Mr. Will Ansley reports

LUPAKA PROVIDES DEVELOPMENT UPDATE; COMMERCIAL PRODUCTION EXPECTED IN Q3/18

Lupaka Gold Corp. has provided a development update on the company's 100-per-cent-owned Invicta gold development project.

Highlights:

• Main access road construction is 65 per cent advanced, completion expected in May, 2018;
• Operations team substantially in place, rehabilitation of the 3,400 level approximately 50 per cent complete;
• 3,430 level crosscut completed, continuity and consistency of hangingwall split and footwall zones confirmed between 3,400 and 3,430 levels;
• 8,000 tonnes of mineralized development material to be toll processed in May;
• Project remains on track and on budget, commercial production at 350 tonnes per day (tpd) expected to be reached in the third quarter of 2018;
• Fully financed for the development of Invicta (refer to Feb. 13, 2018, news release).

"With our operational team now substantially in place, the development and rehabilitation of Invicta has rapidly advanced and the company is well positioned to reach commercial production, at 350 tonnes per day, during the third quarter of 2018. While continuing to rehabilitate and develop the Invicta mine, 8,000 tonnes of mineralized development material will be sent for processing and evaluation at regional toll milling facilities in May, the proceeds of which will offset development costs. The 3,430 level crosscut has been completed and the continuity and consistency of the hangingwall and footwall veins has been confirmed from the 3,400 level up to the 3,430 level. Sublevel preparation for mining of the footwall vein between the 3,400 and 3,430 levels is progressing well. We are pleased to report that overall, the project remains on time and on budget," said Will Ansley, president and chief executive officer of Lupaka Gold.

Road construction progress

Upgrades to the 28-kilometre main access road, from the paved highway to the Invicta project, are approximately 65 per cent advanced. The upgrade work includes widening the road from four metres to approximately six metres, construction of four bypasses to circumvent communities and difficult portions of the road where numerous switchbacks occurred, the development of borrow pits to obtain road surfacing materials, improving the road surface to allow 30-tonne haulage trucks and heavy machinery to travel, and the installation of berms and drainage ditches. Along with the reduction of traffic within the communities and increasing the efficiency of hauling, one of the main and most important benefits of these improvements is increasing safety conditions.

Heavy rainfall, thick fog and a delay in obtaining the explosives licence initially impeded road upgrade productivity; approximately 20 per cent of the length of the road requires blasting prior to removal with excavators. During December and January the advance rate of road construction was approximately 150 metres per day, however, the current rate is in the range of 300 metres per day. Depending on precipitation levels, the company is targeting completion of the road project in May, 2018.

Invicta development and rehabilitation update

Development and rehabilitation work at Invicta is progressing well and the company anticipates it will commence production from the 3,400 level at a rate of 350 tpd in Q3 2018.

Recruitment of the key operations team personnel was completed in Q1 2018 which included the director of operations, mine manager, chief geologist, superintendent of production and mine planning, and other related technical personnel. The operations team is overseeing and directing the mining and road contractors, as well as preparing the mine development and production plans. During the second quarter of 2018, the Invicta camp facilities will be expanded from 65 people to allow for up to 130 persons.

Several enhancements have been made to the initial mine plan as outlined in the March, 2018, preliminary economic assessment (PEA). Two vertical material transport raises originally contemplated in the PEA have been eliminated, resulting in a savings of approximately $250,000 (U.S.), through the use of draw points on the 3,400 level. The 3,400 level will be the main haulage level for mineralized material and a decision has been made to increase the dimension of 120 metres of the 3,400 level from 3.5 metres wide by 3.0 m high to 4.5 m wide by 4.0 m high in order to allow access of 30-tonne haulage trucks, which can then haul directly to the processing plant. Small mineralized material storage chambers will be constructed underground to ensure a continuous flow of mineralized material from the mine to the plant. Mineralized material will be loaded into the waiting trucks from the underground stations on the 3,400 level and travel directly to the process plant, thereby eliminating the need to construct and operate a reloading platform 26 kilometres from the mine. The investment in widening the 3,400 level is budgeted to be approximately $500,000 (U.S.), however, direct haulage (avoiding the use of a reload station) will lower future operating costs and payback on the investment is estimated to be approximately one year. Furthermore, increasing the dimensions and haulage capacity of the 3,400 level allows Lupaka to more easily increase the mines output in future years above the current plan of 350 tpd.

Other efforts on the 3,400 level include replacing and enhancing the existing ground support systems, installation of services, refuge and vehicle bypasses, and a ventilation system that includes two raises (2.0 m by 2.0 m) which will provide a continuous flow of fresh air to the 3,400, 3,430 and future sublevels, as well as providing secondary egress points. Approximately 90 metres of the required 180 metres have been rehabilitated on the 3,400 level, and development of the first ventilation raise has commenced.

The 3,430 level crosscut was completed advancing a total of 149 m, intersecting the hangingwall split at 133 m and the footwall zone at 142 m. Mineralization in both zones is visually consistent containing coarse grains of chalcopyrite, sphalerite and galena, with the mineralization 30 metres below on the 3,400 level.

Evaluation of toll milling facilities

Approximately 8,000 tonnes of mineralized development material will be sent to regional toll milling facilities for processing in May, at different throughput levels, in order to assess the suitability and optimal recoveries available from the plants. Approximately 2,000 tonnes of mineralized development material are currently stockpiled on surface.

Josnitoro project

The Josnitoro joint venture agreement (JV) with Hochschild Mining PLC required the company to obtain a community agreement for exploration by March, 2018. Lupaka was unable to obtain a community agreement and requests for an extension with Hochschild were unsuccessful, resulting in termination of the JV. As the focus for the company continues to be the advancement of Invicta into production, no significant activities were performed on the JV, and there were no carrying costs associated with the property.

About Lupaka Gold Corp.

Lupaka is an active Canadian-based company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions of Peru.

Invicta gold development project -- One hundred per cent owned, the company's flagship project is an advanced-stage gold-copper polymetallic underground deposit located approximately 120 kilometres north of Lima. Over $12-million of capital has been spent by previous owners on development and infrastructure at Invicta, and management expects to commence potential production in the second half of 2018 by using third party mining contractors and utilizing the existing adit and workings. The Invicta project is fully permitted and community agreements are in place.

Qualified person

The technical information in this document has been reviewed and approved by Dan Kivari, PEng, director of operations of the company, and a qualified person as defined by National Instrument 43-101. Mr. Kivari has verified the scientific and technical information, including sampling, analytical and operational data underlying the information or opinions contained in this news release.

We seek Safe Harbor.