Mr. Lyle Davis reports

DRILL PROGRAM TO COMMENCE ON OCROS PROJECT, ANCASH, PERU

Further to the company's news release of Aug. 19, 2016, Condor Resources Inc. has been advised by Compania Minera Casapalca SA that Casapalca has filed its iniciacion de actividades with the Peruvian Ministry of Energy and Mines for the Ocros project. This filing is required prior to commencement of the drill program.

Condor owns 85 per cent of the Ocros copper project. As previously announced, the Ocros project is permitted for up to 24 drill holes. Access roads and drill pads have been constructed since receipt of the drill permit in August, and the drill rig is scheduled to be mobilized shortly, with drilling expected to start by mid-October. Proposed drill hole locations can be found on the company's website.

Sampling on two of the 1950s era adits at the Ocros porphyry project has confirmed porphyry-style copper, gold and silver mineralization, which mineralization remains open laterally, to the west and to depth. The historic Eldorado mine exploited a late-phase, high-grade copper sulphide vein, which was mined westward into wall rocks consisting of the potassic altered portion of a well-mineralized porphyry copper system. To the best of the company's knowledge, exploratory diamond drilling has never been completed on the copper porphyry system in the area of the adits. Systematic sampling of the old adits by the company in 2014 and 2015 yielded greater than 0.55 per cent copper over a horizontal length up to 326 metres on two separate levels (see the company's July 7, 2015, news release).

The objective of this drill program is test the continuity of the mineralization over an approximate area of 1.5 square kilometres centred around the historic adits, where the mineralization has been confirmed.

Casapalca may earn a 51-per-cent interest in the Ocros project by completing 6,000 m of diamond drilling and making cash payments totalling $250,000 (U.S.) over the next three years, with a further option to increase its interest at Ocros to 70 per cent by completing an additional 4,000 m of diamond drilling (or work equivalent) and by making a further payment of $300,000 (U.S.).

We seek Safe Harbor.