Mr. Greg Andrews reports

SEARCH MINERALS COMPLETES 2016 EXPLORATION PROGRAM

Search Minerals Inc. and its wholly owned subsidiary Alterra Resources Inc. have provided an update on the 2016 exploration program on licences held within the Port Hope Simpson CREE (critical rare earth element) district in southeast Labrador. Preliminary field results are available from the Fox Meadow REE (rare earth element) prospect.

Highlights of Fox Meadow field program:

• Fox Meadow was one of the 20 or more Foxtrot-like targets which Search has identified in previous exploration programs;
• REE mineralization over 30 metres wide in channels and over 500 metres along strike in outcrop;
• Fox Meadow is associated with a magnetic anomaly one kilometre long and approximately 250 metres wide;
• Fox Meadow may be the third large Foxtrot-like REE deposit in the Port Hope Simpson belt.

Greg Andrews, president and chief executive officer, commented: "Dr. Randy Miller and his team continue to build on our asset base despite a constrained exploration budget this season. The Fox Meadow prospect is very significant as it has the potential to validate our belief that all these prospects could define a prolific, strategically significant REE district in this easily accessible region of southeastern Labrador. The preliminary economic assessment of the Foxtrot project, our first major discovery in this region, points to a excellent project that can be developed as a stand-alone project at relatively low cost. The addition of Deepwater Fox and Fox Meadow has the potential to add to our source feed and could present new open-pit development options. Our patented metallurgical technology and scalable processing facility design can accommodate multiple sources of material and future expansion without sunk costs. Each additional project and prospect extends the life of the district and provides more options with respect to how soon the company would have to consider major capital investment in higher-cost underground mining. We look forward to reporting the channel assays from the Fox Meadow prospect."

This season's program consisted of prospecting, geological mapping and channelling; a total of 44 channels totalling 127.15 metres were cut and 359 assay samples were collected. Samples have been delivered to ActLabs for assay and results are pending. The majority of the work was carried out on the Fox Meadow REE prospect.

Fox Meadow REE prospect

The previously discovered Fox Meadow prospect occurs in the Fox Harbour volcanic belt about 11 kilometres west of Port Hope Simpson. It coincides with a magnetic anomaly approximately one kilometre long and 250 metres wide. Additional channelling, prospecting and geological mapping indicate that the mineralization is at least 30 metres wide, as observed in the channels (open in one direction), but potentially up to 100 metres wide; much of this area is tree- and glacial till-covered. Outcrop mapping and prospecting indicate that the mineralization is at least 500 metres long. The observed dimensions are similar to the Foxtrot deposit (10 to 14 metres wide and 400 metres long) and the Deepwater Fox prospect (up to 34 metres wide and 500 metres long). Preliminary assay data indicate that REE values at Fox Meadow are also similar to those at Foxtrot. This prospect could be a third Foxtrot-like mineralized zone in the Port Hope Simpson CREE district. Contingent on favourable results from the channel sampling program, a follow-up trenching and channelling program will further evaluate the Fox Meadow prospect.

Qualified person

Dr. Randy Miller, PhD, PGeo, is the company's vice-president of exploration and qualified person (as defined by National Instrument 43-101) who has supervised the preparation of and approved the technical information reported herein. The company will endeavour to meet high standards of integrity, transparency and consistency in reporting technical content, including geological and assay data.

About Search Minerals

Search is the discoverer of the Port Hope Simpson CREE district, a highly prospective CREE belt located in southeast Labrador, where the company controls a belt 70 kilometres long and up to eight kilometres wide. Search owns 100 per cent of the advanced CREE resource called the Foxtrot project, and a recently announced Foxtrot-like prospect called Deepwater Fox.

In addition, Search holds a number of other 100-per-cent-owned CREE mineral prospects in Labrador in its portfolio: the Red Wine complex and in the Henley Harbour area.

We seek Safe Harbor.