Mine Pre-Development Work Now Complete at Proposed San Albino Open Pittable Gold Deposit
Trenching Returns 7.5 Metres of 49.34 G/T Gold & 73.8 G/T Silver Along StrikeVancouver, August 3, 2016 - Golden Reign Resources Ltd. (TSX-V: GRR) (the "Company" or "Golden Reign") is pleased to report results from further mine pre-development work at its wholly-owned San Albino Gold Deposit located in Nueva Segovia, Nicaragua.
Pre-development work consisted of infill metallurgical drilling, grade-control drilling, condemnation drilling and surface trenching (Figure 1). The pre-development program commenced in March 2016, with the objective of obtaining additional information regarding the proposed starter pits - improving the Company's understanding of structural controls, providing detailed grade control information, and affirming the continuity and grade of the "in pit" resources.
Area of Initial 6 Months of Planned Open-Pit Mining Activity (West Pit)
In the area planned for initial mining activities, Golden Reign excavated a large pit to expose the San Albino zone mineralization previously identified and exposed in trench SA13-TR18 that returned 5.4 metres of 7.72 g/t gold and 9.0 g/t silver. High-grade sample intervals from pit SA16-EXPPIT-SA13-TR-18 include:
Along Strike
| - | 7.5 metres of 49.34 g/t Au and 73.8 g/t Ag |
| including | 1.5 metres of 110.50 g/t Au and 142.0 g/t Ag |
| - | 9.0 metres of 40.60 g/t Au and 65.7 g/t Ag |
| including | 1.5 metres of 165.75 g/t Au and 213.0 g/t Ag |
| - | 4.5 metres of 50.93 g/t Au and 61.7 g/t Ag |
| including | 1.5 metres of 109.00 g/t Au and 84.0 g/t Ag |
| - | 7.5 metres of 17.76 g/t Au and 41.5 g/t Ag Vertical (across zone but not necessarily true width) |
| - | 2.2 metres of 14.90 g/t Au and 63.0 g/t Ag |
| - | 2.0 metres of 18.40 g/t Au and 59.0 g/t Ag |
Development pit SA16-EXPPIT-SA13-TR-18 successfully exposed and confirmed the continuity of high-grade, open-pittable mineralization at surface, extending over a strike length of 20 metres and down-dip 5 metres. Metallurgical drill hole SA16-MET-40 tested the further down-dip extension of the mineralized zone. Situated approximately 40 metres down-dip of the pit, it returned 8.1 metres grading 4.30 g/t gold and 12.1 g/t silver, including 2.7 metres of 10.69 g/t gold and 22.5 g/t silver (see news release dated June 16, 2016).
In order to highlight the continuity of the high-grade intervals, the Company has utilized a cut-off grade of 1.0 g/t Au, which has reduced the length of certain reported mineralized intersections. Results of all samples above the cut-off grade are presented in Tables 1 and 2 below. The Company recently completed a closely spaced pre-production, reverse circulation, drill program that will assist in verifying the geometry and thickness of the mineralized zone. A total of 191 holes were drilled, totaling 3,239 metres and assay results will be released over the next several weeks.
Other Results within the West Pit - Initial 6-12 Months of Planned Open-Pit Mining Activity
Trenching also targeted the El Jobo mineralized zone. This zone was previously exposed by trench SA13-TR17, where systematic sampling of the entire trench returned, along dip, 29.8 metres grading 4.32 g/t gold and 11.6 g/t silver and included continuous sampling of mineralized schists (country rock) over 11.8 metres that graded 1.16 g/t gold and 5.0 g/t silver.
Highlights from the 2016 surface development work at El Jobo mineralized zone include:
| - | 2.2 metres of 11.94 g/t Au and 36.2 g/t Ag |
| - | 3.7 metres of 5.21 g/t Au and 12.4 g/t Ag |
| - | 3.7 metres of 4.20 g/t Au and 14.8 g/t Ag |
| - | 1.8 metres of 3.18 g/t Au and 10.6 g/t Ag |
| - | 1.7 metres of 2.31 g/t Au and 3.4 g/t Ag |
| - | 1.1 metres of 6.75 g/t Au and 12.9 g/t Ag |
| - | 1.0 metre of 7.65 g/t Au and 9.1 g/t Ag |
| - | 0.9 metres of 7.02 g/t Au and 15.6 g/t Ag |
| - | 0.8 metres of 1.56 g/t Au and 4.3 g/t Ag |
During the 2016 Metallurgical Drill campaign, Golden Reign excavated a drill sump (for return water). Sampling of the sump, SA16-PILA11, returned positive results - extending the mineralized zone along strike for an additional 23 metres. The Company also excavated a cut between trench SA13-TR17 and metallurgical drill hole SA16-MET 32 (0.7 metres of 13.50 g/t gold and 15.0 g/t silver - see News Release from June 16, 2016) confirming the continuity of the El Jobo mineralized zone.
See TABLE 3 below for a complete list of the significant results from El Jobo, applying the cutoff grade of 1.0 g/t Au.
QA&QC Procedures
The Company followed industry standards in their QA&QC procedures. A certified standard sample, or a blank or a field duplicate sample was inserted every 10 samples before the set of samples were sent to the Laboratory. This procedure was applied for all of the trench sampling as well as the drilling.
EIA Study Progressing
The Company and its environmental consultants are compiling the results from work completed for inclusion in the environmental impact assessment (EIA) study application, which is planned for submission to the Nicaraguan Ministry of Environment and Natural Resources (MARENA) in mid-August 2016. The EIA is a key component for obtaining the Environmental Permit. The Mining Permit is to be issued after the Environmental Permit has been received.
Qualified Person
John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release. Mr. Kowalchuk is a senior geologist consulting to the Company.
On behalf of the Board,
"Kevin Bullock"
Kevin Bullock, P.Eng.
CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in exploring the San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.
The Company's prime objective is to bring its San Albino Gold Deposit into production quickly and efficiently, building cash flow to further advance a number of its other highly prospective exploration targets.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
TABLE 1
| From (m) | To (m) | Orientation of Sample | Width (m) | Au (g/t) | Ag (g/t) | Interval Average metres/grades (g/t) |
| SA16-EXPPIT-SA13-TR-18 | ||||||
| 0.0 | 1.5 | Strike | 1.5 | 15.80 | 20.0 | 7.5m of 49.34 g/t Au and 73.8 g/t Ag |
| 1.5 | 3.0 | Strike | 1.5 | 31.10 | 45.0 | |
| 3.0 | 4.5 | Strike | 1.5 | 21.00 | 80.0 | |
| 4.5 | 6.0 | Strike | 1.5 | 42.40 | 75.0 | |
| 6.0 | 7.5 | Strike | 1.5 | 136.40 | 149.0 | |
| 0.0 | 1.5 | Strike | 1.5 | 109.00 | 84.0 | 4.5m of 50.93 g/t Au and 61.7 g/t Ag |
| 1.5 | 3.0 | Strike | 1.5 | 23.80 | 59.0 | |
| 3.0 | 4.5 | Strike | 1.5 | 20.00 | 42.0 | |
| 7.0 | 8.5 | Strike | 1.5 | 46.80 | 90.0 | 7.5m of 17.76 g/t Au and 41.5 g/t Ag |
| 8.5 | 10.0 | Strike | 1.5 | 1.06 | 3.9 | |
| 10.0 | 11.5 | Strike | 1.5 | 2.86 | 17.4 | |
| 11.5 | 13.0 | Strike | 1.5 | 12.50 | 32.0 | |
| 13.0 | 15.0 | Strike | 1.5 | 25.60 | 64.0 | |
| 7.0 | 8.5 | Strike | 1.5 | 11.80 | 14.4 | 9.0m of 40.60 g/t Au and 65.7 g/t Ag |
| 8.5 | 10.0 | Strike | 1.5 | 1.91 | 3.2 | |
| 10.0 | 11.5 | Strike | 1.5 | 2.17 | 23.7 | |
| 11.5 | 13.0 | Strike | 1.5 | 73.30 | 116.0 | |
| 13.0 | 14.5 | Strike | 1.5 | 110.50 | 142.0 | |
| 14.5 | 16.0 | Strike | 1.5 | 43.90 | 95.0 | |
| 8.0 | 10.0 | Strike | 2.0 | 2.70 | 7.7 | 4.0m of 11.80 g/t Au and 34.9 g/t Ag |
| 10.0 | 12.0 | Strike | 2.0 | 20.90 | 62.0 | |
| 9.0 | 11.0 | Strike | 2.0 | 1.08 | 15.0 | 4.0m of 7.39 g/t Au and 21.0 g/t Ag |
| 11.0 | 13.0 | Strike | 2.0 | 13.70 | 27.0 | |
Note: All grades presented are uncut. Above samples are channel samples, collected along strike,
parallel to each other.
TABLE 2
| From (m) | To (m) | Orientation of Sample | Width (m) | Au (g/t) | Ag (g/t) |
| SA16-EXPPIT-SA13-TR-18 | |||||
| 0.0 | 1.2 | Vertical | 1.2 | 1.62 | 10.7 |
| 1.2 | 2.8 | Vertical | 1.6 | 5.43 | 9.6 |
| 0.0 | 1.2 | Vertical | 1.2 | 16.20 | 44.0 |
| 0.0 | 1.7 | Vertical | 1.7 | 16.90 | 43.0 |
| 0.0 | 2.0 | Vertical | 2.0 | 1.50 | 39.2 |
| 0.0 | 2.2 | Vertical | 2.2 | 14.90 | 63.0 |
| 0.0 | 2.0 | Vertical | 2.0 | 18.40 | 59.0 |
| 0.0 | 1.3 | Vertical | 1.3 | 24.90 | 104.0 |
| 3.0 | 4.5 | Vertical | 1.5 | 4.71 | 16.6 |
| 2.2 | 3.7 | Vertical | 1.5 | 6.16 | 7.1 |
| TABLE 2 (continued) | |||||
| From (m) | To (m) | Orientation of Sample | Width (m) | Au (g/t) | Ag (g/t) |
| 0.0 | 1.3 | Vertical | 1.3 | 21.10 | 47.0 |
| 0.0 | 1.7 | Vertical | 1.7 | 17.80 | 88.0 |
| 0.0 | 1.6 | Vertical | 1.6 | 16.30 | 72.0 |
| 0.0 | 1.6 | Vertical | 1.6 | 15.90 | 63.0 |
| 0.0 | 1.4 | Vertical | 1.4 | 4.42 | 11.6 |
| 1.1 | 1.6 | Vertical | 0.5 | 2.40 | 6.4 |
| 1.5 | 2.4 | Vertical | 0.9 | 4.17 | 11.1 |
| 1.7 | 2.6 | Vertical | 0.9 | 9.17 | 8.7 |
| 0.0 | 1.1 | Vertical | 1.1 | 46.20 | 84.0 |
| 0.0 | 1.1 | Vertical | 1.1 | 45.70 | 68.0 |
Note: All grades presented are uncut. Vertical samples are across zone but not necessarily true width.
TABLE 3
| From (m) | To (m) | Orientation of Sample | Width (m) | Au (g/t) | Ag (g/t) | Interval Average metres/grades (g/t) |
| SA16-PILA-11 | ||||||
| 3.5 | 5.2 | Vertical | 1.7 | 2.31 | 3.4 | |
| 0.0 | 0.9 | Vertical | 0.9 | 7.02 | 115.6 | |
| 0.0 | 1.0 | Vertical | 1.0 | 3.31 | 6.8 | 3.7m of 4.20 g/t Au and 14.8 g/t Ag |
| 1.0 | 3.0 | Vertical | 2.0 | 0.37 | 6.0 | |
| 3.0 | 3.7 | Vertical | 0.7 | 16.40 | 51.6 | |
| SA16-PILA-12 | ||||||
| 0.0 | 1.8 | Vertical | 1.8 | 1.77 | 5.9 | |
| 3.8 | 4.4 | Vertical | 0.6 | 1.23 | 8.4 | |
| 0.0 | 1.4 | Vertical | 1.4 | 12.60 | 25.0 | 3.7m of 5.21 g/t Au and 12.4 g/t Ag |
| 1.4 | 3.1 | Vertical | 1.7 | 0.09 | 1.1 | |
| 3.1 | 3.7 | Vertical | 0.6 | 2.49 | 15.1 | |
| SA16-CUT-SA13-TR-17 | ||||||
| 0.0 | 0.7 | Vertical | 0.7 | 34.50 | 47.2 | 2.2m of 11.94 g/t Au and 36.2 g/t Ag |
| 0.7 | 2.2 | Vertical | 1.5 | 1.41 | 31.1 | |
| 0.0 | 0.6 | Vertical | 0.6 | 3.02 | 6.5 | 1.0m of 7.65 g/t Au and 9.1 g/t Ag |
| 0.6 | 1.0 | Vertical | 0.4 | 14.60 | 13.0 | |
| 0.0 | 0.8 | Vertical | 0.8 | 1.56 | 4.3 | |
| 0.0 | 0.5 | Vertical | 0.5 | 11.20 | 19.2 | 1.1m of 6.75 g/t Au and 12.9 g/t Ag |
| 0.5 | 1.1 | Vertical | 0.6 | 3.05 | 7.7 | |
Note: All grades presented are uncut. Vertical samples are across zone but not necessarily true width.
FIGURE 1
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