Lovitt Resources Inc. — Capital/Financing Update 2020

Aug 4, 2020

FORM 51-102F3

MATERIAL CHANGE REPORT

Item 1 . Name and Address of Company

LOVITT RESOURCES INC.

7001 Nicholson Avenue Abbotsford, B.C., V4K 2G5

• Item 2 . Date of Material Change

August 4, 2020

• Item 3 . News Release

The news release was issued on August 4, 2020 and was disseminated by Stockwatch and Marketnews and filed on SEDAR.

• Item 4 . Summary of Material Change

Vancouver, Canada – Lovitt Resources Inc. (the “Company”) (TSXV-LRC) reports that it has closed the non-brokered private placement (the “Private Placement”) as previously announced on June 24, 2020.

Item 5 . Full Description of Material Change

The Company reports that it has closed the non-brokered private placement (the “Private Placement”) as previously announced on June 24, 2020.

Pursuant to the Private Placement, Lovitt issued 1,724,012 units (“Units”) of the Company at a price of C$0.15 per Unit for gross proceeds of C$258,602. The Company paid a finders’ fee on a portion of the Private Placement of 8.0% in the form of cash Haywood Securities Inc.

Each Unit is comprised of one Share and one full Warrant. Each full Warrant will be exercisable to acquire one common share of Lovitt at an exercise price of C$0.25. The warrants will have an expiry date of six months from the date of issue. The Warrants are subject to an accelerated expiry date, which comes into effect when the trading price of the Company's common shares on the TSX Venture Exchange close at or above $0.35 per common share for any five days over any period of seven consecutive trading days. If that event occurs, the Company will give an expiry acceleration notice to Warrant holders and the expiry date of the Warrants will be deemed to be 21 days from the date of the Notice.

All securities issued pursuant to the Private Placement will be subject to a four-month hold period under applicable Canadian securities laws. Net proceeds from the Private Placement will be used for general working capital and to finance a diamond drill program aimed at developing a gold and silver resource at our wholly-owned, former producing Lovitt Gold Mine in Wenatchee, WA.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About the Lovitt Gold Mine

The Lovitt Gold mine produced 420,000 oz of gold at an average grade of 0.40 oz/ton (13.7 gm/t) and 620,000 oz silver over a sixteen-year period, suspending operations in 1966 due to poor economics for gold when expenses were rising and the gold price was fixed. The adjoining Cannon mine to the north produced 1,200,000 oz of gold and 1,900,000 oz of silver between 1984 and 1995 at an average gold grade of 0.30 oz /ton (10.3 gm Au/t) with 180 employees vs 20 at the Lovitt Mine.

The Company has a substantial historic database of in-house and third-party diamond drill holes, geologic and working maps, and operational gold assays that precede 43-101. Currently compliant 43-101 drilling is required to develop a modern resource that may or may not be economic. Historic operational maps with assays may be viewed at: https://lovittresources.com/properties/lovitt-gold-mine/surface/ . This data will be invaluable in spotting future diamond drillholes, but it should be noted that all material at the link is historic, predates 43-101, and therefore cannot be relied upon for investment purposes.

Item 6 . Reliance on Subsection 7.1(2) of National Instrument 51-102

Not applicable.

Item 7 . Omitted Information

None.

Item 8 . Executive Officer

Lorne Brown

Chief Executive Officer and President

Item 9 . Date of Report

August 4, 2020