Bunker Hill Mining Expects Its PEA Resource Base to Significantly Increase Following Receipt of Initial Drill Results

TORONTO - Bunker Hill Mining Corporation reported that initial drill results from the ongoing exploration program at its Bunker Hill Mine located in Idaho’s Silver Valley has confirmed mineralization in levels above the current resource boundary, which is expected to materially increase the resource base for the Preliminary Economic Assessment (PEA). The PEA, to assess the potential to quickly restart production remains on track for publication in late Q1-2021 as the study is advancing according to plan with a full team of technical consultants retained. The Company believes that there is strong potential to quickly restart production, which stopped in the early 1980s, for minimal capital by focusing on the de-watered upper areas of the mine, utilizing existing infrastructure. The rapid restart would allow the Company to self-fund its ongoing high grade silver exploration, immediately crystalize the value created through exploration, and demonstrate its ability to successfully operate the mine based on modern techniques.

Sam Ash, CEO, said, “We are excited by the continued progress in our drill program, the initiation of our PEA, and the initial assay results that are coming back. The combination of expansive base metal mineralization with high grade silver intercepts continues to support our belief that in addition to base metals, silver mineralization at Bunker Hill has the potential to create significant value. We have been prioritizing the samples to obtain information for the drilling areas which will support the PEA to ensure that our initial study incorporates an expanded and upgraded resource.”

The ongoing drilling campaign is being informed using its recently completed 3D geologic model which leverages historical mine data collected over a 95-year period. Data has been inputted from over 180,000 meters of drilling from 3,500 historic drill-holes and hundreds of detailed historic mine geology maps capturing all major faults and veins, alterations, mineralization and stratigraphy. A video summarizing the digitization process can be viewed at the following link

The current exploration program consists of 4,570 meters (15,000 feet) of diamond drilling from surface and underground, with 1,921 meters completed and the remainder expected to be drilled in the upcoming weeks. Exploration is being focused on targets in the upper levels of the mine located in close proximity to existing infrastructure with the aim being two-fold: Expand the UTZ mineralized area to support the PEA: This drill program is intended to define the mineralization to a level of confidence that will results in a significant expansion to the current resource and support early-stage mining in the PEA. Resource Development Associates, working in concert with Range Front Geologic Services, are progressing the geologic modeling, block model development, and grade estimation. With the onset of winter planned surface drilling has stopped and drilling is continuing from underground drill locations; and Explore high grade silver veins.  The program is planned to drill test several targets that have significant silver potential in proximity to the Sierra Nevada, and Veral veins. All of these silver targets are close to existing infrastructure and have the potential to add high-grade resources to the upper level inventory and add greatly to the value of any restart plan. Drilling high grade Silver targets has transitioned from surface to underground with drilling currently focused on the 9 level targeting high potential exploration targets. A total of 1,700 meters of drilling are planned within the current drilling program.

The Company advises that it does not propose to base its production decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. The Company further cautions that a PEA is preliminary in nature. No mining study has been completed. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized.