Mr. Leif Smither reports

JAXON SIGNS LETTER OF INTENT TO ACQUIRE ZN-PB-AG-AU PRICE CREEK PROPERTY WITH REPORTED ESKAY CREEK STYLE MINERALIZATION

Jaxon Minerals Inc. has signed a letter of intent to purchase the silver-zinc-lead-gold Price Creek massive sulphide property from CJL Enterprises Ltd. The 2,396-hectare property is located in the Price Creek valley of north-central British Columbia, approximately 55 kilometres north of the town of Smithers.

The property hosts two known showings: the Knoll zinc-lead-silver-gold (Minfile 093M 100) and the more expansive Max silver-gold-zinc-lead occurrence (Minfile 093M 027) with at least 19 distinctive massive-sulphide-bearing outcrops distributed over a 700-metre-by-1,000-metre area that have been subject to numerous exploration programs in the past years.

Historical exploration at the Price Creek project from 2008 has reported assays (Otterborn Resources, 2008) from 67 to 937 grams per tonne silver and 0.2 to 3.29 grams per tonne gold. Zinc and lead returned moderate to high results with peak assays of 18 per cent and 16 per cent, respectively. Selected assays are summarized in the attached table.

Locality      Ag/t    Au/t     Locality      Ag/t    Au/t

Marc            67    2.49     Creek          559    3.29
Marc            99     3.3     Lucky Jack     937    2.78
Main           287    1.31     Cat            452    1.73
Main           234    1.48     Main           204     0.2 
Main           492    0.94     Main           391    1.07
Main           274    1.77     Knoll View     647    1.38

A report in the year 2000 (Wojdak and Ethier) noted the mineralization cut by drilling in the Knoll area is similar in style to that mined at Eskay Creek, and that the same style was observed in massive stratiform polymetallic mineralization at the adjacent Max area.

The property has at least four known styles of mineralization:

1. Stratiform, bedding parallel sulphide mineralization (up to 1.5 metres thick) that was probably related to a shallow marine, VMS (volcanogenic massive sulphide) exhalative (hot spring) hydrothermal system: It is seen in the Max area at the Creek, Max main trench, Forgotten, Lower Forgotten and Knoll View occurrences. In the Max area, the zones of stratiform sulphide mineralization include pyrite, arsenopyrite, galena, sphalerite, jamesonite, stibnite and gold;
2. Sulphide-bearing veins hosted in the Cretaceous Max stock and its hornfelsic envelope: These north-to-northeast-striking veins contain of pyrite and arsenopyrite; a 15-centimetre chip sample across the Spine assayed 12.7 grams per tonne gold (British Columbia Minfile);
3. Sediment-hosted veins, up to 1.5 metres wide, that contain variable quantities of pyrite, arsenopyrite, galena, sphalerite, stibnite, gold and possible some silver-bearing minerals, including sulphosalts;
4. Rhyolite-hosted disseminated pyrite and sphalerite, which have only been identified in some drill holes from the Knoll area.

The terms of the letter of intent are:

1. Payment of $5,000 on signing the letter of intent;
2. Issuance of 100,000 shares to the vendor on approval by the TSX Venture Exchange;
   • Issuance of 100,000 shares to the vendor for each of the next subsequent four years on the anniversary of the TSX-V acceptance;
3. Make cash payments of:
   • $10,000 on year-one anniversary;
   • $15,000 on year-two anniversary;
   • $20,000 on year-three anniversary;
   • $25,000 on year-four anniversary;
4. An advance royalty of $5,000 per year is to commence in year five; a net smelter return royalty of 2 per cent on production can be purchased for $1-million for each 1 per cent in the event of commercial production; a further 200,000 shares will be issued to the vendor.

The technical content of this news release has been reviewed and approved by Glen Macdonald, PGeo, who is a qualified person under the definition of National Instrument 43-101.

Leif Smither, president of Jaxon, stated: "There is an impressive amount of mineral on the Price Creek property with 19 showings and four distinctive styles of mineralization. Jaxon is well positioned to take advantage of this and make a discovery. I am looking forward to having our technical team work on the property."

The company also advises that the private placement announced on May 4, 2016, will now be re-established with similar terms but in an increased amount. The placement will now be up to 10.5 million units at seven cents per unit to raise gross proceeds of up to $735,000. Each unit will comprise one common share and one-half common share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one common share at 10 cents per share with an expiry date of one year from the closing of the private placement. A finder's fee commensurate with TSX-V policies will be paid where applicable.

The funds raised will be used to conduct exploration on the company's Hot Bath project, located in British Columbia, between the communities of Dease Lake and Iskut, and for the exploration on the Price Creek project near Smithers, B.C., as well as for working capital.

We seek Safe Harbor.