Mr. Toby Mayo reports

FAR RESOURCES UPDATE TO SHAREHOLDERS

Far Resources Ltd. has provided the following letter to its shareholders from Toby Mayo, president and chief executive officer.

Dear shareholders,

Far Resources continues to deliver on its exploration and corporate initiatives in a difficult time for the lithium sector. I want to thank you for your continuing support of the company and management's strategy for developing our superior lithium assets in Canada.

Globally, the best-performing lithium explorers are down by around 40 per cent this year. The entire market is suffering.

Despite the clear disconnect between the share price performance of lithium explorers and the underlying industry, which is being driven by the continuing shift toward electric mobility, the fundamental supply and demand case for lithium remains extremely robust. Our commitment to our projects and continuing exploration programs reflect our belief that lithium demand will continue to grow. We will be well positioned to meet that demand as we develop our projects through staged, strategic exploration.

Exploration is a process -- success cannot always be achieved over night. We are in the business of developing our assets in a staged and sustainable manner, keeping our treasury in good order. We are not in the business of short-term gain at the expense of realizing our company's potential. Over the past year, we have witnessed the negative effects of such short-term gain -- our share price climbed unsustainably at the end of 2017, only to decline steeply this year.

So we continue to develop our projects in a way that is consistent with the overall strategy of the company, which has been communicated regularly and effectively over the past 12 months. Our milestones are being met and our ambitious plans for the following six months make it an exciting time to be invested in Far Resources.

Since I wrote in June, we have achieved each of our stated objectives, delivering results that show the growth potential of the company and its assets. Here are some of the highlights from the past three months:

• Far Resources completed the first-ever drilling program at our Hidden Lake project in the Northwest Territories, earning us our initial 60-per-cent interest. As reported in June, this program of 10 holes (1,079 metres of diamond drilling) intersected lithium mineralization in every hole (please see the company's press release dated June 27, 2018).
• Far Resources released the maiden resource of our 100-per-cent-owned Zoro project in Manitoba. The initial resource of 1.1 million tonnes at 0.93 per cent lithium oxide (at a 0.3 per cent cut-off) was reported on a portion of dike No. 1 and the National Instrument 43-101 technical report was filed on SEDAR. This important step shows the huge potential for scale at Zoro, at which we have discovered a further seven dikes, with numerous additional targets to drill (please see the company's press releases dated July 9, 2018, and Sept. 5, 2018).
• Far Resources outlined a very significant, high-contrast lithium anomaly at Zoro. With the release of the second batch of mobile metal ions samples from last winter, the company announced the identification of a large 1.5-kilometre-long and up to 100-metre-wide MMI geochemical anomaly for lithium, which is viewed as very significant based on the discovery of our eighth spodumene-bearing pegmatite dike, a discovery which resulted from the drill testing of an MMI lithium anomaly in 2017 (please see the company's press release dated Sept. 10, 2018).
• Far Resources commenced and successfully completed a summer exploration program at Zoro. Fieldwork, including mobile metal ions technology soil geochemical surveys and geological mapping, was completed at the Zoro project. The aim was to demonstrate the potential for adding significantly to the number of lithium targets and to better understanding the controls on mineralization (please see the company's press releases dated July 26, 2018, and Sept. 6, 2018).
• Far Resources reported numerous high-grade lithium intersections at Hidden Lake. The successful initial diamond drilling program in the Northwest Territories has shown the potential of this project, as we drilled 10 holes, all intersecting mineralization of greater than 1 per cent Li2O, also with elevated tantalum (please see the company's press release dated Sept. 10, 2018).
• Far Resources reported numerous exciting new targets at Zoro. Expansion of the MMI sampling program during the summer has led to the identification of multiple additional targets to the north, south and west of the existing known dike swarm. These high-contrast anomalies bring the total to over 50 targets to follow up, any of which could yield high-grade lithium dikes of an economic scale (please see the company's press release dated Oct. 2, 2018).

As we move into the fall and winter, we see great opportunities for continued growth for the company. Here are some of the details.

Zoro lithium project, Manitoba

The NI 43-101 technical report shows the great merit of the project, and justifies our excitement and conviction in continued exploration there. We are currently in the final stages of planning our fall/winter drilling program at Zoro and this will be presented when we have processed all the results from summer soil sampling.

The sampling has provided us with over 50 additional targets for follow-up work. We already have a large number of targets to drill and a resource to expand, but now we can show the huge upside potential of the project through science as well as our through our passion for the project.

Lastly, the winter program will fulfill requirements for the continuing metallurgical test study, which is an important process in derisking the project and attracting appropriate end-users.

Hidden Lake project, the Northwest Territories

In the past few weeks, we released exciting results from the Hidden Lake project, with all 10 holes drilled intersecting lithium grades over 1 per cent Li2O, with some values higher than 2 per cent Li2O. All holes also intersected anomalous tantalum, which could have significant positive effects on economics. We are, therefore, very encouraged by what we have drilled and for the potential of further discovery there.

We are planning a future drilling program for this project and have also planned soil sampling for when the ground thaws next year. As at Zoro, we already have numerous targets to follow up on, and will be working toward drilling a maiden resource at the project over the next 12 months.

Marketing

We have initiated a multifaceted marketing and public relations program aimed at raising awareness within the retail investment community, especially aimed at potential new investors in the United States and Canada.

We have visited and actively marketed in Los Angeles, San Francisco, New York, Toronto, Hartford, Atlanta, Montreal and, of course, Vancouver. Concurrently, we continue to push our news and progress through social media channels, as well as actively update letter writers, analysts, brokers, bankers and shareholders alike.

Meanwhile, we are attending highly targeted conferences focused on exploration and interest in the lithium space, as well as consistently review marketing proposals from on-line campaign providers, print media and news providers, and will be implementing new and innovative campaigns as we head into a new drilling season.

We have just returned from New York for the 121 investment conference, targeting smaller funds, as well as additional meetings to increase our retail presence in the United States.

We will be in Hong Kong in late October for the 121 investment conferences and to make additional connections in the end-user space, as well as in London for the 121s in November. This is a work in progress and there are continuing meetings in this regard. We will be at Mines and Money in London during November.

Corporate

We continue to examine financing options to see us through two exploration programs, though, of course, the share price is far from where we would like it. However, our duty is to move the company forward and this is achieved through exploration. Our successes to date in this regard highlight the fact that we are in possession of two excellent lithium projects and that we are capable of building on that success to expand our mineral inventory.

We have been pushing forward with a plan to move our listing to the TSX Venture Exchange. We are filing the last pieces of required paperwork, with the aim of achieving conditional approval in the coming month. The process should be complete by the end of this year.

Lastly, we are looking at opportunities for acquisition of additional lithium assets, as well as options for monetizing the high-grade New Mexico gold-silver assets.

To reiterate, the best performers are down over 40 per cent. Our price climb last year was inflated and unnatural, hence the exaggerated decline.

We have over 50 new targets at Zoro as well as numerous targets at Hidden Lake.

Management believes strongly that as we continue to hit our corporate and technical targets, as well as maintain the disciplined execution of our business strategy, we will solidify and expand our position in the North American lithium sector. To this end, we remain focused strongly on building shareholder value.

Again, I want to thank you all for your continuing support and encouragement. We continue to see the prospect of growth and a steady flow of positive news to the market over the rest of the year. Accordingly, we work toward seeing our share price respond positively from these current lows.

Yours faithfully,

Toby Mayo, president and chief executive officer

About Far Resources Ltd.

Far Resources is actively drilling its Zoro lithium project located near Snow Lake, Man., which covers a number of known lithium pegmatite occurrences. The company has recently acquired an option on the Hidden Lake property in the Northwest Territories and is initiating drilling for continuity of spodumene mineralization to depth. In the United States, the company owns the Winston project in New Mexico, a historical mining property with additional potential for silver and gold.

The technical content of this news release has been reviewed and approved by Mark Fedikow, PGeo, a qualified person as defined under NI 43-101.

We seek Safe Harbor.