Mr. Peter Main reports

OCTOBER OPERATIONS UPDATE

During October, Rizal Resources Corp. continued to advance the T'boli project with gold sales more than doubling September sales at 361 ounces for the month. The project was very close to breaking even, with a result of $36,000 loss for the month, a significant improvement on the September quarter.

Results from the mine were very encouraging with the average grade increasing to four grams per tonne for the month. Mine development continued to advance on several levels, the south access, 525 and 505. The main objective over the next few months is to achieve a cash flow positive position.

Operational highlights for October, 2017

• Gold production for October totalled 765,000 ounces, bullion sold totalled 361,000 for total revenue of $559,000 (23.1 million Philippine pesos) more than double September sales and gold in circuit (GIC) totalled 404 ounces.
• The project achieved an operating loss of $36,000 (1.4 million Philippine pesos) versus a loss in September $115,000 (4.7 million Philippine pesos).
• Gross revenue increased by 56 per cent from September.
• Operating costs rose by 61 per cent, mainly due to the move to owner mining.
• Total capital expenditures for October were $438,000 (18.2 million Philippine pesos) of which mine capex was 97 per cent.
• Total of 116 metres of horizontal advance was achieved in October, 63-metre capital drive and 52 metres of development drive -- a significant improvement on development metres during September.
• Mill availability was 98 per cent, less than planned mill feed resulted in utilization of only 62 per cent.
• Mill throughput was 3,760 tonnes, a marginal increase over September's 3,561 tonnes.

  
 
              OPERATIONS FINANCIAL SUMMARY
 
Summary                           September    October

Gold in circuit            oz           212        404
Gold produced              oz           172        361
Silver produced            oz           341        489

Total gold                 oz           383        765
Total silver               oz           341        411

Gold revenue               CAD     $261,430   $552,269
Silver revenue             CAD        5,624      6,781

Total revenue              CAD      267,054    559,050

Mining costs               CAD       63,973    172,828
Milling costs              CAD      271,291    368,155
Total operating costs      CAD      335,264    540,982

General and admin cost     CAD       38,368     52,557
Social dev and environment CAD        7,924      1,452
Total costs                CAD      381,555    594,991

Operating profit/loss      CAD     (114,501)   (35,941)
Capital expenditure
Mill capex                 CAD            0     10,378
Mine capex                 CAD      380,225    426,842
Admin capex                CAD            0      1,180
Total capital              CAD      380,225    438,400

          PROCESSING FACILITY
 
Processing            September October

Tonnes milled       t     3,561   3,760
Grade Au          g/t      3.52    4.04
Recovery Au         %      95.2%   94.1%
Gold in circuit    oz       212     404
Gold produced      oz       172     361
Silver produced    oz       341     411
Total gold         oz       383     765
  


            MINING OPERATION
 
Mining                    September October

Decline advance       m       55.80   63.50
Development advance   m       12.00   52.50
Stoping               t         336     232
ROM stockpile         t       3,201   2,297
Tonnes sent to mill   t       3,986   2,589

Dirk Richards, BSc (met/chem), MAusIMM (CP met), RPEQ, MRACI, is nominated as a qualified person as such term defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and verified the validity of the scientific and technical disclosure in this news release.