Mr. Michael Romanik reports

SILVER DOLLAR SIGNS DEFINITIVE AGREEMENT WITH FIRST MAJESTIC TO ACQUIRE UP TO A 100% INTEREST IN THE LA JOYA SILVER PROJECT

Further to the news release of June 19, 2020, Silver Dollar Resources Inc. has executed a definitive option agreement with First Majestic Silver Corp., wherein Silver Dollar has been granted an exclusive option to acquire an initial 80-per-cent interest and, if exercised, a second option to acquire an additional 20-per-cent interest for an aggregate 100-per-cent interest in First Majestic's La Joya silver-copper-gold property. The property, located in the southeastern portion of the state of Durango in the Mexican silver belt, consists of 15 mineral concessions totalling 4,646 hectares and hosts the Main Mineralized Trend (MMT), Santo Nino and Coloradito deposits.

In 2013, Silvercrest Mines Inc. disclosed a mineral resource estimate for the property that was reported to conform to CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definitions for resource estimation. A qualified person of Silver Dollar has not done sufficient work to classify this historical estimate as a current mineral resource and the company is not treating this historical resource estimate as a current mineral resource. Independent data verification and an assessment of the mineral resource estimation methods are required to verify the historical mineral resource. The attached table is from a National Instrument 43-101 technical report titled, "Preliminary Economic Assessment for The La Joya Property, Durango, Mexico," dated Dec, 5, 2013.

Key assumptions, parameters and methods used to prepare the historical mineral estimate:

• 89 holes totalling 30,085 metres;
• Raw assay data were composited to two metres, capped at 550 grams per tonne silver, 5.5 grams per tonne gold and 6 per cent copper, and interpolated into a block model using five-metre-by-five-metre-by-five-metre block size using inverse distance squared (ID2) methodology;
• Silver equivalency formula assumes silver to gold is 50:1 and silver to copper is 86:1, based on $24 (U.S.) per ounce silver, $1,200 (U.S.) per ounce gold and $3 (U.S.) per pound copper as well as 100-per-cent metallurgical recovery;
• Mining by open-pit methods;
• Mining and process costs assumptions not specifically stated.

The property is situated approximately 75 kilometres directly southeast of the state capital city of Durango in a prolific mineralized region with past-producing and operating mines, including Grupo Mexico's San Martin mine, Industrias Penoles's Sabinas mine, Pan American Silver's La Colorada mine, and First Majestic Silver's La Parrilla and Del Toro silver mines. Access and infrastructure near the property are considered excellent with highway, rail and power lines nearby.

"The signing of the definitive agreement to have an option to acquire the La Joya project is a very important milestone for us," said Mike Romanik, president of Silver Dollar. "We engaged some expert help to assist in our due diligence review of the historical data on the project, and the unanimous feedback is that La Joya has incredible exploration and development potential, particularly in light of the significant move in metals prices since we signed the letter of intent."

The company is in the process of finalizing its initial exploration program for the property and will provide an update in due course.

Under the terms of the definitive agreement, Silver Dollar may exercise the first option and acquire an initial 80-per-cent interest in the First Majestic subsidiary holding the La Joya silver project by:

1. Paying to First Majestic a total of $1.3-million plus annual holding costs for the property, of which:
   1. $300,000 upon execution of the definitive agreement;
   2. $200,000 on or before the first anniversary of the definitive agreement;
   3. $200,000 on or before the second anniversary of the definitive agreement;
   4. $300,000 on or before the third anniversary of the definitive agreement;
   5. $300,000 on or before the fourth anniversary of the definitive agreement;
2. Incurring exploration expenditures on the property of not less than $1-million within three years of entering into a surface rights agreement relating to the property, but in any event within five years of the date of the definitive agreement;
3. Issuing to First Majestic, within 45 days of the date of the definitive agreement, such number of common shares of the company as is equal to 19.9 per cent of the then issued and outstanding shares of Silver Dollar.

If Silver Dollar incurs at least $1-million of exploration expenditures on the property within three years of the date of the definitive agreement, First Majestic will waive the third-anniversary and fourth-anniversary cash option payments described herein totalling $600,000.

In addition, First Majestic will reserve a 2-per-cent net smelter return royalty interest in all minerals produced from the property.

Within 30 days after exercising its first option, Silver Dollar may exercise its second option and acquire the remaining 20-per-cent interest in the subsidiary that owns the La Joya silver project by delivering notice and issuing to First Majestic the number of shares as is equal to 5 per cent of the then issued and outstanding shares of Silver Dollar.

If Silver Dollar exercises its first option but elects to not exercise its second option, Silver Dollar and First Majestic will be deemed to have formed a joint venture with respect to the property.

The definitive agreement also includes representations, warranties and covenants customary in transactions of this nature.

Garry Clark, PGeo, of Clark Exploration Consulting, a qualified person as defined in NI 43-101, has reviewed and approved the technical content in this press release.

About Silver Dollar Resources Inc.

Silver Dollar Resources is a mineral exploration company focused on creating shareholder value by finding and developing economic precious metal and base metal deposits. Having completed its initial public offering in May, 2020, the company trades on the Canadian Securities Exchange under the symbol SLV. Silver Dollar's exploration projects include the advanced-stage La Joya silver project in Durango, Mexico; and the Pakwash Lake and the Longlegged Lake properties, which are both early-stage projects located in the Red Lake mining division of Ontario, Canada. The company has an aggressive growth strategy and is actively reviewing potential acquisition targets in mining-friendly jurisdictions internationally.

We seek Safe Harbor.