ExGen Resources Inc. Announces Empire Mine Gold Recoveries Exceed 97% Using Environmentally Friendly Reagent

Highlights

• Precious metals tests performed on samples from the Empire open pit deposit using non-toxic ammonium thiosulfate (“ATS”) reagent resulted in high gold recoveries of 97.8% and 97.7%, and silver recoveries of 69.8% and 78.2%, respectively
• ATS reagent consumption comparable to sodium cyanide in back-to-back bench scale tests
• This development will have a positive impact on the permitting timeline for possible gold production at Empire as there is no longer be the requirement to permit a cyanide operation
• Pilot scale test plant now being prepared at AuRIC’s laboratory in Salt Lake City before commencing small scale pilot testing at the Empire Mine MIne site

Jason Riley, CEO of ExGen commented: “We are pleased to see the excellent recoveries of gold from the cyanide alternative ATS reagent. Should further testing confirm the recoveries at a larger scale, we are hopeful this could have a positive impact on the permitting timeline for potential gold and silver production at Empire.”

Empire Mine – Gold and Silver Metallurgical Recovery

As part of the Company’s ongoing Empire Mine work programme, samples amounting to 400 pounds were collected from outcrops near the location of channel samples analysed in 2018. The head-grade of the 400-pound sample assayed at 12.8 g/ton gold. The sample was submitted to AuRIC Metallurgical Laboratories in Salt Lake City, Utah for cyanide-alternative laboratory and bench scale agitated-tank leach testing.

AuRIC performed 4 laboratory scale amenability tests and 2 bench scale extraction tests using sodium cyanide lixiviant, and 4 laboratory scale amenability tests and 2 bench scale extraction tests using the non-toxic ammonium thiosulfate lixiviant (ATS), on splits from the primary sample. The results of this test work indicate that ATS works equally as well as sodium cyanide on both the laboratory scale samples (30g to 250g) and the bench scale samples (3,000g). Gold recovery using ATS on the 2 bench samples resulted in 97.8% and 97.7%, and silver recovery was 69.8% and 78.2% after 6 hours of leaching. ATS reagent consumption for both tests was 4.32% and 4.42%, respectively. Tables 1 and 2 show the results of ATS 6-hour leach testing.

By comparison, the sodium cyanide gold recoveries on splits of the same sample were 97.8% and 97.7%, and silver recoveries of 68.1% and 65.5% following 6 hours of leach time. The sodium cyanide reagent consumption for both tests was 6.00%. A detailed laboratory report titled “Laboratory and Bench Scale Metallurgical Extraction Tests Performed Using Sodium Cyanide and Ammonium Thiosulfate Leaches on a Composite Sample of Magnetite Ore from the Empire Mine, Custer CO, ID” can be viewed on the Company’s website at www.phoenixcopperlimited.com/reports.

Qualified Person
The scientific and technical data contained in this news release was prepared and reviewed by Kieran Downes, 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.

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.

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

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. The expanded 3.5 km strike length of the Empire Mine property and the potential for an enlarged scale opportunity. The potential for the RedStar Zone and the Horseshoe Block to host copper mineralisation similar to that in the Empire Block. The potential for the RedStar Zone and the Horseshoe Block to host further mineralization of a lead and silver system. 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 and its partners to raise future equity financing, if needed, at prices acceptable to ExGen or its partners; 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 or successful 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.