Updated Mineral Resource Estimate At Chita Valley Project

TORONTO, ON - Minsud Resources Corp. completed 59 HQ diamond drill holes totaling 9,114 meters ("m") in 2011, 2014, 2015 and 2016 in the southern Chita Porphyry sector of the Chita Valley Project. Four historical holes completed in 1969, three holes from 1976 and one RC hole from 1996, most of which have been re-sampled and re-analyzed by Minsud, are added to the drilling database. The total database utilized for the updated Mineral Resource Estimate includes 66 core holes and 1 reverse circulation hole totaling 10,158 m and 150 m, respectively for a combined total of 10,308 m. The drill holes tested a substantial zone of Cu-Au-Ag-Mo m ineralized multi-stage vein systems and hydrothermal breccias.

In March 2015, Minsud retained P&E Mining Consultants Inc. of Brampton, Ontario to review project data and prepare a Technical Report that complied with Canadian National Instrument 43-101 standards. The report included an initial Mineral Resource Estimate at a 0.3% Cu cut-off of 18.3 million tonnes averaging 0.44% Cu, 0.07 g/t Au, 2.4 g/t Ag and 0.019% Mo estimated under the CIM definition standards. In October 2015, Minsud again retained P&E to review more recently obtained project data and prepare an updated Technical Report and updated Mineral Resource Estimate. The second report included Mineral Resource Estimate at a 0.3% Cu cut-off of 31.5 million tonnes averaging 0.45% Cu, 0.07 g/t Au, 2.2 g/t Ag and 0.017% Mo estimated under the CIM definition standards(3). All mineral resources were classified as Inferred category. The Technical Reports dated June 19, 2015 and February 1, 2016 are publically filed under the Company's profile at www.sedar.com.

In December 2016, Minsud again retained P&E Mining Consultants Inc. to prepare an updated Mineral Resource Estimate. In P&E's opinion, the drilling, assaying and exploration work of the Chita Porphyry supporting this Mineral Resource Estimate are sufficient to indicate a reasonable potential for economic extraction. All Mineral Resources at a 0.3% Cu cut-off were classified as Inferred category based on the geological interpretation, semi-variogram performance and drill hole spacing.

The mineralized sections include disseminated sulphides as well as A, B and D-type veins hosted by multiple stages of epizonal intrusions and hydrothermal breccias. The complex mineralization styles are not conducive to the classical concepts of true thickness measurement, therefore vertical thickness determinations that would conform to conceptual pit design parameters are used instead. Lithological units, alteration patterns and a typical cross section. All pertinent lithological, alteration and magnetic features extend beyond the current drilling pattern.

Minsud is encouraged by the generally consistent elevated concentrations of Cu, Ag and Mo as well as the more localized anomalous Au values. With maximum elevation in the sector below 3,100 m ASL (meters above mean sea level) field conditions are benign on a year round basis and no active alpine glaciers are possible below approximately 4,100 m ASL.

The company plans to continue investigating the commercial possibilities for processing and recovering the key metals while at the same time conducting additional outline and definition drilling to further delimit the deposit and evaluate the grade distribution of the mineralization.

Carlos Massa, Minsud's President & CEO, said, "We are very pleased with the results of the modest but effective 2016 exploration program, highlighted by an approximate 17% increase of in-pit Inferred Mineral Resource over the 2015 Resource Estimate."

The Chita Valley Project is a large exploration stage porphyry situation with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated gold and silver-bearing polymetallic veins. San Juan Province has a robust mining sector and recognizes the important economic benefits of responsible development of its substantial mineral resource endowment.