Teuton Invests $600,000 Into Sanatana Resources; Purchases 570 Acres in Stewart Area; Contemplates Spin-Out

Vancouver, Canada –– Teuton Resources Corp.  (“Teuton” or “the Company”) (“TUO”-TSX-V) (“TFE”- Frankfurt) has entered into a private placement with Sanatana Resources Inc.  (“Sanatana”), subscribing for 4,000,000 non-flow-through common units at a price of $0.15 per unit.  Each unit consists of one non-flow-through common share and one-half a warrant good for two years with each warrant entitling  Teuton to acquire another non-flow-through common share at $0.20 per share. Total investment is $600,000.   Net proceeds of the private placement will be used to advance exploration on Sanatana’s Oweegee Dome property as well as for general working capital purposes.  The securities issued pursuant to the private placement are subject to a statutory four-month hold period and the private placement itself is subject to approval of the TSX Venture Exchange.

Dino Cremonese, President and CEO of Teuton commented: “This investment was made because of the merit of Sanatana’s Oweegee Dome property located east of Highway 37 and north of Meziadin Lake in the Golden Triangle region of northwestern British Columbia. The Oweegee Dome property is similar to Teuton’s Treaty Creek property in that both are very large and host extensive gossans indicating pervasive hydrothermal activity. When I first staked Treaty Creek in 1984, the general consensus was that it was a separate system from the Sulphurets region to the south, an area now controlled by Seabridge Gold’s KSM property (host to some of the largest reserves of copper and gold in the world) and the Brucejack property (recently acquired by Newcrest for $3.5 billion from owner Pretium Resources). Although five different companies optioned Treaty Creek from 1990 to 2007, it was not until the sixth optionee, Tudor Gold, took on the property and hired Ken Konkin in 2019 that its promise was realized. A re-interpretation of geology and a re-orientation of drilling led to a maiden resource of 19.4 million gold equiv. ounces in early 2021*. The main deposit, the Goldstorm, is still being explored for further expansion and three satellite zones hold promise for further resources to be developed. One might say that the Oweegee Dome property is at an earlier stage of its evolution, nevertheless, the new mineralized zones discovered in surface outcrop in 2021 do suggest potential for the discovery of a future porphyry copper-gold deposit. The property is scheduled for drilling at the beginning of the 2022 field season and Teuton’s private placement investment ensures it will have a substantial stake in this venture.”

*815.7 million tonnes grading 0.74 g/t gold equiv. at a 0.30 g/t gold equiv. cut-off. For detailed results refer to the Teuton news release dated March 9, 2021, available on SEDAR.

Peter Miles CEO, of Sanatana, stated, “We are extremely pleased to welcome Teuton, headed by Dino Cremonese, as an important Sanatana shareholder. Dino has over 40 years of exploration experience in the Golden Triangle of BC and notably Teuton is the project generator for Tudor Gold’s Treaty Creek project (located approximately 40 kms west of Oweegee) with a combined market capitalization in excess of $560,000,000. We are confident that Dino’s demonstrated knowledge, leadership and experience in vetting Golden Triangle projects, combined with Teuton’s investment in Sanatana, provide a strong endorsement of Sanatana’s Oweegee Dome project.”

The Oweegee Dome property is over 31,000 hectares in size.   Like Teuton’s Treaty Creek property, it was first explored by Cominco over 80 years ago.  It was acquired from Millrock Resources by ArcWest Exploration Inc.  (“ArcWest”) in 2018.  ArcWest subsequently optioned the property to Sanatana Resources in July of 2021.  Sanatana can earn an initial 60% interest in the Oweegee Dome project by funding, over a four-year period, cumulative exploration expenditures of $6,600,000 and by making staged cash and share payments totaling $500,000 and 2,000,000 shares, respectively. Upon completion of the first option and receipt of the initial interest notice from Sanatana, Sanatana will have a 60-day period to elect to earn an additional 20% interest by completing a feasibility study before the end of 2027, for an aggregate 80% interest, or form a joint venture.

The Sanatana private placement by Teuton was approved by the independent directors of Teuton.   Dino Cremonese disclosed to the board that he had had a conflict and abstained from voting.  The conflict arose because Mr. Cremonese was appointed to the advisory board of ArcWest in early 2021 and was granted incentive stock options in ArcWest; earlier Mr. Cremonese had also purchased shares in Arcwest, indirectly through a controlled private company.

Purchase of District Lot 6991  (570 acres), Granduc Mining Road

Teuton recently completed the fee simple purchase for $500,000 of District Lot 6991 located just east of the formerly producing Scottie Gold Mine 30 miles north of Stewart, BC, along the Granduc Mining Road. 

The ground has a large flat section lying just above the mining road which will serve as a staging area for exploration of the Company’s many properties located to the west (such as the Eskay Rift, Big Gold, Pearson, Four Js, Powder, Mach, Tennyson, Leduc Silver and Catspaw properties).  It could also serve as a potential building site for a mill, in the event a viable resource is discovered on any of Teuton’s properties in the area.  The old Granduc mine concentrator is situated a few hundred metres to the west as are the old workings of the Scottie Gold Mine, currently being re-evaluated by Scottie Resources.  Teuton’s Harry property, optioned to Optimum Ventures in 2021, is located 5km to the south.

Spin-Out Transaction Contemplated

Since the maiden resource on the Treaty Creek property was published in March of 2021, both of Teuton’s joint venture partners in the project have completed or are near completion of spin-out transactions of their non-Treaty Creek assets. Teuton is currently investigating a spin-out of its own, which would involve most of its non-Treaty Creek assets consisting of 30+ mineral properties and royalty interests.

Teuton recently engaged Kim Maguire, corporate transaction tax specialist at major Canadian law firm Bennett Jones. The Company has also retained Sandra Raath of Pearlman Lindholm, who has specific expertise in structuring spin-out transactions.   

The Company is in the process of receiving advice as to the various tax, regulatory, business and other legal considerations of a spin out transaction. Once this process is complete, it will make a decision on whether to proceed.  Another announcement will be made at that time.

The Qualified Person for this news release for the purposes of National Instrument 43-101 is D. Cremonese, P. Eng. As Mr. Cremonese is the President and CEO of Teuton, he is not independent of the Company.

About Teuton

Teuton owns interests in more than thirty properties in the prolific Golden Triangle area of northwest British Columbia and was one of the first companies to adopt what has since become known as the “prospect generator” model.  Teuton earned $3.9 million net income in 2020 and a further $2.4 million in the first quarter of 2021.  Its income is derived from option payments.

Teuton was the original staker of the Treaty Creek property, host to the large Goldstorm deposit, assembling the core land position in 1985.  It presently holds a 20% carried interest in Treaty Creek (carried until such time as a production decision is made) and an 0.98% NSR in the core portion of the property hosting the Goldstorm deposit.  Interested parties can access information about Teuton at the Company’s website, www.teuton.com.

Respectfully submitted,

“Dino Cremonese, P.Eng.”

Dino Cremonese, P. Eng.,

President and Chief Executive Officer

For further information, please visit the Company’s website at www.teuton.com or contact:

Barry Holmes

Director Corporate Development and Communications

Tel. 778-430-5680

Email:  barry@teuton.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.

Cautionary Statements regarding Forward-Looking information

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially.

All statements relating  to future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.