Mr. Shaun Dykes reports

DETAILED ORE-SORTING ANALYSIS CONFIRMS SUBSTANTIAL GRADE IMPROVEMENT FOR CUMO PROJECT RESULTS INDICATE US$ VALUE OF DIRECT PROCESSING FEED INCREASING UP TO 270%

American CuMo Mining Corp. has released excellent positive results utilizing ore-sorting technology on samples from its CuMo deposit located in Idaho. Results reported by Sacre-Davey Engineering on a set of 400 representative samples confirm that mineralization at the CuMo deposit is amenable to significant upgrading through ore-sorting technology. Further analysis shows that an increase of up to 270 per cent in the U.S.-dollar value of direct processing feed is possible. The drill core intervals defined by the samples were deliberately selected to match the grade and volume distribution of the various metals zones within the CuMo deposit as defined in the November, 2015, National Instrument 43-101 resource calculation.

The CuMo deposit has long been recognized as a stockwork vein deposit, consisting of narrow veins containing molybdenum and/or copper mineralization, surrounded by discard/waste material. With this vein mineralization structure, excellent metallurgical recoveries can be achieved with the latest ore-sorting technology, even at lower-grade levels.

New ore-sorting technology uses sophisticated X-ray technology (X-ray fluorescence) to identify rocks that contain processing-grade minerals and separates them from those that do not. Previous methods of visual ore sorting can now be performed with much greater accuracy and efficiency. Rock is placed on a conveyor belt following primary crushing (10 millimetres to 200 millimetres). It is then scanned and, based on a grade/value cut-off, either accepted for processing or rejected. The results show excellent correlations between the XRF scanning results and the actual assay values of the material.

"As stated previously, ore sorting marks the first of several optimizations for the CuMo deposit in preparation for its feasibility study. The key to the development of CuMo has always been maximizing profits and being able to produce metals at low cost levels. The updated resource calculation and our most recent preliminary economic assessment, combined with these excellent ore sorting results, confirm again that CuMo is able to compete on a cost-to-produce basis with not only primary molybdenum producers, but also with copper projects producing molybdenum as a byproduct," stated Shaun Dykes, president and chief executive officer of American CuMo. "The substantial results also allow us to add ore sorting to our updated economic models to determine the most optimized path and provide support for CuMo's potential as a large-scale, low-cost producer of molybdenum with significant copper, silver and rhenium byproducts," Mr. Dykes added.

Overall detailed results indicate that by incorporating modern ore-sorting technology, the CuMo project can be mined at large tonnages of 200,000 tons to 300,000 tons per day, while requiring only smaller tonnages of 50,000 tons to 100,000 tons per day to recover most of its metals. The overall objective is to have 25 per cent to 50 per cent of the material recovering 85 per cent to 95 per cent of the value, substantially increasing profitability and reducing capital and operating costs. Using the values in the preliminary economic assessment (Nov. 8, 2015), a reduction in processing size from 150,000 tons to 50,000 tons per day could achieve a capex savings for the CuMo project of between $800-million (U.S.) and $1-billion (U.S.), substantially reducing the cost per pound of molybdenum, net of byproducts copper, silver and rhenium.

The attached table shows the results of the testing for various ore-sorting scenarios, based on the amount of rock accepted for processing.

Assay cut-off              No sorting     $21.90     $18.40     $16.40     $14.10     $12.00     $10.00      $8.80
                                $0.00       /ton       /ton       /ton       /ton       /ton       /ton       /ton

Recovered value per ton        $16.92     $45.94     $41.40     $41.33     $39.19     $37.56     $35.20     $33.03
Feed accepted                    100%        13%     16.25%     19.50%     22.75%        26%     29.25%     32.50%
Value recovered                  100%     22.94%     25.84%     30.96%     34.25%     37.51%     39.56%     41.24%
Cu recovered (feed)              100%     12.83%     15.08%     18.20%     21.54%     24.25%     26.31%     29.75%
Mo recovered (feed)              100%     41.18%     46.24%     55.36%     60.92%     66.50%     69.95%     72.29%
Cu grade (ppm) (feed)           806.8      796.1      748.6        753      763.9      752.6      725.7      738.4
Mo grade (ppm) (feed)           868.8    2,752.3    2,472.1    2,466.7    2,326.4    2,222.3    2,077.6    1,932.5
Stockpile accepted               100%        52%     48.75%     45.50%     42.25%        39%     35.75%     32.50%
% changes
Value per ton                      0%    271.51%    244.67%    244.25%    231.59%    221.96%    208.06%    195.22%
Cu                                 0%     98.67%     92.79%     93.33%     94.68%     93.28%     89.95%     91.52%
Mo                                 0%    316.79%    284.54%    283.92%    267.77%    255.78%    239.14%    222.43%
Mill size                     150,000     39,000     48,750     58,500     68,250     78,000     87,750     97,500

Notes:
(1) All tons are short tons as per the U.S. system.
(2) The table is based on an initial sort of 65 per cent of the material above 
a mine cut-off. Increasing or decreasing the percentages only changes the 
potential years of feed available, not the grade distribution.
(3) Sorting is based on an initial sort of 65 per cent of material. This is fed 
to a second sort to separate mill feed and stockpile.
(4) The mill size is based on the 150,000-ton-per-day case in the PEA, where 
150,000 tons of mill feed and 150,000 tons of stockpile were proposed to be 
mined. Both the feed and stockpile would be run though the sorters.

Due to the multielement nature of the mineralization, a recovered metal value is used to separate the accepted material from the rejected. It is also important to note that, under non-sorting conditions, all the material would be sent for processing. Low metal prices of $5 (U.S.) for molybdenum oxide ($7.5 (U.S.) molybdenum metal) and $2.50 (U.S.) for copper from the preliminary economic assessment were used as they are close to current prices. Silver is not included in the calculation as only copper and molybdenum are used in the sorting process.

The formula for calculating recovered metal value is:

Recovered metal value equals ((copper divided by 10,000) multiplied by 20 multiplied by copper price multiplied by copper recovery) plus ((molybdenum divided by 10,000) multiplied by 20 multiplied by molybdenum price multiplied by molybdenum recovery). Copper recovery is 75 per cent and molybdenum recovery is 90 per cent.

For example, following removal of 35 per cent on the internal waste by the initial sort at a $14.10-per-ton assay grade cut-off, 22.75 per cent of the rock was accepted for mill feed (42.25 per cent went to stockpile), representing a recovery of 34.25 per cent of the value, 21.54 per cent of the copper and 60.92 per cent of the molybdenum with the value of the processing feed increasing by 244.25 per cent from $16.92 per ton to $39.19 per ton. Copper grade reduced to 94.68 per cent of original while molybdenum grade increased by 267.77 per cent.

A total of 59 intervals (each 1.5 metres to three metres in length) from the measured and indicated mineralized zone were delivered to the University of British Columbia. The intervals represent material that was classified as mill feed within the original and recently updated preliminary economic assessment. Intervals were broken into 400 rock samples of between 25 millimetres and 125 millimetres in size and were randomly selected and tested at the university using X-ray and electromagnetic scanners. After scanning, the samples were then assayed to determine the copper and molybdenum grades.

The company intends to use these new results to produce an updated preliminary economic assessments, adding the substantial benefits of ore sorting to the already robust economics of the deposit. The final stage will be to create a series of large bulk (five-ton) samples for testing that will also be used in feasibility-level metallurgical testing. The combined results of ore sorting and metallurgical test work will then be used in a feasibility-level economic study.

The company also wishes to announce the following.

All interest payments due in 2016 to IEMR (Hong Kong) for the U.S.-dollar- and Canadian-dollar-denominated debentures have been made.

The company's new Chinese partners continue to organize and establish all necessary information and paperwork required to deliver the initial payment funding to Poly Resources within 90 days, as per the terms of the joint venture agreement (see news release dated Nov. 21, 2017). Upon receipt of the payment, American CuMo plans to terminate the sale of its silver streaming units (announced Aug. 20, 2014) that give investors the right to purchase 375,000 ounces of silver at $5 (U.S.) per ounce for every $250,000 (U.S.) invested and pay 8.5-per-cent interest up until a production decision is made. Investors will have until the end of February, 2017, to determine how many units they want to purchase.

Forty-five claims have been added to the Calida gold project and a permit application is being produced for filing to allow for work to proceed during the coming field season. The target for the program is to verify the historic resource on the property of 8,059,304 tons grading 0.168 ounce gold per ton, 6.12 ounces silver per ton and 2.86 per cent copper (see news release dated Nov. 14, 2016).

Preparation has begun for the 2017 CuMo project work program (consisting of drilling, engineering and environmental baseline studies, as well as completing the permitting process). During 2017, the company plans to further analyze additional optimizations designed to lower operating and capital cost estimates for the project with the concept of completing a prefeasibility or an initial feasibility-level economic study as soon as possible. The target for these optimizations is to confirm potential cash operating cost reductions per pound molybdenum to under $1 (U.S.) per pound.

The targets and the potential optimizations are conceptual in nature as there has been insufficient work done to confirm the target values as defined by NI 43-101, and it is uncertain that further work would result in establishing these targets.

Shaun M. Dykes, MSc (engineering), PGeo, president and chief executive officer of the company, is the designated qualified person for the CuMo project. He prepared the technical information contained in this news release.

We seek Safe Harbor.