Ulaanbaatar - Aranjin Resources Ltd. (TSXV: ARJN) (the 'Company' or 'Aranjin Resources') is pleased to announce the closing of the acquisition of the Sharga Copper Project.

The Company has acquired the Project through the purchase of all of the issued and outstanding equity interests in the Mongolian company that is the 100% owner of the Sharga Project.

As consideration for the acquisition, the Company paid a total of US$1.5 million in cash in instalments and obligated issue 30 million common shares in instalments, provided the issuance would not result in the vendor owning over 9.9% of the issued and outstanding common shares of the Company. At the closing, the Company issued 26,653,822 to the vendor representing 9.9% of the issued and outstanding common shares on an undiluted basis. The balance of 3,346,178 common shares will be issued when the issuance will not result in the vendor owning more than 9.9% of the issued and outstanding common shares, The vendor is an arm's length party to the Company. The common shares issued pursuant to the acquisition are subject to a statutory hold period of four months and one day in accordance with applicable securities laws.

As previously announced, the cash portion of the purchase price was financed through a $1,814,400 unsecured convertible debenture financing. The debenture has a term of 12 months and bears interest at a rate of 15% per annum to be accrued and paid at maturity in cash, or at the option of the Company, in common shares. The principal amount of the debenture is convertible at anytime time during the term into common shares of the Company at a price of $0.055 per share.

About the Sharga Project

The Sharga Project is located in the Gobi Altai region of western Mongolia and is comprised of one Mineral Exploration Licence covering over 9,000 hectares. The project is approximately 1030 km west of Ulaanbaatar and 44 km west of Altay City.

The project is characterized by Metasedimentary Proterozoic rock composed of two distinct metamorphic rock suites: (i) dominant Riphean (Mesoproterozoic) formations of metasedimentary and metavolcanics rocks exposed on 80% of the project area developed in Island arc (the Lake zone) environment (ii) subordinate lower Proterozoic siliceous marble, gneiss and amphibolites of the cratonal (Zavkhan craton) terrain observed in northern part of the license area. Two terrains have tectonic boundary welded by Khantaishir ophiolitic formation. Mesoproterozoic rocks are overlain by various younger formations from Devonian to Jurassic age. Mesoproterozoic (below described as Riphean formations) classified into several formations. Mesoproterozoic rocks consists epidote-chlorite-quartzite orthoschist (formed from andesite-basalt), quartz-chlorite-sericite and chlorite-sericite orthoschist (formed from dacite, andesite-dacite and andesite), chlorite-quartz-plagioclase, quartz-chlorite and epidote-chlorite orthoschists (formed from felsic lava-breccia), and variety of schistose volcanic rocks such as rhyolite, dacite, rhyodacite, andesite-dacite and andesite-basalt. Paleozoic formations represented by middle Devonian Tsagaanshoroot formation's red, brownish, pinkish, white colored argillite, aleuvrolite, sandstone, limestone, conglomerate, basalt and andesite and Jurassic Jargalant formation's grey, yellowish, brownish colored conglomerate, gravelite, sandstone, aleuvrolite, carbonaceous shale, coal layers. Intrusive rocks of lower Devonian Numrug complex consist two phases and in project area seen rocks only from second phase - biotite, biotite-hornblende granites.

Main alteration and sulphide assemblages in the project indicate possible deposition of volcanic hosted massive sulphide (VMS) type of Cu-Zn (Au, Ag) mineralization of Kuroko VMS type in the Maikhan Ulaan Uul deposit and West, East and North Sharga prospects.

Exploration work conducted in 2019 by a prior owner of the Sharga licence, Gobi Exploration LLC, defined four high grade copper targets and extensive electromagnetic anomalies typical of volcanic hosted massive sulphide mineralization. Prior work included 74 rock chip samples, five diamond core drill holes totaling 300 metres (with three holes totaling 98 m drilled on a placer gold prospect), 77 drill core samples, 921 line kilometres of ground magnetics and 40 line kilometres of Transient Electro Magnetic (TEM) surveys.

Contact:

Matthew Wood

Tel: +976 7732 1914

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