Mr. Sabino Di Paola reports

MELKIOR DRILLS SHALLOW HOLES ON ZAM ZAM AND JOWSEY GOLD ZONES AND INTERSECTS 33.1 G/T OVER 1.18 METRES

Melkior Resources Inc. has released the results of phases 2 and 3 of a 2,612-metre drill program on its 100-per-cent-owned Carscallen property.

The Carscallen property is located approximately 25 kilometres west of the centre of Timmins, Ont., and 5.5 kilometres west of Tahoe/Lake Shore Gold Corp.'s Timmins West mine, and shares roughly an eight-kilometre-long border with the Timmins West mine property.

The property is close to all of the necessary infrastructure for developing a mine, including proximity to an established mining centre, milling and processing facilities, power, and water, with complete road accessible.

The Carscallen property is one of the last remaining, unexplored areas of the Timmins gold-mining camp. This is due in part to the fact that the prospective volcanic rocks are covered with a relatively thin layer of granitic rocks on the property. This has prevented past workers from fully exploring the potential of the volcanic rocks beneath the granitic cover.

The 2016 drill program was part of a multiyear effort to explore the Carscallen property.

The 2016 drill program was done in three phases for three different objectives.

Volcanic-hosted mineralization

The results of this section of the program were announced in the press release dated July 18, 2016.

Potential bulk sample

The second objective was to define near-surface gold mineralization on the Zam Zam zone and the Jowsey zone in preparation for a potential bulk sample. Eighteen short holes were drilled for a total of 455 metres. This involved closely spaced holes to determine near-surface continuity of the vein systems.

Big Marsh property exploration

The third objective was to test a coincident induced polarization (IP) chargeability, airborne electromagnetic and soil gas hydrocarbon anomaly on the Big Marsh property located approximately 4.7 kilometres north of the Carscallen property. One hole was drilled for a total of 411 metres.

Bulk sample drilling results

Drill holes ZZ-16-01 to ZZ-16-16 were drilled on the Zam Zam gold zone. In addition, two holes were drilled on the Jowsey gold zone (JW-16-01 to JW-16-02). The detailed drilling covered approximately 125 metres of the Zam Zam-Shenkman mineralized structure, which has been traced by diamond drilling for 780 metres south to the claim boundary with Lake Shore/Tahoe and to a vertical depth of about 300 metres. The zone is open in all directions and to depth.

Big Marsh property drill results

Hole BM-16-03 drilled on the Big Marsh property intersected a series of sediments, porphyry and intrusive rocks under 72 metres of overburden. Sections of the rock were mineralized with graphite and pyrite, which could possibly explain the electromagnetic and IP chargeability anomaly, however, the depth of the overburden and the depth of the mineralization do not exclude other explanations for these anomalies. The soil gas anomaly remains unexplained by this drilling program.

Maximum values encountered in the drill hole sampling were 0.43 gram per tonne gold, 2.3 grams per tonne silver and 0.37 per cent zinc.

Conclusions

Detailed drilling on the Zam Zam zone has confirmed the near-surface continuity and gold grade of the mineralized structure at this location.

The drilling at the Big Marsh property has intersected interesting geology, mineralization and structure. Anomalous values in gold, silver and zinc were encountered.

Recommendations

Due to the deep overburden on the Big Marsh property, deep-penetrating geophysical methods will have to be employed to effectively explore the property.

On the Zam Zam-Shenkman zone, additional shallow drilling is needed to further define the near-surface nature of the gold mineralization. Surface stripping and overburden removal could be used to further expose the mineralized structure on surface.

The contents of this press release have been reviewed by Jens Hansen, PEng, and Wayne Holmstead, PGeo, qualified persons as defined by National Instrument 43-101.