MAGNA GOLD SECURES $10 M IN FUNDING WITH FOUNDING AND STRATEGIC SHAREHOLDER TO ACCELERATE EXPLORATION ACROSS 6 ASSETS.

Toronto, Ontario – May 13, 2021 – Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the “Company”) is pleased to announce a non-brokered private placement of CAD$10,000,000 secured convertible debentures (the “Debentures”) with Delbrook Capital Advisors Inc. (“Delbrook”) on behalf of funds managed by Delbrook.  The Debentures mature in 24 months from issuance and bear interest at a rate of 6.5% per year. The principal amount of the Debentures is convertible, at the election of Delbrook, into common shares of the Company at a conversion price of CAD$1.25 per common share, representing a 35.5% premium to the 10-day VWAP.  The interest on the Debentures is convertible at the election of Delbrook into either cash or common shares of the Company based on the closing price on the day prior to the applicable interest payment date and will be paid in full, including in the event of early conversion. The Company will pay Delbrook a 1.25% arrangement fee on closing of the private placement.  The private placement, which received approval by Magna’s board of directors on May 11, 2021, is subject to the approval of the TSX Venture Exchange.

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