Dr. Marc-Antoine Audet reports

SAMA REPORTS RECOVERY RATES OF 92% NICKEL AND 85% IRON METAL POWDERS

Recent tests conducted by CVMR Corp. on Sama Resources Inc.'s Samapleu mineralized material returned recovery rates of 92 per cent and 85 per cent nickel and iron, respectively. The quality nickel produced will be suitable for a wide range of end-use applications, including rechargeable batteries, aerospace uses, metal injection moulding for automotive and medical instrumentation parts as well as feed material for 3-D additive manufacturing. Moreover, the premium nickel and iron powders produced from the concentrate are expected to improve with system optimization during the subsequent campaign.

The cobalt and copper were upgraded by 228 per cent and 279 per cent, respectively, in the postproduction concentrate compared with the grade of the feed source. Following the recovery of nickel and iron, the copper, cobalt and PGE (platinum group metals) became more concentrated to levels that can potentially be sold as such or further refined for added value. Assays were performed by SGS Canada, an accredited and independent laboratory.

The test is part of a second campaign conducted on the Samapleu flotation concentrate of polymetallic nickel-iron-copper-cobalt sulphide under the terms of the agreement signed with CVMR (reference Sama's press release dated June 8, 2017).

The testing was conducted using five kilograms of sulphide concentrate, which was produced from Samapleu mineralized material by the Centre de Technologies et de Plasturgie (CTMP), Tedford Mines, Canada. Sama supplied five kilograms of concentrate to CVMR, out of which 1.3 kilograms were treated thought CVMR's carbonylization process to produce nickel and iron metal powder.

CVMR will be conducting additional metallurgical testing in which operating parameters will be optimized to improve recoveries. The final products, metal powders, which currently hold a substantial premium above the current London Metal Exchange prices, will provide Sama with a market advantage and growth opportunity not previously available.

The geological formation of the Samapleu deposit is ideally suited to CVMR's nickel and iron powder production technology. The manufacture of metal components and additives has undergone a paradigm shift in the past 10 years as 3-D printing and metal injection moulding are replacing many other manufacturing methods. Accordingly, the demand for nickel and iron powders is increasing at a rate greater than previously forcasted.

A proven process with in-demand products

Global nickel carbonyl powder production capacity is approximately 37,000 metric tonnes per year, with the main producers being Vale (Inco) in Canada and Wales, Jilin Jien and Jinchuan in China, Norilsk in Russia, and CVMR in Canada. Iron powder production capacity is reported to be around 29,000 metric tonnes per year, with BASF of Germany being the largest manufacturer followed by Ashland in the United States, Sintez in Russia, CVMR in Canada and Jilin Jien in China.

The technical information in this release has been reviewed and approved by Dr. Marc-Antoine Audet, PGeo, president and chief executive officer, Sama, and qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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