NLRCF - Northern Lights - Announces Sale of Interest in Medicine Springs Project for $2.2 Million

(TheNewswire)

Vancouver, British Columbia – TheNewswire - December 15, 2022, Northern Lights Resources Corp. (“Northern Lights” or the “Company”)(CSE: NLR, OTC: NLRCF) is pleased to announce that it has entered into an

Agreement, dated December 14, 2022 to sell its 25%interest in the Medicine Springs Project to Reyna Silver Corp. (TSX.VRSLV) for approximately $2,200,000 (the “Transaction”).

Highlights

Reyna Silver will acquire NLR’s 25% interest in theMedicine Springs Project in return for consideration of:

• US$100,000 Cash Payment

• 6,000,000 shares of Reyna Silver Corp (as at Dec 14,2022 - share price $0.35, total market value $2.1 million)

• 1% NSR Royalty over Medicine Project

NLR is to receive all consideration within 3 days ofTSX.V and other required approvals for the Transaction beingreceived.

Northern Lights CEO, Jason Bahnsen commented “The saleof our interest in Medicine Springs allows NLR to monetize value forthe project now while retaining exposure to exploration upside with a5% equity stake in Reyna Silver and a royalty over the project. Welook forward to following the development of MedicineSprings.”

Medicine Springs Project

The Medicine Springs Project consists of 4,381 hectaresof mineral claims located in Elko County Nevada (Figure 1). MedicineSprings is prospective to host a large-scale carbonate replacementdeposit (CRD) containing silver, zinc and lead mineralization.

In 2017, Northern Lights entered into the MedicineSprings Option Agreement to acquire 100% of the Medicine SpringsProject (see NLR announcement of August 20, 2017).

From 2017 to 2019, Northern Lights completedgeophysical and soil sampling programs resulting in the identificationof a strong NE-trending Pb-Zn-Ag soil anomaly with >2000 meters inlength with widths ranging 350-500 meters.

In October 2020, Northern Lights entered into anagreement with Reyna Silver whereby Reyna Silver can earn up to a 75%interest (with an option to acquire an additional 5%) in the MedicineSprings Project, through the completion of minimum exploration work ofUS$2.4m plus other cash payments (See NLR announcement of October 5,2020).

Reyna Silver completed a further sampling program atthe Medicine Springs Project in 2021 with r esults revealing a classic CRD Silver-Lead-Zinc-Copperzonation and outlining of NE-SW trending structures.

In September 2022, Reyna Silver began an initial 5,000metre exploration drilling program at Medicine Springs (assayspending). The drilling program is targeting 4 key areas with the aimto define high-grade carbonate replacementdeposit (CRD) sulfide mineralization at depth.

Medicine Springs shows most of the key features oflarge-scale CRDs, especially the three most important factors:location, structure, and grade. The geologicalsetting at Medicine Springs is analogous to Taylor-Hermosa Zn-Pb-Agdeposit in Arizona (acquired by South32 for approximately 1.9billion in 2018).

Figure 1 – Medicine SpringsProject Location

Figure 2 – Medicine Springs Current Drill ProgramShowing Drill Target Areas

The Transaction

Under the terms of the Transaction, Northern Lightswill assign all of its rights and obligations under the MedicineSprings Option Agreement to Reyna Silver.  Upon completion of theTransaction, Reyna Silver will have the option to acquire 100% of theMedicine Springs Project by completing the minimum explorationexpenditure as per the Medicine Springs Option Agreement.  ReynaSilver will be responsible for all obligations under the MedicineSprings Option Agreement including any consideration payments due tothe project vendors from Nothern Lights under the terms of theMedicine Springs Option Agreement.

In consideration for NLR’s 25% interest in theMedicine Springs Option Agreement Reyna Silver will make the followingconsideration payments to NLR:

1. Cash Consideration Payment of US$100,000; and

2. Equity Consideration Payment 6,000,000 common shares ofReyna Silver Corp. The Equity ConsiderationThe Consideration Shareswill be subject to contractual resale restrictions over a twenty-four(24) month period

3. 1% NSR Royalty over the Medicine Springs Projectlicenses. The royalty to NLR will not become effective until ReynaSilver has completed the Medicine Springs Option Agreement obligationsand owns 100% of the project.

The Transaction is subject to TSX.V, and otherregulatory approvals as required. No shareholder approvals arerequired. Closing is scheduled for 3 days after TSX.V approval andother closing conditions have been met.

NLR has agreed Finders fees totaling $40,000 to be paidas common shares of NLR.

About Reyna Silver Corp.

Reyna Silver Corp. (TSXV: RSLV) is a growth-orientedjunior exploration and development company focused on exploring forhigh-grade, district-scale silver deposits in Mexico and USA.

Reyna Silver Corp has a market capitalization ofapproximately $41 million and a share price of $0.35 with 117.1mshares on issue (as of December 14, 2022).

In addition to the Medicine Springs Projects, Reyna’sprincipal properties are the Guigui and Batopilas Properties inChihuahua, Mexico.

Guigui covers the interpreted source area for the SantaEulalia Carbonate Replacement District (CRD) and Batopilas is believed to be the highest-grade silversystem in Mexico's history, having produced an estimated over 300 Mozof native silver from ores that averaged over 1500 g/t. Reyna’s workhas identified a previously unrecognized gold overprint on the silvermineralization.

Competent Persons Statement

Information in this report relating to ExplorationResults is based on information reviewed by Mr. Lee R. Beasley, aCertified Professional Geologist who is a Member of the AmericanInstitute of Professional Geologists, and a consultant to NorthernLights Resources. Mr. Beasley has sufficient experience which isrelevant to the style of mineralization and type of deposit underconsideration and to the activity which he is undertaking to qualifyas a Qualified Person for the purposes of NI43-101 Standards ofDisclosure for Mineral Projects.   Mr. Beasley consents to theinclusion of the data in the form and context in which itappears.

For further information, please contact:

Albert Timcke, Executive Chariman andPresident

Email: rtimcke@northernlightsresources.com

Tel: +1 604 608 6163

Jason Bahnsen, Chief ExecutiveOfficer

Email: Jason@northernlightsresources.com

Tel: +1 604 608 6163

About Northern Lights ResourcesCorp.

Northern Lights Resources Corp is a growth-oriented exploration anddevelopment company that is advancing two projects: The 100% owned,Secret Pass Gold Project located in Arizona; and the Medicine Springssilver-zinc-lead Project located in Elko County Nevada where NorthernLights, in joint venture with Reyna Silver are earning 100% ownership.Northern Lights Resources is a member of the Arizona MiningAssociation.

Northern Lights Resources trades under the ticker of“NLR” on the CSE and “NLRCF” on the OTCQB. This and otherNorthern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com .

CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION : This news releaseincludes certain “forward-looking statements” under applicableCanadian securities legislation.  Forward-looking statements include,but are not limited to, statements with respect to: the terms andconditions of the proposed private placement; use of funds; thebusiness and operations of the Company after the proposed closing ofthe Offering.  Forward-looking statements are necessarily based upona number of estimates and assumptions that, while consideredreasonable, are subject to known and unknown risks, uncertainties, andother factors which may cause the actual results and future events todiffer materially from those expressed or implied by suchforward-looking statements. Such factors include, but are not limitedto: general business, economic, competitive, political and socialuncertainties; delay or failure to receive board, shareholder orregulatory approvals; and the uncertainties surrounding the mineralexploration industry.  There can be no assurance that such statementswill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forwardlooking statements.  The Company disclaims any intention orobligation to update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise, except asrequired by law.

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