Baru Gold Corp. announced it has commenced construction of phase one of the Sangihe gold project. Construction will consist of clearing land, building two 100,000 tonnes heap leach pads, pit overburden removal, preparation of waste dumps, a crushing facility, and a processing plant area including access roads. Baru COO Garry Kielenstyn and the Indonesian team are currently on site to supervise the engineering and contractor management, oversee site activities and keep costs in line and within budget. Construction of the heap leach pad system is targeted to be completed and operational by December 2021, with first production gold pour in First Quarter 2022. The Company, along with its contractors, are currently preparing the principal production area, grubbing, and establishing pit limits to the plan. The focus will be on digging out the pregnant solution pond, constructing pond berms, and compacting to engineering specifications in preparation for installation of the leach pad liner and the processing facility. Heap leaching is an industrial mineral processing method used to extract precious metals and other compounds from ore using a series of chemical reactions that absorb specific minerals and re-separate them after their division from other earth materials. Heap leaching is the most economical and environmentally efficient method of processing lower grade mined ore. Heap leaching achieves these processing efficiencies by placing finely crushed ore on a liner, then adding reagents via drip systems to the ore. As compared to conventional processing methods such as flotation, agitation, or vat leaching, heap leaching is widely used in modern large-scale mining operations to produce the desired concentrates at a lower cost for lower grade ores. The Sangihe Gold Project ("Sangihe") is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi. Sangihe has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated and 105,000 inferred ounces of gold, as reported in the Company's Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. The Company's 70% interest in the Sangihe-mineral-tenement Contract of Work ("CoW") is held through PT. Tambang Mas Sangihe ("TMS"). The remaining 30% interest in TMS is held by three Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon commencement of the production phase of the project. Baru has met all the requirements of the Indonesian government and has been granted its environmental permit. The Company has received approval for the upgrade of its licence to advance the Sangihe project to construction and production in late 2021/early 2022.