Mr. Jim Gowans reports

MAJOR STEPOUT HOLE INTERSECTS 33 FEET GRADING 22.8% ZINC, 20.2% LEAD AND 12.2 OPT SILVER

Arizona Mining Inc. has released the results of three exploration drill holes from its current program on the Taylor zinc-lead-silver sulphide deposit located on its 100-per-cent-owned Hermosa project in Santa Cruz county, Arizona. This brings the total number of drill holes reported in the 2016 program to 37.

HDS-359 is a significant step-out hole drilled approximately 1,100 feet northwest of the boundary of the previously reported resource area (see news release dated Oct. 31, 2016). The drill hole intersected a series of high-grade zinc-lead-silver veins in the volcanics before the hole was terminated well above the intended carbonate target horizons, due to difficult drilling conditions. Several well-mineralized veins were intersected in the drill hole including a 33-foot-thick interval assaying 22.8 per cent zinc, 20.2 per cent lead and 12.2 ounces per ton silver. True thickness of the vein is not known at this time. This hole will be drilled to completion as time and resources allow.

HDS-380 is a low-angle (minus-60 degrees) core hole drilled to expand the resource to the southwest. The drill hole intersected three thin mineralized zones indicating the mineralization and alteration of the carbonates continue to the southwest well beyond the current boundary. The most significant interval from the drill hole was a 25-foot-thick zone high in the carbonate sequence which assayed 1.5 per cent zinc, 2.0 per cent lead and 4.2 ounces per ton silver. Deeper down the hole, the drilling intersected a 3.5-foot-thick vein which assayed 9.7 per cent zinc, 8.2 per cent lead and 12.2 ounces per ton silver.

HDS-389 is an important angled (minus-87 degrees) hole drilled to infill an untested area within the previously reported resource area. The drill hole results indicate continuity of the mineralization in the area southwest of the resource area. HDS-389 intersected eight distinct mineralized horizons with a total cumulative mineralized thickness of 97 feet. Several mineralized zones were intersected in the drill hole including a 32.5-foot-thick interval assaying 6.5 per cent zinc, 5.0 per cent lead and two ounces per ton silver. A second interval of note in HDS-389 is an 8.5-foot-thick interval which assayed 13.1 per cent zinc, 8.2 per cent lead and 3.4 ounces per ton silver.

Arizona Mining chief executive officer Jim Gowans commented: "We have experienced rapid growth of the Taylor deposit over the course of 2016. We have 14 drills currently targeting both infill and expansion of the deposit prior to the release of the preliminary economic assessment which is planned for the end of first quarter 2017."

                      ASSAY SUMMARIES FOR HDS-359, HDS-380 AND HDS-389
  
Hole          From       To  Interval     From       To  Interval     Ag    Pb     Zn    Cu
               (ft)     (ft)      (ft)      (m)      (m)       (m) (oz/t)   (%)    (%)   (%)

HDS-359      1,025    1,033         8    312.4    314.8       2.4   1.33  2.60   3.38  0.19
HDS-359    1,078.5    1,081       2.5    328.7    329.5       0.8  13.10  7.21   4.64  0.65
HDS-359      1,140    1,145         5    347.5    349.0       1.5   5.10  4.07   1.52  0.28
HDS-359    1,313.5  1,346.5        33    400.3    410.4      10.1  12.19 20.17  22.78  0.13
HDS-359    3,137.5  3,148.5        11    956.3    959.6       3.4   9.78  5.38   1.27  0.62
HDS-380      2,881  2,888.5       7.5    878.1    880.4       2.3  10.56  1.78   2.62  0.33
HDS-380    2,948.5  2,973.5        25    898.7    906.3       7.6   4.15  1.95   1.47  0.24
HDS-380      3,467  3,470.5       3.5   1056.7   1057.8       1.1  12.22  8.15   9.72  0.86
HDS-389      491.5      498       6.5    149.8    151.8       2.0   5.08  7.87  16.20  0.02
HDS-389    1,125.5  1,128.5         3    343.0    344.0       0.9   5.92  0.46   0.09  0.38
HDS-389    1,888.5    1,891       2.5    575.6    576.3       0.8  12.48 15.30  18.45  3.89
HDS-389      2,149    2,155         6    655.0    656.8       1.8   0.82  2.30   3.77  0.18
HDS-389      2,445  2,453.5       8.5    745.2    747.8       2.6   3.41  8.22  13.05  0.78
HDS-389    2,555.5    2,588      32.5    778.9    788.8       9.9   1.96  4.95   6.49  0.38
HDS-389    2,747.5  2,767.5        20    837.4    843.5       6.1   0.64  1.55   1.30  0.01
HDS-389      3,372    3,390        18  1,027.7  1,033.2       5.5   6.45  3.16   1.69  0.28

Drill intervals are downhole drill width but are considered to be within 5 per cent of true 
width, excepting noted veins. It is not possible to determine the true width of the veins 
and no representation is made here regarding true width of the veins.

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, a qualified person as defined by National Instrument 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 copper, lead and zinc. All samples in which Cu, Pb or Zn 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).

About Arizona Mining

Arizona Mining is focused on the exploration and development of its 100-per-cent-owned Hermosa project located in Santa Cruz county, Arizona. The Taylor deposit, a zinc-lead-silver carbonate replacement deposit, has a resource of 31.1 million tonnes in the indicated mineral resource category grading 10.9 per cent zinc equivalent and 82.7 million tonnes in the inferred mineral resource category grading 11.1 per cent zinc equivalent, both utilizing a 4-per-cent-zinc-equivalent cut-off grade calculated in accordance with NI 43-101 guidelines (refer to the company's news release dated Oct. 31, 2016). The company's other project on the Hermosa property is the Central deposit, a silver-manganese manto oxide project.

We seek Safe Harbor.