is the gold mineralized Los Socavones zone. The drilling project consists of twenty (20) platforms; nineteen (19) located within the Los Socavones zone and one (1) within the Cementerio zone.

The Los Socavones main zone proposed drilling includes sixteen (16) platforms with seventeen (17) DDH totalling 4,560m to confirm the best historical results and also to confirm the lateral and down dip continuity of the mineralization. The main zone drilling is designed to allow carrying out an inferred resource estimate once the drilling is completed. Three (3) platforms containing three (3) DDH total 580m will also be drilled to confirm the Los Socavones mineralization's northwest continuity.

Issuance of a mineral resource estimate and an updated NI 43-101 Technical report at the conclusion of the phase one exploration program reporting results from the exploration activities and drilling. An inferred resource estimate compliant with NI 43-101 would be included in this updated technical report.