Mr. Kyler Hardy reports

EQUITAS RESOURCES CORP. INTERCEPTS DISSEMINATED SULPHIDES OVER 69 METERS AT THE GARLAND PROPERTY

Equitas Resources Corp. is providing an update of the phase one drill program at the Garland property in Labrador, Canada. Borehole GP15-005 at the Cominco showing intersected disseminated pyrrhotite-chalcopyrite-pyrite over a 69-metre interval from surface. Crone pulse electromagnetic (PEM) surveying of borehole GP15-004 has produced a complex anomalous response that may indicate a significant good-quality conductor near the hole in the modelled depth range for buried Voisey's Bay-type deposits. Regional- and property-scale data synthesis has interpreted the major east-west lineament in the northern portion of the property to represent the southern margin of the graben structure hosting the Voisey's Bay mine.

The fall program completed five diamond drill holes totalling 1,678 metres. A total of 281 core samples were submitted to Activation Laboratories. Crone PEM surveying has been completed at nine of the 13 target areas. The field camp and drill rig have been stored on site in anticipation of the start-up of operations in early 2016, when safe lake ice conditions are present.

BH GP15-005, drilled in an area known as the Cominco showing, was completed to a depth of 163.0 metres to sample a historic showing of nickel-copper-cobalt in gabbro-norite. Values of up to 0.15 per cent nickel and 0.10 per cent copper were reported by Cominco Ltd. in 1995 from surface sampling of a northeast-trending area of gossan 125 m in length and up to 20 m wide. No sulphur or precious metal analyses were reported for this work.

From collar to 69.0 m a zone of weakly mineralized variably textured medium- to coarse-grained norite was encountered. The section contains trace to 1 per cent interstitial to locally blebby pyrrhotite-pyrite-chalcopyrite, with decimetre sections estimated to contain up to 10 per cent sulphide. A granitic unit was encountered between 69.0 m and 118.0 m. From 118.0 m to 163.0 m an unmineralized norite was encountered.

The two best length-weighted intervals are tabulated.

From (m)  To (m)  Interval (m)   Ni %   Cu %   Co (ppm)    S %  

19.9        24.5           4.6   0.08   0.10         70   1.33
54.5        56.0           1.5   0.11   0.14         93   1.77

Analyses for palladium, platinum and gold returned background values for the mineralized interval.

Commenting on the results of BH GP15-005, vice-president, exploration, Everett Makela stated: "Although no semi-quantitative estimates for grade potential can be made due to the relatively low sulphide concentrations, results to date lend some encouragement for the possibility of there being an economic deposit associated with this mineralization. Observations of the core indicate a dynamic component to emplacement, including recognizable inclusions, textural and compositional variations. Isolated plagioclase feldspar megacrysts display rounding, possibly indicative of transport from an underlying chamber, an environment favourable for massive sulphide deposition. The area warrants further examination, and a detailed surface Crone PEM survey is planned as a top priority for the 2016 exploration program."

BH GP15-004 was cored to a depth of 495 m, designed to intersect VTEM anomaly Q, at an interpreted depth to top of 425 m. This anomaly has been interpreted as a broad, slowly decaying response in the B-Field Tau product of the VTEM data. Anomalies of this type can represent the signature of large massive sulphide systems.

The hole encountered diorite from collar to 230.5 m, hosting a younger granitic sheet between 35.6 m to 114.4 m. Below 230.5 m to end of the hole drilling encountered a sequence of granite gradational to diorite. A Crone PEM survey of this hole detected a possibly very significant off-hole response at around 230 m depth.

Geophysical consultant Alan King commented: "A Crone PEM survey of BH GP15-004 at the end of the field season produced a complex anomalous response that could indicate a good-quality conductor in or near the hole. Nothing intersected in the hole is indicative of a strong conductive source, although a structurally disturbed zone is located at about the same depth. The contractor indicated that there may have been some problems with the BHEM data after the hole was logged in two passes to overcome poor downhole conditions. Best-fit quantitative modelling suggested the possibility of two off-hole, northwest-striking, steeply northeast-dipping plates with a combined target dimension of 250 m along strike and 300 m down dip. Depth to the top of the modelled bodies is estimated at 230 m, and conductance at about 1000S. However, this model was a poor fit in some components of the data, suggesting that there may some problem with the data. It is possible that this apparent anomaly could also be entirely due to problems with the data collected or some combination of data problems and real conductors. A detailed PEM resurvey of the hole will be conducted to validate the response in advance of drill testing when the field program resumes in Q2 2016."

Commenting on the results of the Crone survey of GP15-004, Mr. Makela said: "While by no means a sure thing, the interpreted size, conductivity and depth accords well with our model for buried Voisey's Bay analogues. This will be a first priority for the next phase of exploration in Q2 of 2016. We plan to reposition the drill rig on the hole and complete a detailed Crone PEM downhole survey to confirm the response before drill testing."

A third focus for further exploration was defined by synthesis of regional- and property-scale magnetics, ground gravity and geological data. The major east-west lineament in the northern portion of the property has been interpreted by consulting geophysicist Mr. King as representing the southern margin of the graben structure hosting the Voisey's Bay mine, considered to have been emplaced along the northern wall of the graben. This structure on the Garland property is coincident with VTEM anomalies D, O and P, as well as a Ni-Cu-Co lake sediment anomaly comparable with the anomalies adjacent to the Voisey's Bay mineralization.

Commenting on results to date, Mr. Makela said: "The mineralization intersected at the Cominco showing, the interpretation of PEM data from borehole GP15-004 at anomaly Q, and recent highlighting of the possible major significance of the east-west lineament adjacent anomalies D, O and P have provided us with three solid exploration focus areas for the next program, anticipated to commence as soon as safe lake ice and optimal late winter conditions are present. We are fully funded for the next phase and have the economic and logistical advantages of a camp and drill rig already at site."

During the 2015 program, exploration has eliminated several of the targets as follows.

Crone surface PEM surveys at anomalies A, B and G did not locate significant conductivity. These response signatures have been explained by highly magnetic lithologies coupled with low receiver bird height, creating an apparent VTEM conductivity anomaly termed super para-magnetic effect. These targets are of no further exploration interest.

Crone surface PEM surveying at anomalies H, I and K did not detect any conductive anomalies, and these targets are also considered of no further interest.

BH GP15-002, completed to a depth of 150 m, was designed to test coincident VTEM and Crone PEM responses at anomaly C. Drilling encountered diorite from collar to 76.1 m and norite to end of hole. A zone of disseminated to locally stringer graphite encountered between 62.2 m to 71.6 m is the likely cause of the anomaly. No significant sulphides were encountered. A Crone PEM survey of the borehole did not locate an off-hole response worthy of further drill testing. No further work is planned for the anomaly.

BH GP15-003 was completed to a depth of 494 m. Designed to test VTEM anomaly J, the borehole encountered norite with subordinate granitic dikes from collar to 155.3 m. This upper sequence of norite contains trace pyrrhotite plus/minus chalcopyrite throughout, locally reaching concentrations to 1 per cent over 20 centimetres in associated with coarse patches of magnetite. Analyses revealed only low Ni-Cu-Co values associated with the sulphide. Below 155.3 m to end of hole, geology encountered is norite with lesser granite. A Crone PEM survey of the borehole did not locate a probable source of the VTEM anomaly. This target is of no further interest.

Quality control

The drill core samples were cut in half by diamond core saw under company supervision at the Garland field camp. Generally, 0.5 m to 1.0 m sample intervals were selected. Individual halved core samples were labelled, placed in plastic sample bags and sealed. Groups of samples were then placed into durable rice bags and shipped out on two occasions. Chain of custody was maintained throughout transportation of the samples from the Garland field camp to Activation Laboratories.

All core samples were prepared and analyzed at the Actlabs ISO 17025 accredited facility in Ancaster, Ont. Base metals and major elements were tested with the four-acid (near-total) digestion with ICP finish (1F method). The samples were also tested by fire assay with ICP/OES finish for gold, platinum and palladium (IC-expl method). Analytical quality control for the digestion is 14 per cent for each batch, five method reagent blanks, 10 in-house controls, 10 sample duplicates and eight certified reference materials. Additional field duplicates were included.

National Instrument 43-101 disclosure

Everett Makela, PGeo, vice-president, exploration, for Equitas Resources, a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

We seek Safe Harbor.