Mr. John Keating reports

MAGNETOTELLURIC (MT) SURVEY COMPLETED ON PJX RESOURCES' DD PROPERTY

PJX Resources Inc. has completed a magnetotelluric geophysical survey, carried out by Teck Resources Ltd., which identified a conductive anomaly in a geological environment favourable to host a Sullivan type deposit on the DD property located in the Cranbrook area of British Columbia.

The MT survey carried out by Quantec Geoscience for Teck has defined a MT anomaly that appears to coincide with the anticipated depth of the Sullivan horizon. The anomaly occurs on the DD property within a sedimentary basin called the Panda basin that is geologically similar to the Sullivan basin hosting the Sullivan deposit located about 45 kilometres to the north. Teck is assessing the MT target for drilling and is in the process of applying for the relevant permits.

"Historical drilling by other companies in the Panda basin indicates that the Sullivan time sedimentary horizon that hosts the Sullivan deposit increases significantly in thickness and anomalous zinc-lead mineralization the closer drilling gets to the DD property," states Dave Pighin, PGeo for PJX Resources. "This increasing thickness is similar to what occurs at the Sullivan deposit in the Sullivan basin. The Sullivan horizon is approximately two metres thick at about eight kilometres from the Sullivan deposit and increases to over 60 metres thick at the deposit. The thickness of the Sullivan time horizon in the Panda basin is much greater than the Sullivan basin. A series of four widely-spaced historical holes drilled in the Panda basin show that the Sullivan time horizon is 43 metres thick with 3.5 metres of anomalous zinc and lead mineralization at about 5.5 kilometres from the DD property. The Sullivan horizon and anomalous mineralization increase in thickness the closer drilling gets to the DD property. The closest hole drilled adjacent to the DD property intersected over 194 metres of Sullivan horizon with 36 metres of geochemically anomalous zinc and lead."

The MT survey consisted of two four-kilometre-long, widely-spaced, east-west-oriented lines carried out to assess the Panda basin at depth and a third perpendicular line to assess the location and dip of the regional synsedimentary Moyie fault. Readings were taken at 200-metre intervals. The two parallel MT lines define an anomaly that is open to the north and south.

"We look forward to testing the significant and sizable MT anomaly," states the president and chief executive officer of PJX, John Keating. "The Sullivan horizon has never been drilled on the DD property."

The road accessible DD property is located approximately 120 kilometres east of Teck's Trail metallurgical complex that produced about eight million tonnes of zinc, nine million tonnes of lead and over 285 million ounces of silver from processing Sullivan mine concentrate. The Sullivan mine produced concentrate for over 90 years before being closed in 2001.

Terms of the Teck option agreement

Teck has been granted an option to acquire up to a 75-per-cent interest in the DD property. The agreement provides for Teck to earn an interest in the property as follows:

Stage 1: Teck has an initial option to earn a 51-per-cent interest in the DD property by incurring $4-million of expenditures by Jan. 31, 2021.

Stage 2: Teck may elect to earn an additional 24-per-cent interest in the property, thereby increasing its interest to 75 per cent, by incurring an additional $4-million of expenditures by Jan. 31, 2024.

Provided that Teck has exercised the first option, a joint venture shall be deemed to be formed on the date upon which the earlier of the following occurs: Teck declines or advises that it is no longer pursuing the second option, Teck delivers a notice to PJX notifying PJX of the exercise of the second option or Jan. 31, 2024. If either party elects to not participate in the joint venture, its interest may be diluted on a pro rata basis to a 5-per-cent net profits royalty.

Approximately $150,000 has been spent by Teck on the DD property to date.

The DD property comprises the DD claims, 440 hectares of land, that PJX optioned from Doug Anderson and David Pighi and the DD extension claims owned by PJX.

The foregoing geological disclosure has been reviewed by Mr. Pighin, PGeo, and Mr. Keating, PGeo, qualified persons for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Pighin is the consulting geologist for PJX on the DD and Vine properties. Mr. Keating is the president, CEO and a director of PJX.

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