Mr. Steve Regoci reports

NEW DATA STRENGTHEN CASE FOR LARGE NICKEL-COPPER-RICH SYSTEM AT GARIBALDI'S E&L IN ESKAY CAMP

As 3-D modelling of Garibaldi Resources Corp.'s 100-per-cent-owned E&L historical near-surface deposit and associated Q magnetic anomaly in the Eskay camp nears completion, new data are showing geological structures and mineralizing processes suggestive of a large-scale nickel-copper-platinum-group-element system with robust grade potential that formed through a dynamic mafic-ultramafic magmatic event.

Highlights of new information

Significantly, Hazelton Group black shales are interpreted to be a critical source of sulphur that has saturated the magmas at the brecciated and gabbro-hosted E&L intrusion, contributing to high nickel-copper tenors in a pyrrhotite-chalcopyrite-pentlandite mineral assemblage (4.8 per cent to 8 per cent nickel and 2.1 per cent to 10.9 per cent copper in 100-per-cent sulphide, as previously disclosed in Garibaldi's Nov. 10, 2016, news release).

Geological Survey of Canada regional geophysical data have revealed that the E&L deposit rests on the western flank of a massive gravity high approximately 35 kilometres long and 15 kilometres wide. This Bouguer anomaly is adjacent to another gravity high, a linear feature extending 65 kilometres north-south immediately east of the E&L project boundary. These gravity highs truncate the regional fabric. Together, they are interpreted to signify the presence of deep-penetrating crustal structures and provide evidence for a very large mafic-ultramafic intrusive event at the 63-square-kilometre E&L project.

E&L -- unique discovery in prolific Eskay camp

The underexplored E&L deposit features the first nickel-copper-rich massive sulphide zones discovered in the Eskay gold-silver-copper camp, 11 miles southwest of Eskay Creek and 20 miles west of Pretium's high-grade Brucejack gold mine, which is expected to commence production later this year. The sulphide zones drilled into in the 1960s at the E&L deposit have not been delimited in any direction.

Advances in district knowledge, geophysics and data processing since the 1960s, combined with major infrastructure improvements in the Eskay camp and a better understanding of nickel-copper discoveries such as Voisey's Bay, have sparked a major reinterpretation of the E&L deposit, which has laid the foundation for a planned aggressive 2017 exploration and drilling campaign at the property.

E&L 3-D geologic model due shortly

Steve Regoci, Garibaldi's president and chief executive officer, commented: "The sulphur source and the overall gravity signature take on added significance given E&L information confirmed earlier, including the historical drill holes and mineralized zones, the mineral assemblage, high nickel-copper tenors, platinum-palladium values, the Q magnetic anomaly, and the district setting.

"We look forward to completing and presenting the E&L 3-D model very shortly," continued Mr. Regoci. "The model will drive our upcoming exploration and drilling program. Modern heli-borne electromagnetic systems can now detect conductive sulphide bodies up to 350 metres in depth, providing far superior drill target selection."

E&L project Google Earth view

For a Google Earth view of the E&L project, featuring the E&L nickel-copper-rich deposit and the Brass Hill high-grade zinc-copper-gold-silver showing approximately three kilometres to the northeast, please visit the company's website.

E&L and Palm Springs red line map

Between its E&L deposit and Palm Springs project (PSP), Garibaldi controls approximately 160 square kilometres of highly prospective terrain immediately north and west-southwest of the past-producing Eskay Creek mine. The Kyba-Nelson red line, an important stratigraphic contact, traverses through both the E&L and the PSP. To view this map, please visit the company's website.

Qualified person

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

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