Pegasus Resources Inc. (the ‘Company' or ‘Pegasus') announced the conclusion of the summer 2021 prospecting program carried out on its wholly owned (100% Pegasus) Gold Mountain (‘Gold Mountain') and Punch Bowl (‘Punch Bowl') properties located north of Golden, British Columbia. A brief exploration program was carried out at Gold Mountain during August 2021 including: Extension of polymetallic mineralization from 600 meters to over 900 meters in strike length with sample 151659: 1.63% Cu, 76 g/t Ag, 2.34 g/t Au; Confirmation sampling of main zone with sample 151637: 0.37% Cu, 2,260 g/t Ag, 0.99 g/t Au, 4.6% Zn; and 7 samples collected for petrographic analysis and characterization of mineralization, textures and alteration. A brief exploration program was carried out at Punch Bowl during August 2021 including: Additional confirmation of the historical work on the property, confirming mineralization within several separate gold-bearing veins with 24 samples collected at the main gold prospect, seven (7) of which are greater than 0.1 g/t Au and two (2) are greater than 1.0 g/t Au.

Discovery of a new copper mineralized zone, located approximately 2.5 km southeast of the main gold zone. Of the 13 samples of outcrop and float, six (6) samples are greater than 0.1% Cu and are up to 1.68% Cu. The Ag-Au-Pb-Zn-Cu-Sb mineralized system at Gold Mountain described in a prior news release (January 13th, 2021) was extended from approximately 600 meters length on surface to over 900 meters.

The mineralized system is oriented southeast-northwest and is considered open in all directions. Mineralization consists of galena-chalcocite-malachite-azurite and coincides with the margins and intersections of quartz-carbonate veins, suggesting additional mineralized vein systems are located on the property. Irregular shaped pods of mineralization form at these intersections, reaching 0.75m long by 0.25m wide.

A total of thirty-six (36) samples were collected from veined and altered outcrop and float/boulders during the summer 2021 program.