Ms. Linda Brennan reports

GOLD PROPERTIES EXPLORATION UPDATE

PJX Resources Inc. has released the results from CF Minerals Laboratory on the Zinger gold grains. As announced by the company on Jan. 17, 2017, heavy mineral separation recovered 898 grains and 256 grains of gold from two soil samples taken on the Zinger property.

The gold grains were extracted from the soil samples by heavy mineral separation performed at CF Mineral Laboratories in Kelowna, B.C. The approximately four-kilogram (dry weight) soil samples were taken seven metres apart. Given the large population size of gold grains found in the soils, it was decided that approximately every 10th grain would be selected as a representative sample to analyze by scanning electron microscope (SEM). SEM analysis found all the grains to be fairly consistent in chemical composition with gold as the major element followed by silver and trace quantities of copper and iron. The normalized weighted average concentration of these elements for the 95 grains analyzed from the 898-grain sample is 87.02 weight per cent gold, 12.60 weight per cent silver, 0.13 weight per cent copper and 0.25 weight per cent iron. The normalized weighted average concentration of these elements for the 29 grains analyzed from the 256-grain sample is 84.95 weight per cent gold, 14.79 weight per cent silver, 0.01 weight per cent copper and 0.25 weight per cent iron. This consistency in composition suggests a single bedrock source for the gold.

Geologist Dr. Charles (Chuck) Fipke, president of CF Minerals Research Ltd., stated: "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 likely within 50 metres to 400 metres of the sample locations. In addition, the chemistry of the foreign residue material on the gold grains suggests that the gold may be associated with potassic-altered sediments and/or felsic intrusive rocks. Of equal interest is how the Zinger property results are very similar to our analysis of gold grains on PJX's Dewdney Trail property [see PJX press release dated Oct. 26, 2016]."

CF Minerals estimates that gold grains on the Dewdney Trail property have travelled about 400 metres to 600 metres from their source rock and gold grains on the Zinger property have travelled only 50 metres to 400 metres from their source. "These two gold mineralized areas are located approximately 60 kilometres apart, and this finding, along with the regional geological environment, supports the potential for multiple gold deposits on PJX properties in the Cranbrook area," states John Keating, president and chief executive officer of PJX.

The Cranbrook area is underlain by Proterozoic-age turbidites, argillites, siltstone, quartzites and carbonate-rich rocks. The rocks have been folded and faulted along large regional structures that cross both the Zinger and Dewdney Trail properties. Cretaceous-age felsic intrusives occur along these major structures on both properties. "This type of structural and geological environment, combined with the gold mineralization discovered, supports the potential for orogenic-style gold deposits on the Zinger and Dewdney Trail properties," stated Mr. Keating. Exploration for the bedrock source of gold on these properties is planned to commence this summer.

Vine property

The company continues to explore with drilling on the Vine property. 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. Drilling on the large east gravity anomaly has outlined a zone of anomalous zinc mineralization that is at least 550 metres long and has a true thickness of 100.0 metres (see PJX press release dated March 2, 2017). Exploration has identified multiple targets to test. Permits and funds are in place to continue with drilling to test the targets.

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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