Mr. Steve Williams reports

PASINEX RESOURCES REPORTS FIRST SILVER-RICH LEAD PRODUCT SALE FROM PINARGOZU MINE THROUGH JV COMPANY

Pasinex Resources Ltd.'s Pinargozu zinc mining operation in Adana, Turkey, operated by the joint venture (JV) company Horzum AS, has just completed its first sale of lead mineral product, which is a byproduct of the continuing zinc production. A total of 392.9 dry tonnes has been sold, at a provisional assay of 61.5 per cent lead and 400 grams (12.86 troy ounces) per tonne silver. The product has a provisional value (subject to final agreement on assays) of about $1,250 (U.S.) per tonne.

Steve Williams, president and chief executive officer of Pasinex Resources, commented: "It is truly remarkable that such high-grade lead is also being mined from the Pinargozu high-grade zinc mine in Turkey. The product, a silver-rich lead sulphide (galena), was stockpiled from the commencement of production until now. While the ore mined to date at Pinargozu is predominantly zinc, it also contains minor silver and lead-rich pockets of mineralization. Because the in situ lead grade is so high, we are mining this material as DSO (direct shipping) without incurring the cost of preconcentration. We look forward to expanding zinc production over the coming months, which we will report quarterly, supplemented from time to time by batches of silver-rich lead production as the stockpiles accumulate.

Qualified person

John Barry, EurGeol, PGeo, is a qualified person as defined by National Instrument 43-101. Mr. Barry has inspected the original pro forma sales invoice (Fatura, 179786, dated Dec. 25, 2016) issued by the JV for the shipment of lead sulphides specified in this news release. Mr. Barry is also a director of the company.

Pinargozu zinc mine

Pinargozu is mined at 160 tonnes per day, predominantly exploiting non-sulphide high-grade zinc carbonate mineralization from two adits, with the new third deeper adit mining sulphide-zinc-rich material. The grade of the mined non-sulphide material consistently exceeds the 25-per-cent zinc threshold for direct shipping to zinc processing plants, and the sulphide zinc material is averaging over the required 45-per-cent zinc threshold. Pinargozu is one of several exploration targets along the Horzum zinc trend (HZT). The HZT controls a series of carbonate-replacement-deposit (CRD) mineral occurrences. The HZT extends north of the old Horzum mine, currently operated by the company's joint venture partner, Akmetal Madencilik San ve Tic AS, for at least eight kilometres. The HZT is completely underexplored. Pasinex is the first to apply advanced exploration technology and CRD exploration concepts and models to the HZT.

Horzum zinc trend

The Pinargozu mine is located in southern Turkey. Pinargozu is one of several exploration targets along the Horzum zinc trend, which hosts a series of carbonate-replacement-deposit-type mineral occurrences, extending north for at least eight kilometres from the high-grade Horzum mine. The HZT has in the past been prospected and mapped to some extent, but has not previously been systematically explored. Pasinex is the first to apply advanced exploration technology, and CRD exploration concepts and models, to the HZT district.

About Pasinex

Pasinex Resources is a metals company which is a 50-per-cent owner of the high-grade Pinargozu zinc mine, which is in production and, under its DSO program, is shipping directly to zinc smelters/refiners from its mine site in Turkey.

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