Mr. Steve Williams reports

PASINEX RESOURCES ANNOUNCES THE LATEST SALE OF HIGH-GRADE SULPHIDE ZINC FROM PINARGOZU MINE

Pasinex Resources Ltd. has completed a sale of high-grade zinc sulphide from the Pinargozu mine in Adana, Turkey. A total of 1,359.33 tonnes (wet weight) of material assaying an average of 46.1 per cent zinc and about 200 grams per tonne silver (provisional assay) was sold to an international trading house. The material was sold for over $900 (U.S.) per tonne, and the production costs for this material, based on previously disclosed third quarter 2016 financial information, are anticipated to be approximately $308.80 (U.S.) per tonne.

Steve Williams, president and chief executive officer of Pasinex Resources, commented: "We are pleased to report ongoing production at the Pinargozu mine. This is the latest sulphide sale and the first produced this year from the new third adit at Pinargozu. Once again, this production of high-grade sulphide material is an added bonus to the run-of mine non-sulphide zinc production reported in previous news releases."

Full production statistics, financial results, and the management's discussion and analysis are filed quarterly. Two thousand sixteen year-end results will be published in April, followed by first quarter 2017 results in May.

Over the last two years, production at the Pinargozu mine has come from two adits, and then, late in 2016, production was expanded to three adits. Mine planning for the next five years is based on mineralized volumes delineated by fan drilling from key drill stations on surface and underground. A key objective over the coming months is to complete a National Instrument 43-101 resource estimate prepared by an independent qualified person.

Pinargozu zinc mine and Horzum zinc trend (HZT)

Mining is predominantly exploiting very high-grade non-sulphide zinc mineralization from two adits. The new third adit, opened in August, 2016, is deeper and accesses exceptionally high-grade zinc sulphide mineralization in addition to predominantly non-sulphide mineralization. The grade of the mined non-sulphide material consistently exceeds the 25-per-cent zinc threshold for direct shipping to zinc processing plants, and the sulphide zinc material (sphalerite) is averaging over the required 45-per-cent zinc threshold. Pinargozu is one of several exploration targets along the Horzum zinc trend in southern Turkey. The HZT consists of a series of carbonate replacement deposits (CRDs). The HZT extends for at least eight kilometres north of the Horzum mine, currently operated by the company's joint venture (JV) partner, Akmetal Madencilik San ve Tic AS. The HZT is grossly underexplored. Pasinex is the first to apply advanced exploration technology and CRD exploration concepts and models to the HZT.

Qualified person

John Barry, EurGeol, PGeo, a qualified person as defined by NI 43-101, has inspected the original paid sales invoice issued by the JV for the shipment of zinc sulphides specified in this news release, and has approved the scientific and technical disclosure herein. Mr. Barry is a director of the company.

About Pasinex Resources Ltd.

Pasinex Resources is a metals company which is a 50-per-cent owner of the high-grade Pinargozu zinc mine, which has produced for several years and, under its DSO program, is shipping directly to zinc smelters/refiners from its mine site in Turkey. The Pinargozu mine is included in the 50-50 company, Horzum Arama Isletme AS, which is a corporate joint venture between Pasinex and Turkish mining house Akmetal Madencilik San ve Tic.

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