RCCMF - Nippon Announces Final Closing of its Non-Brokered Private Placement

(TheNewswire)

Brossard Quebec - TheNewswire - December 31 st , 2020 Nippon Dragon Resources Inc.(“Nippon” or the “Company”) (TSXV:NIP) ( OTC:RCCMF ) , is pleased toannounce that further to its press releases dated December 18, 2019and December 23, 2020, it has closed the final tranche of itspreviously announced non-brokered private placemen t. Pursuant to this final closing, theCompany raised a total of $325,000 from the issuance of 4,500,000 FTUnits of the Company at a price of $0.05 per Unit and 2,000,000 HDunits of the Company at a price of $0.05 perUnit which, when combined with the $1,599,000 in proceeds from theinitial closing on December 23, 2019, completes the total offering ofUnits raising $1,924,000 .

Each FT Unit is comprised of one (1) common share ofthe Company that qualifies as a “flow-through common share” (a“FT Share”), and one-half of one common share purchase warrant(each whole warrant, a “FT Unit Warrant”), with each FT UnitWarrant entitling the holder thereof to acquire one additional commonshare of the Company at a price of $0.075 per share for a period oftwenty-four (24) months following the closing of the Offering.

Each HD Unit is comprised of one (1) common share ofthe Company and one (1) common share purchase warrant (each a “UnitWarrant”), with each Unit Warrant entitling the holder thereof toacquire one additional common share of the Company at a price of$0.075 per share for a period of twenty-four (24) months following theclosing of the Offering.

The proceeds from the sale of the HD Units will be usedfor corporate and general working capital purposes. The proceeds fromthe issuance of the FT Units will be used exploration on theCompany ’s properties situated in the Provinceof Qu ébec.

In connection with the Offering, the Company paidfinders’ fees totalling $85,050.00 and issued a total of 1,701,000non-transferable warrants (each, a “Broker Warrant”). Each BrokerWarrant entitles the holder thereof to acquire one common share of theCompany at an exercise price of $0.05 per share for a period of 24months following the closing of the Offering.

All securities issued in connection with the Offeringare subject to a statutory hold period of four months plus one day.The Offering remains subject to the final approval of the TSX VentureExchange.

Insiders of the Company subscribed for an aggregate of400,000 Flow-through Units pursuant to the Offering for gross proceedsof $20,000. The transaction constitutes a related party transactionwithin the meaning of Multilateral Instrument 61-101 (“MI61-101”). The Company is relying on the exemptions from thevaluation and minority shareholder approval requirements of MI 61-101contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the fairmarket value of the participation in the Offering by the insider doesnot exceed 25% of the market capitalization of the Company, asdetermined in accordance with MI 61-101.  The Company did not file amaterial change report in respect of the related party transaction atleast 21 days before the closing of the Offering as the details of theparticipation of insiders of the Company had not been confirmed atthat time.

About Nippon

Nippon is active in the exploration and the developmentof gold resources in Quebec. The Corporation holds two goldproperties, Rocmec 1 with resources recognised in accordance withNI43-101 and the Denain property. Nippon also has an exclusive licensefor the Thermal Fragmentation mining method.

Le présent communiqué est disponible en françaissite web de Ressources Nippon Dragon.

The company’s growth strategy is based on:

• - The development of its golddeposits with the objective of producing revenue from itsoperations;

  - Increasing the value of its miningassets by prioritizing its exploration targets; and

  - The commercialisation andemployment of its thermal fragmentation technology.

For additional information:

John Stella, Investor relations        (514)718-7976 jstella@nippondragon.com

Jean-Yves Therien, Interim President &CEO (450) 510-4442 jytherien@nippondragon.com

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release. This press releaseincludes certain statements that may be deemed "forward-lookingstatements". All statements in this release, other thanstatements of historical facts, that address future explorationdrilling, exploration and production activities and events ordevelopments that the Corporation expects, are forward lookingstatements. Although the Corporation believes the expectationsexpressed in such forward-looking statements are based on reasonableassumptions, such statements are not guarantees of future performanceand actual results or developments may differ materially from those inforward-looking statements. Factors that could cause actual results todiffer materially from those in forward looking statements includemarket prices, exploitation and exploration successes, continuedavailability of capital and financing, and general economic, market orbusiness conditions.

Ressources Nippon Dragon ResourcesInc. 7055 Taschereau Blvd., suite 500, Brossard (Québec) J4Z1A7

Tel: (450)510-4442 www.nippondragon.com

Copyright (c) 2020 TheNewswire - All rights reserved.