Sokoman Iron Corporation: Provides Exploration Update

Puslinch - Sokoman Iron Corp. TSX-V SIC (the “Company”) is pleased to provide the following update on recent and proposed exploration activities. The company is pleased to report that it was successful in closing its recent placement and that the offering was fully subscribed. The funds will be used to advance its 100% owned Startrek Antimony (Sb) project in central Newfoundland, 20 kilometers southeast of Gander and 70 road kilometers northeast of the idle Beaver Brook Antimony Mine. The Beaver Brook Mine is currently under care and maintenance and owned by China’s Hunan Nonferrous Metals Corporation Limited, a subsidiary of China Minmetals Corporation.

Recent closures of antimony mines due to resource depletion have caused a tight supply of antimony concentrates in the market. The antimony price has been on the rise since early April, and the price gain was about 20% in Q2, 2016. According to Metal Bulletin insight, antimony prices are likely to rise further in the second half of 2016. Below is a chart reflecting antimony price movement in the past four months.

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The company is proposing a series of 2-4 holes (total of 300 meters) to test Sb mineralization uncovered in late 2015 that returned 1.45% Sb over 3.25 meters, including 3.10% Sb over 1.25 meters. The channel sampling was carried out in a trench (Red Fox Zone) excavated to explain a 1900 ppm Sb soil anomaly. Mineralization observed in washed bedrock consists of thin stringers and bands of semi-massive to massive stibnite/pyrite/arsenopyrite ranging from 1 mm to several centimeters in thickness over a 4 meter wide zone at the extreme western end of the trench. The mineralization is hosted within black, carbonaceous shale. The strongest results were from the final eight samples cut (192684 to 192691). All eight samples returned greater than 440 ppm Sb (maximum detection limit for Sb) and were subject to over limit assaying. The maximum value returned was from the last sample cut (192691) which returned 3.30% Sb over 0.50 meters. The weighted average grade for the last two samples (192690 and 192691) retuned 3.31% Sb over 1.25 meters.

The trenching program focused on soil geochemical results from the 2014 soil sampling program which returned antimony (Sb) values ranging from below detection (5 ppm) to a maximum of 4500 ppm Sb (0.45% Sb). A total of 34 soil samples (out of 110 total soil samples) returned values in excess of 100 ppm Sb. In addition, a total of nine samples returned values greater than 20 ppb Au to a maximum of 181 ppb Au. The anomalous Au values correspond closely with moderate to strong Sb values. The coincident Sb and Au anomaly is currently 500 meters in length and up to 100 meters in width and open to the north and south. The grid was centered on a zone of Sb bearing sub-crop located by the property vendors in 2013 that returned Sb values in grab samples up to 1.83% Sb.

Weakly anomalous gold was also reported from the Red Fox Zone with a maximum of 68 ppb Au reported. Gold values up to 1.78 g/t Au, has been reported by previous workers in grab samples from elsewhere on the property.

Timothy Froude, P. Geo., Interim CEO states: “The success at Startrek is quite positive and represents a high priority drill target at the Red Fox Zone. In addition, there are still a large number of untested soil anomalies that could also represent other zones of antimony mineralization on the project. Our goal of defining a new antimony deposit in central Newfoundland has been given a strong boost by this discovery and we are encouraged by the recent rise in the price of antimony”

The Startrek Project is host to several previously known antimony and gold occurrences the majority of which have never been drill tested. Due diligence grab sampling carried out by third parties in 2013 returned the following values from widely spaced areas on the Startrek property:

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This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101 and Interim CEO for Sokoman Iron Corp. For further information please contact Timothy Froude at 709-765-1726, or by email at tfroude@sokomaniron.com


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.

Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Sokoman Iron Corp. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Sokoman Iron Corp.