Mr. Normand Champigny reports

SPHINX AND SOQUEM IDENTIFY UNDRILLED, STRONG AND EXTENSIVE ZINC-LEAD SOIL ANOMALIES ON THE CALUMET-SUD PROJECT, QUEBEC

Sphinx Resources Ltd. and its partner SOQUEM have released new and positive results for zinc and lead from a geochemical soil sampling program on the Calumet-Sud project. These results were obtained in follow-up of the HELITEM30C Multipulse airborne survey completed earlier this year. Both the Sonny zone and a new parallel zone (the Sonny West zone), located 150 metres west of the Sonny zone, are delineated by strongly anomalous values in soil for zinc and lead. The Sonny zone discovery was initially reported in the press release dated June 25, 2015. Both zones are untested by drilling.

The combined soil sampling data from the Sonny and Sonny West zones comprised 1,034 soil samples (B horizon) over an area totalling approximately 0.8 square kilometre. Sampling and analytical protocols are comparable and consist of a spacing of 100 m by 100 m regionally and approximately 25 m by 25 m in and between the two zones. Sampling has not been conducted to the south of the anomalous area.

Significant results for the Sonny zone, identified in 2014, are as follows:

• Salient zinc values above 1,000 parts per million delineate an anomalous area measuring at least 300 m in strike length and 150 m in width, with a peak value of 15,600 ppm zinc (1.57 per cent);
• A number of one-metre-long channel samples (the true thickness of the mineralization cannot be determined) in carbonate rocks that returned: trench No. 1 -- 1.9 per cent Zn over five m, 3.7 per cent Zn over four m, including 5.4 per cent Zn over two m; and trench No. 2 -- 3 per cent Zn over 10 m, including 6.9 per cent Zn over one m.

The new Sonny West zone is characterized as follows:

• Highly anomalous zinc (90 values greater than 2,000 ppm Zn) and lead (14 values greater than 200 ppm Pb) in soils form an anomalous area 1,800 m in strike length and a width ranging 150 to 300 m, with a peak value of 37,200 ppm Zn (3.7 per cent).
• The zone is coincident with anomalous resistivity (high and low responses) and two parallel trends of electromagnetic conductors identified by the 2016 airborne survey.
• Disseminated sphalerite in carbonate bed rock has been identified at one location.
• Soil geochemical anomalies are consistent with the orientation of the carbonate rock strata. These strata are generally oriented north-south and have a shallow dip toward the east. These strata are folded isoclinally, which explains the repetition of the Sonny and Sonny West zones in two parallel north-south bands.

These geochemical anomalies are new and have not been drilled. The two above-mentioned zones are parallel and have a north-south trend consistent with the orientation of the bedrock in the area and the 2016 airborne survey responses. The area is covered by a veneer of soil and weathered bedrock. The two zones are hosted in metamorphosed carbonate host rocks.

Sphinx and SOQUEM have undertaken a ground gravity and induced polarization survey on the Sonny zone and Sonny West zone zinc targets. These geophysical surveys aim to identify the best targets for a drill program in the winter or during the spring of 2017.

Fieldwork has been conducted under the supervision of Dr. Michel Gauthier (Geo), a director of the corporation. Soil samples were analyzed by ALS Global, Val d'Or. Copper and zinc were analyzed by aqua regia extraction with an inductively coupled plasma-atomic emission spectroscopy (ICP-AES) finish. MB Geosolutions of Fossambault-sur-le-Lac, Que., in collaboration with the technical staff of Sphinx and SOQUEM, defined the target areas following an analysis of the data. All samples were initially tested by a portable Niton XRF analyzer.

The project consists of 21 claims covering an area of 12 square kilometres optioned to SOQUEM in 2016. Under the option and joint venture agreement with SOQUEM, Sphinx grants SOQUEM the option to acquire an undivided 50-per-cent interest in the project. If the option is exercised, a joint venture will be created between Sphinx and SOQUEM. SOQUEM is operating the project's exploration program. The project is adjacent to the Green palladium project held 100 per cent by Sphinx, which includes a significant strike length of the stratigraphy of interest.

The technical information presented in this press release has been approved by Normand Champigny, president and chief executive officer of Sphinx, a qualified person as defined by National Instrument 43-101.

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