Mr. Mario Stifano reports

CORDOBA MINERALS AND HPX INITIATE PHASE TWO OF THEIR JOINT VENTURE AT THE SAN MATIAS COPPER-GOLD PROJECT IN COLOMBIA

High Power Exploration Inc. (HPX), a private mineral exploration company indirectly controlled by mining entrepreneur Robert Friedland, has completed phase one of the joint venture agreement with Cordoba Minerals Corp. and has now earned an initial 25-per-cent interest in the San Matias copper-gold project in Colombia.

Phase two of the joint venture agreement has now commenced, whereby HPX can earn a 51-per-cent interest in San Matias by spending an additional $10.5-million for total exploration expenditures of $19-million. HPX can increase its ownership in the San Matias project to 65 per cent by carrying it to feasibility.

Cordoba and HPX have started a follow-on, 2,100-metre drilling program at the Alacran copper-gold project, where recent drilling intersected 150 metres of 0.73 per cent copper and 0.49 gram per tonne gold in the main zone with mineralization open in all directions and to depth. The current drill program is designed to test the potential eastern extension of the deposit where recent results from soil sampling have identified a 1.3-kilometre-by-800-metre gold-copper soil anomaly. The company is targeting issuing an initial National Instrument 43-101 resource for Alacran during the third quarter of 2016. The prior operator completed a historical inferred resource of 37 million tonnes of 0.62 per cent copper and 0.40 g/t gold.

In addition, a 10,000-metre drilling program designed to test targets identified from the initial Typhoon induced polarization survey has been initiated and expected to commence in the coming weeks. This drilling program will also include follow-on drilling at the Montiel porphyry target, where previous drilling intersected 100 metres of 1.0 per cent copper and 0.65 g/t gold. An expansion of the Typhoon IP survey is under way and will cover an additional 14 square kilometres, including southern Alacran and the Costa Azul porphyry target, where previous drilling intersected 87 metres of 0.62 per cent copper and 0.51 g/t gold.

Mario Stifano, president and chief executive officer of Cordoba, commented: "We are pleased that our partner HPX has committed to an extensive 12,000-metre drill program now under way at San Matias and significantly expanding the Typhoon survey to cover an area double in size from the previous survey. Drilling will focus on the opportunity to expand the near-surface copper-gold deposit at Alacran, while also testing targets identified by the completed phase one Typhoon survey, where results indicate multiple large and potentially significant sulphide chargeability targets."

Highlights of phase one of the joint venture include the acquisition and consolidation of the Alacran project, an initial 3,000 metres of drilling, completion of the first phase of the proprietary Typhoon IP and electromagnetic survey covering an initial 7.5 square km area, and key investments in community relations.

Alacran copper-gold project

The Alacran copper-gold system is located within the company's San Matias copper-gold project in the department of Cordoba, Colombia. The Alacran system is located on a topographic high in gently rolling topography, optimal for potential open-pit mining. Access and infrastructure are good. The copper-gold mineralization at Alacran is associated with stratabound replacement of a marine volcano-sedimentary sequence in the core of a faulted anti-formal fold structure. The deposit comprises moderately to steeply dipping stratigraphy that is mineralized as a series of subparallel replacement-style or skarn zones and associated disseminations. The copper-gold mineralization is composed of multiple overprinting hydrothermal events with the main ore phase comprising chalcopyrite-pyrrhotite-pyrite that appears to overprint a large-scale early magnetite metasomatic event.

High-temperature potassic feldspar-biotite-amphibole-albite alteration in the host geological sequence indicates that the copper-gold mineralization is proximal to a source intrusion. At least two intrusive phases, locally occurring as sills, confirm an intrusive source for the mineralizing fluids. The overall size and complexity of the hydrothermal system indicate a significant mineralization event. Mineralization occurs within all members of the sedimentary and volcanic sequence, where it can be traced over a strike length of greater than 1,300 metres and local thickness of more than 90 metres true width from the current drilling and surface sampling.

About the San Matias project

The newly discovered San Matias copper-gold project comprises a 20,000-hectare land package on the inferred northern extension of the richly endowed mid-Cauca belt in Colombia. The project contains several known areas of porphyry copper-gold mineralization, copper-gold skarn mineralization and vein-hosted, gold-copper mineralization. Porphyry mineralization at the San Matias project incorporates high-grade zones of copper-gold mineralization hosted by diorite porphyries containing secondary biotite alteration and various orientations of sheeted and stockwork quartz-magnetite veins with chalcopyrite and bornite. The copper-gold skarn mineralization at Alacran is associated with stratabound replacement of a marine volcano-sedimentary sequence. The nature of mineralization encountered at San Matias is similar to other large high-grade copper-gold deposits.

Technical information

The technical information has been reviewed, verified and compiled by Dr. Christian J. Grainger, PhD, a qualified person for the purpose of National Instrument 43-101. Dr. Grainger is a geologist with over 15 years in the minerals mining, consulting, exploration and research industries. Dr. Grainger is a member of the Australian Institute of Geoscientists (AIG) and Australian Institute of Mining and Metallurgy (AusIMM).

All samples have been prepared and assayed at ALS laboratory in Medellin, Colombia, with gold assays being carried out as 50-gram fire assays with AAS finish, and all trace elements and base-metals being assayed using four-acid digest with ICP-MS finish. The company utilizes an industry-standard quality assurance/quality control program. HQ and NQ diamond drill core is sawn in half with one-half shipped to a sample preparation lab. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance, and a portion of the samples is periodically checked for assayed result quality.

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