Melkior Carscallen Update

Timmins, Ontario / TheNewswire / March 6, 2018 – Melkior Resources Inc. (“Melkior”) is pleased to announce the assays from the 2017 soil sampling program on the Carscallen Project have been received. The analysis and integration of these results into the 2018 Exploration program is ongoing, a preliminary discussion of these results is presented below.

Melkior undertook a soil sampling program over a one-kilometer square area of the Carscallen Project in 2017. The area sampled included the central project area, where over 90% of drilling has been undertaken (Zamzam, Jowsey, Shenkman, Wire Gold areas). Soil samples were collected from both the A and B horizons, at 25 m spacing, and submitted for trace analysis (ALS method, AuME-TL43).

Generally, there was a good correlation between the assays of the A and B horizon samples. Very few areas of anomalous gold were detected in the B Horizon not observed in the A-horizon at the same location. Generally, B-horizon anomalous areas were observed to have a smaller footprint but co-located with A-Horizon anomalies.

Software based statistical evaluation indicates that bismuth is the only element strongly corelated to gold within the soil dataset. This association appears to be validated by a strong correlation of gold and bismuth soil anomalies with both: surficial gold showings; and shallow intersections of gold in drill holes. Surface samples from the Jowsey showing have assayed up to 1,725 ppm Bi (Sample MKR-WTK-B84, 843 ppm Au, 1,725 ppm Bi).

An overlay of drill core sample bismuth ICP assays located at shallow sample depth (less than 100m) has a very good correlation with the bismuth in soil anomalies. Additionally, overlaying of all historic assay data from drilling where Au > 1.0 ppm and the sample depth less than 100m has a very good correlation with bismuth in soil at surface.

Historically, high bismuth assays without significant gold values have not been considered worth following up. Going forward, a greater significance in the association of bismuth and gold is going to be incorporated into the Carscallen exploration program.

Drilling in 2008 defined the southern limit of the Zamzam Zone where continuity between closely spaced drill holes was lost in the southerly direction. About 100m south-west of the area of lost continuity (TW-08-ZZ-1) recent soil sampling data indicates there is a prominent and persistent north-south oriented bismuth in soil anomaly. The bismuth in soil anomaly is about 350 meters long and generally located in a shallow trough immediately adjacent and west of a north-south trending persistent bedrock ridge. This ridge is clearly visible on the LIDAR dataset and has also has been observed in the field, where historical trenching has been investigated at several locations along its length. It is notable that the soil sample locations that define the bismuth in soil anomaly are in relatively undisturbed terrain, increasing confidence in their significance.

Gold in soil anomalies are present along the northern extension of the primary Target A structure and the area of the NNE mineralized fault discovered by CAR-17-5 (12.10ppm Au, 109ppm Bi over 0.65m @ 9.70m). This soil data reinforces Melkior’s commitment to continue with exploring Target A as defined in the 2017 Exploration Plan.

The largest bismuth in soil anomaly defined is co-incident with the Big Marsh -Mahoney Lake drainage system. There is a substantial bismuth in soil anomaly that starts at the junction of Big Marsh drainage – Mahoney Creek and extends along the inferred fault system to the northern limit of the area sampled. This northern limit of the bismuth in soil anomaly is 100m south of a historic 120 ppb gold in soil anomaly. Arsenic and copper are both anomalous and co-incident with the bismuth in soil anomaly. Melkior is evaluating the hypothesis that the Big Marsh -Mahoney Lake drainage system is a north-south fault system and linked by a splay fault to the Porcupine Destor Fault Zone. The 2017 soil sampling program covers one kilometer of the interpreted fault zone.

The integration and evaluation of the new soil assay information is ongoing. It will be incorporated into Melkior’s Carscallen- Exploration Plan 2018, available in the near future.

Jim Deluce, CEO of Melkior remarks, “Melkior believes that our perseverance combined with an intelligent exploration approach in Carscallen will be rewarded.”

Wade Kornik, P.Geo., has approved the information contained in this release. Mr. Kornik is the Exploration Manager of the Company and is Qualified Person as defined by National Instrument 43-101.


Keith James Deluce, CEO

For more information, please contact:

Melkior Resources Inc.

E-mail: [email protected]

Tel: 705-267-4000