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Message: Loncor Closes Transactions to Consolidate Ground in Ngayu Gold Belt

TORONTO, Sept. 27, 2019 (GLOBE NEWSWIRE) -- Loncor Resources Inc. ("Loncor" or the “Company”) (TSX: "LN"; OTCQB: "LONCD") announces that it has closed the transactions provided for by the agreement (the “Kilo Agreement”) entered into by the Company with Resolute (Treasury) Pty Ltd, Kilo Goldmines Ltd. and Kilo Goldmines Inc. (“Kilo Inc.”) and announced in the Company’s September 12, 2019 press release.  As a result of these transactions, Kilo Inc. is now a wholly-owned subsidiary of Loncor, such that Loncor now holds, through Kilo Inc., Kilo Inc.’s mineral projects (the “Kilo Projects”) in the Democratic Republic of the Congo (“DRC”).  The Kilo Projects are located in the Ngayu gold belt in northeastern DRC near Loncor’s existing Ngayu project, and therefore consolidate ground for Loncor in the Ngayu gold belt.  Reference is made to the Company’s September 12, 2019 press release for additional information in respect of the Kilo Projects.  Loncor has also agreed, subject to receipt of Toronto Stock Exchange approval, to issue to Arlington Group Asset Management Limited (“Arlington”) 1,000,000 common shares of the Company (post-share consolidation) as consideration for the services rendered by Arlington in negotiating and successfully concluding the Kilo Agreement.  

About Loncor Resources Inc.
Loncor is a Canadian gold exploration company focused on two projects in the DRC - the Ngayu and North Kivu projects.  Both projects have historic gold production.  Exploration at the Ngayu project is currently being undertaken by Loncor’s joint venture partner Barrick Gold (Congo) SARL (“Barrick”).  The Ngayu project is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick and in 2018 produced approximately 800,000 ounces of gold.  As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick.  Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%.  Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted. 

Certain parcels of land within the Ngayu project surrounding and including the Makapela and Yindi prospects have been retained by Loncor and do not form part of the joint venture with Barrick.  Barrick has certain preemptive rights over these two areas.  Loncor’s Makapela prospect has an Indicated Mineral Resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an Inferred Mineral Resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au). 

Additional information with respect to Loncor and its projects can be found on Loncor's website at www.loncor.com.

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