ExGen Announces Sulphide zone assays 8.38% over 0.5m

VANCOUVER, Sept. 02, 2021 - ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) ("ExGen", the "Company") is pleased to report that Phoenix Copper Ltd. (the Operator of the Empire Mine Project, "Phoenix") has reported the first analytical results from the 2021 Deep Sulphide core drilling program, under the oxide open pit, at the Empire Mine in Idaho, USA ('Empire'). ExGen owns 20% and Phoenix owns 80% of Konnex Resources, Inc. ("Konnex"), which holds the leases and claims to the Empire Mine Project. ExGen further has a 2.5% NSR royalty on the Empire Mine Project and owns 1,330,000 common shares of Phoenix.

Program Highlights

• Assay results from the first Hole KXD21-02 intercepts high-grade mineralisation across a suite of metals

• Significant intercept of 8.38% copper in the underground sulphides
• Copper, gold, silver and zinc mineralisation intercepted in the oxide zone of the proposed open pit
  

• Hole KXD21-02

Open Pit Oxides

• At 86.9 metres ('m') depth 0.8 m of 1.10 grammes per tonne ('g/t') gold, 80.70 g/t silver, 1.44% copper
• At 98.1 m depth 0.5 m of 258 g/t silver, 1710 ppm (0.17%) tungsten
• At 142.6 m depth 5.0 m of 19.3 g/t silver, 0.77% copper, incl. 1.7 m of 1.1% copper, 1.08% zinc
  
  Underground Sulphides (below 170 m)
  

• At 185.9 m depth 2.0 m of 0.38 g/t gold, 34.38 g/t silver, 2.28% copper
• At 187.5 m depth 0.5 m of 1.31 g/t gold, 120.0 g/t silver, 8.38% copper

• Updated open pit resource to include oxide assays in due course

• Anomalous molybdenum and tungsten mineralisation also intercepted

• Sulphide assay results provide verification of the 6% to 8% smelter grades reported from pre-WWII production

• Samples from holes KXD21-03 through KXD21-05 have been shipped for assay to ALS Laboratories in Nevada, USA

• A total of 967 m of the 2021 4,500-metre-deep sulphide program have been completed to date

Core hole KXD21-02, the first core hole of the Deep Sulphide drilling program that reached its targeted depth, not only intercepted high-grade copper, silver, gold, lead and zinc in the sulphide zone, but also intersected good copper, gold, silver and zinc mineralization in the oxide zone from within the proposed copper oxide pit boundary, as it passed through the oxide zone into the sulphides. In addition, the drill hole intercepted anomalous molybdenum and tungsten mineralization. Table 1 includes the interval 173.4 metres to 185.9 metres, which was previously reported as transitioning from 25% to 75% total sulphides identified in the preliminary core logging, shows the increase in metal grades across that zone. The assays show that non-copper bearing sulphides, including pyrite, make up some portion of the total.

KXD21-02 was collared in the near surface oxide deposit and drilled through roughly 170 m of oxide before reaching sulphide mineralization. Assays within the shallower oxide zone include 5.0 m of 19.3 g/t silver and 0.77% copper, including 1.7 m of 1.1% copper, 1.08% zinc, 2.0 m of 0.78 g/t gold, 64.09 g/t silver, and 0.98% copper that included 0.8 m of 1.10 g/t gold, 80.70 g/t silver, 1.44% copper, and 0.5 m of 258 g/t silver and 1710 ppm tungsten. The mineralized values in the oxide zone occur just inside the proposed oxide pit boundary and will be included in an updated oxide resource calculation in Q4 2021. Assays within the sulphide zone include 2.0 m of 0.38 g/t gold, 34.38 g/t silver, 2.28% copper, which includes 0.5 m assaying 1.31 g/t gold, 120.0 g/t silver, and 8.38% copper. Other notable intercepts include 0.2 m of 60.7 g/t silver with 3.61% zinc, and 0.2 metres of 68.40 g/t silver with 2.61% lead and 4.50% zinc. KXD21-02 was completed at a depth of 241 m in unmineralized rock. The true thickness of the intercept has not been defined by the single drillhole but will become more defined with additional drilling.

The mix of metals in the recent assays from KXD21-02 highlights the polymetallic nature of the Empire ore zones. The high-grade nature of the sulphide veins encountered in this drill hole are particularly important as they are verification of the 6% to 8% smelter grades reported from pre-WWII production. KXD21-02 is the first drill hole of this year's planned 4,500 metre Deep Sulphide exploration program. Follow-on drilling will use the geological and assay date from this hole for targeting extensions to this known intercept, as well as targeting other similar zones.

In addition to the elevated copper, gold, silver, lead and zinc values in the KXD21-02 assays, tungsten is present in anomalous concentrations as high as 1710 ppm (0.17%) and molybdenum as high as 1365 ppm (0.14%). These values are consistent with the values anticipated by Nigel Maund in his 2019 Empire Mine report "A REPORT ON A FIELD VISIT MADE TO THE EMPIRE Cu - Au - Ag - (Zn) PROJECT, IDAHO, USA", wherein evidence is presented for an underlying molybdenum/tungsten porphyry at Empire. (https://phoenixcopperlimited.com/documents/maund-report-april-2019.pdf )

Drill holes KXD21-03 through KXD21-05 have also been completed to date. Core samples from these drill holes have been shipped for assay to ALS Laboratories in Nevada, USA. Photos of the core can be viewed on the Phoenix website at https://phoenixcopperlimited.com/

Table 1 - Empire Drilling Results 1 September 2021*

*(Hole KXD21-01 was abandoned at a depth of 68 metres due to interference with underground workings).

Table 2 - Drill Hole Details

QUALITY ASSURANCE AND QUALITY CONTROL PROTOCOLS

Rock, drill core and reverse circulation samples were analyzed by ALS Global, Reno, an ISO/IEC 17025:2005 accredited facility. Copper, zinc, silver, lead, molybdenum, and tungsten were determined by ICP method. Copper, zinc, and lead >1% ICP are assayed using four-acid digestion and silver >100ppm by four acid digestion, whereas gold was determined by a 30gm fire assay followed by atomic absorption. Standards, duplicates and blanks were inserted into the sample stream for QA/QC purposes. Blanks and duplicates were inserted roughly every 50ft and standards were inserted roughly every 100ft. Core samples are saw cut in half and stored in a secure facility. RC chips and channel samples are stored in the same secure facility. All samples are delivered to the laboratory under chain of custody protocol and submitted using sub-form sample numbers.

Environmental, Social, and Corporate Governance

ExGen 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.

Qualified Person

Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.

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 5 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 observations made on drill core from the diamond drilling program on the Empire Mine Project; the further exploration and development of the Empire Mine Project; the exploration and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, and permitting. 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; 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: the possibility that the analytical results from future core sampling does not return significant grades of copper, gold, silver, zinc, lead or any other molybdenum by-products; uncertainties relating to interpretation of drill results and the geology; continuity and grade of mineralization; there is no certainty that the ongoing work programs will result in significant or successful exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; 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.