Goldshore Resources Inc. entered into an agreement to acquire Sierra Madre Developments Inc. (TSXV:SMG.H) for CAD 19.9 million in a reverse merger transaction on January 25, 2021. Each Goldshore share will be exchanged for one share of the Resulting Issuer (on a post-Consolidation basis), upon satisfaction of certain escrow release conditions. As a condition precedent of the business combination, Sierra Madre's board of directors will approve a consolidation of Sierra Madre's issued and outstanding share capital on a 6:1 basis (the "Consolidation"). Upon completion of the business combination, assuming completion of the consolidation and the offering, (a) former Goldshore shareholders will hold, in the aggregate, approximately 30,122,380 Resulting Issuer shares representing approximately 30.1% of the outstanding Resulting Issuer shares on a non-diluted basis, (b) existing holders of Sierra Madre shares will hold, in the aggregate, approximately 3,677,620 Resulting Issuer shares, representing approximately 3.68% of the outstanding Resulting Issuer shares on a non-diluted basis, (c) Wesdome will hold approximately 30,000,000 Resulting Issuer shares, representing approximately 30% of the outstanding Resulting Issuer shares, and (d) the participants in the Concurrent Financing will hold 36,200,000 Resulting Issuer Shares, representing approximately 36% of the outstanding Resulting Issuer shares on a non-diluted basis. Completion of the business combination will result in the reverse takeover of Sierra Madre by Goldshore. In a related transaction, Goldshore Resources Inc. entered into an agreement to acquire Moss Lake Project Located in Ontario from Wesdome Gold Mines Ltd. Goldshore and Sierra Madre have entered into an engagement letter with Eventus Capital Corp., as lead agent and sole bookrunner, on its own behalf and on behalf of a syndicate of agents including Canaccord Genuity Corp., Laurentian Bank Securities Inc., Haywood Securities Inc., and Desjardins Securities Inc, in respect of a private placement by Goldshore of up to an aggregate of 33.6 million subscription receipts and flow-through subscription receipts for gross proceeds of up to CAD 25 million. As of February 23, 2021, up to 13,333,333 flow-through subscription receipts at a price of CAD 0.75 will be offered by Sierra Madre and the subscription receipts will be offered by Goldshore. In connection with the business combination, Sierra Madre intends to change its name to "Goldshore Resources Inc." and list on the TSX-V as a Tier 1 mining issuer under the symbol "GSHR". Following completion of the business combination, the board of directors of the Resulting Issuer will be reconstituted to consist of Brett Richards, Doug Ramshaw, Victor Cantore, Galen McNamara, Shawn Khunkhun, Brandon Macdonald, Michael Michaud, Joanna Pearson and Heather Laxton. Management of the Resulting Issuer will consist of Brett Richards as President and Chief Executive Officer; Gavin Cooper as Chief Financial Officer and Corporate Secretary; and Peter Flindell as Vice President of Exploration. In addition, the Resulting Issuer is expected to appoint a Strategic Advisory Board consisting of the following individuals namely David Garofalo, Craig Parry, Bryan Slusarchuk, Leo Hathaway, Daniel J. Kunz and Adrian Rothwell. On completion of Business Combination is completed, it will be necessary and desirable to increase the size of the Resulting Issuer board of directors (the “Resulting Issuer Board”) from three directors to eight directors and to elect eight members to the expanded Resulting Issuer Board, including all the nominees of Goldshore. The completion of the business combination is subject to the satisfaction of various conditions, including but not limited to the approval of the listing of the Resulting Issuer shares on the TSX-V and other conditions customary for a transaction of this nature. Under the policies of the TSX-V, Sierra Madre is not expected to require shareholder approval for the business combination. However, Sierra Madre is expected to seek shareholder approval of certain matters related to the implementation of the business combination, including the Consolidation and the approval of the appointment of new board of directors of Sierra Madre to be effective upon completion of the transaction. As of May 26, 2021, Sierra Madre Developments Inc has received conditional approval from the TSX Venture Exchange.Closing of the Transaction is expected to occur on or about May 31, 2021 Cassels Brock & Blackwell LLP is acting as legal advisor to Goldshore. Forooghian & Company Law Corporation is acting as legal advisor to Sierra Madre.