Mr. Michael Schuss reports

CANADIAN INTERNATIONAL MINERALS INC. TO ACQUIRE COPPER-COBALT PROJECT IN CZECH REPUBLIC

Canadian International Minerals Inc. has entered into an agreement to acquire 100 per cent of the past-producing Tisova copper deposit, located in the prolific Erzgebirge mining district in northwestern Czech Republic. The deposit is encompassed by an Exploration Lands mineral concession, which is held by Golden Pet sro, a private Czech company. The concession was granted to Golden Pet by the Czech Ministry of Environment in 2015, and carries a five-year term.

The Tisova concession incorporates a former copper producer with historical production dating from the 12th century and last producing from 1959 to 1973. Most recently, the mine operated from 1959 to 1973, producing 561,000 tonnes at an average grade of 0.61 per cent copper.

While historically the deposit was mined primarily for copper, significant concentrations of other base and precious metals have also been identified, though there appears to be no mention of their recovery in any historical documents.

Cobalt was noted in testing as early as 1901, with grades between 0.4 per cent and 0.7 per cent. Between 1952 and 1956, various mineral research agencies reported concentrations of up to 0.11 per cent cobalt, 4.32 grams per tonne gold and 20 grams per tonne silver.

Tisova is classified as a Besshi-type volcanogenic massive sulphide (VMS) deposit. Such deposits are often large, and along with copper and cobalt, normally include other recoverable base and precious metals. One of the world's largest Besshi-type deposits is the Windy Craggy deposit located in British Columbia, which has a measured geological reserve of 297,439,000 tonnes of 1.38 per cent copper and 0.069 per cent cobalt, with substantial gold and silver credits.

Two stages of drilling exploration took place at Tisova in the 1950s and 1960s, with more than 100 drill holes having been completed by Czechoslovak state mining companies. Drill logs exist, but under the then current economic system, all core was consumed in assaying. The majority of core was only assayed for copper. Postwar exploration and development at Tisova prior to the Velvet Revolution (1948 to 1989) were typically dictated by strategic, political and military considerations rather than the strictly economic constraints that provide parameters for western style of exploration and development. The geological model was not fully understood, and different criteria guided the application of funds. An exploration program in the central and southern zone of the deposit was executed between 1971 and 1989, verifying mineralization down to the level of 400 metres below surface (level 9 of Helena shaft). Mining was not resumed and the mine was left to flood.

The mineralized bodies at Tisova were concentrated in the three horizons: lower, central and upper. The lower was the most continuous and the central was economically the most important. The known length of the lower horizon reaches 1,000 metres, of which 450 metres have been opened by the Helena mine. The mineralized zones are present in forms of irregular layers and lenses of variable size, with typical grades of 0.8 per cent copper. The average thickness of lenses at the central horizon reached two to six metres, occasionally 10 metres and exceptionally up to 30 metres, with the length of 100 to 150 metres and downdip extent of several hundred metres.

An extensive GIS database compilation is currently under way. The company will provide a further project update upon completion of the data compilation.

Acquisition terms

Acquisition of the Tisova concession is proceeding under a letter of intent (LOI) between Canadian International and the two owners of Golden Pet. Under the terms of the LOI, each of the two vendors will be issued three million units for a combined total of six million units -- each unit comprising one common share and one three-year warrant to purchase an additional common share at 10 cents.

In addition, TIMEX Zdice sro, a private company registered in the Czech Republic, which provided consultation services to the company during the due diligence period, will be paid $10,000 upon execution of the LOI, a further $15,000 upon acceptance of the definitive agreement by the TSX Venture Exchange and a final $10,000 on Jan. 15, 2017, for a total of $35,000. A finder's fee is payable on the transaction.

Qualified person

The technical data in this news release have been reviewed by Thomas Hasek, PEng, a qualified person under the provisions of National Instrument 43-101.

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