Mr. Alex Bayer reports

MERYLLION COMPLETES A 43-101 TECHNICAL REPORT ON ITS CERRO AMARILLO CU-(MO-AU) PROJECT IN ARGENTINA AND PROPOSES A FIRST-STAGE DRILL PROGRAM

Meryllion Resources Corp. has completed an NI 43-101 technical report on its Cerro Amarillo copper (as well as molybdenum and gold) project in west-central Argentina, which recommends that the company proceed with a 14-hole, 5,300-metre first-stage drilling program on the property. To date, that company has identified five distinct porphyry-style intrusive-hydrothermal systems on the the Cerro Amarillo property: Cerro Apero, Vaca de Cobre, Cerro Choro, Cajon Grande and La Blanca.

Substantial mineralization of several styles has been identified at surface in each system except Cerro Choro. Moreover, these porphyry systems are clustered along a northeast-trending structural corridor on the property, which transects the southern extension of the orogen-parallel, Miocene-Pliocene metallogenic belt that also hosts the El Teniente, Los Bronces, Los Pelambres and Altar porphyry copper deposits.

Location and infrastructure

The project covers an area of 168 square kilometres close to the border with Chile in southern Mendoza province in the department (county) of Malargue. The property lies in the mountains of the Andean Cordillera at an average elevation of 3,000 metres above sea level and has a relative relief of about 1,800 m from 2,000 metres above sea level to 3,800 metres above sea level. Much of the project area receives snow from May to November each year, resulting in a practical field season of about five months from early December to late April. The town of Malargue is the nearest major service centre lying 53 kilometres southeast of the property. The town is the seat of local government and is also a service centre for the petroleum industry. It hosts the province's only technical mining school and is served by a towered airport with a 2,650-metre paved runway. Public roads pass to both the north and west of the property, although there are no vehicular roads or tracks within the property boundaries. All access to date has been by horseback, on foot or by helicopter. Ample water resources for the project can be found either on the property or in the Rio Grande, which flows along the western boundary of the property. High-voltage transmission lines lie within reasonable distance from the project area to support future mine development.

Summary of exploration work

Meryllion carried out the fieldwork over two field seasons: 2011/2012 and 2013/2014. The work comprised:

• Prospecting and sampling over much of the property;
• Detailed mapping over Cerro Apero, Vaca de Cobre, Cerro Choro, Cajon Grande and La Blanca;
• Geochemical sampling on grids over Cajon Grande and Vaca de Cobre, as well as talus sampling along scree slopes and crests at La Blanca and Cerro Choro;
• Induced polarization surveying over Cajon Grande and Cerro Apero;
• Helicopterborne magnetic and radiometric surveying over the Cerro Amarillo property. This work led to discovery of the La Blanca, Vaca de Cobre and Cerro Choro porphyry systems in addition to better definition of mineralization at the previously known Cerro Apero and Cajon Grande systems.

Geology and mineralization

The Cerro Amarillo project area covers part of the northwest margin of the Neuquen basin, which developed as a back-arc rift during late Triassic time and then filled with a transgressive sedimentary sequence during the Jurassic and Cretaceous time. The Neuquen basin was subsequently intruded by intermediate igneous rocks and covered by associated volcanics during two periods of magmatic activity from the late Miocene to early Pliocene. Large porphyry-style mineralization systems are known to be associated with both magmatic events.

Geology within the project area includes an eastern domain of acid volcanics that represent basement to the Neuquen basin, a central domain of sediments that represent the lower parts of the basin fill and a western domain of andesites that represent the Miocene-Pliocene volcanic activity. The sediments and volcanics have shallow westerly dips. Boundaries between the domains may represent unconformable contacts or thrust faults. A suite of dioritic to dacitic porphyry intrusives occurs in several small complexes that intrude all three domains. These intrusives are thought to represent the Pliocene igneous event. Large-scale porphyry-style hydrothermal alteration and mineralization systems are associated with four of the five identified intrusive complexes on the property. These systems are: the Cajon Grande, Vaca De Cobre, La Blanca and Cerro Apero prospects. All four prospects contain intrusive-hosted stockworks and hydrothermal breccia. Skarn-style mineralization has developed at the Cerro Apero and Cajon Grande prospects, where intrusives have intersected carbonate-bearing stratigraphy. Similar skarns may have developed at the La Blanca prospect below the current level of exposure. The mineralized porphyry complexes define a remarkably linear northeast trend that is at a high angle to north-trending regional structures. This trend may reflect a crustal level structure that has controlled magma transport for the intrusive complexes. The intersection of such transcurrent structures with orogen-parallel structures is thought to be important in controlling the location of many major porphyry mineralization systems in plate margin environments.

Planned program

All four mineralization systems have good potential to contain substantial copper, gold and, possibly, molybdenum mineralization. Surface exploration to date has identified high-priority targets for drill testing in each of the four major prospects. A series of 14 drill holes totalling 5,300 metres have been planned to test these targets. Because of the nature of the terrain and the fact that there are no roads or tracks on the property, the drill campaign will utilize helicopter-portable rigs, and experienced helicopter support will be critical to the successful completion of the program. A suitable base of operations will need to be established on the property to support helicopter operations, drilling, logging and continuing exploration activities. The anticipated cost of the recommended first-stage drill program is estimated by Meryllion to be $5.3-million (U.S.). An environmental impact report for Stage 2 exploration (that is, drilling operations) has been submitted to the relevant authorities of Mendoza and is awaiting ratification.

"The Cerro Amarillo project shares many characteristics of world-class porphyry copper deposits," noted Meryllion's chief executive officer, Terry Krepiakevich. "First of all, Cerro Amarillo comprises a cluster of porphyry occurrences much the same as at Los Bronces, Escondida, Chuquicamata and Collahuasi in Chile, as well as the Vicuna project and the cluster of porphyry deposits in the Alumbrera district in Argentina. Secondly, it lies on the southern extension of the Miocene-Pliocene metallogenic belt, which hosts the behemoth deposits of El Teniente and Los Bronces of similar geological age, and, thirdly, this mineral district straddles the transition zone between Andean segments -- in this case between steep subducting segments and the flat slab segment -- a feature which the other camps of behemoth deposits have in common."

Commenting further, Mr. Krepiakevich remarked, "We anticipate that the ratification of our permits to drill will be completed by September/October this year, and, if this is achieved, then we are expecting to commence our first-stage drilling program in December this year."

The technical report entitled, "Technical report on the Cerro Amarillo project, Mendoza province, Argentina, NI 43-101 report," dated July 28, 2014, was prepared for Meryllion by independent consultants Nicholas Tate, AIG, and Anthony Watts, PGeo. The Cerro Amarillo technical report is available on the company's SEDAR profile. Meryllion's program at Cerro Amarillo was supervised by Dr. Willem Fuchter, PhD, PGeo, chief executive officer of Meryllion's subsidiary in Argentina. Dr. Fuchter is a member of the Association of Professional Geoscientists of Ontario and is a qualified person in accordance with National Instrument 43-101 (standards of disclosure for mineral projects). He has approved the data disclosed in this news release.

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