Mr. Lyle Davis reports

UPDATES ON THE OCROS AND SOLEDAD PROJECTS

Condor Resources Inc. is providing the following updates on its Ocros and Soledad projects in Peru.

Compania Minera Casapalca SA has given formal termination notice on its earn-in option on both the Ocros and Soledad projects, effective on Feb. 3, 2017. Casapalca recently completed DDH-001 at Ocros to a depth of 500 metres and, earlier in 2016, had completed 2,807 metres in four drill holes at Soledad. Under its earn-in options, Casapalca was obligated to complete an aggregate of 3,000 metres of diamond drilling over the two projects, and this obligation has been completed.

"We believe Casapalca's decision was driven by a change in corporate strategy and a desire to work on their wholly owned projects," noted Lyle Davis, Condor's president. At this time, only partial assay results have been received for DDH-001; complete assay results will be announced when received.

At the Ocros project, Condor is pleased to advise it has signed a memorandum of understanding (MOU) with Compania Minera Virgen de la Merced SAC, subject to the termination of Casapalca's rights and receipt of clear title of the Ocros concessions. Under the MOU, Merced will have the option to earn up to a 70-per-cent interest in the Ocros concessions over four years, by making cash payments totalling $550,000 (U.S.) and completing 10,000 metres of drilling. The MOU includes a payment of $75,000 (U.S.) on signing the comprehensive agreement and a mandatory first-year work program of 2,000 metres of drilling.

Merced is the owner of the mineral concessions adjacent and to the south of Ocros, and is operating a small mining operation on the Merced concessions. Under an agreement signed with Merced in 2015, Merced had access to a limited area of the Ocros concessions and had reopened several of the old adits.

Condor is an explorer and project generator focused exclusively on Peru, and its objective is the discovery of a major new precious metals or base metals deposit. Project acquisition and development is managed by the company's Lima-based exploration team.

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