Peruvian Metals Assigns the Development of the Mansa Musa Gold-Silver Project

Edmonton, October 6, 2020 - Peruvian Metals Corp. (TSXV: PER) ("Peruvian Metals" or the "Company") is pleased to announce that it has entered into agreements with a group of Peruvian private investors to purchase the Mansa Musa Gold-Silver property (the "Property"). The investors are supported by GEXEG S.A.C ("GEXEG"), a private mining consulting company based in Lima. The Property is located in the Department of Huancavelica, 300 kilometres southeast of Lima and consists of five concessions totaling 3600 hectares where previous operators have spent in excess of US$5 million on exploration on the main concessions. Payments to the Company totaling US$940,000 will be made over seven years with up to 3% NSR payable to Peruvian Metals on all metal production. On the two main concessions, the 3% NSR will be payable solely to Peruvian Metals and on the three surrounding concessions 2% will be paid to Franco-Nevada and 1% to Peruvian Metals.

The first agreement, subject to a five month due diligence period, is a five year assignment agreement whereby the investors supported by GEXEG can control and develop the Property without obtaining property ownership. The group will be responsible for environmental remediation and will make payments to the Company during the first three years of the assignment agreement totaling US$415,000. The group commits to a production decision within the second year of the agreement. Once the first agreement expires, the group can enter into a second agreement to purchase 100% of the property still subject to a 3% NSR and by making payments over two years totaling US$525,000. GEXEG will be supporting all evaluation, exploration and development for the group of investors.

Established in 2013, GEXEG Consultores is a highly reputable group of Peruvian mining professionals providing services for exploration and mining companies throughout the Peruvian Andes. Celso Palacios, the founding director of GEXEG, is a geological engineer with over 28 years experience and was the co-discoverer of the Rescatada gold deposit where Minera Aruntani S.A.C mined over 2 million ounces of less than 1 g/t gold. GEXEG's staff includes a multidisciplinary group of geological, mining, metallurgical, industrial and systems engineers as well as experts in cost control and finance. GEXEG's clients include Minas Buenaventura, NEXA, El Brocal, Korea Zinc, Chinalco, Sumitomo, Hudbay, Kaizen Discovery, OZ Minerals and Sumitomo Metal Mining.

The Mansa Musa project is underlain by Tertiary age volcanic rocks with high sulphidation style mineralization similar to Barrick's Pierina and Alto Chicama mines and Newmont and Buenaventura's Yanacocha mine in Peru. Other notable and comparable high sulphidation oxide gold properties in Southern Peru include Pan American's Pico Machay, Minera IRL's Corihuami and Aruntani's Rescatada (now called Arasi) mines. It is important to note that the style of the near surface oxide gold mineralization allows for low cost extraction.

Jeffrey Reeder, the CEO and Chairman of Peruvian Metals, comments: "We are very pleased to have GEXEG involved in the development our Mansa Musa Gold-Silver project in Southern Peru. They have the in-house expertise to plan and execute a mine plan which will be beneficial to Peruvian Metals. Having retained a significant NSR on the Property will allow our Company to focus on its high grade projects in Northern Peru and the Huachocolpa area while generating a substantial new revenue stream."

Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corporation

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com.

Peruvian Metals Corp.. is a Canadian resource company listed on the
TSX Venture Exchange: Symbol "PER"
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290
Website: www.peruvianmetals.com Email: info@peruvianmetals.com

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

Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

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