Mr. Ron Tremblay reports

LEVON RESOURCES FILES UPDATED 2018 RESOURCE AND PRELIMINARY ECONOMIC ASSESSMENT 43-101 REPORT, CORDERO PROJECT, CHIHUAHUA, MEXICO

Levon Resources Ltd. has filed a Canadian National Instrument 43-101 technical report dated effective March 1, 2018, on SEDAR. The report is prepared by M3 Engineering & Technology in collaboration with Independent Mining Consultants of Tucson, Ariz., and provides the 2018 resource update and a preliminary economic assessment update (M3) for the Cordero silver, zinc, lead, gold project in Chihuahua, Mexico; the results of which were announced in a March 5, 2018, news release.

  
 
                      HIGHLIGHTS OF THE PEA UPDATE 
                        (United States dollars)
 
Cordero project mineral resources 
Category       Tonnes (000s) AgEq g/t  Ag g/t    Zn%     Pb%    Au g/t  

Indicated           990,054     31.92   12.81   0.37    0.17      0.04     
Inferred            282,217     56.43   20.66   0.75    0.30      0.04     
                                                                           
Contained metal                             Oz (000s)  Lb (000s)  Lb (000s) Oz (000s)

Indicated                -          -        407,761  8,030,051  3,774,996     1,273    
Inferred                 -          -        187,461  4,665,047  1,859,799       363    
  
Note: Mineral resources tabulated at 15-grams-per-tonne AgEq (silver equivalent) 
cutoff.

• A subset of the indicated and inferred mineral resource was used to develop an open-pit mining plan at a rate of 40,000 tonnes of mill feed per day, with flotation processing to create high-quality lead and zinc concentrates. This mining rate is identical to the mining rate in the 2013 PEA update (news release of May 15, 2013). Mineral concentrates will be sold to offshore smelters.
• Average annual production of eight million ounces of silver, 44,788 tonnes of zinc (99 million pounds) in concentrate, 31,158 tonnes of lead (69 million pounds) in concentrate and 11,900 ounces of gold.
• Economic analysis for the updated study are based on $20/oz silver, $1.30/lb zinc, $1.00 lead and $1,300/oz gold.
• The updated mine plan for the updated 2018 PEA, which is scheduled over a 29-year mine life includes total mineralized material of 417.5 million tonnes at 46.5 g/t silver equivalent, producing concentrates containing a total of 231 million ounces silver, 2,863 million pounds of zinc, 1,992 million pounds of lead and 350,000 ounces of gold.
• The waste to mill feed tonnage ratio is 0.98:1 since the resource crops out at the surface. The resource has not been drill delineated on its perimeter, and the modelled strip ratio includes undrilled areas in the modeled open pit as waste. The modelled open pit for the PEA measures 2,000 metres long by 1,300 metres wide by 380-metre maximum depth.
• Metallurgy is simple (side by side lead and zinc conventional floatation mills) with 88-per-cent overall recoveries after three rounds of bench-scale testing.
• Capital costs estimated at $570-million for initial project capital including mine, plant, TSF, and owners costs, and $271-million for sustaining capital over the mine life.
• Average annual after-tax cash flow of $77.4-million over 29 years.
• Average operating mining cost of $2.34 per tonne of mill feed, a plant operating cost of $5.08 per tonne of mill feed, and a general-and-administrative cost of $1.12 per tonne of mill feed. Average annual cash operating costs are $193-million including royalties.
• The base case economic estimate is an after-tax net present value of $438-million, using a 7.5-per-cent discount rate, and an after-tax internal rate of return of 16.5 per cent with a payback period of 4.8 years.
• An upside silver price of $25/oz yields an after-tax net present value of $713-million, using a 7.5-per-cent discount rate, and an after-tax internal rate of return of 21.9 per cent with a payback period of 3.9 years.
• Project infrastructure includes a good road network between Hidalgo del Parral and the mine site. Power transmission will require a 232-kilovolt extension of 75 kilometres to the mine site substation. Skilled mine labour is available from Hidalgo del Parral and other nearby communities in southern Chihuahua.
• Levon owns all claims that cover the Cordero district, which total 37,000 hectares.

Commenting on this news, Ron Tremblay, president and chief executive officer, said: "The PEA update confirms Levon's belief in the upside mineral potential and positive economics that we always expected. With the successful completion of an infill drilling program and subsequent metallurgical, mining, geotechnical, and tailings studies, Levon remains confident that it will continue to improve the project toward commercial production in the future."

Qualified person

Levon's technical work on the Cordero project is supervised by Vic Chevillon, vice-president, exploration, for Levon and a qualified person as defined by National Instrument 43-101.

The technical report was supervised by Daniel H. Neff, PE, chairman of M3, a qualified person as defined by NI 43-101. Mr. Neff has reviewed and approved the technical information contained in this news release.

The updated Cordero resource estimate was prepared under the direction of Herb Welhener (SME registered member No. 3434330), a qualified person as defined by NI 43-101.

About Levon Resources Ltd.

Levon is a gold and precious metals exploration company, exploring the company's 100-per-cent-owned flagship Cordero bulk-tonnage silver, gold, zinc and lead project near Hidalgo Del Parral, Chihuahua, Mexico.

Technical disclosure

Mineral Resource estimates reported herein have been classified as indicated or inferred based on the confidence of the input data, geological interpretation and grade estimation parameters. Mineral resources used for estimating project economics reported herein are based on inputs that include metallurgical performance, geologic and geotechnical characterization, operational costs, and other economic parameters. The company is not currently aware of any known factors that are reasonably likely to have a negative material impact on the company's mineral resources. The mineral resource estimate was prepared in accordance with NI 43-101 and classifications adopted by the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) council.

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