Mr. Will Ansley reports

LUPAKA REPORTS 23.45 G/T AU-EQ. OVER ~ 30 M FROM SAMPLING IN VERTICAL RAISE DEVELOPMENT, IN PREPARATION FOR MINING AT INVICTA

Lupaka Gold Corp. has provided channel sample results conducted vertically within the relief raise development at the company's 100-per-cent-owned Invicta gold development project.

Sampling program highlights

• Channel sample assay values from across the strike of the Atenea vein, within the raise development, returned an average of 23.45 grams per tonne (g/t) gold equivalent* (AuEq) over a vertical height of approximately 30 metres (m).
• Sampling returned significant grades as illustrated by sample 2606E which returned 227.77 g/t AuEq over a sample width of 1.2 m.

* AuEq calculations are based on $1,250 (U.S.) for gold, $17 (U.S.) for silver, $3 (U.S.) for copper, $1.25 (U.S.) for zinc and $1.05 (U.S.) for lead, with assumed mill recoveries of 85 per cent for Au, 80 per cent for Ag, 82 per cent for Cu and Pb, and 77 per cent for Zn, assays are uncapped.

"The results from sampling within the vertical raise development between the 3400 level and 3430 sublevel are very encouraging. When combined with the horizontal channel sampling results from the 3430 sublevel (as reported on June 7, 2018), the channel sample results provide further confidence in the continuity and high-grade nature of the mineralization within the Atenea vein, and our mine plan. With the relief raise now competed we are one step closer to production at the Invicta mine, which we expect to commence on schedule in Q3," said Will Ansley, president and chief executive officer of Lupaka.

Sampling program and development summary

The relief raise is approximately 30 m in height and was developed from the 3400 level up to the 3430 sublevel in preparation for blasting the initial block of production. Channel sampling was conducted across the vein strike at vertical intervals of approximately 2.0 m throughout the entire height of the relief raise, and each sample is approximately 1.2 m in width. The results illustrate the continuity of the mineralization and grades of the vein between the two levels. The commencement of the relief raise on the 3400 level was located in line with channel 23 from the 3400 level channel sample results (as reported on March 15, 2018) which returned grades of 18.10 g/t AuEq over a width of 12.00 m.

The polymetallic mineralization within the Atenea vein is hosted by structurally defined components which were mapped and sampled. Summarized assay sample results are tabulated and presented in the attached tables.

AVERAGE SAMPLING RESULTS FROM VERTICAL RAISE BETWEEN 3400 LEVEL AND THE 3430 SUBLEVEL RAISE 

Sampling     Length metres   Width metres   Au g/t   Ag g/t  Cu % Pb %   Zn %  AuEq g/t

Atenea vein          30.00            1.2    17.64      152  1.63 1.23   0.74     23.45

Summary results obtained from 15 samples taken from the relief raise which runs approximately 30 vertical inclined m from the top of the 3400 level up to the base of the 3430 sublevel, over spacing of approximately every 2.0 m alternating between the northeast and southwest walls. Samples are tabulated in "Summary assays from vertical raise sampling between the 3400 level and 3430 sublevel" table.

  SUMMARY ASSAYS FROM VERTICAL RAISE SAMPLING BETWEEN THE 
                3400 LEVEL AND 3430 SUBLEVEL 

Sample No.   Width       Au     Ag     Cu     Pb     Zn   AuEq
            metres      g/t    g/t      %      %      %    g/t

2542 E         1.2     4.78     26   0.91   1.24   2.30   8.61
2543 E         1.2     1.42     47   1.12   5.96   3.62   9.26
2544 E         1.2     2.39     44   1.10   4.41   2.18   8.45
2545 E         1.2     2.48     47   1.79   2.45   0.47   7.55
2546 E         1.2     3.18     73   2.67   1.82   0.80   9.84
2601 E         1.2    18.60     51   1.61   0.32   0.08  22.03
2602 E         1.2     2.72     52   1.84   0.20   0.03   6.43
2603 E         1.2     5.33     53   0.46   0.07   0.06   6.81
2604 E         1.2    12.70    135   3.24   0.13   0.05  19.68
2605 E         1.2     9.53     92   1.77   1.53   0.88  14.88
2606 E         1.2   199.50  1,580   4.82   0.26   0.42 227.77
2607 E         1.2     0.74      5   0.14   0.04   0.06   1.09
2608 E         1.2     0.65     23   0.96   0.05   0.04   2.52
2610 E         1.2     2.31     62   2.06   0.07   0.06   6.45
2611 E         1.3     0.05      2   0.12   0.04   0.09   0.34
Weighted average      17.64    152   1.63   1.23   0.74  23.45

Project background

Lupaka's Invicta gold project is a polymetallic development project located approximately 120 kilometres north of Lima, Peru. On May 11, 2018, a PEA was completed on the project by SRK Consulting (Canada) Inc. which evaluated the economic viability of underground extraction of the indicated and inferred mineral resources from the Atenea vein close to the existing 3400 level adit (up to 130 metres above the 3400 level) utilizing a sublevel long hole open stoping mining method supported by initial toll treatment processing options. Highlights of the PEA are summarized below:

• Mineral resource statement of 3.0 million tonnes of indicated mineral resources at 5.78 grams per tonne gold equivalent ounces using a 3.0 g/t AuEq cut-off, and 600,000 tonnes of inferred mineral resources at 5.29 g/t AuEq;
• Initial six-year mine plan (underground) designed on a portion of the mineral resource utilizing the existing infrastructure and minimizing capital start-up costs;
• Sublevel open stope mining producing about 670,000 minable tonnes at 8.6 g/t AuEq with production of about 185,000 AuEq oz (within initial six-year mine plan);
• Average annual pretax cash flows of $10.2-million (U.S.), average annual after-tax cash flow of $8.2-million (U.S.);
• Annual production of 33,700 AuEq oz, during steady state;
• Annual payable metal of 26,700 AuEq oz, during steady state;
• All-in sustaining costs of $575 (U.S.) AuEq oz over initial six-year mine life;
• Pretax 5-per-cent net present value of $53.6-million (U.S.), after-tax 5-per-cent NPV of $43.4-million (U.S.);
• Low capital investment: $4.3-million (U.S.) in preproduction capital with a payback of less than one year.

The PEA considers only part of the reported mineral resource (the Atenea vein close to existing infrastructure) with the objective of generating positive cash flow from a low-cost operation while simultaneously reinvesting in and further evaluating the deposit to potentially expand production in the future.

Cautionary note regarding the Invicta production decision

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The quantity and grade of reported inferred resources referred to in the PEA are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource category.

It is important to note while a mine production decision has been made by the company, that the information provided in this news release is preliminary in nature. There is no certainty that a potential mine will be realized. A mine production decision that is not based on a feasibility study demonstrating economic and technical viability does not provide adequate disclosure of the increased uncertainty and specific economic and technical risks of failure associated with such a production decision.

Quality control and assurance

The analyses for this sampling campaign were carried out by ALS, an accredited laboratory, in Lima, Peru, exercising a thorough quality assurance and control program (QA/QC). As part of QA/QC protocol, duplicates, standards and blanks were inserted into the sample processing stream. The sample locations were mapped, surveyed and photographed for reference. Individual sample channels vary between 1.2 to 1.3 metres wide. Samples were bagged, sealed and delivered to the ALS sample preparation facility in Lima, Peru. Gold was assayed by a 50-gram fire assay and reassayed for the overlimits, with an AAS finish. All ALS labs are ISO 9000 registered.

Technical report

Further information about the PEA and the resource estimate referenced in this news release, including data verification, key assumptions, parameters, risks and other factors, is provided in the technical report prepared following Canadian Securities Administrators' National Instrument (NI) 43-101 and Form 43-101F1 requirements for the Invicta project dated May 11, 2018, and is available under the company profile on SEDAR.

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 -- 100 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 Julio Castaneda Mondragon, MAIG, the president of Lupaka Gold Peru SAC, a Peruvian subsidiary of the company, and a qualified person as defined by National Instrument 43-101. Mr. Castaneda has verified the scientific and technical information, including sampling, analytical and test data underlying the information or opinions contained in this news release.

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