Ms. Candace Di Vito reports

TOACHI MINING ANNOUNCES ADDITIONAL HIGH GRADE TRENCH RESULTS INCREASING ITS VMS CORRIDOR FOOTPRINT

Toachi Mining Inc. has provided new high-grade trenching assay results that extend the known VMS (volcanogenic massive sulphide) corridor footprint farther north, including a trench cut assaying six metres at 2.02 g/t gold, 32.5 g/t gold, 2.34 per cent copper, 0.79 per cent lead and 2.59 per cent zinc. These new trenching results are located 150 metres north of the high-grade trenching results previously reported by Toachi on Jan. 16, 2019.

Guatuza North trenching significant intercepts:

• LPTR-18-08 Guatuza -- (zero metre to six metres) six metres at 2.02 g/t gold, 32.5 g/t silver, 2.34 per cent copper, 0.79 per cent lead and 2.59 per cent zinc;
• LPTR-18-13 Guatuza (San Jose) -- (2.1 metres to 3.1 metres) one metre at 1.08 g/t gold, 44.4 g/t silver, 0.48 per cent copper, 1.92 per cent lead and 7.94 per cent zinc;
• LPTR-18-14 Guatuza (San Jose) -- (zero metre to 3.4 metres) 3.4 metres at 1.15 g/t gold, 24.42 g/t silver, 0.23 per cent copper, 1.24 per cent lead and 4.39 per cent zinc.

Notes:

• The channels LPTR-18-13 and LPTR-18-14 are perpendicular to the intersected mineralization and structures.
• Moderate to high BLEG (bulk leach extractable gold) anomalies were also confirmed last week at the Guatuza prospect, La Mina North block and Aguas Calientes prospect. These BLEG samples were collected in the final quarter of 2018 along the main drainages of these prospects.

Alain Bureau, president and chief executive officer, stated, "In comparison to the surface expression above the known VMS horizon at La Mina South and La Mina North, we are encouraged by the geological similarities recently discovered, which bring solid drill-ready targets."

                       TRENCHING ASSAY RESULTS SUMMARY
                                                                            
Channel      From      To   Length          Au       Ag      Cu     Pb     Zn
               (m)     (m)      (m)       (ppm)    (ppm)     (%)    (%)    (%)

LPTR-18-08      0       2        2        1.51    33.80    3.04   0.58   1.33 
LPTR-18-08      2       4        2        2.52    32.30    2.35   1.42   4.42 
LPTR-18-08      4       6        2        2.04    31.40    1.64   0.37   2.01 
LPTR-18-08      6     6.7      0.7        0.68     5.80    0.04   0.07   0.02 
LPTR-18-08    6.7     8.7        2        0.50     3.00    0.18   0.07   0.08 
LPTR-18-09      0       1        1        0.42     6.10    0.33   0.54   0.01 
LPTR-18-09      1       2        1        0.34     2.30    0.43   0.01   0.01 
LPTR-18-09      2       3        1        0.42     5.90    0.24   0.02   0.09 
LPTR-18-10      0     1.7      1.7        0.37     6.60    0.22   0.07   0.09 
LPTR-18-10    1.7     3.2      1.5        1.22    21.90    0.17   0.07   0.08
LPTR-18-11      0       2        2        0.16     1.90    0.03   0.01   0.01
LPTR-18-12      0     0.5      0.5        0.12     1.70    0.05   0.20   0.03 
LPTR-18-12    0.5     2.5        2        0.28     2.80    0.02   0.08   0.03
LPTR-18-13      0     2.1      2.1        0.25    16.30    0.10   0.19   0.07
LPTR-18-13    2.1     3.1        1        1.08    44.40    0.48   1.92   7.94
LPTR-18-13    3.1     4.5      1.4        0.67    25.10    0.15   0.54   0.89
LPTR-18-14      0       2        2        1.42    23.60    0.28   0.58   5.12
LPTR-18-14      2     3.4      1.4        0.75    25.60    0.16   2.17   3.35
LPTR-18-15      0     0.5      0.5        0.10     1.80    0.01   0.32   0.25
LPTR-18-15    0.5     1.1      0.6        0.12     0.60    0.01   0.02   0.02 
LPTR-18-15    1.1     2.5      1.4        0.48    11.90    0.12   0.53   0.85 
LPTR-18-15    2.5     3.4      0.9        1.16    43.40    0.19   2.31   5.59 
LPTR-18-16      0    0.45     0.45        1.03    15.70    0.36   0.03   2.87 
LPTR-18-16   0.45    1.75      1.3        1.37    16.30    0.07   0.37   0.72 
LPTR-18-16   1.75     2.3     0.55        0.28     4.50    0.02   0.39   0.11 
LPTR-18-16    2.3     3.5      1.2        0.14     5.50    0.02   2.09   0.03 
LPTR-18-17      0     0.5      0.5        1.49    13.00    0.26   0.03   1.52 
LPTR-18-17    0.5     1.7      1.2        0.88     5.00    0.05   0.19   0.39 
LPTR-18-17    1.7     2.2      0.5        0.29     2.00    0.03   0.24   0.06 
LPTR-18-17    2.2    2.65     0.45        0.19    21.50    0.02   0.73   0.02 
LPTR-18-17   2.65     4.1     1.45        0.24    13.40    0.03   0.51   0.04 

Exploration program and vectoring summary

These new trench assay results continue to confirm and validate the high-grade Guatuza VMS corridor and extend it 150 metres farther to the north (San Jose prospect). Toachi's exploration team on the ground is continuing this successful trenching campaign based on the results of the 2018 mapping and prospecting program. Cleaning, mapping and trench channel sampling of VMS-mineralized outcrops are continuing with the aim of testing the full northern extent of the Guatuza, San Ramon and San Pablo South VMS corridor targets prior to this year's proposed exploration drilling program.

During January, 2019, continued cleaning of talus and debris covering areas of near surface VMS mineralization was completed in the open-pit north wall, stream Quebrada Mala and in stream Quebrada Tajo (please refer to the map available on Toachi's website). Removal of younger ash fall and lahar cover over Eocene bedrock was continued along the San Ramon stream at the San Pablo South prospect and in the upper parts of the streams of Quebrada San Jose and Quebrada Andino in the Guatuza zone and in the San Ramon prospects, respectively.

Channel sampling was also completed in part of the San Ramon stream in San Pablo South prospect and within the recently cleaned outcrops in the open-pit north wall, Quebrada Mala in the La Mina North block and Quebrada Tajo (east of the open pit) in the southern part of the Guatuza prospect.

Quality assurance/quality control sampling protocols

All trenching intervals have been reported on a minimum composite grade of four ppm (parts per million) gold equivalent cut-off, minimum composite length of one metre using a maximum internal dilution of one metre and provide sampling coverage on a continuous basis. The surface trenching samples with base metal assay results above 1 per cent have been reassayed using the multielement ICP-ES, four-acid digestion analytical method for ore grade assays.

Trenching undertaken by Toachi Mining in 2019 has been supervised by on-site staff at the project who meticulously collect and track samples, which were then sealed and shipped to MS Analytical in Canada for analysis. The sample preparation was performed by Ecuadorian partner LAC y Asociados.

Both LAC y Asociados and MSA are ISO 9001:2008 registered companies. MS Analytical also meets the requirements as outlined in ISO/IEC 17025. Analytical accuracy and precision are independently controlled using blanks, control reference material and duplicate samples.

Stream sediment samples were collected and sieved at the sampling site using a one-millimetre screen. Control duplicate samples were taken at a rate of one in 20 samples. The sample material was tagged, packed into plastic and calico bags, and then air dried at Toachi's field camp in Palo Quemado. The semi-dry samples were dispatched to the LAC y Asociados laboratory in Cuenca, Ecuador, and further sieved using the 0.3-millimetre screen. The sieved less-than-0.3-millimetre samples were then shipped to Activation Laboratories Ltd. in Canada for BLEG analysis.

Actlabs (Activation Laboratories Ltd.), Ancaster, is ISO17025 accredited (Lab 266) by the Standards Council of Canada (SCC) for specific methods listed in the scope of accreditation.

The qualified person under National Instrument 43-101 (Standards of Disclosure for Mineral Projects) for this news release is Michael D. Druecker, doctor of philosophy, certified professional geologist, who has reviewed and approved its contents.

About Toachi Mining Inc.

Toachi brings a disciplined and veteran team of project managers together with one of the industry's highest-grade polymetallic projects at La Plata in Ecuador. Toachi is focused on and committed to the development of advanced-stage mineral projects throughout the Americas using industry best practices combined with a strong social licence from local communities.

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