Mr. John Gardiner reports

TARANIS DISCOVERS MULTIPLE NEW ZONES AT THOR ASSAYING UP TO 1,858 G/T SILVER 100 M SOUTHWEST OF THE EXISTING AG-AU-PB-ZN-CU DEPOSIT

Taranis Resources Inc. has released the results of five NQ drill holes drilled on its Thor project, located west of the existing silver-gold-lead-zinc-copper deposit.

All of the holes were drilled in the footwall of the existing resource, outside of the known National Instrument 43-101 resource, and have conclusively shown that the sulphide lodes at Thor are folded into multiple parallel zones along the axis of the Thor anticline that plunges shallowly to the northwest.

The high-grade zones are tightly folded into a corridor at least one kilometre long that is 100 metres wide at surface, and dips moderately to the northeast along the east side of Great Northern and Broadview Mountains. All of the intercepts reported occur from surface to a maximum depth of 70 metres below surface, but remain open at depth.

2016 drilling update

The attached table shows the results of the first five drill holes (Thor-155 was drilled at the onset of the program and was drilled down dip, and was devoid of mineralization). The core was re-examined after the initial assays were received, and the core has undergone additional sampling which is expected to widen some of the intercepts.

Hole No.    From (m)    To(m)   Interval (m)   Au (g/t)   Ag (g/t)   Pb (%)   Zn (%)   Cu (%)

Thor-156      35.20    43.43           8.23       0.84      125.5     0.78     0.68     0.05
Including    
Thor-156      42.40    42.67           0.27        1.1      1,858     2.97     3.03     0.12
    Additional mineralized material found after 43.43 metres to 44.20 metres; assays pending.
Thor-157      38.98    42.64           3.66       0.68      127.9     0.06     0.59     0.66
Thor-157      73.21    74.62           1.41       1.01      695.3     6.86     6.53     0.17
Thor-157      77.42    78.97           1.55       0.73        6.1    Trace    Trace    Trace
  The interval from 74.62 metres to 77.42 metres was subsequently sampled, and assay results
                        are pending to combine these two intercepts to a 5.76-metre interval.
Thor-158      69.34    71.02           1.68       0.62      590.1     0.03     0.08     0.44
Thor-159      34.90    39.11           4.21       0.28       33.9     0.88     0.12     0.12

Exploration is being focused on the central part of the Thor anticline, where a number of recent high-grade gold discoveries have been made. These include the gold pit, also located in the footwall of the deposit in an outcrop (52.4 grams per tonne gold and 1,542 grams per tonne silver over 2.04 metres), and the SIF zone (30.59 grams per tonne Au over 17.55 metres). At Thor, gold appears to be preferentially concentrated along the top of parasitic drag folds and anticline axes.

John Gardiner, chief executive officer of Taranis Resources, comments: "The discovery of multiple, parallel high-grade zones in the initial five holes at Thor has major implications for expansion at Thor. The presence of multiple, stacked zones of high-grade mineralization makes the project ideal for large-scale, low-cost open-pit mining. Most of the deposit is already exposed at surface along the east side of Great Northern Mountain.

"Recognition of the tight folding of the sulphide zones also gives us a firm grasp of the structure of the deposit, and it now appears that there could be multiple layers. Roscoe Postle Associates completed an in-house Whittle open-pit model of the Thor deposit and found that approximately 80 per cent of the deposit was open pittable, but we expect that this to dramatically increase with the discovery of these types of en-echelon zones at Thor."

Qualified person(s)

Mr. Gardiner (PGeol) and Jim Helgeson (PGeo) are the qualified persons on the project. Samples are taken under the direction of qualified geologists. Core is sawed on site, and one-half is retained for reference and further analytical work, including specific gravity determinations. Samples of the other half are delivered by the company via courier to MS Analytical Labs in Langley, B.C. MS Analytical Labs is an ISO-9001:2008-certified analytical laboratory. The company inserts standards every 10th sample for quality control in addition to the stringent internal checks completed at MS Analytical. Samples are dried, crushed, split and pulverized. Analysis for silver, copper, lead, zinc and related trace elements was done by modified aqua regia digestion with ICP (inductively coupled plasma) finish, and gold by 30-gram fire assay with ICP finish.

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