GoldSpot Discoveries Reports Strongest Quarter to Date

Toronto, Ontario–(Newsfile Corp. – August 31, 2020) – GoldSpot Discoveries Corp. (TSXV: SPOT) (the “Company” or “GoldSpot“) is pleased to announce the three and six months ended June 30, 2020 unaudited financial results of the Company (the “Financial Results“).

Highlights for the three-month period ended June 30, 2020:

• Completed the quarter with total cash and cash equivalents and investments of $13 million;
• Net income of $2,840,204 (basic earnings per share of $0.03) as compared to a net loss of $74,013 (basic loss per share of $0.00) for the three months ended June 30, 2019;
• Increased consulting revenue by 135% to $937,202 from $399,673 for the three months ended June 30, 2019;
• Yamana Gold engaged GoldSpot for its Cerro Moro gold and silver mine in Argentina after recent successes with Goldspot’s work at Yamana’s El Penon. By engaging GoldSpot, Yamana seeks to be on the cutting-edge of mineral exploration, minimizing exploration risk, reducing exploration and drilling costs and making new mineral discoveries;
• GoldSpot entered into strategic data & royalty relationship with NV Gold Corp. to utilize GoldSpot’s technologies to generate new exploration targets by analyzing NV Gold’s databases, which span over four decades acquired from AngloGold Ashanti North America Inc. and its predecessors and U.S. Minerals Exploration Corp;
• GoldSpot announced a signed agreement with Monarch Gold Corp., following an investment from Caisse de depot et placement du Quebec (CDPQ), to continue to advance the Beaufor mine, located on the prolific Abitibi greenstone belt in the province of Quebec; and
• GoldSpot’s client, Manitou Gold Inc. drill target intercepts in drill hole MTU-20-14, located on the Patents property at the Goudreau project in Northeastern Ontario, provide early confirmation of prospectivity mapping in that area generated by GoldSpot’s artificial intelligence (machine learning) application. The major structure intersected at the Patents Property is directly within Goldspot’s previously highlighted prospective zone and conforms to the Company’s proprietary structural geology interpolation mapping techniques.

Highlights for the six-month period ended June 30, 2020:

• Increased consulting revenue by 105% to $1,875,822 from $914,473 for the six months ended June 30, 2019; and
• Net income of $2,899,641 (basic earnings per share of $0.03) as compared to a net loss of $2,783,458 (basic loss per share of $0.04) for the six months ended June 30, 2019.

Denis Laviolette, Executive Chairman and President of GoldSpot, commented, “This quarter is testament to our resilient business model and our ability to work with quality explorers and geological teams. Despite the ongoing COVID-19 pandemic, we have emerged from this quarter with our greatest total cash and cash equivalents and investments balance yet of $13 million and net income of $2.8 million. Our team of geoscientists and data scientists has the drive to change the mineral exploration sector, and the capacity to make it happen. Our work and R&D pipeline remain strong, and we are confident that we will continue to unlock the economic potential of geology, data science and resource development.”

For the quarter ended June 30, 2020, GoldSpot’s consulting revenue was $937,202, while total expenses were $1,292,597. The Company incurred an increase in professional fees due to multiple revisions of the management information circular for the annual and special shareholder’s meeting held in June 2020, and finalizing contracts for officers and employees, and other general corporate activities. The Company believes most of these additional legal fees and other expenses, totaling $393,735 are non-recurring. When expenses are normalized for the quarter, GoldSpot’s operating income is $38,340, compared to a normalized operating loss of -$750,088 for the quarter ended June 30, 2019.

Revenue & Expenses – Quarter to Quarter

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The continued growth in revenue is supported by total contracts procured to date. We believe this validates the mining sectors acceptance of the use of machine learning as a tool and GoldSpot’s leadership in the space.

Contract Growth – Quarter to Quarter

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For the quarter ended June 30, 2020, GoldSpot’s total business income of $2,840,204 was largely due to net investment gains of $3,193,711, which is an indication of GoldSpot’s ability to develop relationships with best-in-class explorers and generate value to their technical teams. GoldSpot’s cash and investment is $13 million, compared to $10 million as at December 31, 2019, or an increase of 35%.

Cash & Investment Growth – Quarter to Quarter

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The following are selected unaudited financial results as at and for the three and six months-ended June 30, 2020 with comparatives:

¹The six months ended June 30, 2019 includes $1,931,983 in non-recurring listing fees.

About GoldSpot Discoveries Corp.

GoldSpot Discoveries Corp. (TSXV: SPOT) is a technology and investment company that leverages machine learning to reduce capital risk while working to increase efficiency and success rates in resource exploration and investment. GoldSpot Discoveries combines proprietary technology with traditional domain expertise, offering a front-to-back service solution to its partners, and in some cases, capital to kickstart exploration programs. GoldSpot’s solutions target big data problems, making full use of historically unutilized data to better comprehend resource property potential.

For further information please contact:

Denis Laviolette,
Executive Chairman and President
GoldSpot Discoveries Corp.
Tel: 647-992-9837
Email: denis@goldspot.ca