Mr. Raniero Corsini reports

MORGAN RESOURCES TAKES GIANT STEP TOWARD DISCOVERY OF SEDEX/VSHMS ZN, PB, CU MINERAL ZONE ON SOUTH CHAMBERLAIN PROPERTY, BATHURST MINING CAMP, NEW BRUNSWICK

A preliminary soil and stream geochemical program on the South Chamberlain property has identified several strong zinc (Zn), lead (Pb), copper (Cu) geochemical anomalies coincident with the southern projection of the sedimentary exhalative deposits/volcanic sediment-hosted massive sulphides (SEDEX/VSHMS) favourable horizon. The geochemical anomalies are interpreted to reflect Zn, Pb, Cu massive sulphide mineralization in the underlying SEDEX/VSHMS favourable horizon. Grab samples of massive sulphides taken from outcrop in the favourable horizon have assayed up to 1.5 per cent combined Zn and Pb, and up to 2.92 per cent Cu. Approximately seven kilometres of the favourable horizon have been folded into a series of tight folds (fold train) within a three km long easterly trending structural corridor representing high-priority exploration targets for SEDEX/VSHMS deposits.

The corridor area

The corridor is an area three km by one km covering an isoclinally folded SEDEX/VSHMS favourable horizon. The folding consists of at least four tight isoclinal folds in an east-west-trending fold train within the corridor. Mapping traces out the contact between the SEDEX/VSHMS favourable horizon and mafic volcanics. The favourable horizon extends for many kilometres beyond the corridor, but the clustering of sulphide boulders in the area of the favourable horizon fold train makes the corridor a priority exploration target for the occurrence of economic SEDEX/VSHMS deposits. The favourable horizon consists of felsic tuffs, rhyolite, chert, limestone/dolomite, argillite, graphitic pyritic argillite, pyritic, sericitic and chloritic alterations, and banded Zn/Pb/Cu massive sulphides.

SEDEX/VSHMS Zn/Pb/Cu mineralization occurs in the favourable horizon as boudins in outcrop in the Armstrong Brook at the V8 and V6 mineral occurrences. Boudinage is a process whereby when a rock unit is stretched it breaks into separate sausage-like boudins. Clusters of angular SEDEX/VSHMS boulders, with assays ranging from trace to 24 per cent Zn, 8.88 per cent Pb, 1.97 per cent Cu, 459 grams per tonne (g/t) Ag and 2.64 g/t Au, occur in both Pleistocene till and Holocene river gravels where mapping (on the South Chamberlain and Lor Bai properties) has shown that the boulders have not travelled far from their bedrock sources, and clustering of the boulders occurs proximal to their outcrops.

More than 100 Zn/Pb/Cu massive sulphide boulders have been discovered over the years within the corridor with the largest being approximately eight feet by eight feet by eight feet, or greater than 50 tonnes, located proximal to and down ice from the west limb of the V1 isoclinal fold. Historical drilling in area of the V1 isoclinal fold (hole No. 13-02) intersected the east limb of the fold. Relogging of the No. 13-02 drill core by Morgan has identified a sequence of rhyolite, tuffs, and pyritic sericitic tuffs and argillite within what is now recognized as the SEDEX/VSHMS favourable horizon in the drill hole. Hole No. 13-02 was not drilled deep enough to intersect the west limb of the isoclinal fold. The clusters of massive sulphide boulders mostly lie up ice from the V1 east fold limb, and down ice from the V1 west limb (and also down ice from the V11 and V8E isoclinal folds).

In the Bathurst mining camp isoclinal folding is recognized as being important in the formation of thick massive sulphide deposits by doubling and quadrupling, the primary widths of massive sulphide zones.

Soil and silt geochemical anomalies

Soil and stream sediment (silt) geochemical surveys were carried out in the corridor area to evaluate the SEDEX/VSHMS potential south of the V8 SEDEX/VSHMS mineral occurrence and favourable horizon exposed in the Armstrong River. The soil and silt samples were analyzed at AGAT Labs, Mississauga, Ont., using AGAT metals package No. 201-074, aqua regia digest, ICP/ICP-MS finish.

The soil geochemical results outlined a 75 m wide strong Zn/Pb/Cu anomaly with peak values of 288 parts per million (ppm) Cu, 124 ppm Pb and 316 ppm Zn approximately 30 m south of the V8 SEDEX/VSHMS mineral occurrence.

Two single samples located at the east end of the soil sample line proximal to the V8E massive sulphide boulder occurrence in the Armstrong River are strongly anomalous in Zn/Pb/Cu (up to 276 ppm Cu, 181 ppm Pb, 276 ppm Zn). The soil sample line did not fully traverse the favourable horizon at the mouth of the V8E stream. Secondary metals commonly associated with the SEDEX/VSHMS sulphide mineralization -- Ba/As/Cd/Ag/Sb (barium/arsenic/cadmium/silver/antimony) -- are also anomalous.

Historical records show that a drill hole No. 13-07 was collared east of the V8 SEDEX/VSHMS outcrop in the Armstrong River and drilled westerly toward the V8 mineral occurrence. The drill hole appears to have been stopped short by about 50 m before reaching the intended target. If the drill hole collar/casing is accessible, deepening the drill hole is strongly warranted.

The V8E and V11 streams were sediment sampled. Stream V8E stream sediment analyses outline a strong Zn/Pb/Cu with anomalous secondary metals Ba/As/Cd/Ag/Sb in the apexial area of the isoclinally folded SEDEX/VSHMS favourable horizon. The coincidence of the geochemical anomaly with the isoclinal folding and SEDEX/VSHMS Zn/Pb/Cu favourable horizon signals a high-priority target. Detailed ground geophysical surveys are in progress and an expanded soil geochemical survey is planned. The V11 silt geochemical results are pending.

Analyses of the V8 SEDEX/VSHMS Zn/Pb/Cu mineral occurrence

Historical sampling of the V8 SEDEX/VSHMS Zn/Pb/Cu massive sulphide boudin outcrop in the Armstrong River returned the analytical results shown in the associated table.

                            SAMPLING RESULTS

Sample No.            Zn        Pb        Cu        Ag        Au     Zn-Pb

8 AR13-0030-5      0.398      1.08     0.267        62     0.717     1.478
8 AR13-0030-6      0.081      1.32      2.92        87       0.9     1.401
8 AR13-0030-7      0.155     0.875      1.24        74     0.878      1.03
8 AR13-0030-8      0.572     0.957     0.605        59     0.872     1.529

Historical work also reported analytical results of 11 grab samples from a cluster of angular SEDEX/VSHMS boulders located at and immediately downstream from the V8 mineral occurrence as shown in the associated table.

                            SAMPLING RESULTS

Sample No.             Zn        Pb        Cu        Ag        Au     Zn-Pb

8 AR13-0030-10        2.4      2.71     0.613       208       1.2      5.11
8 AR13-0030-11       2.59      2.09     0.805       220      1.61      4.68
8 AR13-0030-12       2.42      2.79      0.18       141     0.878      5.21
8 AR13-0029-5       0.043     0.212     0.304        99     0.791     0.255
8 AR13-0029-6       0.684      2.41     0.995        97      1.17     3.094
8 AR13-0029-7       0.734      5.05     0.944       151      1.56     5.784
8 AR13-0029-8       0.574      1.13      1.27        66      0.99     1.704
8 AR13-0032         0.034     0.162     0.184        71     0.937     0.196
8 AR13-0037-1        1.03       3.6      0.14       247      1.03      4.63
8 AR13-0037-2       0.433     0.754     0.374       129      1.69     1.187
8 AR13-0037-3       0.082      1.74     0.674       222      1.43     1.822

Summary

The Gloucester project encompasses three adjoining properties (South Chamberlain, Lor Bai and Chamberlain) covering 7,594 hectares in the northern region of the Bathurst mining camp, New Brunswick. The Gloucester project exploration programs are focusing on a significantly underexplored region of the Bathurst mining camp.

Although previous explorers have carried out geological, geochemical and geophysical surveys in the area of the corridor without success, the results of Morgan's detailed Corridor surveys south of the V8 mineral occurrence have identified a strong Zn/Pb/Cu geochemical signature which together with key SEDEX/VSHMS geological, geochemical, and geophysical parameters are indicative of Zn/Pb/Cu sulphide mineralization within the favourable horizon. The apexial areas of the V1, V8, V8E and V11 isoclinal foldouts of the fold train south of the Armstrong River are now considered high-priority SEDEX/VSHMS exploration targets.

Morgan interprets the SEDEX/VSHMS mineralizing event and favourable horizon as having formed in a quiet second order marine basin during a sedimentation hiatus and a low-volume felsic volcanic exhalative event. The lateral continuity of chemical sedimentation in the basin (limestone, chert, exhalite, sulphides) was uninterrupted during the hiatus in contrast to the main Bathurst mining camp where proximal volcanic activity continually added material to the setting. At the same time seafloor venting hydrothermal alteration and mineralizing plumes are interpreted to have formed along a major structural zone that generally flanks the western part of the basin. In the eastern part of the basin the SEDEX/VSHMS-type mineralization became mixed with VMS-type massive sulphides that formed proximal to volcanic eruptive centres, such as the Lor Bai VMS targets LB1 and LB2.

Gloucester project drill targets

The Gloucester project is underlain by many tens of km of the folded favourable SEDEX/VSHMS and VMS horizon as traced out by the company's VTEM airborne geophysical survey. The corridor area is underlain by approximately seven kms of this SEDEX/VSHMS favourable horizon in the shape of an east-west-trending isoclinal fold train. Morgan is advancing the V8-V8E and the V1 corridor targets to the drill-ready stage and initial detailed geochemical and geophysical surveys have commenced on the V11 isoclinal fold. The LB-1 and LB-2 VMS targets on the Lor Bai property are at the drill-ready stage (see discussion in Morgan Resources' news release dated Oct. 23, 2014).

Ground geophysical and B-horizon soil geochemical surveys have been completed over two lodgement till SEDEX/VSHMS glacial smear targets in the western part of the Lor Bai property, and the data are being plotted and interpreted.

Detailed ground geophysical surveys have been completed over two airborne geophysical anomalies on the Vienneau option, and drill targets are being selected.

The technical information in this news release has been sourced from Morgan Resources' field exploration programs, the Gloucester National Instrument 43-101 report by Sears, Barry and Associates, arm's-length records in the files of 653947 NB Ltd., historical assessment reports filed with the NBDEM. QA/QC (quality assurance/quality control) of field sampling is based on GPS location and WP numbering of samples. Duplicate field samples are logged and stored in the company's field offices. Quality assurance of analytical work includes blind duplicates and blanks and routine insertions of certified reference materials. All rock, soil and sediment samples are analyzed at AGAT Labs in Mississauga, Ont. Quality control of blanks, standards and duplicates is verified upon receipt of results. Richard Mann, PGeol, has reviewed and approved the technical information in this news release. Mr. Mann is a qualified person under National Instrument 43-101.

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