Mr. John Keating reports

EXPLORATION UPDATE

PJX Resources Inc. has discovered a significant quantity of gold in soil on its Zinger property in Cranbrook, B.C. Heavy mineral separation of two approximately four-kilogram samples of soil recovered 898 grains and 256 grains of gold, respectively.

Hand trenching was completed up slope of a soil sample that contained 4,941 parts per billion (4.941 grams per tonne) gold (see news release dated Sept. 20, 2016). The stripping exposed sericite and carbonate altered sediments with localized quartz carbonate veining in bedrock. Chip sampling along the 14.5-metre-long trench returned a weighted average of 524 parts per billion (0.524 gram per tonne) gold. However, a short drill hole under the trench failed to identify any gold.

Given the 4.941 grams per tonne gold in the initial soil sample, the company took two samples of soil from material stripped off of the trench to reconfirm the presence of gold in the soil. The approximately four-kilogram (dry weight) samples were taken seven metres apart. They were sent for analysis at CF Mineral Laboratories of Kelowna, B.C. Heavy mineral separation performed on the soils recovered 898 grains and 256 grains of gold, respectively. Gold grain morphology was assessed to help determine the distance the grains may have travelled from a bedrock source.

Charles (Chuck) Fipke, president of CF Minerals Research, stated: "This large population of gold grains range in size from 34 to 266 micrometres. The angularity and other morphological features of the gold grains suggest that they have not travelled far and that the bedrock source of the gold is estimated to be within 100 or 200 metres of the sample locations. Further analysis of the gold grains by scanning electron microscope will be undertaken to help assess the source of the gold."

"These findings from CF Minerals, combined with the presence of gold in bedrock from trenching, have greatly advanced the exploration potential to discover a gold deposit on the Zinger property," stated John Keating, president and chief executive officer of PJX. "The trench and soil samples are located on a fairly steep slope, which suggests that the source for the gold is likely up slope from the samples. In addition, this is only one of a number of gold target areas to be tested on the Zinger property."

Vine property update

The Vine property has potential to host a zinc-lead-silver massive sulphide deposit similar to the Sullivan mine located 35 kilometres to the north. Exploration has identified multiple targets to test. Permits and funds are in place to continue with drilling to test the targets this winter.

PJX holds a 100-per-cent interest in its properties. They are all road accessible and are located close to rail, power and a local work force in Cranbrook and Kimberley, B.C.

The foregoing geological disclosure has been reviewed by John Keating, PGeo, a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Keating is the president, chief executive officer and a director of PJX.

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