Mr. John Gardiner reports

TARANIS DRILLS 465.8 G/T AG AND 2.79 G/T AU OVER 2.22 M IN UP-DIP EXTENSION OF GREAT NORTHERN MIDDLE ZONE

Taranis Resources Inc. has released further results from its 2016 phase 1 drilling program at Thor. Thor-173 and Thor-178 were drilled on a geological cross-section through the deposit, adjacent to drill holes Thor-171 and Thor-172, whose results were previously announced (Sept. 14, 2016) and are summarized in this news release for comparative purposes.

Drill hole Thor-178

Thor-178 was drilled at an angle of minus 450 degrees and was drilled up dip of Thor-171. This drill hole intersected the continuation of the newly discovered Great Northern Middle zone.

Hole No.  Zone          From      To   Interval       Silver       Gold    Copper    Lead    Zinc    Silver equivalent
                          (m)     (m)        (m)        (g/t)      (g/t)       (%)     (%)     (%)                (g/t)

Thor-178  GN Middle    14.30   16.52       2.22        465.8       2.79      0.97    0.13    0.19                734.2

Of particular interest in this hole is the high level of gold and silver compared with base metal content. These holes, in conjunction with other holes completed on the same section, document a metal zonation where the silver and gold content increases up dip in the Great Northern zone. The intercept in Thor-178 occurs only five metres below surface and it is possible that the target can be exposed with the use of an excavator.

Drill hole Thor-173

Drill hole Thor-173 (minus 900 degrees) was drilled down dip of the previously reported drill holes Thor-171 and Thor-172. This drill hole intersected all three of the Great Northern zones.

Hole No.  Zone          From      To   Interval       Silver       Gold    Copper    Lead    Zinc    Silver equivalent
                          (m)     (m)        (m)        (g/t)      (g/t)       (%)     (%)     (%)                (g/t)

Thor-173  GN Upper     12.65   18.59       5.94         43.7       0.34      0.06    0.79    0.63                115.9
Thor-173  GN Middle    42.98   45.57       2.59         86.5       0.63      0.06    0.27    7.02                383.9
Thor-173  GN Lower     67.36   73.76       6.38          2.9       0.04      0.00    0.06    0.32                 18.9

Thor-171 and Thor-172 comparison

For comparison purposes, the intersections for drill holes Thor-171 and Thor-172 are shown in an attached table and, when viewed in conjunction with holes Thor-173 and Thor-178, show progressive metal zonation for each of the zones. Taranis has now completed an entire stratigraphic section through this area of the deposit, and it is posted on the company's website.

Hole No.  Zone          From      To   Interval       Silver       Gold    Copper    Lead    Zinc    Silver equivalent
                          (m)     (m)        (m)        (g/t)      (g/t)       (%)     (%)     (%)                (g/t)

Thor-171  GN Middle    34.02   36.27       2.25        683.8       0.53       0.3     4.4     4.5              1,027.2
Thor-171  GN Lower     64.92   65.68       3.04        229.6       0.27       0.1     2.6     3.8                468.1


Hole No.  Zone          From      To   Interval       Silver       Gold    Copper    Lead    Zinc    Silver equivalent
                          (m)     (m)        (m)        (g/t)      (g/t)       (%)     (%)     (%)                (g/t)

Thor-172  GN Middle    37.70   40.75       3.05        237.7       0.27      0.14    1.08    2.09                370.1
Thor-172  GN Lower     62.71   67.36       2.75        193.5       0.17      0.27    3.89   10.06                686.5

Qualified persons

John Gardiner, PGeol, and Jim Helgeson, PGeo, are the qualified persons on the Thor project and supervised the preparation of and scientific and technical disclosure in this news release. Samples are taken under the direction of qualified geologists. Core is sawn 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 Taranis via courier to MS Analytical Labs in Langley, B.C. MS Analytical Labs is an ISO-9001:2008-certified analytical laboratory. Taranis 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 and zinc and related trace elements was done by modified aqua regia digestion with ICP finish and gold by 30-gram fire assay with ICP finish.

Silver equivalent

Taranis uses silver equivalent as a means of simplifying the tenor of intercepts at Thor. Thor is primarily a silver deposit, but also contains valuable concentrations of gold, lead, zinc and copper. These metals are converted to silver equivalent using the following metal prices: $19 per ounce silver, $1,300 per ounce gold, 90 cents per pound lead, $1.05 per pound zinc and $2.10 per pound copper (all amounts are in U.S. dollars). Recoveries are not factored into the calculation of the silver equivalent values. Additional information concerning the use of silver equivalent is available on the company's website.

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