NOCSF - Norseman Silver Ltd. Option Taquetren Silver Project in Rio Negro Argentina

(TheNewswire)

VANCOUVER, British Columbia – TheNewswire - May 31, 2021 – Norseman SilverInc. (TSXV:NOC ) ( OTC:NOCSF), is pleased toannounce the Company has entered into an option agreement to acquire a100% interest in the 285 square km (110 square miles) Taquetren SilverProject is located in the Navidad-Calcatreau mining district,Argentina. The Navidad-Calcatreau Mining District is a relativelyrecent and largely unrecognized “Mining Camp” and hosts theNavidad deposit, one of the largest silver deposits in theworld.

“The Taquetren Silver projectrepresents a significant addition to our property portfolio and islocated in a district that has seen relatively little explorationactivity yet is host to one of the largest silver deposits in theworld. Work on the ground will be led by professionals that haveextensive experience in the region, including first-hand participationwith the discovery of the Navidad silver deposit that is currentlyover 600 million ounces.” Stated Sean Hurd,President & CEO.

In addition to the Navidad silver deposit, two othersignificant deposits are also hosted district, the past-producing MinaAngela gold-silver mine and the Calcatreau gold-silver deposit. Thedistrict is not better known because the two most important depositsremain undeveloped at this time, notably Navidad ( Measured and Indicated – 632M oz Ag contained in 155.2 Mt@127 g/t Ag, 0.85% Pb and 0.05% Cu).

Importantly, the Rio Negro Government ispro-development and promotes pro-mining policies. Permits have beenobtained to conduct initial geological, prospecting and geochemicalsampling.

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

• - Paying Optionors a non-refundable deposit ofUS$40,000 within two business days of executing the LOI; Paid.

  - Issuing 200,000 common shares in the capital of theCompany (“ CommonShares ”) within seven days of signing theDefinitive Agreement;

  - Issuing an additional 300,000 Common Shares andincurring US$70,000 of exploration expenditures on the Project on orbefore the first anniversary of the Definitive Agreement;

  - Issuing 500,000 Common Shares and incurringUS$200,000 of additional exploration expenditures on the Project on orbefore the second anniversary of the Definitive Agreement;

  - Issuing 2,000,000 Common Shares and incurring andadditional US$500,000 of exploration expenditures on the Project on orbefore the third anniversary of the Definitive Agreement; and

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

Location and Access

The Taquetren Project comprises three cateos(Prospecting Licenses) covering 28,448 hectares (an area measuringapproximately 30 km by 10 km) and can be accessed by high quality andwell maintained paved and gravel roads. The cateos were selected tocover key stratigraphic and structural elements associated with thenewly-discovered Navidad-Calcatreau mining district. The Project islocated in the southwestern portion of Rio Negro Provinceapproximately 30 km north of the border with Chubut Province. Theproject area covers rolling pampa and low hills, which supportlow-intensity sheep farming. The climate is semi-arid with sparseshrub-type vegetation. Numerous gravel roads and rural trackscrisscross the three cateos.

Geology

Geologically, the Taquetren Project is located on thesouthwest edge of the Somuncura (Nordpatagonico) Massif in thePatagonia area of southern Argentina. This boundary of the massif iscoincident with the “Gastre Fault System”, along-lived mega-structural feature. Granitic rocks of the basement insouthern Rio Negro and northern Chubut Province are Palaeozoic in age.

Mineralization is hosted in a key stratigraphic unit,the contact area between the Jurassic Taquetren Formation (called theLonco Trapial Formation in Chabut Province) and the overlyingsedimentary strata. The Taquetren Formation is a predominantlysubaerial bimodal calc-alkaline volcanic unit comprised of andesiticand ignimbritic rhyolitic rocks. The overlying sedimentary strata arelacustrine in origin and include mudstone, sandstone, conglomerate andsome carbonate (locally stromatolitic) and are called the CoyuequeFormation in Rio Negro and the Lonco Trapial Formation in Chabut. Thefine clastic mudstones are commonly bituminous and pyritic. These keyJurassic units are overlain by Cretaceous and Tertiary volcanic andsedimentary rocks and Tertiary and Quaternary alluvium.

Structurally, the Somuncura Massif has threewell-defined structural systems: the oldest system trends E-W and isnot associated with any mineralization. The Gastre Fault system ispart of the second NNW-SSE system. It is believed to be the result ofcontinental-scale northeast to southwest extension that produced aseries of northwest to southeast trending half grabens and tectonicbasins. This structural system is very pronounced and a fundamentalcontrol in the geology of Patagonia. It marks the southern limit ofthe Somuncura Massif, and also forms the northeastern edge of theCañadón Asfalto Basin – a sedimentary basin within a series ofhalf-graben structures. The third structural system trends NNE-SSW andis possibly a conjugate system related to the NNW-SSE system.

The three cateos cover a major portion of the JurassicTaquetren Formation outcrop area and contain several mineral showings.The Taquetren property adjoins the Patagonia Gold’s Calcatreaumineral tenures to the east and is located 120 km northwest ofNavidad. The property is located at the hinge zone between theSomuncura Massif to the northeast and the theCañadón Asfalto basin to the southwest. Theimportant Gastre Fault Zone forms this boundary and transgresses theproperty.

Permits have been obtained to conduct initialgeological, prospecting and geochemical sampling and the work willbegin in early May 2021.

Qualified Person: Mr. Rory Kutluoglu P. Geo., a member of the advisory boardand a consultant of the Company, is the Qualified Person under NI43-101 for the technical information in this news release and approvesthe technical contents contained in this news release.

For further information, pleasecontact:

Sean Hurd

Chief Executive Officer

T: 604 505-4554

This press release does notconstitute an offer to sell or a solicitation of an offer to buy anyof the securities in the United States. The securities have not beenand will not be registered under the United States Securities Act of1933, as amended, or any state securities laws and may not be offeredor sold within the United States or to or for the account or benefitof a U.S. person (as defined in Regulation S under the United StatesSecurities Act) unless registered under the U.S. Securities Act andapplicable state securities laws or an exemption from suchregistration is available.

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.

CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION: This News Release includes certain"forward-looking statements" which are not comprised ofhistorical facts. Forward looking statements include estimates andstatements that describe the Company’s future plans, objectives orgoals, including words to the effect that the Company or managementexpects a stated condition or result to occur. Forward-lookingstatements may be identified by such terms as “believes”,“anticipates”, “expects”, “estimates”, “may”,“could”, “would”, “will”, or “plan”. Sinceforward-looking statements are based on assumptions and address futureevents and conditions, by their very nature they involve inherentrisks and uncertainties. Although these statements are based oninformation currently available to the Company, the Company providesno assurance that actual results will meet management’sexpectations. Risks, uncertainties and other factors involved withforward-looking information could cause actual events, results,performance, prospects and opportunities to differ materially fromthose expressed or implied by such forward-looking information.Forward looking information in this news release includes, but is notlimited to, the Company’s objectives, goals or future plans,statements, exploration results, potential mineralization, theestimation of mineral resources, exploration and mine developmentplans, timing of the commencement of operations and estimates ofmarket conditions. Factors that could cause actual results to differmaterially from such forward-looking information include, but are notlimited to failure to identify mineral resources, failure to convertestimated mineral resources to reserves, the inability to complete afeasibility study which recommends a production decision, thepreliminary nature of metallurgical test results, delays in obtainingor failures to obtain required governmental, environmental or otherproject approvals, political risks, inability to fulfill the duty toaccommodate indigenous peoples, uncertainties relating to theavailability and costs of financing needed in the future, changes inequity markets, inflation, changes in exchange rates, fluctuations incommodity prices, delays in the development of projects, capital andoperating costs varying significantly from estimates and the otherrisks involved in the mineral exploration and development industry, aninability to complete the Offering on the terms or on the timeline asannounced or at all, an inability to predict and counteract theeffects of COVID-19 on the business of the Company, including but notlimited to the effects of COVID-19 on the price of commodities,capital market conditions, restriction on labour and internationaltravel and supply chains, and those risks set out in the Company’spublic documents filed on SEDAR. Although the Company believes thatthe assumptions and factors used in preparing the forward-lookinginformation in this news release are reasonable, undue reliance shouldnot be placed on such information, which only applies as of the dateof this news release, and no assurance can be given that such eventswill occur in the disclosed time frames or at all. The Companydisclaims any intention or obligation to update or revise anyforward-looking information, whether as a result of new information,future events or otherwise, other than as required by law.

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