Mr. David Blann reports

HAPPY CREEK TRENCHES 5.0 METRES OF 1.25% WO3 AT FOX TUNGSTEN

Happy Creek Minerals Ltd. is providing an update on work being conducted on its 100-per-cent-owned Fox tungsten property, located by road northeast of 100 Mile House, in south-central British Columbia, Canada.

A program of geology, trenching and core drilling is under way at the Ridley Creek, BK and BN zones, as well as the new untested South grid, to upgrade and expand the project's existing resource. The first results received are from rock saw channel and chip samples from three trenches at the main Ridley Creek zone. Results include 3.65 metres of 1.21 per cent tungsten trioxide (WO3), 3.5 metres of 1.53 per cent WO3 and five metres of 1.25 per cent WO3, with associated values of zinc, indium, gold, silver and bismuth. The mineralized widths in two of the trenches remain open in extent. Results are summarized in the table and represent near true width.

                          TRENCHING RESULTS

Trench        Total length     From       To   Interval     WO3
                        (m)      (m)      (m)        (m)     (%)

2016RC-T-1             7.0     3.35     7.00       3.65    1.21
2016RC-T-2            11.5     8.00    11.50       3.50    1.53
2016RC-T-3            14.0     8.10     13.1       5.00    1.25

A climbing rope was utilized to obtain samples starting from the top of the seven- to 14-metre face. The three trenches cover over 30 m strike length of the nearly horizontal mineralized zone and it remains open along strike and thickness at the base of the cliff where talus and soil have piled up. These trench results will be utilized to connect with drill holes to model the geometry and grade of the mineralized blocks closest to surface within an updated resource.

Geological work along strike to the north of the Ridley Creek zone is defining the contacts of the favourable geology and mineralized zone that connects with the BK zone, a distance of one kilometre. About 200 metres north of the Ridley Creek zone, a 20 m thick calc silicate unit is exposed in a cliff and a 1.5 m chip sample returned 3.44 per cent WO3. The sample is open in width and this area remains untested by drilling. At the BK zone, chip samples of calc silicate skarn along strike from previous trenches returned two metres of 1.64 per cent WO3, two metres of 0.66 per cent WO3 and 0.6 metre of 0.38 per cent WO3; these samples remain open in width and were subsequently extended further by hand trenching with results pending.

David Blann, PEng, president and chief executive officer of Happy Creek, commented: "The Ridley Creek zone is currently our best-known deposit having the most work completed. With an initial National Instrument 43-101 open-pit resource at an indicated grade of 0.468 per cent WO3, the additional work will improve knowledge of the geometry, extent and confidence level in the deposit. Our second pass of drilling and trenching at the BK appears visually positive, and we may be able to include this zone in the resource update. In addition, it is not surprising to find more tungsten showings, and 1.5 m of 3.44 per cent WO3 between the Ridley Creek and BK is likely the beginning of another quality prospect. The project continues to deliver positive results and we look forward to increasing value for shareholders."

Drilling completed to date includes 10 holes at the Ridley Creek zone, six holes and three trenches at the BK zone. The drill is now at the BN zone where in 2012 Happy Creek drilled 14.8 m of 4.0 per cent WO3.

Additional results are pending.

Mr. Blann is a qualified person as defined by National Instrument 43-101, and is responsible for the preparation and approval of the technical information disclosed in the news release. Rock samples are shipped to, prepared and analyzed at SGS Laboratories in Burnaby, B.C. Samples are digested and analyzed by aqua regia and ICP-MS, as well as peroxide fusion and ICP-AES for tungsten, respectively. Overlimit samples greater than 4 per cent W are analyzed for tungsten by XRF. W is multiplied by 1.261 to obtain WO3, the compound for which tungsten prices are quoted.

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