Mr. Sabino Di Paola reports

MELKIOR PLANS CARSCALLEN TIMMINS DRILLING

Melkior Resources Inc. has signed a memorandum of agreement to drill a minimum of 600 metres on its 100-per-cent-owned Carscallen township properties. Depending on availability of financing, the program may be expanded. The initial program will be on the Big Marsh property.

The main Carscallen property covers eight gold zones, as previously announced. A significant portion of the property is covered by a granitic unit hosting gold-bearing veins at various locations on the property. Recent drilling and data analysis have determined that the granitic unit is in the order of 200 metres to 300 metres thick and overlies volcanics that host what appears to have the potential to become an important discovery in volcanics (see news release dated Jan. 22, 2016). This will be a focus of future exploration. The volcanic system is interpreted in a swampy area north of previous drilling.

Melkior's Carscallen property is located immediately west and northwest of the Lake Shore's Timmins mine and the important, new 144 and 144 Gap discoveries. Melkior's Carscallen properties share a 5.29-kilometre boundary with Lake Shore (see news release dated Feb. 8, 2016).