Mr. George Young reports

RELIANCE RESOURCES ENTERS JOINT VENTURE ON HIGHLY PROSPECTIVE PRECIOUS METALS PROJECT IN NEVADA

Reliance Resources Ltd. has entered into a joint venture to explore and develop a previously drilled gold and silver project in the state of Nevada, United States. The project lies in a prolific belt of gold and silver deposits that have historically produced in excess of 25 million ounces of gold (source: Highlands Geoscience summary geological report, October, 2015, submitted to Reliance Resources). The company believes that the property's historical resources can be upgraded to National Instrument 43-101 standards, to be followed by a prefeasibility study. The property is prospective for a modern open-pit operation with heap-leach processing. The deposit shows very good potential for expansion both laterally and at depth.

Highlights

• Joint venture gives Reliance access to an area within a belt of gold and silver deposits that have produced 25 million ounces of gold;
• Low cost entry to Reliance -- $2.6-million (U.S.) staged earn-in by financing project development activities to earn an 80-per-cent interest;
• Additional project opportunities being assessed across the Americas;
• Board in advanced discussions with multiple parties to provide growth financing.

The plans for the property include staking additional claims, compiling all project data into modern software packages, performing a drill program to verify the historical results and upgrade the resource to NI 43-101 standards, completing a new resource calculation, and undertaking a prefeasibility study. Reliance's intent is to move the deposit toward production as quickly as possible.

Since the project is surrounded by additional attractive ground open for staking new claims, details as to its location will remain temporarily confidential for competitive reasons pending the completion of the staking process.

Reliance can acquire 80 per cent of the project in a low-cost earn-in joint venture structured under the following terms:

1. Reliance to earn 50 per cent of the project by spending $1-million (U.S.), of which $500,000 plus the propertyholding costs are to be spent within 12 months of signing the agreement;
2. Reliance to earn an additional 30 per cent of the project by spending an additional $1.6-million (U.S.) within 36 months of signing the agreement;
3. During the 60-day due-diligence period, Reliance to pay the vendor $30,000 (U.S.), of which $25,000 (U.S.) has been paid;
4. At the conclusion of due diligence, Reliance to issue one million shares to the vendor and issue an additional one million shares if the project attains a certain net present value milestone in the planned prefeasibility study.

Reliance will be the operator of the project and will be required to raise funds either through debt or equity. The project is in keeping with Reliance's plans to find and acquire projects in locations favourable to mining development which have the potential for rapid development with low capital and operating cost characteristics and which can attract capital for continuing development efforts. The company is in advanced discussions with a number of potential investors interested in financing Reliance's project development activities.

George Young, Reliance's chairman, commented: "Reliance is committed to creating a vertically integrated precious metals company focused on the Americas, and this joint venture represents just the first step in building such a company.

"We believe now is the right time in the cycle to strengthen our portfolio with many project opportunities being fundamentally undervalued. We look forward to updating shareholders on additional opportunities that we are currently assessing and providing further information on this joint venture."

We seek Safe Harbor.