Mr. David Moore reports

SERENGETI RECEIVES POSCO DAEWOO'S NOTIFICATION TO EXERCISE ITS OPTION TO FUND $7 MILLION TO ADVANCE KWANIKA COPPER-GOLD PROJECT

Daewoo Minerals Canada Corp. (DMC), a Canadian subsidiary of Posco Daewoo Corp., one of South Korea's leading trading corporations, has exercised its right to earn an additional 30-per-cent interest, bringing its total interest to 35 per cent in the Kwanika copper-gold project, subject to finalizing and executing the full joint venture agreement for the project.

Serengeti Resources Inc. president and chief executive officer David W. Moore stated: "Posco Daewoo's commitment provides financial stability and, I believe, significant value to both the Kwanika project and Serengeti as a company. Today's announcement provides a clear path forward that will begin with the initiation of a prefeasibility in the short term. We look forward to working with a global partner of Posco Daewoo's calibre having both financial and trading capabilities, which will be very advantageous to our shareholders as both companies advance the Kwanika project towards our ultimate goal of putting the project into production."

Kwanika project advancement plan

Over the next 60 days, the partners will establish a joint venture company, they will finalize the full joint venture agreement, DMC will contribute its current 5-per-cent interest plus $7-million in cash and Serengeti will contribute an additional 30-per-cent Kwanika property interest to the new joint venture company. The partners are currently finalizing a plan and budget to advance the project through completion of a prefeasibility study (PFS), including financing a significant drilling program beginning in late September and initiating other activities consistent with PFS-level studies. Serengeti will remain as project operator and will be entitled to charge a 10-per-cent operator's fee on expenditures, so long as it maintains a majority interest. Additional terms of the Kwanika joint venture can be found in Serengeti's consolidated financial statements for the year ended Feb. 28, 2017, and in a news release dated March 7, 2016, both of which are filed on SEDAR.

Preliminary economic assessment highlights

An independent National Instrument 43-101 preliminary economic assessment for the Kwanika copper-gold porphyry project located in the Quesnel trough of north-central British Columbia, Canada, was completed in April, 2017. The results of the PEA demonstrated the potential technical and economic viability of establishing a new copper-gold mine and mill complex on the property (see the news release dated April 3, 2017, for full details).

• Pretax and posttax, respectively, net present value, discounted at 7 per cent of $324-million and $191.2-million and 21.1-per-cent and 16.6-per-cent internal rate of return, over a 15-year mine life;
• Life-of-mine (LOM) metal production of 601 million pounds copper, 676,300 ounces gold and 2.66 million ounces silver in concentrates;
• Annual metal production of 50.4 million pounds of copper, 70,100 ounces of gold and 181,100 ounces of silver in concentrates for the first eight years;
• Initial capital cost of $476-million plus LOM sustaining capital and closure cost of $83-million for a 15,000-tonne-per-day (5.4 million tonnes per annum) mill and combined open pit, underground mining operation.

National Instrument 43-101 disclosure

The Kwanika PEA was prepared by Moose Mountain Technical Services (MMTS) under the direction of Jim Gray, PEng, a qualified person (as defined under National Instrument 43-101), who is independent of Serengeti and has reviewed and approved this news release. Marek Nowak, PEng, and Chad Yuhasz, PGeo, of SRK Consulting (Canada), completed the NI 43-101 resource assessment report included in this PEA and are qualified persons and independent of Serengeti.

David W. Moore, PGeo, Serengeti Resources, president and chief executive officer, is the company's designated qualified person for this news release and has reviewed and validated that the information contained in the release is consistent with that provided by the QPs responsible for the PEA.

About Serengeti Resources Inc.

Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid record of exploration success. The company is currently advancing its Kwanika copper-gold project in partnership with Daewoo Minerals Canada and exploring its extensive portfolio of properties in the highly prospective Quesnel trough of British Columbia. A number of these other projects are available for option or joint venture, and additional information can be found on the company's website.

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