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Sego Resources Closes First Tranche of Financing

Newsfile Corp.

Vancouver, British Columbia--(Newsfile Corp. - December 31, 2019) - Sego Resources Inc. ("Sego" or "the Company") is pleased to announce that the Company has closed the first tranche of a financing for total gross proceeds of $167,980 as part of the financing previously announced on November 28, 2019 and revised on December 11, 2019. In this first tranche of the financing, Sego will issue in total 1,963,000 units at $0.06 per unit of Flow-Through Units ("FTU") for gross proceeds of $117,780, and 1,004,000 units at $0.05 per unit for Non Flow-Through units ("NFTU") for gross proceeds of $50,200. A Director of the Company purchased 504,000 NFTU in this tranche.

Each FTU unit consists of one common share and one share purchase warrant. Each FTU warrant entitles the holder to purchase an additional common share at $0.15 for two years from closing of the private placement. Each NFTU consists of one common share and one share purchase warrant. Each NFTU warrant entitles the holder to purchase an additional common share at $0.10 for two years from the closing of the private placement. The securities issued under this second closing are subject to the applicable statutory 4 month + one day hold period from the date of issuance. The closing of this first tranche is subject to regulatory approval.

The flow through proceeds will be expended on the continued exploration of the Company's Miner Mountain Copper-Gold Alkalic Porphyry project located near Princeton, BC. The non-flow through proceeds will be used for working capital and general corporate purposes.

Certain finder's fees are payable on a portion of the private placement and consist of 7% cash and 7% Broker's Warrant, each Broker Warrant entitling the holder to subscribe for additional NFTU for $0.05 for two years from the closing of this tranche of the private placement.

FTU Broker Warrants will be for Non Flow-through Units for $0.06 for two years from the closing of this tranche of the private placement.

This offering is subject to the receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the securities sold pursuant to these offerings will be subject to a four-month hold period from the date of closing.

The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

There is no material change about the issuer that has not been generally disclosed.

For further information please contact:

J. Paul Stevenson, CEO (604) 682-2933

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. No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/51116