NOCSF - Norseman Silver Inc. Signs LOI for Taquetren Silver Project In Rio Negro Argentina

(TheNewswire)

Vancouver, British Columbia - TheNewswire - March 11, 2021 - Norseman SilverInc. (TSXV:NOC) (OTC:NOCSF) (“ Norseman ” or the “ Company ”) is pleased to anannounce that it has entered into a non-binding letter of intent (the“ LOI ”) with theBussandri-McMillan partnership (the “ Optionors ”) to acquire a 100% interest in the TaquetrenSilver Project (the “ Project ”), which is located in the Rio Negro province ofSouthern Argentina. The Optionors have agreed to work exclusively withNorseman.

The Project covers approximately 285 square kilometers (110 squaremiles) and is located the within the Somun Cura Massif.The geologic setting of the Project is calc-alkaline, bimodal JurassicTaquetren Formation volcanic rocks, within the Gastre fault zone. TheGastre fault system is a transcontinental shear zone, which extendsfrom the Andean Cordillera to the Atlantic coast resulting in a seriesof half grabens and tectonic basins and associated faulting. Work todate has suggested favourable hydrothermal alteration. However, theCompany wishes to note that the Project is an early-stage explorationproperty.

Sean Hurd, President and CEO, commented:  “We are very excited topotentially enter one of the most under-explored mining districts inArgentina.  The region contains significant discoveries, PatagoniaGold’s Calcatreau (Gold-Silver Deposit) and Pan American’s Navidad(one of the worlds largest undeveloped silver deposits) with aresource in excess of half a billion ounces of silver.  Our team andour new partners have extensive experience in Argentina, and in theRio Negro province in particular. Our entry into Argentina could be asignificant move forward as we seek to expand Norseman’s commitmentto becoming a premier silver exploration company.”

Summary of Key Terms Contemplated bythe LOI

Norseman will have the exclusive option to earn a 100% interest in theProject free and clear of all liens and encumbrances by:

• - Paying Optionors a non-refundable deposit of US$40,000 within twobusiness days of executing the LOI;

  - Issuing 200,000 common shares in the capital of the Company(“ Common Shares ”) on orbefore the first anniversary of the Definitive Agreement;

  - Issuing an additional 300,000 Common Shares and incurring US$70,000of exploration expenditures on the Project on or before the secondanniversary of the Definitive Agreement;

  - Issuing 500,000 Common Shares and incurring US$200,000 of additionalexploration expenditures on the Project on or before the thirdanniversary of the Definitive Agreement;

  - Issuing 2,000,000 Common Shares and incurring and additionalUS$500,000 of exploration expenditures on the Project on or before thefourth anniversary of the Definitive Agreement; and

  - Granting the Optionors a 2% Nest Smelter Royalty (the “ NSR ”). The Company can reduce theNSR by (a) repurchasing one quarter of it (0.5%) by paying theOptionors US$1,000,000, and (b) repurchasing a second one quarterinterest for a total of one half (1%) of the original NSR by paying anadditional US$2,000,000 and issuing 5,000,000 Common Shares.

Entering into the Definitive Agreement and completing the transactionsdescribed above are subject to customary conditions for a transactionof this nature, including the Company being satisfied with its duediligence of the Project, the Definitive Agreement being approved bythe parties’ board of directors and receipt of all necessarygovernmental and regulatory approvals.

Qualified Person: Mr. RoryKutluoglu P. Geo., a member of the advisory board and a consultant ofthe Company, is the Qualified Person under NI 43-101 for the technicalinformation in this news release and approves the technical contentscontained in this news release.

For further information, please contact:

Sean Hurd

Chief Executive Officer

T: 604 505-4554

NEITHER THE TSX VENTURE EXCHANGE NORITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OFTHE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OFTHIS RELEASE.

Cautionary Note RegardingForward-Looking Statements

Certain statements and information herein, includingall statements that are not historical facts, contain forward-lookingstatements and forward-looking information within the meaning ofapplicable securities laws. Such forward-looking statements orinformation include but are not limited to statements or informationwith respect to the completion of a binding agreement, the proposedterms of the binding agreement, and the timing of executing a bindingagreement. Often, but not always, forward-looking statements orinformation can be identified by the use of words such as “will”or variations of that word and phrases or statements that certainactions, events or results “will” or are “intended to” betaken, occur or be achieved.

With respect to forward-looking statements andinformation contained herein, the Company has made numerousassumptions including among other things, assumptions about generalbusiness and economic conditions, the prices of gold and copper, andanticipated costs and expenditures, and the ability and willingness ofthe Optionors to proceed with the transactions contemplated by theLOI. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that theassumptions made and the expectations represented by such statementsor information are reasonable, there can be no assurance that aforward-looking statement or information herein will prove to beaccurate.  Forward-looking statements and information by their natureare based on assumptions and involve known and unknown risks,uncertainties and other factors which may cause the Company’s actualresults, performance or achievements, or industry results, to bematerially different from any future results, performance orachievements expressed or implied by such forward-looking statementsor information. These factors include, but are not limited to: theCompany may not be able to agree on a final form of DefinitiveAgreement with the Optionors, at all or on terms acceptable to theCompany; risks associated with the business of the Company; businessand economic conditions in the mining industry generally; the supplyand demand for labour and other project inputs; changes in commodityprices; changes in interest and currency exchange rates; risksrelating to inaccurate geological and engineering assumptions(including with respect to the tonnage, grade and recoverability ofreserves and resources); risks relating to unanticipated operationaldifficulties (including failure of equipment or processes to operatein accordance with specifications or expectations, cost escalation,unavailability of materials and equipment, government action or delaysin the receipt of government approvals, industrial disturbances orother job action, and unanticipated events related to health, safetyand environmental matters); risks relating to adverse weatherconditions; political risk and social unrest; changes in generaleconomic conditions or conditions in the financial markets; and otherrisk factors as detailed from time to time in the Company’scontinuous disclosure documents filed with Canadian securitiesadministrators. The Company does not undertake to update anyforward-looking information, except in accordance with applicablesecurities laws.

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