Eskay Mining Confirms New Precious Metal-Rich VMS System at Scarlet Knob-Tarn Lake at Similar Stratigraphic Position to the Eskay Creek Deposit

TORONTO, January 18, 2023 - Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTCQX:ESKYF)(Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce it has confirmed the presence of a precious metal-rich volcanogenic massive sulfide ("VMS") mineralized system at Tarn Lake-Scarlet Knob in the northeastern part of its 100% controlled Consolidated Eskay Property in the Golden Triangle, British Columbia.

Highlights

• During the 2022 exploration campaign, Eskay Mining's geologic team confirmed the presence of a major new precious metal-rich VMS mineralized system at Scarlet Knob-Tarn Lake.
• A spot rock chip sample collected at the Scarlet Knob VMS target on the eastern margin of Bruce Glacier has yielded 56.9 g/t Au and 154 g/t Ag. This sample displays sulfide mineralogy and textures indicative of a VMS origin and, importantly, is hosted by a stratigraphic unit that hosts the main Eskay Creek deposit located approximately 7km to the west.
• Additional spot rock chip samples collected by Eskay's exploration team at Scarlet Knob and Tarn Lake in 2022 as well as recently identified legacy sample data confirms the presence of robust Au- and Ag-rich VMS mineralization along a northeast trending zone approximately 500m long. Gold grades of these other samples range from less than 0.1 g/t up to 56.6 g/t and silver grades range from less than 1 g/t up to 142 g/t.
• A spot rock chip sample collected along the western margin of Bruce Glacier at Tarn Lake yielded 9.2 g/t Au and 9.3 g/t Ag. Its visual appearance and mineralogy are nearly identical to that of the high-grade sample collected approximately 800m to the east at Scarlet Knob.
• Additional spot rock chip samples collected by Eskay's exploration team at Tarn Lake in 2022 as well as recently identified legacy sample data confirms the presence of significant Au- and Ag-rich VMS mineralization over an area approximately 300m across. Gold grades of these other samples range from less than 0.1 g/t up to 7.8 g/t and silver grades range from less than 1 g/t up to 174 g/t.
• Preliminary results from the first ever drill holes completed at Tarn Lake include 4.10 g/t Au and 98.30 g/t Ag (5.39 g/t Au Eq) over 5.43m within 2.47 g/t Au and 72.20 g/t Ag (3.42 g/t Au Eq) over 11.34m within 0.80 g/t Au and 22.97 g/t Ag (1.10 g/t Au Eq) over 41.41m in hole TN22-10 providing drill confirmation of a significant new VMS discovery.
• Eskay Mining's geologic team think that mineralization at Tarn Lake and Scarlet Knob potentially connect under the rapidly receding terminus of Bruce Glacier. Previously reported BLEG (stream sediment) geochemical anomalism displayed by several samples in this region may be derived in part from the Scarlet Knob-Tarn Lake VMS system.
• Given the Scarlet Knob-Tarn Lake VMS system shares strong similarities to the Eskay Creek deposit, Eskay Mining is planning to conduct first ever drilling at Scarlet Knob as well as aggressive follow up drilling at Tarn Lake in 2023.

"A major focus of Eskay Mining's 2022 exploration program was identifying new precious metal-rich VMS mineralization in underexplored areas of the large Consolidated Eskay Property," commented Dr. John DeDecker, VP of Exploration for Eskay Mining Corp. "At Scarlet Knob-Tarn Lake, our team has confirmed the presence of a second major trend of Au- and Ag-rich VMS mineralization at the northern end of the Eastern anticline which runs parallel to the Eskay anticline that hosts the world class Eskay Creek deposit located approximately seven km to the west. Our rock chip samples from this area, some of which returned bonanza gold grades, display a similar appearance to mineralization at Eskay Creek. Importantly, the host rock at Scarlet Knob-Tarn Lake is the Eskay rhyolite, the same stratigraphic host unit at Eskay Creek. Preliminary results from our maiden drill program at Tarn Lake confirm the discovery of a significant zone of Au- and Ag-rich VMS mineralization. We are particularly excited about the potential connectivity between Tarn Lake and Scarlet Knob. We are planning maiden drilling at Scarlet Knob and aggressive follow up drilling at Tarn Lake in 2023."

"Over the past three years, our geological team has made extraordinary progress toward our mission of discovering new high-grade VMS deposits across the Consolidated Eskay Property," commented Mac Balkam, CEO of Eskay Mining. "Our large property has the right geology to host deposits comparable to the original Eskay Creek Mine, and we all know that VMS deposits typically occur in clusters. Our team's 2022 work in the Scarlet Ridge-Tarn Lake trend, 7 Kilometers due east of the original mine, shows very encouraging gold and silver results from both rock chip samples and drill core. A rock chip sample from Scarlet Knob returned 56.9 g/t gold and 154 g/t silver, has an appearance similar to high-grade mineralization at Eskay Creek and is hosted by the same rock units as those at Eskay Creek. When plotted with legacy results including a 56.6 g/t gold and 32 g/t silver sample, a 500m long high-grade trend is now evident, with additional samples ranging from 1-10 g/t Au extending a further 900 m to the northeast. Straight across Bruce Glacier and 800m to the west, rock chip samples have defined a 300m wide zone of gold- and silver-rich VMS mineralization. We were able to get a few widely spaced holes in this target before the end of season and were able to confirm this discovery with solid drill results. There are compelling signs that Scarlet Knob and Tarn Lake connect under the toe of Bruce Glacier. I am delighted that our 2022 results validate our thesis that Eskay Consolidated has multiple precious metal-rich VMS targets with potential like that of the original mine. The Eskay team is very excited about conducting follow up work at Scarlet Knob-Tarn Lake as well as at TV-Hexagon-Mercury and SIB-Lulu. The stage is set for an exciting 2023 exploration program."

Tarn Lake and Scarlet Knob

During the 2022 exploration campaign, a 300m wide zone of Au- and Ag-rich VMS mineralization was discovered by Eskay Mining's geologic team at Tarn Lake (Figure 1). The highest-grade spot rock chip sample, collected along the western margin of Bruce Glacier, yielded 9.2 g/t Au and 9.3 g/t Ag (Figure 2). Additional spot rock chip samples collected at Tarn Lake in 2022 as well as recently identified legacy sample data bear gold grades ranging from less than 0.1 g/t up to 7.8 g/t and silver grades ranging from less than 1 g/t up to 174 g/t.

Near the end of the 2022 diamond drill program, Eskay Mining's geologic team completed the first ever drilling at Tarn Lake, a series of widely spaced holes targeting areas underneath the location from which promising surface samples had recently been collected (Figure 3). Preliminary results from the first ever drill holes completed at Tarn Lake include:

• 4.10 g/t Au and 98.30 g/t Ag (5.39 g/t Au Eq) over 5.43m within 2.47 g/t Au and 72.20 g/t Ag (3.42 g/t Au Eq) over 11.34m within 0.80 g/t Au and 22.97 g/t Ag (1.10 g/t Au Eq) over 41.41m in hole TN22-10, and
• 3.96 g/t Au and 11.86 g/t Ag (4.12 g/t Au Eq) over 1.91m within 1.90 g/t Au and 7.94 g/t Ag (2.00 g/t Au Eq) over 6.95m in hole TN22-12.

A summary of significant preliminary assays from Tarn Lake is presented in a table below. Remaining assays from Tarn Lake drill holes will be reported once they have returned from the lab.

Mineralization at Tarn Lake is associated with sets of east-west trending andesite dikes, interpreted to represent VMS syn-volcanic feeder structures, and occurs as sub-seafloor sulfide replacement of favorable stratigraphic horizons (Figures 4 and 5). It is hosted by the Eskay rhyolite, one of the primary host rocks at the Eskay Creek mine. Assay results show that both the semi-massive and disseminated sulfide mineralization are Au- and Ag-bearing, an encouraging sign indicating that precious metal mineralization may be more extensive in this area.

Spot rock chip sampling at Scarlet Knob in 2022 yielded a notable high-grade sample grading 56.9 g/t Au and 154 g/t Ag. Additional spot rock chip samples collected by Eskay's exploration team as well as recently identified legacy sample data bear gold grades ranging from less than 0.1 g/t up to 56.6 g/t and silver grades range from less than 1 g/t up to 142 g/t. These collectively define a northeast trending zone approximately 500m long.

Rock chip samples from Scarlet Knob, on the eastern flank of Bruce Glacier, bear a strong resemblance to those collected at Tarn Lake, on the western side, some 800m distant (Figures 6 and 7). Like Tarn Lake, mineralization at Scarlet Knob is hosted by the Eskay rhyolite. Eskay Mining's geologic team thinks there is a likelihood that VMS mineralization connects between these two areas underneath the toe of the rapidly receding Bruce Glacier. Further exploration will focus on establishing connectivity along this ~1 km long east-west corridor. Ability to drill through ice in this area is being examined.

Scarlet Ridge and Scarlet Valley

In 2022, Eskay Mining's geologic team identified zones of stockwork and replacement-style VMS mineralization at Scarlet Ridge and Scarlet Valley. Mineralization is associated with east-west trending andesite dikes interpreted to be syn-volcanic VMS feeder structures. Surface sampling and diamond drilling were conducted at both locations, both techniques yielding anomalous gold and silver grades (Figures 8, 9 and 10). Significant drill results are summarized in a table below.

Eskay Mining's geologic team views the hydrothermal alteration and anomalous precious metal concentrations at Scarlet Ridge and Scarlet Valley to be distal components of the VMS system centered around Scarlet Knob-Tarn Lake. Therefore, emphasis will be placed on follow up exploration around the latter location in 2023. SkyTEM data indicates the presence of a significant conductive feature immediately southwest of Tarn Lake in need of field follow up examination (Figure 11).

2022 Exploration Program

The fundamental goal of the 2022 exploration program was to identify new precious metal-rich VMS deposits across the Consolidated Eskay Project through early-stage work including mapping and geochemical sampling, and more advanced work including widely spaced drilling. During the 2022 exploration season, Eskay Mining successfully completed 29,500m of diamond drilling along the TV-Jeff corridor and along the Scarlet Ridge-Tarn Lake trend.

Drill results discussed in this news release come from holes drilled along the Scarlet Ridge-Tarn Lake trend. Significant assays from fifteen drill holes that are part of this release are tabulated in a table below. Holes with no significant results are not listed in this table.

Further analytical data is expected back over the next few weeks. This includes assays from additional drill holes drilled along the Scarlet Ridge-Tarn Lake trend, holes drilled at the TV deposit and analyses from substantial numbers of soil, surface rock chip, and infill BLEG samples from across the project. These will be presented to the market as they become available.

Au Eq and Ag Eq Calculations and True Width:

Note on use of Au eq (Au eq=Au+Ag/76) and Ag eq (Ag eq=Au*76+Ag): Mineralization at the TV and Jeff deposits displays similar characteristics and mineralogy to the Eskay Creek deposit and therefore for Au eq, and Au:Ag, a ratio of 76:1 is used and Au eq and Ag eq values are deemed to be reasonable based on assumed gold recovery (84.2%) and silver recovery (87.3%) as reported in the Eskay Creek Project NI 43-101 Technical Report and Prefeasibility Study, British Columbia, Canada, Effective Date: 22 July, 2021, Prepared for: Skeena Resources Ltd., Prepared by: Absence Engineering Canada Inc.

True widths of reported intercepts are not fully understood at this time but given the moderately dipping tabular nature of these deposits and the steep angle of drilling, Eskay geologists estimate true widths represent approximately 70-90% of the reported drill intercept lengths.

QA/QC, Methodology Statement:

Halved HQ drill core samples are submitted to ALS Geochemistry in Terrace, British Columbia for preparation and analysis. ALS is accredited to the ISO/IEC 17025 standard for gold assays. All analytical methods include quality control standards inserted at set frequencies. The entire sample interval is crushed and homogenized, 250 g of the homogenized sample is pulped. All samples were analyzed for gold, silver, mercury, and a suite of 48 major and trace elements. Analysis for gold is by fire assay fusion followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) on 30 g of pulp. Analysis for silver is by fire assay and gravimetric analysis on 30 g of pulp. Mercury is analyzed using the trace Hg Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) method. All other major and trace elements are analyzed by four-acid digestion followed by ICP-MS.

Historical rock chip sample data is sourced from Assessment Report AR19675 by Granges dated February 7, 1990. Eskay Mining is unable to fully verify this data, and it should be treated as such by the reader.

Dr. Quinton Hennigh, P. Geo., a Director of the Company and its technical adviser, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.

About Eskay Mining Corp:

Eskay Mining Corp. (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the "Golden Triangle," 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (52,600 hectares).

All material information on the Company may be found on its website at www.eskaymining.com and on SEDAR at www.sedar.com.

For further information, please contact:

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 Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

Table of significant Au and Ag results from holes drilled at Tarn Lake (TN), Scarlet Valley (SV), and Scarlet Ridge (SR)

Au Eq and Ag Eq values have all been adjusted to the silver-to-gold ratio of 76:1 for this news release.

Table of Drill Hole Locations and Orientations

Table of select spot rock chip samples from Tarn Lake and Scarlet Knob collected in 2022.

Au Eq and Ag Eq values have all been adjusted to the silver-to-gold ratio of 76:1 for this news release.

(Figure 1: Geologic plan map showing a new interpretation for the distribution of mineralized stratigraphy in the Eskay Creek area with gold in surface samples. Map displays correlative domains where upper Hazelton Group Eskay rhyolite is host to VMS mineralization along the Scarlet-Tarn trend. Also labeled are VMS showings along extensions of the Eskay Anticline to the south at SIB-Lulu, Hexagon-Mercury, TV-Jeff, and Excelsior.)

(Figure 2: Plan map showing distribution of Eskay rhyolite around Bruce Glacier at Tarn Lake - Scarlet Knob. Results for Au and Ag from spot rock chip samples collected in 2022 are shown along with legacy data from previous programs. A large proportion of the 2022 rock chip samples were collected from areas that were covered by glacial ice during the early 1990's when much of the legacy rock chip sampling was conducted. Sulfide mineralization at Tarn Lake (west) and Scarlet Knob (east) show consistently elevated Au and Ag values. This includes a notable high-grade sample yielding 56.9 g/t Au and 154 g/t Ag along the eastern margin of Bruce Glacier, some 800m east of Tarn Lake. Given the east-west orientation of VMS feeder zones in the area, Eskay Mining thinks there is good potential that Au and Ag mineralization connects under Bruce forming a >1km corridor of precious metal-rich VMS mineralization.)

(Figure 3: Leapfrog images showing Au- and Ag-bearing drill core intercepts and rock chip samples from Tarn Lake. Drill traces for holes with pending assays are shown in black. The top image is looking down and has Au and Ag grades noted for select 2022 rock chip samples. The bottom image shows a 100 m thick cross-section centered on the TN22-10 area looking due south. Intercepts in TN22-10, TN22-12, and TN22-6 define an 80 m long, north-south trending zone of Au and Ag mineralization. Long intercepts of highly anomalous Au and Ag indicate that the ubiquitous disseminated sulfides are precious metal-bearing. These broader zones of disseminated sulfide mineralization are cored by higher-grade zones of semi-massive sulfide replacement of the host Eskay rhyolite. Rock chip samples of the extensive sulfide stockwork exposed at the surface indicate Au and Ag mineralization continues to the east towards Bruce Glacier.)

(Figure 4: Core from hole TN22-10 from 90.83-100.00 m showing semi-massive sulfide replacement of the Eskay rhyolite host rock. Hydrothermal alteration at Tarn Lake is characterized by intense silica and sericite alteration of the rhyolite accompanied by ubiquitous disseminated sulfide mineralization. Replacement-style sulfide mineralization is associated with the highest grades and occurs in strongly brecciated and hydrothermally altered rhyolite.)

(Figure 5: Close-up views of styles of sulfide mineralization in core from Tarn Lake. Top: semi-massive sulfide replacement of rhyolite breccia. Rhyolite fragments are intensely silicified and corroded along contacts with sulfide minerals. The highest-grade Au and Ag mineralization is associated with intense sulfide replacement. Bottom: A representative example of disseminated sulfide mineralization. Sulfide minerals variably fill vesicles and replace plagioclase phenocrysts within the rhyolite, creating a disseminated style of mineralization. Sulfide stockwork veins cut the rhyolite and often feed into sulfide disseminations. Disseminated sulfide mineralization is strongly anomalous with Au and Ag, and likely represent zones of weaker sulfide replacement of the rhyolite than the high-grade zones.)

(Figure 6: Photos of spot rock samples and the field localities from which they were collected. The Tarn Lake sample (a & c) is hydrothermal breccia with high-grade gold (9.2 g/t Au) and was collected from a large +20 m outcrop displaying abundant massive sulfide replacement and stockwork. Note, red arrow points to a geologist for scale. Similar rocks are observed ~800 m to the east at Scarlet Knob (b & d) where a stockwork feeder sample yielded precious metal concentrations of 56.9 g/t Au and 154 g/t Ag. At both locations, replacement and stockwork zones are spatially associated with Eskay rhyolite, a host to mineralization at the nearby Eskay Creek deposit.)

(Figure 7: A photo from Tarn Lake showing Scarlet Knob and Scarlet Valley to the east and northeast, respectively. Approximately 800 m of separates Tarn Lake and Scarlet Knob. Rock chip sampling in 2022 included areas that were covered by ice during previous sample programs in the early 1990's.)

(Figure 8: Plan map of the Scarlet Valley area displaying the distribution of exposed gossans and Eskay rhyolite along with the drill traces and a zone of anomalous gold identified from the drilling results. These anomalous Au and Ag occur proximal to the stratigraphic level of the Eskay rhyolite.)

(Figure 9: Leapfrog images showing Au- and Ag-bearing drill core intercepts and rock chip samples from Scarlet Valley. Top is a plan view, and bottom is a cross sectional view looking south. Stockwork and replacement style sulfide mineralization is focused along east-west trending andesite dikes.)

(Figure 10: Leapfrog images showing Au- and Ag-bearing drill core intercepts and rock chip samples from Scarlet Ridge. Top is a plan view and bottom is a cross sectional view looking north. Stockwork and replacement style sulfide mineralization is focused along east-west trending andesite dikes.)

(Figure 11: VMS mineralization along the 4 km long Scarlet-Tarn trend corresponds with SkyTEM conductivity anomalies, just as with the VMS showings on the Eskay anticline to the west. A VTEM aerial EM survey conducted in 2018 provides lower resolution data than SkyTEM but shows a conductive trend extending 2.8 km to the southwest of Tarn Lake that corresponds with a cluster of Au- and Ag-bearing legacy rock chip samples. This suggests that the Scarlet-Tarn trend of VMS mineralization extends further to the southwest along a total strike length of 6.8 km.)

SOURCE: Eskay Mining Corp.