Lucky Announces Closing of First Tranche of Private Placement of $2,136,710, and Consolidation of Common Shares

Vancouver, British Columbia, June 8, 2020 – Lucky Minerals Inc. (TSXV:LKY, OTC:LKMNF, FRA:LKY) (“Lucky” or the “Company”) is pleased to announce that it has closed the first tranche of the previously announced private placement whereby the Company announced it would sell, by way of a private placement, up to 23,333,333 post-consolidation units of the Company (the "Units") at a price of C$0.15 per Unit (the "Offering Price") for gross proceeds of up to C$3,500,000 (the "Offering"). The first tranche closing of 14,244,733 post-consolidated units for total proceeds of $2,136,710 is concurrent with a consolidation of share capital of the Company on the basis of one (1) new share for each seven and one-half shares (7.5) previously outstanding.

Details of the offering can be found under the Company’s profile on SEDAR (www.sedar.com) and was announced on May 15, 2020. 

Each Unit consists of one common share of the Company (a "Common Share") and one common share purchase warrant (a “Warrant”) exercisable into one Common Share for a period of 24 months from the closing date at an exercise price of C$0.22 per Warrant.

A cash commission of $111,433 and warrants to purchase 742,887 Units is payable (the "Compensation Warrants"). The Compensation Warrants will be exercisable for a period of 12 months following the closing date at an exercise price equal to the Offering Price. Additionally, Canaccord will receive a cash commission equal to C$25,000 and 166,666 common shares for acting as advisor to the Company.

The Company intends to use the net proceeds of the Offering for exploration expenditures on the Fortuna Property in southern Ecuador as well as working capital and general corporate purposes.

All securities issued pursuant to the first tranche closing will be subject to a four-month hold period ending on October 11, 2020 in accordance with applicable Canadian securities laws.

Share Consolidation:

Effective June 10, 2020 the common shares of the Company will consolidate on the basis of one (1) new share for each seven and one-half shares (7.5) currently outstanding (the “Share Consolidation”). The previously issued and outstanding 192,788,812 common shares will result in 25,705,175 shares being issued and outstanding on a post-consolidated basis before the first tranche closing.

Shareholders who hold their shares through a securities broker or dealer, bank or trust company, will not be required to take any action with respect to the share consolidation. No fractional shares will be issued in connection with the Share Consolidation. The Share Consolidation has been approved by the Company’s board of directors and has received approval from the TSX Venture Exchange.

About Lucky

Lucky is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world class deposits. Lucky owns a 100% interest in the Fortuna and Emigrant Projects.

The Company’s Fortuna Project is a royalty-free 550km2 (55,000 Ha, or 136,000 Acres) exploration concession. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador. Lucky has entered into a memorandum of understanding on Fortuna with First Quantum Minerals Ltd. (“First Quantum”) whereby First Quantum is able to earn up to 70% on primary copper targets.

The Emigrant Creek Project covers a 15 km2 area in an intensely altered and mineralized porphyry copper-gold-molybdenum system in southern Montana.

ON BEHALF OF THE BOARD

“Adrian Rothwell”

Chief Executive Officer

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. 

Further information on Lucky can be found on the Company’s website at www.luckyminerals.com and at www.sedar.com, or by contacting Adrian Rothwell, President and CEO, by email at [email protected] or by telephone at (866) 924 6484.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information 

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company’s forward-looking information. Important factors that could cause actual results to differ materially from the Company’s expectations also include risks detailed from time to time in the filings made by the Company with securities regulations. 

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.