Generation Mining Closes $3.3 Million Flow-Through Financing Led by Eric Sprott

Toronto, December 31, 2020 - Generation Mining Ltd. (TSX: GENM) (OTCQB: GENMF) ("Generation Mining" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") through the issuance of 4,292,367 common shares of the Company issued on a flow-through basis (each, a "FT Share") at a price of C$0.77 per FT Share for gross proceeds of C$3,305,122.59. Eric Sprott purchased 2,000,000 FT Shares of the Offering.

The Company will incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) (the "Tax Act") in an amount equal to the gross proceeds from the issuance of the FT Shares on the Marathon Property in the Province of Ontario and will renounce to subscribers in the Offering effective December 31, 2020. Such Canadian exploration expenses will also qualify as "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act.

In connection with the Offering, the Company paid an aggregate cash commission of $166,320 to certain eligible persons. All securities issued under the Offering are subject to a four-month hold period from the date of issuance in accordance with applicable securities laws. The Offering is subject to final acceptance of the Toronto Stock Exchange.

Mr. Sprott, a related party within the meaning of Multilateral Instrument 61-101 ("MI 61-101") subscribed for 2,000,000 FT Shares pursuant to the Offering, which participation constituted a related party transaction under MI 61-101. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Offering by Mr. Sprott does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Offering, which the Company deems reasonable in the circumstances in order to complete the Offering in an expeditious manner.

About Generation Mining Limited

Generation Mining's focus is the development of the Marathon Palladium Project, the largest undeveloped platinum group metal Mineral Resource in North America. The Marathon property covers a land package of approximately 22,000 hectares, or 220 square kilometres. Generation Mining acquired a 51% interest in the Marathon Project from Sibanye Stillwater in 2019 and has since increased that ownership to 80%. Upon completion of the Feasibility Study, Sibanye Stillwater has certain back-in rights that can bring its interest in the property back to 51% (see the company's press release of July 11, 2019, for more details). A feasibility study was started in the second quarter of 2020 with completion expected in the first quarter of 2021.

For further information please contact:

Jamie Levy
President and Chief Executive Officer
(416) 640-2934
(416) 567-2440
jlevy@genmining.com

Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors are encouraged to review the Company's public filings at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

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