Mr. Donald Taylor reports

ARIZONA MINING EXPANDS TAYLOR DEPOSIT WITH STEP OUT DRILLING INCLUDING 61.5 FEET GRADING 11.7% ZINC, 17.3% LEAD AND 9.3 OPT SILVER IN HDS-338 AND 57 FEET GRADING 22.6% ZINC, 23.0% LEAD AND 8.8 OPT SILVER IN HDS-339

Arizona Mining Inc. has provided the results for the first two drill holes targeting the expansion of the Taylor zinc-lead-silver sulphide deposit located on its Hermosa project in Santa Cruz county, Arizona, United States. The drill holes, HDS-338 and HDS-339, are significant step-outs from the resource announced on Feb. 1, 2016.

The company is engaged in an aggressive drill program to determine the extent of the Taylor deposit sulphide mineralization. To date approximately 45.9 acres (18.5 hectares) of the 275 acres (111.5 hectares), or 17 per cent, of the area of permissive geology and mineralization highlighted by historic drilling and geology have been drill tested. The continuing program is designed to test the entire area of permissive geology through a series of wide-spaced diamond drill holes.

Currently five drill rigs are being utilized to carry out a planned 125,000-foot (38,100-metre) exploration program, with additional rigs planned to be added in the coming weeks.

HDS-338 represents a step-out of 830 feet (253 m) onto the newly acquired patented mining claims from the northwestern extent of the previous drilling that was included in the February, 2016, resource calculation. The drill hole intersected several zones of carbonate replacement and skarn styles of mineralization including 61.5 feet (18.7 m) grading 11.7 per cent zinc, 17.3 per cent lead, 0.28 per cent copper and 9.32 ounces per ton silver.

HDS-339 is an angle hole (230-degree azimuth/minus 82 degrees) targeting the extension of the mineralization onto the unpatented mining claims to the southwest of the resource in an area previously untested by drilling. This hole encountered 17 individual zones of mineralization (exceeding 24-foot per cent lead plus zinc) including 57 feet (17.4 m) grading 22 per cent zinc, 23 per cent lead, 0.17 per cent copper and 8.82 ounces per ton Ag.

For a full listing of the drill results for HDS-338 and HDS-339 see the attached table.

Chief executive officer Jim Gowans commented: "We are very excited that these most recent drill results are supporting our geological interpretation that the Taylor deposit extends onto our newly acquired patented claims to the northwest and our unpatented claims to the west and southwest. The results continue to indicate the tremendous size and grade potential of the Taylor deposit. The deposit remains open to the north, west and south; to date we have drilled no blank or even weakly mineralized holes. To accelerate our understanding of the size and scope of the deposit we currently have five drill rigs operating on site and are expecting two more in the coming weeks."

                                   ASSAY SUMMARIES FOR HDS-338 AND HDS-339
    
                From         To       Int.     From          To         Int.    Ag     Cu    Pb     Zn    Ore
DH ID           (ft)        (ft)     (ft)       (m)          (m)        (m)     opt     %     %     %     zone

HDS-338          724         734     10         220.7        223.7       3.0     1.35  0.02  2.80  3.73    CRD
HDS-338         2395.5      2497    101.5       730.1        761.0      30.9     6.13  0.19 11.19  7.54    CRD
HDS-338 Incl.   2395.5      2457     61.5       730.1        748.9      18.7     9.32  0.28 17.31 11.78    CRD
HDS-338         2527        2537     10         770.2        773.2       3.0     3.60  0.05  7.09  3.24    CRD
HDS-338         3242        3254     12         988.1        991.8       3.7     3.72  0.86  4.18  3.86    CRD
HDS-338         3278        3352     74         999.1       1021.6      22.6     3.07  0.34  5.71  5.08    CRD
HDS-338         3372        3397     25        1027.7       1035.4       7.6     0.86  0.03  1.05  1.38    CRD

HDS-339          949         957      8         289.2        291.7       2.4     2.88  0.11  2.27  6.02    CRD
HDS-339          977         986      9         297.8        300.5       2.7     1.55  0.02  2.69  7.19    CRD
HDS-339          995        1000      5         303.3        304.8       1.5     2.70  0.12  2.36  4.20    CRD
HDS-339         1430        1450     20         435.8        441.9       6.1     1.56  0.09  2.52  1.51    CRD
HDS-339         1865        1879     14         568.4        572.7       4.3     2.90  0.37  8.72 13.48    CRD
HDS-339         1917        2025    108         584.3        617.2      32.9     5.51  0.15 14.72 16.61    CRD
HDS-339 Incl.   1917        1974     57         584.3        601.6      17.4     8.82  0.17 23.09 22.67    CRD
HDS-339         2062        2066      4         628.5        629.7       1.2     3.62  0.39  8.85 11.00    CRD
HDS-339         2092        2114.5   22.5       637.6        644.5       6.9     1.64  0.06  5.09  4.85    CRD
HDS-339         2144.5      2148      4.5       653.6        654.7       1.4    28.03  1.83  5.89 19.45    CRD
HDS-339         2421        2468     47         737.9        752.2      14.3     2.15  0.21  7.19  8.55    CRD
HDS-339         2488        2506     18         758.3        763.8       5.5     0.65  0.02  1.79  2.20    CRD
HDS-339         2526        2554.5   28.5       769.9        778.6       8.7     1.53  0.05  4.38  5.56    CRD
HDS-339         2574        2593.5   19.5       784.5        790.5       5.9     2.14  0.08  6.44  7.91    CRD
HDS-339         2612        2676     64         796.1        815.6      19.5     1.72  0.01  5.54  2.77    CRD
HDS-339         2691        2704.5   13.5       820.2        824.3       4.1     2.42  0.06  8.26  8.24    CRD
HDS-339         3042        3053.5   11.5       927.2        930.7       3.5     1.09  0.08  2.37  2.62    CRD
HDS-339         3146        3162     16         958.9        963.7       4.9     2.51  0.07  2.47  2.66    CRD

Drill intervals are down the hole drill width but are considered to be within 5 per cent of true width.

Qualified person

The results of the Arizona Mining drilling results have been reviewed, verified and compiled by Donald R. Taylor, MSc, PG, chief operating officer for Arizona Mining Inc., a qualified person as defined by National Instrument 43-101 (NI 43-101). Mr. Taylor has more than 25 years of mineral exploration and mining experience, and is a registered professional geologist through the SME (registered member No. 4029597).

Assays and quality assurance/quality control

To ensure reliable sample results, the company has a rigorous QA/QC program in place that monitors the chain of custody of samples and includes the insertion of blanks, duplicates and certified reference standards at statistically derived intervals within each batch of samples. Core is photographed and split in half with one-half retained in a secured facility for verification purposes.

Sample preparation (crushing and pulverizing) has been performed at ALS Minerals Laboratories, an ISO/IEC-accredited lab located in Tucson, Ariz. ALS Minerals Laboratories prepares a pulp of all samples and sends the pulps to its analytical laboratory in Vancouver, B.C., Canada, for analysis. ALS analyzes the pulp sample by ICP following a four-acid digestion (ME-ICP61 for 33 elements) including Cu (copper), Pb (lead) and Zn (zinc). All samples in which Cu (copper), Pb (lead), or Zn (zinc) are greater than 10,000 parts per million are rerun using four-acid digestion with an ICP-AES finish (Cu-OG62, Pb-OG62 and Zn-OG62) with the elements reported in percentage. Silver values are determined by ICP (ME-ICP61) with all samples with silver values greater than 100 ppm repeated using four-acid digestion with an ICP-AES finish (Ag-OG62) calibrated for higher levels of silver contained. Any values over 1,500 ppm Ag trigger a fire assay with gravimetric finish analysis. Gold values are determined by a 30-gram fire assay with an ICP-AES finish (Au-ICP21).

We seek Safe Harbor.