TGX ENERGY & RESOURCES — Capital/Financing Update 2021

Jan 1, 2021

True North Gems Closes Financing

Vancouver – December 31, 2020 – True North Gems Inc. (TGX: TSX-V) ( “TGX” or the “Company”) reports that it has closed a non-brokered private placement offering of an aggregate of 8,000,000 flow-through units (a " FT Unit ") of the Company at a price of $0.075 per FT Unit for gross proceeds of $600,000 (the " Offering ").

Each FT Unit is comprised of one common share in the capital of the Company, issued on a "flow-through" basis (each, a " FT Share "), and one common share purchase warrant (a " Warrant "). The FT Shares will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada). Each Warrant entitles the holder thereof to acquire one additional common share of the Company, to be issued on a non-flow-through basis, at an exercise price of $0.10 until December 31, 2023.

The proceeds of the flow-through offering will be used to conduct resource exploration renounceable for the 2020 tax year. The Company anticipates that the exploration expense will be incurred on its exploration program on the rare earths properties of the Company including: White Creek, Grizzly Creek and St. Cyr, all of which comprise the majority of its project formerly known as True Blue, located in the Yukon. The exploration program is focused on conducting a preliminary survey and sampling program, followed by an initial drill program, as warranted.

The closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the final approval of the TSX Venture Exchange.

Ken Ralfs, CEO

On behalf of the Board of Directors of True North Gems Inc.

For further information, contact:

Email: speccom@truenorthgems.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.

This document contains “forward-looking information” and “forward-looking statements” (together, “forward-looking statements”) within the meaning of applicable securities legislation, which are made as of the date of this document or the document(s) referred to herein. Statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forwardlooking statements. Forward-looking statements include, without limitation, statements with respect to: the amount of mineral reserves and mineral resources; the amount of future production over any period; net present value and internal rates of return of the proposed mining operation; capital costs; operating costs; strip ratios and mining rates;

and mine life. The forward-looking statements are made based upon certain assumptions which, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by the forward-looking statements. These assumptions include, without limitation: the price of gemstone products produced; anticipated costs; the presence of and continuity of gemstones at modeled grades and values; the capacities of various machinery and equipment; the availability of personnel, machinery and equipment at estimated prices; exchange rates; appropriate discount rates; tax rates applicable to the proposed mining operation; financing structure and costs; anticipated mining losses and dilution; gemstone recovery rates; reasonable contingency requirements; and receipt of regulatory approvals on acceptable terms. By their very nature, forward-looking statements involve inherent risks and uncertainties that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements. These include, without limitation: price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks, regulatory restrictions (including environmental regulatory restrictions and liability), activities by governmental authorities (including changes in taxation), currency fluctuations, the speculative nature of gemstone exploration, the global economic climate, dilution, share price volatility, competition, loss of key employees; additional funding requirements and defective title to mineral claims or property]. This list is not exhaustive. See also, for example, the risks disclosed in the Company’s other disclosure documents filed at www.sedar.com, including, without limitation, those disclosed in the Company’s management’s discussion & analysis. The Company expressly disclaims any intention or obligation to update or revise any forwardlooking statements, except as otherwise required by applicable securities legislation.