Complete Business Combination of West Red Lake Gold Mine Co., Ltd.

VANCOUVER, British Columbia — (Newsfile Corp. — December 30, 2022) — Xihonghu Gold Mine Co., Ltd. (“west red lake“) (TSXV:DLV.H) and West Red Lake Gold Mining Company. (“RLG”) (CSE: RLG) Pleased to announce that they have completed their business combination whereby West Red Lake has acquired all issued and outstanding common shares of RLG in consideration for the issuance of 0.1215 shares of West Red Lake common stock for each share of RLG common stock acquired (this”trade“).

Under the deal, RLG shareholders will receive 0.1215 (“exchange rate”) for each share of RLG common stock held, 35,451,916 shares of West Red Lake common stock will be issued to RLG shareholders. Holders of RLG convertible securities will receive adjusted West Red Lake convertible securities based on the exchange ratio, resulting in Issue of alternative options to acquire 978,075 shares of West Red Lake common stock and alternative warrants to acquire 538,603 shares of West Red Lake common stock.In addition, 1,700,000 shares of West Red Lake common stock were issued to certain persons as finder shares in connection with the transaction.

Following the closing of the transaction, West Red Lake’s current directors have resigned and the board has been restructured to consist of Tom Meredith, John Heslop, Ryan Weymark, Susan Neale and Rob van Egmond. gentlemen. Meredith has been appointed Chief Executive Officer and Jasvir Kaloti will continue as Chief Financial Officer and Company Secretary.

After the transaction is completed, West Red Lake will continue RLG’s business, namely the exploration and development of the West Red Lake project located in the Red Lake gold mining area in northwestern Ontario, Canada. For more information on this property, please see West Red Lake’s press release dated August 16, 2022.

In connection with this transaction, West Red Lake has changed its name from “DLV Resources Ltd.” to “DLV Resources Ltd.” Changed to “Xihonghu Gold Mine Co., Ltd.” West Red Lake is expected to upgrade to Tier 2 on the TSX Venture Exchange as a mining issuer and its common shares will resume trading on Thursday, January 5 under the ticker symbol “WRLG”day2023. RLG common stock is expected to be delisted from the Canadian Securities Exchange on January 5day2023. All common shares issued pursuant to the transaction will not have any holding period.

In addition, West Red Lake has granted a total of 3,775,000 stock options to directors, officers, consultants and employees of West Red Lake, as well as certain charitable organizations. The options are exercisable at $0.50 per share for 10 years from the date of grant.

Except for West Red Lake Gold Mine Co., Ltd.

“Tom Meredith”

tom meredith

For more information, please contact:
Javier Carlotti
Chief Financial Officer and Company Secretary

Phone: (604) 609-6110


“John Contact”

john contact

For more information, please contact:
john contact

Phone: (416) 203-9181

Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

The Canadian Securities Exchange has neither approved nor objected to the contents of this press release.

Certain statements contained in this press release constitute “forward-looking statements.” When used in this document, the words “anticipate,” “expect,” “estimate,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements or information. These statements are based on management’s current expectations, however, they are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking statements in this press release. Readers are cautioned not to place undue reliance on these statements. Except as required by securities laws, West Red Lake undertakes no obligation to revise or update any forward-looking statement as a result of new information, future events or otherwise after the date hereof.

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