Doubleview Gold Corp. (TSXV: DBG / OTC: DBLVF)...Doubleview Gold Corp. (“company”, “DBG”) holds three copper -gold projects (pre resource stages) in B.C. Its flagship Hat project,

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August 12, 2020

Doubleview Gold Corp. (TSXV: DBG / OTC: DBLVF) Advancing a Gold Rich Copper Porphyry Project in the Golden Triangle - Initiating Coverage

BUY Current Price: C$0.27 Fair Value: C$0.47 Risk: 5

Sector / Industry: Junior Resource Click here for more research on the company and to share your views

YTD 12M

Ret. 184% 184%

CSE 24% 23%

52 Week Range C$0.055 - C$0.34

Shares O/S 116,657,373

Market Cap. C$31.50 million

Yield (forward) N/A

P/E (forward) N/A

P/B 4.9x

*See last page for important disclosures, rating and risk definitions. All figures in C$ unless otherwise specified.

Highlights ➢ Doubleview Gold Corp. (“company”, “DBG”) holds three copper-gold projects (pre-

resource stages) in B.C. Its flagship Hat project, considered to be a gold rich copper porphyry project, is located in the Golden Triangle - one of the most mineralized areas in the world.

➢ DBG discovered a deposit (Lisle copper-gold zone) on Hat in their first drill program in 2013 / 2014. The company has drilled a total of 34 holes / 12,640 m on the property. We found that a number of holes intercepted reasonably good grades, for a porphyry deposit, over long intervals. The best hole intersected mineralization from surface to a depth of 731 m. Key intercepts included 0.58 gpt AuEq (0.42% CuEq) over 612 m, including 1.04 gpt AuEq (0.76 % CuEq) over 235 m.

➢ A recent independent review confirmed that Hat’s mineralization is similar to several other well known mines in B.C. Copper is estimated to account for approximately 45% - 50% of the total value of the deposit at Hat, with gold accounting for another 30% - 40%, and the remaining (15% - 20%) by cobalt.

➢ A maiden resource estimate on Lisle is expected by early 2021. Our preliminary estimate is presented on page 8 of this report.

➢ Work to date suggests potential for multiple similar size porphyry bodies as Lisle. These areas have never been drilled.

➢ CEO, Farshad Shirvani, is the largest shareholder and holds 21% of the outstanding shares.

➢ Currently pursuing a $4 million equity raise, of which, $1.07 million has been completed. In-the-money options and warrants can bring in up to $3.27 million.

➢ We are initiating coverage on DBG with a BUY rating, and a fair value estimate of $0.47 per share.

Risks ➢ The value of the company is highly dependent on copper and gold prices. ➢ Exploration risks. ➢ Access to capital and potential share dilution. ➢ None of the projects have a resource estimate. ➢ Porphyry projects needs to be large to be economic.

Sid Rajeev, B.Tech, CFA, MBA Head of Research

Price Performance (1-year)

Company Data

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Equity Research Page 2 of 15


Three gold-copper projects in B.C.

Overview Vancouver, B.C. based Doubleview holds three copper-gold projects in B.C. – namely the flagship Hat project, the Red Spring project, and the Mt. Milligan project.

Property Portfolio

Source: Company

In 2019, B.C. was ranked the fourth best mining jurisdiction in Canada, after Saskatchewan, Ontario and Quebec, by the Fraser Institute’s Survey of Mining Companies.

Hat Gold Rich Copper Porphyry Ownership The company had entered into an option in 2011 to acquire the project. By 2017, DBG earned a 100% interest by making a cash payment totaling $250k, and issuing one million shares. In 2018, the property was optioned to Hudbay Minerals (TSX: HBM) for Hudbay to earn a 65% interest by spending $40 million on exploration and completing a feasibility study. However, after spending $1.2 million, Hudbay terminated the option in 2019 without publicly disclosing any reasons. This prompted DBG to resume their own exploration on the project. The project is subject to a 2% net smelter return (“NSR”), of which, DBG can acquire 1% for $1.50 million. Location Hat is located in northwestern B.C. in the Golden Triangle, which is considered to be one of the most mineralized areas in the world. Over 130 Moz gold, 40 Blbs of copper and 800 Moz of silver have been discovered to date in this area. It includes massive projects such as Galore Creek, Schaft Creek, Red Chris, and Kutcho, and the very high-grade historic Eskay gold and silver mine.




The Golden Triangle is considered to be

one of the most mineralized areas in

the world

Other juniors surround the Hat

project

Property Location

Producing Mines ➢ Red Chris Mine (Imperial Metals /

TSX: III) ➢ Highland Valley (Teck / TSX: TECK) ➢ Gibraltar (Taseko Mines / TSX: TKO) ➢ Copper Mountain (Copper Mountain /

TSX: CMMC) ➢ Endako (Centerra / TSX: CG) ➢ Huckleberry (Imperial Metals)

Developed Deposits ➢ Galore Creek (Teck/NovaGold /

TSX: NG) ➢ Kutcho (Capstone/ TSX: CS) ➢ Morrison (Pacific Booker / TSXV:

BKM ) ➢ Schaft Creek (Copper Fox / TSXV:

CUU) ➢ Sulphurets (Seabridge / TSX: SEA

& Pretium / TSX: PVG)

Source: Company

The 4,656 ha Hat property is located in the Sheslay valley, 95 km southwest of Dease lake, and 190 km south of Atlin. It is 10 km north of a historic mining road, and Highway 37 is 95 km to the east. As there is currently no road access, the site is accessed by helicopters / aircraft. A power line runs within 120 km of the property. Although the property is remotely located, road access can be established by restoring the above-mentioned historic road (proposed CAPEX of $300k), if the project is advanced to production. The project is surrounded by other juniors, as shown below.




Hat Gold Surrounded by Other Juniors

Source: Company


https://www.doubleview.ca/wp-content/uploads/2016/08/Project-Roads-location-Hat.png



Higher grade gold versus typical

porphyry deposits

Deposits tend to exist in clusters

The main zone (Lisle) has been

identified to be 920 m x 650 m x 620 m

Geology / Mineralization and Historic Work Prior to DBG’s involvement, geochemical soil surveys conducted in 1978 – 1979 had identified large areas with anomalous copper values. Upon taking over the project in 2011, DBG conducted preliminary exploration and surveys, followed by a drill program in 2013 / 2014, which resulted in the discovery of the Lisle gold-copper zone. The company has drilled a total of 34 holes / 12,640 m on the property. A recent independent review by consultants, Micon International, confirmed that the Lisle zone is an alkalic-type gold-copper porphyry similar to other well known mines in B.C, including the Copper Mountain, Mt Polley, Mt Milligan, and Red Chris mines. According to Micon, copper is estimated to account for approximately 45% - 50% of the total value of the deposit at Hat, with gold accounting for another 30% - 40%, and the remaining (15% - 20%) by cobalt. Gold is closely associated with copper, and the grades range between 0.10 to 2 gpt gold, and 0.20 to 1.5% copper. Gold to copper ratios increase with depth. Note that porphyry deposits tend to be low grade – large deposits. Alkalic porphyry deposits tend to exist in clusters. Although they are more complicated to mine, they tend to host higher grade gold and PGE mineralization versus other porphyry deposits.

Mineralization at Hat seems to be controlled by porphyry intrusions, veins and structures, with grades increasing at depth. The Lisle zone is currently identified to be 920 m north-south, 650 m east-west, and 620 m vertical (starting from surface). A 3D Deep IP model indicates dimensions of 2,500 m x 1,500 m x 1,200 m. Rock sampling and geological mapping have identified a sulphide footprint of over 10 sq km (3.7 km x 2.7 km) on the property.

Source: Company


https://www.doubleview.ca/wp-content/uploads/2019/05/NR-IP-3D-View.jpg



Mineralization over long intervals; 0.58 gpt AuEq over 612

m

The following table shows a summary of the key drill results. We believe the most encouraging aspect is that a number of drill holes intercepted reasonably good grades, for a porphyry deposit, over long intervals. The best hole (H034) intersected mineralization on the Lisle zone from surface to a depth of 731 m. Key intercepts included 0.58 gpt AuEq (0.42% CuEq) over a very long interval of 612 m, including 1.04 gpt AuEq (0.76 % CuEq) over 235 m, and 3.44 gpt Au and 6.61% Cu (10.91% Cu Eq) over 3.6 m. The other key holes are highlighted in red below.

Location of Drill Holes


https://www.doubleview.ca/wp-content/uploads/2020/07/Section-22-23-33-34-4.jpg



Other targets have

never been drill tested

Source: Company

Work to date suggests potential for multiple similar size porphyry bodies as Lisle, especially in anomalies E, A, C, D and the Hoey zone shown in the images below. These areas have not been drill tested. Mineralization at Hoey is estimated to be over a 550 m by 850 m area. West Gossan’s (represented by anomaly D) mineralization is estimated to be over a 1,400 m by 700 m area. Rock sampling at Hoey has returned high values of up to 8.11 gpt gold, 7% copper and 0.5% cobalt, and soil sampling at West Gossan has returned 55.2 gpt and 0.2% copper.

Lisle Zone and Other Key Targets


https://www.doubleview.ca/wp-content/uploads/2015/10/11-DrillPlan_Magnetic_with_Porphyry_Minerals_and_Drill_TargetsGH1.jpg



FRC’s preliminary estimate

Source: Company

Metallurgical Tests DBG has not conducted any metallurgical tests, but we estimate that porphyry deposits typically have recoveries of 85% to 90%. Near-Term Plans Management’s immediate plans include: ➢ Deep drilling to a depth of 1,200 to 1,500 m. ➢ Metallurgical tests to potentially add cobalt to gold / copper equivalent

calculations. ➢ Test continuity of Lisle zone more than 300 m north of the currently drilled area. ➢ Test east of Lisle IP target. FRC’s Preliminary Estimate Based on the dimensions identified to date (650 m x 920 m x 350 m) for the Lisle zone, we arrived at a preliminary estimate of 540 Mt at an average grade of 0.2 gpt gold and 0.25% copper (0.57 gpt AuEq). Note that this is based on a small portion of the dimensions (2,500 m x 1,500 m x 1,200 m) indicated by the 3D Deep IP model. As our estimate is very preliminary, we are only using 10% of our estimate for valuation purposes (presented later in this report).

Other Properties The following table summarizes DBG’s other projects.


https://www.doubleview.ca/wp-content/uploads/2017/10/AerialViewofhat-Samples-locations.gif



CEO owns 21% of the outstanding

shares

Source: FRC / Company

In 2019, the company optioned the Red Spring project to Mucho Cobre Resources Inc. (privately held) to earn a 60% interest, by making cash payments totaling $0.50 million, issuing 2 million shares, and incurring $4 million in exploration over five years. The optionor is currently on the second year of the agreement, and plans to explore the project with 3D IP surveys and further sampling.

Management and Board of Directors CEO, Farshad Shirvani, is the largest shareholder and holds 21% of the outstanding shares.

Share Ownership

Source: Company

Brief biographies of the management team and board members, as provided by the company, follow: Farshad Shirvani MSc. Geol. - President, CEO and Director Mr. Shirvani has a B.Sc. and M.Sc. in geology from the Shiraz University in Shiraz, Iran, and has more than 24 years of solid geological experience in mineral exploration in Canada. Mr. Shirvani is the President of Terracad Geoscience




Services Ltd. and served as a member of the Board of Directors of several junior mining companies including Gold Producer Barkerville Gold Mines Ltd. (BGM-TSXV) for more than 7 years. Mr. Shirvani brings to Doubleview a wealth of experience in Mining Property Acquisition, Exploration, and Development. Bryan Wilson, B.Sc. - Independent Director Mr. Wilson obtained a Bachelor of Science degree from the University of Waterloo in 1975. He has worked in the fields of mining exploration and development for 18 years and financial services for 12 years. He has filled various roles including a Mining Analyst for C.M. Oliver and Dominick & Dominick Securities Inc. and as a Corporate Finance Specialist for Thames Capital. Mr. Wilson is officer and director of several public mining exploration companies. Charles Hugh Maddin – Independent Director Mr. Maddin is a member of the Law Society of British Columbia and has been an active member of the B. C. business community for more than 47 years. He is an executive and director of several public companies and Chairman and CEO of a number of private resource companies. He is the sole shareholder, President and CEO of Cambrian Capital Corp., a private investment holding company. As a practicing lawyer and entrepreneur, Mr. Maddin brings much experience in corporate, commercial, mining finance, venture capital, real estate and mining projects. Andrew Rees, B.Com. - Independent Director Mr. Rees obtained a Bachelor of Commerce degree from Royal Road University in 2008 and since 1998 has been a consultant in financial matters with Barkerville Gold Mines Ltd., a company engaged in the exploration of previously producing gold properties. Mr. Rees is currently CEO, President and a director of Wellstar Energy Corp., an oil and gas exploration company, and President and director of Big North Capital Inc., a capital pool company. In addition, Mr. Rees has served as a director of Barkerville Gold Mines Ltd. since August 2006, and Lions Gate Energy Inc., a company engaged in mineral exploration in British Columbia, since Feb. 2008. Chris Cherry - CFO Mr. Cherry has over 14 years of corporate accounting and audit experience. Mr. Cherry has extensive corporate experience and has held senior-level positions for several public companies including Director, Chief Financial Officer, and Secretary. Mr. Cherry has been a Chartered Accountant since February 2009 and a Certified General Accountant since 2004. In his former experience as an auditor, he held positions with KPMG and Davidson and Co. LLP in Vancouver, where he gained experience as an auditor for junior public companies, and as an IPO specialist. Our net rating on DBG’s management team is 3.4 out of 5.0 (see below).




Source: FRC

The company’s board has four members, of which, three are independent. The following table shows our analysis on the strength of DBG’s board.

Strength of Board

Source: FRC

Financials At the end of Q1-FY2021 (ended May 2020), the company had cash and working capital of $0.28 million and $0.03 million, respectively. We estimate the company had a burn rate (G&A) of $19k per month in Q1. The following table summarizes the company’s liquidity position:




All options and warrants are in-the-money; potential to

raise $3.3M

Source: FRC / Company

In July 2020, the company announced plans to raise $4 million through flow-through units ($0.33 per unit) and non flow through units ($0.22 per unit). Each unit will consist of a common share and half warrant (exercise price of $0.40 per share for two years). DBG has raised $1.07 million to date. Stock Options and Warrants - DBG has 11 million options (weighted average exercise price of $0.11 per share) and 29 million warrants (weighted average exercise price of $0.10 per share) outstanding. Currently, all the options and warrants are ‘in-the-money’, implying potential to raise up to $3.27 million.

Valuation and Rating We are valuing DBG based on the Enterprise Value / Resource ratio of comparable juniors. As mentioned earlier, we have a preliminary estimate of 540 Mt at 0.57 gpt AuEq for the Lisle zone on Hat. Applying a 90% discount for conservatism, we arrived at 0.99 Moz in contained AuEq. Using this estimate and applying the comparable average EV / Resource of $69 per oz (shown in the table below), we estimate a fair value of $0.47 per share on DBG.




Source: FRC

We are initiating coverage on DBG with a BUY rating and a fair value estimate of $0.47 per share. Drilling to date on Hat has returned promising results, including reasonably good grades, for a porphyry deposit, over long intervals. A maiden resource estimate is expected in early 2021. The company is planning additional drilling and metallurgy on the project this year, which we believe will provide us more clarity on the project’s upside. We expect gold prices to stay strong through the year, with a Q4-2020 average gold price forecast of US$1,925 per oz, which will benefit gold juniors.

Risks We believe the company is exposed to the following key risks (not exhaustive):




➢ The value of the company is highly dependent on copper and gold prices. ➢ Exploration risks. ➢ Access to capital and potential share dilution. ➢ None of the projects have a resource estimate. ➢ Porphyry projects need to be large to be economic. ➢ The initial CAPEX of porphyry projects is typically high.

As with most junior resource companies in exploration, we rate DBG’s shares a risk of 5 (Highly Speculative).




Fundamental Research Corp. Equity Rating Scale: Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with risk Hold – Annual expected rate of return is between 5% and 12% Sell – Annual expected rate of return is below 5% or the expected return is not commensurate with risk Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events. Fundamental Research Corp. Risk Rating Scale: 1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt. 2 (Below Average Risk) - The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt. 3 (Average Risk) - The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient. 4 (Speculative) - The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative. 5 (Highly Speculative) - The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues and may rely on external funding. These stocks are considered highly speculative. Disclaimers and Disclosure The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. Fundamental Research Corp. “FRC” and the Analyst do not own shares of the subject company, do not make a market or offer shares for sale of the subject company, and do not have any investment banking business with the subject company. Fees were paid by DBG to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, DBG has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (67%), HOLD (8%), SELL / SUSPEND (25%). To subscribe for real-time access to research, visit https://www.researchfrc.com/website/subscribe/ for subscription options. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. 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Doubleview Gold Corp. (TSXV: DBG / OTC: DBLVF)...Doubleview Gold Corp. (“company”, “DBG”) holds three copper -gold projects (pre resource stages) in B.C. Its flagship Hat project,