Dear Shareholders,

 

I would like to take this opportunity to wish you and your family a safe, healthy and prosperous 2021.  The onset of the global pandemic in 2020 brought many unique challenges, resulting in many changes to our routines and activities both in daily life as well as business. As history teaches, when such significant disruptions occur, the human species is pretty adept at adapting and persevering, and as such I remain optimistic, that with the vaccine rollout ongoing globally we will return to some level of normalcy as 2021 progresses.  2020 was a year of successful transition for Magna Terra, and we look to 2021 anticipating several catalysts, each having the potential to drive significant shareholder value accretion. Below is both a recap of what we accomplished in the past year, and what we look forward to in a very busy 2021.

 

2020 Recap

As you are aware, in mid-2020, we closed the acquisition of a portfolio of advanced gold exploration assets in Atlantic Canada from Anaconda Mining Inc. Coincident with this acquisition we also closed an approximate $5M private placement financing to fund the advancement of this exciting gold exploration portfolio. To recap, the portfolio is made up the Great Northern Project; a 12,675 hectare district-scale, multi-target advanced exploration project in Western Newfoundland, and the Cape Spencer Project; a 5,045 hectare district-scale, multi-target advanced exploration project in Southern New Brunswick.  Great Northern is underpinned by the Rattling Brook Deposit, an *NI 43-101 compliant Inferred gold Mineral Resource of 5,460,000 tonnes at an average grade of 1.45 grams per tonne (“g/t”) gold containing 255,000 contained ounces at a cut-off grade of 1.0 g/t gold . Cape Spencer is underpinned by the Cape Spencer Deposit, an *NI 43-101 compliant Inferred gold Mineral Resource of 1,720,000 tonnes at an average grade of 2.72 g/t gold for 151,000 contained ounces in two zones at a cut-off grade of 1.0 g/t gold.. In November the Company acquired via option, the Hawkins Love Project, in Southern New Brunswick giving it a third district scale project. Along with Cape Spencer, the acquisition of Hawkins Love gives the Company a strategic land position, within this emerging gold district in southern New Brunswick that is highlighted by Galway Metals’ Clarence Stream Project

 

In late August/early September, we commenced preliminary Phase 1 exploration programs at both Great Northern, focused initially on the Jacksons Arm Trend, and at Cape Spencer focused initially on the Emilio Trend. At Jacksons Arm we undertook and completed the following exploration activities:

• A systematic prospecting and geological mapping program
• A detailed glacial geology study
• Flying a Lidar survey to aid in mapping of potential gold bearing structures
• A soil sampling program comprised of the collection of ~1,400 B-horizon soil samples
• A 50 line km ground Induced Polarization (IP) and magnetic geophysical survey
• A Phase 1 diamond drill program totaling 1,598m in 9 holes, targeting approx. 300 m of strike of a 2.4 km long by 40 to 400 m wide continuous alteration zone. (Assays are pending)

At the Emilio Trend (Cape Spencer) we started and completed the following exploration activities:

• A systematic prospecting and geological mapping program
• A detailed glacial geology and till analysis

2021 Looking Forward

We appreciate your patience while we have begun or completed most of the systematic detailed exploration work to allow us to develop and refine priority drill targets at both Jacksons Arm (Great Northern Project Area) and the Emilio Trend (Cape Spencer Project Area). While we have completed Phase 1 drilling at Jacksons Arm, we are awaiting assay data to compile and report on. As you all may be aware, the ramp up of exploration all over Canada, and particularly in the Atlantic Canada region, coupled with required COVID-19 protocols, has put a huge strain on the limited processing resources of the assay labs across the country. As a result, we like other junior mining companies, are suffering significant delays in receiving assay results from our rock, soil and drill core submissions. This has the knock on effect of not only delaying anticipated results and news flow, but also hampering our ability to coordinate next phase exploration and drill planning activities. That being said, you can look forward to the following exploration activities being executed on our projects in the first half of 2021:

Great Northern Project – Jacksons Arm Trend

• Receipt and reporting of assays from 9 hole diamond drill program completed in late 2020
• Update of results from soil sampling program and geophysical survey completed in late 2020
• Planning and execution of Phase 2 exploration and drilling program

Cape Spencer – Emilio Trend

• Update of results from ongoing detailed soil and rock sampling programs
• Commencement, completion and reporting of a ~200 line km drone magnetic survey
• Commencement, completion and reporting of a Phase 1 – 2,000 m diamond drill program testing priority targets covering approximately 800 m of strike within the 5.0 km by 0.5 km Emilio Trend
• Planning and execution of Phase 2 exploration and drilling program

Hawkins Love Project

• Project data compilation and analysis
• Review and re-sampling of historic diamond drill core
• Reconnaissance prospecting and geological mapping

• Detailed glacial till and soil sampling

 

As you can see from the above activities, we will be very busy in the field in the coming weeks and months, and are looking forward to reporting on a number of potential catalysts to drive shareholder value. Foremost are the drill programs on both Jacksons Arm (assays pending) and Emilio Trend that individually have multiple target opportunities for ‘new discovery’ potential that could lead to significant shareholder value upside.  We are in relatively early days with each project, but it is very rewarding and exciting to have not one, not two, but three district-scale project opportunities within fast emerging gold districts in underexplored Atlantic Canada. We remain well funded to progress our projects forward, and follow-up on any success our phase one programs deliver. As we progress with news flow, we will be accelerating our marketing efforts (Broker marketing, webinars, virtual investor conferences, and social media marketing) to generate interest and eyeballs on our story, as by every measure we are undervalued with respect to our peer group – stay tuned!

 

You can follow our progress on our website at www.magnaterraminerals.com or subscribe to our feeds on Twitter at:  @Magna_Terra_MTT or LinkedIn for up to date news.  As always, we welcome your calls and emails.

 

On behalf of the entire Magna Terra team, I would like to thank you for your continuing interest and support.

 

Yours truly,

Lew Lawrick
President & CEO

 

*Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All Mineral Resource Estimates were prepared in accordance with NI 43-101 and the CIM Standards (2014). Please refer to the NI 43-101 Technical Report with effective date January 23, 2019 by Harrington and Cullen (2019) for the Great Northern Project and the NI 43-101 Technical Report with effective date August 29, 2016 by Copeland et al. (2016).  Please refer to the NI 43-101 Technical Report with effective date January 2