ExGen Resources Inc. Announces Updated 43-101 Resource at Empire

ExGen is pleased to report data from updated NI 43-10 resource estimate for the Empire Mine Project, in Custer County, Idaho, USA (the “Empire Mine”) prepared by Hard Rock Consulting, LLC (“HRC”).

The results of the Empire Mine work programme, to date, were published throughout the period 2017 to present, and can be found in the Company’s news releases filed on SEDAR (www.sedar.com).

Highlights

• New NI 43-101 resource reported at the Empire Mine oxide open pit based on future recovery of copper, zinc, gold and silver increases Measured & Indicated resources increased by 27%
  
• Measured & Indicated open pit resource using a combined metal cut-off grade of 0.36% copper equivalent, compared with the previously reported May 2019 resource using a copper-only cut-off of 0.184%, has increased as follows:

Jason Riley, CEO of ExGen commented: “I am pleased to see the large increase in the polymetallic resource at Empire. Our M+I tonnes increased by 27%, with the gold M+I seeing the largest increase at 56%. Of note, our inferred resource tonnes also increased by an impressive 147%.”

Empire Mine - 2020 Resource Update

In May 2019 an NI 43-101 resource on the oxide copper deposit at Empire was generated for a heap leach SX/EW open pit to recover copper. This heap leach operation would not recover gold and silver unless a separate heap leach precious metals operation was built on completion of the copper leaching operation. With an agitation leach plant to recover copper and zinc followed by a gold/silver Merrill Crowe recovery circuit as an alternative to the heap leach operation it was decided to evaluate the resources based on the recovery of copper, zinc, gold and silver. With the gold price performance since the 2019 resource calculation this has been an increasingly attractive alternative to the heap leach option.

Based on the examination of the distribution of gold, silver, and zinc values, and independent of copper values, from the assays used in the May 2019 Empire oxide resource, HRC estimated this updated NI 43-101 resource using the value of all gold, silver, copper and zinc in the deposit using a combined metal cut-off grade of 0.36% copper equivalent. The Measured & Indicated Empire Mine open pit resource based on a combined metal cut-off grade of 0.36% copper equivalent, compared with the May 2019 resource at a copper-only cut-off of 0.184%, is tabulated as follows:

*Notes:
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are that part of the mineral resource for which quantity and grade or quality are estimated on the basis of limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred mineral resources may not be converted to mineral reserves. It is reasonably expected, though not guaranteed, that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.
Mineral resources are reported at a 0.36% CuEq cutoff. The CuEq is calculated based on the following assumptions: a long-term copper price of US$3.30/lb; gold price of US$1,650/oz; silver price of US$19.25/oz; zinc price of $1.21/lb; assumed combined operating ore costs of US$19.25/t (process, general and administrative and mining taxes); refining costs of $0.10/lb of CuEq; metallurgical recoveries of 85% for copper, 85% for gold; 65% for silver and 60% for zinc and a 2.5% royalty.
These Mineral Resource are considered to be amenable to open-pit mining and are constrained by a conceptual Lersch Grossman pit shell generated on the same costs, metal prices and recoveries used in the above CuEq calculation and an average mining cost of $1.80/t and variable pit slope angles that ranged from 45–52o
Rounding may result in apparent differences between when summing tons, grade and contained metal content. Tonnage and copper and zinc grade measurements are in Imperial units. Gold and silver grades are reported in metric g/tonne units to remain consistent with past reporting formats.

It should be noted that HRC utilised the same assay data to tabulate the current resource estimate that was used for the May 2019 resource. The method of estimation for the resource presented above included the calculation of a copper equivalent cut-off grade of 0.36% so as not to exclude gold, silver and zinc occurring at resource grades in areas where the copper grade alone did not meet the cut-off criteria. This resource estimation did not utilise any new drilling data.

The economic parameters used for this analysis are based upon estimated project operating costs scaled to reflect production rates and expected processing costs, and upon estimated copper recoveries from metallurgical tests completed to date. The CuEq is calculated based on the following assumptions: a long- term copper price of US$3.30/lb; gold price of US$1,650/oz; silver price of US$19.25/oz; zinc price of $1.21/lb; metallurgical recoveries of 85% for copper, 85% for gold; 65% for silver and 60% for zinc. The assumed processing method is a grinding mill followed by an acid tank leach with separate SX/EW circuits for recovery of copper and zinc followed by a tank leach operation for recovery of gold and silver with a Merrill Crowe plant. Table 14-8 summarizes the cost and recovery parameters used in the analysis. Blocks classified as Measured, Indicated, and Inferred were used to define the resource pit shell.

The mineral resource estimate for the Empire Mine resource area is summarized in Table 1-1. The mineral resource estimate is based on all data obtained as of April 27, 2020 and has been independently verified by HRC. Mineral resources are not mineral reserves and do not have demonstrated economic viability such as diluting materials and allowances for losses that may occur when material is mined or extracted; or modifying factors including but not restricted to mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. HRC knows of no existing environmental, permitting, legal, title, taxation, socio-economic, or other relevant factors that might materially affect the mineral resource estimate. Inferred mineral resources are that part of the mineral resource for which quantity and grade or quality are estimated on the basis of limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred mineral resources may not be converted to mineral reserves. It is reasonably expected, though not guaranteed, that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.

The HRC report entitled “2020 Resource Updated for the Empire Mine Project” by HRC for Konnex Resources (20% ExGen US subsidiary) will be filed on SEDAR within 45 days. This report is in imperial units (1 US short ton = 2,000 lbs, 1 metric tonne = 2,204.6 lbs). HRC estimated the mineral resource for the Project based on drill hole data constrained by geologic boundaries with an Ordinary Krige algorithm. Leapfrog Geo V4.4.2 software was used to complete the resource estimate.

The mineral resources for the Project have been estimated in a manner consistent with the NI 43-101 Committee of Mineral Reserves International Reporting Standards (“CRIRSCO”) of which both the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) and Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) are members.

Qualified Person
The scientific and technical data contained in this news release was prepared and reviewed by Kieran Downes, Ph.D., P.Geo., an independent qualified person to the Company. Mr. Downes is responsible for ensuring that the geologic information provided in this news release is accurate and acts as a qualified person pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Environmental, Social, and Corporate Governance
Phoenix is committed to meeting and exceeding the environmental standards required by law as a core value of the Company. The baseline environmental data collected to date will be used for furthering the permitting process, but as importantly, will be used as the building blocks for the Company’s future Environmental, Social, and Corporate Governance (ESG) platform.

ABOUT EXGEN RESOURCES INC.

ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.

For more information on ExGen please contact ExGen Resources Inc.

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.

Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Empire Mine Project and the exploration and development of the Empire Mine Project; the earning of the Option by Phoenix and the potential transfer back to ExGen of the Konnex shares; the exploration and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, completion of a potential feasibility study in compliance with NI 43-101, and the timing for completion of these events; the timing for the completion of exploration drilling and the receipt of exploration information and drill assays; the potential of the underground sulphide mineralization and the potential re-opening of the 700 and 1100 level portals to assist in the analysis of the potential sulphide mineralization. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Empire Mine Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen to raise future equity financing, if needed, at prices acceptable to ExGen; ExGen's current and initial understanding and analysis of the Empire Mine Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Empire Mine Project; the ability of Phoenix to explore and develop the Empire Mine Project; the cost of exploration, including sampling, drilling and assaying, on the Empire Mine Project, the costs of developing the Empire Mine Project and the costs and the ability of Phoenix to produce a feasibility study in compliance with NI 43-101; the costs and work required to re-open the 700 and 1100 level portals; and ExGen's general and administrative costs remaining sustainable. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Empire Mine Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices, in particular copper, gold, silver, and zinc prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Jason Tong Chief Financial Officer Email: jason@catapultgroup.ca