Xiana Mining Inc. announced that it has entered into a forbearance agreement dated July 6, 2020 (the "Forbearance Agreement") with Bluequest Resources AG ("Bluequest") in connection with the loan advanced by Bluequest in the principal amount of USD 10 million (the "Loan") pursuant to the terms of a loan agreement dated October 24, 2018, as amended on July 29, 2019 (the "Loan Agreement") between the company and Bluequest. Xiana is in default under the Loan Agreement for failing to make the required interest payments when due, failing to comply with the financial covenants in the Loan Agreement and as a result of the filing of the previously announced reorganization court proceeding involving Minera de Altos Punitaqui Limitada ("MAP") in Chile before the 21st Civil Court of Santiago (the "Chilean MAP Proceeding"). Under the terms of the Forbearance Agreement, Bluequest has agreed to not exercise its rights and remedies in Canada under the Loan Agreement, subject to the Company's compliance with the Forbearance Agreement, until the earlier of August 12, 2020 (which may be automatically extended until September 17, 2020 provided MAP has obtained the support of 50% of the creditors in the Chilean MAP Proceedings) and the occurrence of certain events contemplated in the Forbearance Agreement, including, among others, the failure of the Chilean MAP Proceeding or any other default under the Loan Agreement.