Mr. Cliff Davis reports

NEVSUN REPORTS LOWER ZONE DRILL RESULTS AT TIMOK

Nevsun Resources Ltd. has released new assay results from drilling of the Lower zone at the company's Timok copper-gold project.

Highlights

• New porphyry copper intersections include:
  • TC150073/TC160073B: 686.0 metres at 0.89 per cent copper and 0.16 gram per tonne gold from 1,104 m;
  • Including 280.0 m at 1.11 per cent Cu and 0.18 g/t Au;
  • And 102.0 m at 1.00 per cent Cu and 0.17 g/t Au;
  • And 58.0 m at 1.26 per cent Cu and 0.28 g/t Au;
  • And 60.0 m at 1.16 per cent Cu and 0.16 g/t Au;
  • TC150075: 717.3 m at 0.65 per cent Cu and 0.16 g/t Au from 1,502 m;
  • Including 214.0 m at 1.00 per cent Cu and 0.24 g/t Au;
  • And 24.0 m at 1.00 per cent Cu and 0.30 g/t Au;
• Example historic intersections include:
  • TC150060: 835.0 m at 0.92 per cent Cu and 0.22 g/t Au from 1,258 m;
  • TC140054/54A: 705.8 m at 0.91 per cent Cu and 0.26 g/t Au from 1,498 m;
• Further drilling continuing with a target of 67,000 m of step-out and infill drilling;
• Drilling estimated to be completed in late 2017 with a maiden resource to follow;
• Near-vertical holes designed to intersect the porphyry mineralization at 90 to 100 per cent of true width.

Nevsun chief executive officer Cliff Davis commented: "The assays reported today demonstrate the tremendous potential of the Timok Lower zone mineralization. These holes were drilled prior to the company acquiring its interest in the Timok project and were recently assayed. With our joint venture partner, Freeport-McMoRan, we have embarked on a $20-million drilling program focused on the Lower zone porphyry. The results from these holes will be used, along with historical and ongoing drilling, to generate a maiden resource for the Lower zone."

Timok copper-gold project

The Timok copper-gold project is located in eastern Serbia near the Bor mining and smelting complex. The project is focused on the Cukaru Peki (Timok) deposit which includes the high-grade Upper zone, characterized by massive and semi-massive sulphide mineralization and the Lower zone, characterized by porphyry-style mineralization.

This news release is solely about the Lower zone. For recent information on the Upper zone, please refer to the company's news release dated Oct. 17, 2016.

Lower zone

The Lower zone consists of porphyry-type mineralization characterized by chalcopyrite-pyrite and occasional bornite and molybdenite occurring as disseminations and within quartz and quartz-magnetite stockwork veinlets. Anhydrite veins are common. Within the Lower zone, porphyry-type potassic alteration is preserved locally but generally overprinted by sericite-clay, argillic and locally advanced argillic alteration. The latter overprinting also locally brings covellite-pyrite mineralization. The host rocks are predominantly volcanic andesite and andesite breccias. The geometry of the Lower zone remains to be fully defined. Its top is about 700 metres below surface and has been traced down to depths in excess of 2,000 metres. The $20-million drill program is currently being undertaken to enable an initial resource to be calculated for portions of the zone.

      2015 TIMOK LOWER ZONE DRILLING RESULTS (REPORTED IN THIS RELEASE)
  
Hole                                  From        To   Length      Cu      Au
                                        (m)       (m)      (m)     (%)   (g/t)

TC150073 and TC150073B extension   1,104.0   1,790.0    686.0    0.89    0.16
including                          1,108.0   1,388.0    280.0    1.11    0.18
and                                1,426.0   1,528.0    102.0    1.00    0.17
and                                1,566.0   1,624.0     58.0    1.26    0.28
and                                1,694.0   1,754.0     60.0    1.16    0.16
TC150075                           1,502.0   2,219.3    717.3    0.65    0.16
including                          1,744.0   1,958.0    214.0    1.00    0.24
and                                2,050.0   2,074.0     24.0    1.00    0.30
TC150098                                                No significant values 

Holes are drilled near vertical and approximately perpendicular to the top of the porphyry zone, and are estimated to be between 90 and 100 per cent of true thickness.

 SIGNIFICANT HISTORICAL TIMOK LOWER ZONE DRILLING RESULTS
    
Hole              From         To    Length      Cu     Au
                    (m)        (m)       (m)     (%)  (g/t)

FMTC 1210      1,026.0    1,248.0     222.0    0.23   0.11
and            1,469.0    1,864.0     395.0    0.30   0.09
FMTC1214       1,082.0    1,286.0     204.0    1.49   0.24
FMTC1218       1,253.0    1,952.0     699.0    0.75   0.23
including      1,351.0    1,802.0     451.0    0.91   0.26
FMTC1219         839.0    1,572.9     733.8    0.75   0.10
including        987.5    1,219.0     231.5    1.16   0.11
FMTC1327       1,146.0    1,952.0     806.7    0.59   0.22
including      1,709.0    1,863.0     154.0    0.95   0.28
FMTC1328         766.0    1,668.0     902.0    0.65   0.14
including      1,130.0    1,361.0     231.0    1.07   0.18
FMTC1332       1,136.0    1,425.0     289.0    0.90   0.17
and            1,839.0    2,160.3     321.3    0.73   0.18
FMTC1334         866.6    1,475.3     608.7    0.68   0.16
FMTC1335       1,209.0    1,680.6     471.6    0.41   0.22
FMTC1340         705.0    1,144.0     439.0    0.71   0.14
TC140054/54A   1,498.0    2,203.8     705.8    0.91   0.26
including      1,826.0    2,012.0     186.0    1.20   0.35
TC150060       1,258.0    2,093.8     835.8    0.92   0.22
including      1,622.0    1,776.0     154.0    2.02   0.45
TC150060A      1,332.0    2,082.0     750.0    0.30   0.06
including      1,502.0    1,604.0     102.0    0.63   0.15
TC150066         750.0    1,108.0     358.0    0.51   0.08
and            1,128.0    1,196.0      68.0    0.45   0.09

Holes are drilled near vertical and approximately perpendicular to the top of the porphyry zone, and are estimated to be between 90 and 100 per cent of true thickness. Results were previously reported by Reservoir Minerals on April 14, 2016.

Quality assurance

Drill core samples were collected in accordance with protocols that are compatible with accepted industry procedures and best practice. The company conducts its own analysis of quality assurance/quality control generated by the systematic inclusion of certified reference materials, blank samples and duplicate samples. The analytical results from the quality control samples have been evaluated and have been demonstrated to conform to best practice standards.

Peter Manojlovic, PGeo, Nevsun's vice-president of exploration, is a qualified person as defined by National Instrument 43-101. Mr. Manojlovic has reviewed the technical content of this press release and approved its dissemination.

About Nevsun Resources

Nevsun Resources is the 60-per-cent owner of the high-grade Bisha mine in Eritrea. Bisha has nine years of reserve life, generating revenue from both copper and zinc concentrates containing gold and silver byproducts. Nevsun is well positioned to grow shareholder value through exploration at Bisha and the newly acquired Serbian assets that include the high-grade copper-gold Timok project.

We seek Safe Harbor.