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Goldrich Mining Reports Dissolution of Joint Venture

SPOKANE, WA – August 8, 2019- Goldrich Mining Company (OTCBB: GRMC) (“Goldrich” or the “Company) announces the dissolution of Goldrich NyacAU Placer, LLC (“GNP”), a 50/50% joint venture between Goldrich and NyacAU, to mine the various placer deposits that occur throughout Goldrich’s 23,000-acre Chandalar gold project in Alaska.  The certificate of dissolution was received in July with an effective date of June 3, 2019.  NyacAU is the manager of the GNP joint venture.

The joint venture was dissolved because GNP failed to meet the Minimum Production Requirements.  According to the terms of the joint venture operating agreement, GNP was required to pay a contractual Minimum Production Requirement of 1,100 ounces for 2016, 1,200 ounces for 2017, and 1,300 ounces for 2018 to Goldrich by October 31, 2018. The Minimum Production Requirement for each year was determined based on the spot price of gold on December 1 of the preceding year.

GNP’s lease to mine the placer properties terminates upon dissolution of GNP and GNP has no further rights to mine the placer properties located on Goldrich’s mining claims.

NyacAU, as the manager of GNP, shall act as liquidator to wind up the Company within one (1) year, or such longer period as may be agreed to in writing by the joint venture members.  If NyacAU cannot or does not accomplish the liquidation within one (1) year or any agreed upon extension, Goldrich shall complete the liquidation.  Most of the equipment used by the joint venture has already been moved off the mine site.

Goldrich and NyacAU are currently in arbitration and are awaiting the rulings of the arbitration panel. Under the terms of the GNP Operating Agreement, rulings from the three-person arbitration panel are final.  The outcome of the arbitration is not yet determined and cannot be estimated or assured. 

Goldrich is in the process of developing a mine plan for the Chandalar gold project.  As previously announced, the Chandalar mine production for 2018 was 20,900 ounces of raw placer gold, which is approximately equivalent to 17,100 ounces of fine gold. This compares to production in previous years as follows:

Year

  

Ounces of Placer Gold

  

Ounces of Fine Gold

2015

  

 4,400

  

 3,900

2016

  

 10,200

  

 8,200

2017

  

 15,000

  

 12,300

2018

  

 20,900

  

 17,100

The 2018 production season ran from approximately May 31, 2018 through September 22, 2018.  The normal production season is approximately from June through mid-September, subject to weather. In addition, stripping of overburden and stockpiling of pay gravel can usually be done for at least one month before and after the production season.  Due to the arbitration and dissolution, there will be no production in 2019.

FORWARD-LOOKING STATEMENTS

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements concern use of proceeds and potential exercise of the warrants. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, budgets, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might”, “should” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Investors should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed in in the Company’s latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q under the heading “Risk Factors”, filed with the U.S. Securities and Exchange Commission (the “SEC”) and available on the SEC website or www.goldrichmining.com, as well as the Company’s other SEC filings. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

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