Mr. Steve Regoci reports

THE "Q" MAY HOLD KEY TO MASSIVE SULPHIDE POTENTIAL OF GARIBALDI'S E&L DEPOSIT

Garibaldi Resources Corp. has made significant progress in the development of its recently acquired E&L nickel-copper-gold project at Nickel Mountain in the Golden Triangle's Eskay camp of northwest British Columbia.

Garibaldi has tripled the size of its E&L land package by adding 15 square kilometres of additional claims following a series of work programs since July and an intensive initial review of large amounts of historical data. Evidence has revealed that the nickel-rich E&L deposit has the potential for much greater scale as a massive sulphide system than originally understood by explorers nearly half a century ago.

The E&L is situated in a mining camp that has produced Eskay Creek/Snip/KSM/Brucejack and multiple promising new exploration targets since Nickel Mountain was last systematically explored and drilled in 1970.

Highlights of Garibaldi's recent fieldwork and continuing studies:

• Channel sampling results from a late September visit are pending, but August grab samples from areas of outcrop in the Northwest, Central and Southeast zones near the top of Nickel Mountain returned values as high as 4.6 per cent Ni and 2.0 per cent Cu with average grades of 2.7 per cent Ni and 1.7 per cent Cu.
• The potential extent of near-surface mineralization at E&L, featuring a nickel-copper-rich halo around a large mafic core, was never adequately tested by today's standards and the deposit has not been delimited in any direction including at depth.
• Advanced geophysical analysis suggests mineralization at Nickel Mountain may have a deep source or feeder zone, expressed by the newly designated Q anomaly, where metals have concentrated.

Garibaldi considers the E&L to be a potential high-impact exploration target, especially in light of the exponential growth over the last decade in the understanding of how major deposits have formed in this prolific district. The E&L Ni-Cu-Au deposit, with anomalous values in platinum group elements (B.C. Ministry of Energy Mines MINFILE 104B006), is an exceptional prospect that further bolsters a dynamic package of 100-per-cent-owned Garibaldi properties in British Columba and Mexico.

The company is consulting with leading experts in nickel-copper-gold-platinum-group-element massive sulphide systems as part of its strategy to uncover what was overlooked at E&L five decades ago.

Massive sulphide source indicated by the Q anomaly

A broad magnetic anomaly, referred to as the Q, given its circular shape and an intriguing keel, measures approximately one kilometre wide and is centred immediately southwest of the historical E&L adit. The broad characteristics of the anomaly suggest it has a deep source. The Q was never drill tested or systematically investigated by previous explorers who were drawn to the showings at the top of Nickel Mountain.

Significantly, the Q anomaly features a 600-metre-long magnetic keel trending south-southeast. As seen elsewhere in deposits around the globe, this could represent a feeder or conduit zone to a nickel-rich massive sulphide system as expressed by the main magnetic anomaly interpreted by Garibaldi's geophysical consultants. Another possibility is that the broad anomaly results from a gabbroic intrusive body, since magnetic gabbro is host to the mineralization at the top of Nickel Mountain. If so, mineralization could be associated with the gabbro and in particular within the magnetic keel.

Limited historical drilling

A total of only 19 drill holes tested the E&L half a century ago -- 12 from surface (1965 and 1966) and seven from underground (1970). Trenching over the Northwest, Central and Southeast zones was also carried out. Almost all the surface drilling was focused on the Northwest zone where four diamond drill holes in 1966 totalling 342 m returned average grades of 0.85 per cent Ni and 0.67 per cent Cu. DDH66-3 was stopped at a depth of 121 m (the deepest hole drilled from surface) even though it encountered visible massive sulphides in the final metre of the hole (W.M. Sharp, PEng, November, 1966).

During the original discovery through backpack drilling in 1965, one drill hole was lost at approximately 28 m and graded 2.05 per cent Ni and 0.92 per cent Cu between 18 m and 27.5 m, with core recovery of just 67 per cent.

Four hundred fifty-metre adit of great value to Garibaldi

In 1970, Sumitomo Metal Mining Corp. drove a 450 m tunnel approximately 550 m due south of the E&L surface showings in an attempt to intersect the mineralized zones from underground. Seven drill holes from two underground stations tested for mineralization 390 m below the surface outcrop.

The gabbro host rocks were found to extend down to the adit level but only low-grade mineralization was intersected in the holes, inferring that the pipe-like structures plunged farther to the west than was originally assumed. Evidence supporting this theory comes from the final two holes in 1970 that started to trace the mineralization to the west. They were stopped before completion because of serious snow conditions which forced the closing down of the camp for that particular year. Since then, no drill holes have been completed at E&L, though the claims remained under ownership of Silver Standard until two years ago near the bottom of the recent bear market in the resource sector.

The historical adit is a huge bonus for cost-effective, strategic exploration through the application of modern geophysics, including downhole probes and potential fresh underground drilling.

Sampling supports historical values

Near the end of September, a Garibaldi crew carried out channel sampling over a section of undisturbed outcrop of magmatic massive to semi-massive pentlandite, chalcopyrite, pyrrhotite and bornite in the Northwest zone. Samples are currently being analyzed and results are expected this month.

Meanwhile, a total of four grab samples from three zones (Northwest, Central and Southeast) over 250 m returned values of 2.51 per cent Ni and 1.80 per cent Cu (Northwest, chip sample 2626), 1.13 per cent Ni and 1.09 per cent Cu (Central, chip sample 3697), 4.60 per cent Ni and 1.86 per cent Cu (Southeast, float sample 3695), and 2.55 per cent Ni and 2.04 per cent Cu (Southeast, float sample 3696). Garibaldi cautions investors that grab samples are selective samples and are not representative of the mineralization hosted on the property.

Location

The E&L deposit is situated in the heart of a key area of the Golden Triangle where continuing infrastructure improvements continue to advance at a rapid pace while Pretium's high-grade Brucejack gold mine pushes toward the start of commercial production in the second half of 2017. Increasing exploration activity in the pursuit of new world-class deposits in this richly endowed district continues to escalate as receding glaciers expose new surface mineralization throughout the region, including Nickel Mountain.

The E&L is 28 kilometres southeast of the past-producing Snip mine, 18 km southwest of Eskay Creek, 27 km northwest of Seabridge Gold's KSM deposit and 32 km northwest of Brucejack. E&L adjoins the eastern boundary of Colorado Resources' KSP project and the northern boundary of Metallis Resources' Kirkham property.

Garibaldi expands E&L to 21 square km

Recognizing the potential significance of the Q anomaly below the E&L deposit, Garibaldi has seized the opportunity to expand the land package threefold to 21 square km with the addition of 1,473 hectares of claims contiguous to the eastern and northern boundaries of the previous configuration. Garibaldi has acquired a 100-per-cent interest in these new claims in exchange for a cash payment of $15,000 and 150,000 shares of the company.

With its E&L, Palm Springs and King projects, Garibaldi now controls nearly 170 square km in this prolific region of the Golden Triangle. In addition to priorities concerning the E&L, the company is currently compiling data from third quarter work programs at Palm Springs and King and eagerly anticipates reporting on progress at these properties in the coming weeks, along with updates on other promising projects elsewhere in B.C. and Mexico.

The Q map

Please visit the company's website for an E&L map featuring the Q anomaly.

Why GGI? video

Garibaldi is also pleased to announce the release of an updated short corporate video. You can view the video on the company's website.

Qualified person

John Buckle, PGeo, PGeoph, a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this news release.

We seek Safe Harbor.