Mr. John Gardiner reports

EXPLORATION PERMITS DELAYED AT THOR, POTENTIALLY IMPACTING 2017 WORK PROGRAM

Taranis Resources Inc. has provided an update on permitting its Thor project located near Trout Lake, B.C.

Background

Taranis has completed over 220 core holes on the Thor project, a maiden National Instrument 43-101 resource estimate, metallurgical studies and cash flow analyses, and has also pro-actively undertaken environmental studies, including acid rock drainage, climate studies and soil pH analysis.

The current focus at Thor is the delineation of additional resource material found in several areas peripheral to the existing deposit, and a stand-alone target 1.4 kilometres north of the existing deposit (Ridge target) that appears to be connected to the existing deposit that if tested and yielded positive results would increase the strike length of the deposit to almost four kilometres.

Current permitting status

Pursuant to an update of exploration activity at Thor (see news release dated March 20, 2017) where Taranis submitted two notice of work amendments at Thor to the Ministry of Energy and Mines in Cranbrook, Taranis has received notification that the applications will be delayed. Taranis submitted the notice of work applications at least three months prior to any planned exploration work, the usual time frame for operating in the narrow field season between June 15 and late September at Thor. Financing and drilling any of these targets require months of preparation and planning, and unforeseen delays are of direct consequence for Taranis, its shareholders and its contractors.

The two delayed permits relate to areas that include 27 Crown grant mining claims (surface and mineral rights) and mineral tenures owned 100 per cent by Taranis that form the core of the existing deposit. The permit delays do not affect the gold pilot plant, which is fully permitted under the Ministry of Energy and Mines and bonded for operation in summer 2017.

Although some of the issues related to the permits are topical in nature, there are other deep underlying issues that appear to be new and have major impact at Thor. These include pre-existing surface disturbance reclamation that dates back to the late 1800s on several historical mines on the property, and restrictions that will be imposed due to the protected ungulate winter range for the red-listed species Mountain caribou. Despite having worked for over 10 years on the project, Taranis has never encountered a caribou at Thor.

John Gardiner, chief executive officer of Taranis, stated: "While we are optimistic to push forward with our exploration activities at Thor, there is no use in conducting any further activity until the critical issues pertaining to the current notice of work permits are resolved. These include the responsibility of previous unreclaimed surface disturbance at Thor conducted between 1897 and 2006, and the restrictions that will be imposed due to the protected ungulate winter range for the red-listed species Mountain caribou. Taranis was never consulted about the imposition of the Mountain caribou status to the area, despite having a significant silver-gold-copper-lead-zinc deposit. While Taranis has attempted to conduct our exploration at Thor in the most environmentally conscious manner possible (including the use of pre-existing roads to minimize further surface disturbance), and work in concert with the Ministry of Energy and Mines, the permitting process has room for considerable improvement, timely response and needs to be examined in greater detail before Taranis can confidently invest further resources to the project."

We seek Safe Harbor.