Warrants - Conversion Offer to GOLDUSA Security Tokens

July 16th, 2018 – Vancouver, Canada – Canamex Gold Corp. (the “Company” or “Canamex”) (CSE: CSQ) on May 15, 2018, launched a non-brokered private placement to accredited investors, of GOLDUSA (“GOLDUSA” or “Token” ticker symbol “GOLD”) Ethereum ERC20 Crypto Tokens via a Security Token Offering (“STO”).

The Company has issued various unlisted Warrants to subscribe to equity shares in the Company (the “Warrants”), to various persons and entities (the “Warrant Holders”) as recorded on the books and record of the Company, summarized at Schedule A attached. In conjunction with the STO, which is still open to subscription, the Company will offer to all Warrant Holders, conversion of Warrants to discounted GOLDUSA Tokens (the “Offer”).

Warrant Conversion Offer

The Company will offer all Warrant Holders, conversion of Warrants to discounted GOLDUSA Tokens. In consideration for subscribing to the GOLDUSA tokens at a substantial discount, such Warrants will be cancelled by the Company, as full settlement for value received from the discounted offer.

The Company has authorized the issuance of such number of GOLDUSA Tokens in the capital of the Company, as fully-paid and non-assessable GOLDUSA Tokens of the Company. The cash consideration to be received by the Company, for each Warrant converted into GOLDUSA Tokens, is $US 0.03 (or $CAD 0.04) to convert each Warrant into 0.01 GOLDUSA Token. This is equivalent to $US 600 per oz Au, which is more than 50% value discount, based on the current spot gold price. The Warrant Conversion Offer will be open for 30 calendar days, from the date of the offer to Warrant Holders.

Warrant Conversion – Example

An example Warrant Holder has 100,000 Warrants in the Company and elects to convert all of them to GOLDUSA security tokens, under the terms of the Offer.

The 100,000 warrants would convert at $US 0.03 for each 0.01 GOLDUSA token, for a total of $US 3,000 (or $CAD 0.04 each for $CAD 4,000 total) consideration paid to the company. In return for the discount value received, the 100,000 warrants would be cancelled, and the Warrant Holder is issued 100,000 x 0.01 = 1,000 GOLDUSA security tokens. Each token is 1/200 oz Au, so 1,000 tokens = 1000/200 = 5 oz gold.

Effectively, the warrant holder spends $US 3,000 for 5 x $US 1250 = $US 6,250 worth of gold at approximate current spot price, or more than a 50% discount to the spot gold price. The value received by the Warrant Holder in this case, is $US 3,250 ($US 6,250 – $US 3,000) compared to buying gold at spot price, or $US 0.0325 per warrant, or about $CAD 0.045 for each warrant. This compares to the current value of the warrants, which is zero, as they are all out of the money at the current market share price of the Company.

For the warrant holder to realise $CAD 0.045 in value, the Company market share price would need to be trading around $CAD 0.25 in the market, and the warrant holder then needs to subscribe $CAD 20,000 at the strike price of $CAD 0.20, to exercise and realise that value. Alternatively, the Warrant Holder can convert under this Offer now, for $US 3,000 ($CAD 4,000) to get the similar value received, which is a saving of $CAD 16,000 to the warrant holder, in this example.

Further general details GOLDUSA security tokens:

Considerations and Risks

An investment in the GOLDUSA Tokens offered via this STO, should be considered speculative due to various factors, including the nature of the industry in which the Company operates. Risk factors relating to the Company are discussed in certain of public disclosures of the Company which are available for review on the Company’s SEDAR profile at www.sedar.com Risk factors should be carefully reviewed and considered by an investor before a decision is made to invest in the GOLDUSA Tokens. Relevant considerations and risks associated with the STO are comprehensively detailed in the whitepaper here: https://canamexgold.com/goldusa/

About the Company

Canamex Gold Corp. is a public listed company registered in British Columbia, Canada, trading on the Canadian Securities Exchange (CSE), and is engaged in fast-tracking toward development of the Bruner Gold Development Project in the prolific gold jurisdiction of Nye County, Nevada. The region is home to several producing and past-producing mines along the Walker Lane Trend. Canamex completed a positive Preliminary Economic Assessment (PEA) on the Bruner Gold Development Project in 2016. Based on additional drilling conducted on the property, the company completed an updated PEA in 2018, which increased the resources and improved the economics of the project. Canamex is now moving the Bruner Gold Project forward into permitting and development on the strength of this positive updated PEA. The second asset is the Silverton Gold property, a gold exploration project, in Nevada, which has geological similarities to the Long Canyon gold deposit in Nevada, being mined by Newmont Mining. The Company has signed Agreements with Harmonychain AS, for Ethereum Blockchain Smart Contract Security Tokens for Gold and Silver, as an alternative means of raising capital, potentially without equity dilution. The Agreements secure the exclusive rights to various Ethereum Token domain names, ticker codes, and associated smart contracts, for Gold and Silver. The rights also extend to patents pending and trademarks associated with these security token financing models, including ChainDelivery™ royalty stream delivery queuing systems. Further information is available at https://canamexgold.com

Greg Hahn (CPG#7122), President & COO of the Company is the qualified person who has reviewed and approved all technical disclosures in this release.

ON BEHALF OF THE BOARD

David Vincent
Chief Executive Officer and Director
david.vincent@canamexgold.com

Mike Stark
Chairman of the Board
Contact: (604) 833-4278
mike.stark@canamexgold.com

The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.