Mr. Justin Reid reports

SULLIDEN ENTERS INTO OPTION AGREEMENT WITH FIRST QUANTUM TO ACQUIRE PAST-PRODUCING TROILUS GOLD MINE

Sulliden Mining Capital Inc. has entered into an option arrangement with First Quantum Minerals Ltd. to acquire the past-producing Troilus mine, located in the Abitibi mining region of Quebec, Canada.

Justin Reid, chief executive officer and director of Sulliden, commented: "This agreement is a step towards our strategy of building a portfolio of mining projects alongside our portfolio of investments. For over two years, we have been actively evaluating and visiting projects in the Americas in search of the right opportunity, and we believe there to be potential value in the Troilus project."

Peter Tagliamonte, executive director of Sulliden, commented: "We have been reviewing the potential of the Troilus project, and, after thorough due diligence by our technical team, we look forward to moving ahead with more detailed engineering studies. It is our belief that this project has good mine development potential and exploration potential in a friendly mining jurisdiction."

Sulliden has engaged Roscoe Postle Associates Inc. to complete an updated mineral resource estimate for Troilus based on the high-quality historical drill data of the project. The company looks forward to announcing these results within the coming month, before moving ahead with engineering and technical studies to evaluate the economic viability of the project.

Option agreement

A wholly owned subsidiary of Sulliden has entered into a two-year option agreement with First Quantum with respect to the Troilus mine.

As a result of the arrangements, Sulliden will hold a two-year option to purchase a 100-per-cent interest in the Troilus mine. To exercise the option under the First Quantum agreement, a minimum of $1-million must be spent on engineering and technical studies to evaluate the economic viability of the project. Upon signing, an initial cash payment of $100,000 was made to First Quantum. In order to exercise the option and acquire the Troilus mine, an additional cash payment of $100,000 will be made to First Quantum on the first anniversary of the agreement, and a final cash payment of $100,000 will be made on the date of exercise of the option. Additionally, a variable net smelter return royalty of 1.5 per cent or 2.5 per cent, depending of the gold price being more or less than $1,250 per ounce during the reference period, will be granted to First Quantum.

Sulliden intends to enter into a subsequent option agreement with 251 Ontario Ltd. whereby 251 would be able to acquire 40 per cent of the Troilus mine and all associated properties with Sulliden retaining the remaining 60 per cent.

Troilus project description and history

From 1997 to 2010, Inmet Mining Corp. operated the Troilus mine, which produced in excess of two million ounces of gold and 70,000 tonnes of copper.

The Troilus property is located approximately 175 kilometres by road from the town of Chibougamau, Que., Canada. The property consists of 81 mineral claims and one surveyed mining lease that collectively cover approximately 4,700 hectares. The acquisition will include all infrastructure such as roads, power lines, camp buildings, permitted tailings pond and associated water treatment facilities. The mill was sold and removed during the first phase of reclamation.

Inmet commissioned the Troilus mill in 1996, and achieved commercial production in April, 1997, at a rate of 10,000 tonnes per day with recoveries of 86 per cent gold and 90 per cent copper, and a concentrate grade of 18 per cent copper, eventually reaching a production milestone of 18,000 tonnes per day. First Quantum acquired the Troilus property through its acquisition of Inmet in 2013.

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