Mr. Harry Barr reports

PACIFIC NORTH WEST CAPITAL SAMPLES 9.52 G/T PD + 3.07 G/T PT ON THE RIVER VALLEY EXTENSION (RVX) PROPERTY NEAR SUDBURY

Pacific North West Capital Corp. has released results from the first phase of the 2016 field exploration program on its new 100-per-cent-held RVX property and its flagship RVP property near Sudbury, Ont. The program, consisting of geological mapping and mineral prospecting, confirmed the presence of high-grade platinum metal mineralization on the RVX property and expanded the overall footprint of mineralization at the Dana South zone.

Three of four targeted areas on the RVX property were mapped and sampled by Pacific North West geologists. A grab sample from target area 1 returned assay values of 12.60 grams per tonne palladium and platinum from a rusty sulphide zone that extends across the width of the outcrop exposure. Three surface grab samples from target area 4 returned Pd and Pt assay values of greater than one g/t, with a maximum of 2.44 g/t Pd and Pt, 0.2 per cent copper and 0.05 per cent nickel from mineralized outcrops of melagabbronorite with pegmatitic clinopyroxenite fragments and quartz veins. A grab sample from target area 2 returned a Pd and Pt assay value of 1.11 g/t. Target area 3 was not sampled due to limited access. Clearly follow-up fieldwork is warranted in each of these four target areas. Moreover, the induced polarization chargeability anomalies in the footwall rocks and to the west internally within the River Valley intrusion (near the boundary with the RVP) remain to be explored.

On the RVP property, three grab samples from the footwall to Dana South zone returned assays of greater than two g/t Pd and Pt and 0.15 per cent Cu. These three samples were taken from outcrops of River Valley intrusion along the shore of Dana Lake, approximately 50 metres from the east boundary of the Dana South zone. The area between the outcrop and stripped area is covered, but the indications of high-grade mineralization where sampled suggest that the Dana South zone could potentially be expanded eastward, or that another mineralized zone may be present. Further fieldwork in this area is definitely warranted. The broader implication of these findings, particularly in view of the T2 discovery near Dana North in 2015, is that the footwall to the main River Valley intrusion remains underexplored for platinum group metals and will be a high priority for future exploration programs.

Note too that a major objective of the field exploration program was to search for outcrops of River Valley intrusion rocks in the footwall above the T2 target. Outcrops of favourable intrusive rocks (breccia unit and boundary zone) were found, but do not appear to be mineralized. Nevertheless, the presence of such rocks where they are not supposed to be supports the geological model for the T2 target. A follow-up drill program on the T2 target was completed in October and assay results are pending from the laboratory.

Financial support for the 2016 field program from the junior exploration assistance program is gratefully acknowledged.

Sample assay procedures

The grab samples were sent to the SGS Canada Inc. laboratory in Lakefield, Ont., sample preparation and assay analyses. The preparation involved crushing of three kilograms of each sample to 90 per cent passing two millimetres, and then pulverizing 0.5 kilogram to 85 per cent passing 75 micrometres. Palladium, platinum and gold were assayed by fire assay with ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish. Copper, nickel and 32 other metals were assayed by two-acid digestion and ICP-OES (inductively coupled plasma optical emission spectroscopy) finish. Blind standards and blanks were not submitted for assay with the samples, due to the reconnaissance nature of the field program. However, the SGS Canada Inc. laboratory followed its own internal quality assurance/quality control procedures for the assay analyses.

About the company's lithium division

The company's lithium division will focus on the discovery, acquisition, exploration and development of lithium projects in Canada. In the United States, the company will use its wholly owned U.S. subsidiary to acquire and develop projects, in active mining camps, in Nevada, Arizona and California.

Management believes that these new age metals, lithium, PGMs and rare earths have robust macrotrends with surging demands and limited supply. Going forward, this new division will explore for the minerals needed to fuel the demand for energy storage and other core 21st century technologies.

The company has a growing portfolio of lithium projects

The Clayton Valley Forks Li project, in Nevada, is a recent lithium brine project acquired by the company (see Pacific North West news releases). The company also has several hardrock lithium projects in Canada. To date the company has acquired five hardrock lithium projects: in the Winnipeg River pegmatite field, in southeast Manitoba (see Pacific North West news releases). This pegmatite field hosts the giant Tanco pegmatite that has been mined for tantalum, cesium and spodumene (one of the primary lithium ore minerals) in varying capacities, since 1969. Today, the Tanco mine is focused on the mining and production of cesium formate, a drilling fluid for the petroleum industry. The company's Li projects are strategically situated to further explore this pegmatite field. Presently, the company is the largest claim holder in the Winnipeg River pegmatite field.

Lithium and platinum group metal prices have improved drastically in recent months. Lithium supplies remain in deficit, relative to their demand. Both metals groups are used for the expanding worldwide automobile industry (conventional and electric). In the case of PGMs, demand is increasing for autocatalysts, a key component for reducing toxic emissions, for automotive, gasoline and diesel engines. Regarding lithium, there is an ever-increasing demand for batteries in cellphones, laptops, electric cars, solar storage, wireless charging and renewable energy products.

Clayton Valley is located in Esmeralda county, Nevada, host to Albemarle Corp.'s Silver Peak lithium mine and brine-processing operations. The mine has been in operation since 1967 and remains the only brine-based lithium producer in North America.

The new project acquisition in Nevada provides the company a project in an area that is well known for its lithium carbonate production. Clayton Valley is a centralized location in Nevada, with highway access, power infrastructure, water and local labour.

The company's new lithium brine project will be approximately 3.5 hours away from Tesla's Gigafactory, which has a planned annual lithium-ion battery production capacity of 35 gigawatt-hours per year by 2020. The CV West Li project is located approximately three hours north of the Faraday Electric Car Factory to be operated in Las Vegas, Nev.

Clayton Valley is one of the few locations globally known to contain commercial-grade lithium-enriched brines.

Qualified person

The contents contained herein that relate to exploration results or mineral resources are based on information compiled, reviewed or prepared by Dr. Bill Stone, principal consulting geoscientist for Pacific Northwest Capital. Dr. Stone is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical content.

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