Mr. John Gardiner reports

TARANIS COMPLETES IN-HOUSE RESOURCE ESTIMATES OF THREE STOCKPILES AND TWO IN-SITU GOLD OCCURRENCES AT THOR - UNCOVERS A NEW ZONE IN THE FOOTWALL OF THE THOR DEPOSIT ASSAYING 52.4 G/T AU, 1,542 G/T AG OVER 2.04 M

Taranis Resources Inc. has provided updates on its 2014 summer exploration activities at Thor. Fieldwork was related to the delineation and documentation of two major sources of potential ore feed at Thor, and involved data collection in three surface stockpiles and two in situ sources of gold mineralization.

In addition, a previously known float occurrence of high-grade gold and silver mineralization known as the Gold Pit has been exposed in outcrop, and is a parallel zone of mineralization to the Great Northern zone. This exposure proves the existence of parallel zones in the footwall of the Thor deposit that remain completely unexplored.

Existing stockpiles

The Broadview, Great Northern and True Fissure stockpiles are known sources of broken ore at Thor. The three stockpiles have now been surveyed, trenched and systematically sampled to rigorous National Instrument 43-101 standards. In addition, Taranis has completed in-house resource estimates (IHREs) as a prelude to undertaking a 10,000-tonne bulk sample from the Thor project. Since the data review has not been completed by an independent qualified person, the tonnage and grade estimates cannot be released publicly. The attached table summarizes the data that were collected from each of the three stockpiles that were used in completing the IHREs.

               No. of      No. of     No. of    No. of      Year of
               survey  excavation   sampling     panel   mining and
Stockpile    stations    trenches  transects   samples  stockpiling
 
True Fissure      225           5         61        82         1972
Broadview         109           2         16        29      1909-10
Great Northern     48           1         13        63   Circa 1910

Stockpile surfaces were surveyed using an engineering transit and stadia in order to accurately ascertain the volumes. Excavator trenches were then completed across the stockpiles and the resulting cross-sections of the stockpiles were subject to panel sampling on two-metre spaced intervals. The base of the stockpiles was measured from the trenches and the edges of the stockpiles using differential GPS.

The existing stockpiles are located close to major access roads on the property, and are readily accessible. In the summer of 2013, Taranis completed a number of environmental characterization studies that included acid-generation potential, pH surveys in/around the stockpiles and trace element dispersion plumes from the stockpiles. These data and findings were filed with the British Columbia Department of Mines in 2014. The metallurgical characteristics of the stockpiles were evaluated in a metallurgical review by ALS Metallurgy in 2013 (Taranis news release March 31, 2014).

Surface in situ gold occurrences

In addition to the stockpiles, Taranis has completed IHREs of two gold zones that are located directly at surface called the SIF and SIF-carbon gold zones. The attached table outlines the exploration activity that was directed at each of these areas in 2014.

                                                                      No. of          No. of
                    No. of   No. of         No. of     No. of  surface panel        specific
                    survey    drill  surface panel drill hole       sampling         gravity
Gold occurrence   stations    holes        samples    samples          lines  determinations

SIF                    126       16            100        115 15 (2m spacing)             42
SIF-carbon             131        9            171         73 13 (3m spacing)             39

Both SIF and SIF-carbon are now known to occur in an anti-cline structure that lies on top of the main Thor sulphide deposit. Gold has preferentially accumulated in this anti-cline and probably has been remobilized out of the main sulphide deposit that includes a broad background level of gold mineralization (around one gram per tonne gold).

The intervening 120 metres between the SIF-carbon and SIF zones remains unexplored, and it is known from surface mapping that there is an anti-cline feature in this area along the main stratigraphic contact buried at depth. The edges of the main sulphide deposit are enriched in gold, and move from silver-lead-zinc-copper dominated in the core, to pyrite-gold-silver dominated at the edge (SIF-carbon), and finally into gold dominated on the extreme periphery (SIF).

Gold Pit outcrop sampling

Taranis completed four channel sample intervals across the newly uncovered Gold Pit occurrence perpendicular to the strike of the zone. These channel samples were spaced 1.5 metres apart and covered the entire stripped outcrop exposure. The outcrop was exposed under about three metres thickness of colluvium. The Gold Pit outcrop is particularly important since it contains a high content of precious metals, and it occurs 80 metres west of the outcropping Great Northern zone. The attached table summarizes the results of four channel samples taken across the Gold Pit outcrop.

         From    To   Interval     Au       Ag    Pb     Zn
Line       (m)   (m)        (m)  (g/t)    (g/t)   (%)    (%)

1        0.00  1.64       1.64   14.3    254.9  0.99   0.52
2        0.00  2.04       2.04   52.4  1,541.8  1.39   0.08
3        1.16  2.06       0.90    3.9      4.0  0.01  Trace
0        0.40  1.35       0.95    4.7    722.9  4.15   4.07

The Gold Pit outcrop is arguably one of most important discoveries made at Thor, since it proves the existence of parallel zones west of the existing deposit. It also shows a correlation with a VLF conductor and soil geochemical anomaly that occurs for over 200 metres strike length that remains untested, and is entirely buried under thin colluvium cover. Several attempts to trench down to the target proved unsuccessful 50 and 100 metres north of the Gold Pit, and diamond drilling is the only way to test the target. It should be noted that none of the previous 152 drill holes completed at Thor has been drilled deep enough to intersect this horizon.

Quality control and analytical procedures

Samples were analyzed by Acme Labs in Vancouver, Canada. Fire assay was completed on a 30-gram sample for gold content and the remaining analytical data were completed using ICP analytical methods. Silver content in excess of 100 grams per tonne was determined using gravimetric methods.

All of the sampling and gold determinations are subject to a rigorous quality control program that includes the placement of standards and blanks a minimum of every 10th sample. WCM Minerals of Burnaby, B.C., has been engaged to supply the quality control materials for the Thor project.

Qualified person(s)

Exploration activities at Thor were overseen by John Gardiner (PGeo) and James Helgeson (PGeo), each of whom is a qualified person under the meaning of Canadian NI 43-101.

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