UrbanGold Announces Closing of Non-Brokered Private Placement

Ottawa, June 3, 2020 - UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") is pleased to announce that it has closed its previously disclosed non-brokered private placement (the "Offering") of units of the Company ("Units"), pursuant to which UrbanGold issued an aggregate of 8,000,000 Units for gross proceeds of $1,000,000. Each Unit is comprised of one common share of the Company ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share for $0.20 expiring 36 months from the date of the closing of the Offering.

UrbanGold intends to use the net proceeds of the Offering to expand by up to $400,000 the Company's upcoming exploration program on its principal gold assets in Quebec, with the balance of the net proceeds to be used for working capital and general corporate purposes.

In connection with the Offering, UrbanGold has paid finders cash commissions in the aggregate amount of $66,398 and a work fee in the amount of $4,000.

The Common Shares and the Warrants are subject to a four month hold period. The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About UrbanGold

UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused in key gold prospective areas of Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company's common shares trade on the TSX Venture Exchange under the symbol "UGM".

Forward Looking Information

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the use of proceeds of the Offering. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in UrbanGold's disclosure documents on the SEDAR website at www.sedar.com. UrbanGold does not undertake to update any forward-looking information except in accordance with applicable securities laws.

For further information

Mathieu Stephens, President and Chief Executive Officer
mstephens@urbangoldminerals.com

Jens Hansen, Chairman of the Board
jhansen@urbangoldminerals.com

Phone (343) 883-4334
www.urbangoldminerals.com

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/57210