Mr. Frank Basa reports

TAKARA ACCELERATES COBALT STRATEGY IN DEAL WITH GOLD BULLION

Takara Resources Inc., as part of its cobalt strategy, has entered into a letter of intent with Gold Bullion Development Corp. to advance the Castle Golden Corridor zone discovered through surface sampling at the company's 3,300-hectare Castle silver mine property, 75 kilometres southwest of Kirkland Lake.

Under the terms of the LOI, Takara will transfer a 50-per-cent interest in five contiguous mineral claims on the property covering 91 hectares in lieu of $60,000 in property payments owed to Gold Bullion pursuant to an assignment agreement between the two companies dated Oct. 8, 2015, concerning the Beaver and Violet cobalt-silver properties. The LOI is subject to the approval of the TSX Venture Exchange.

Beyond the $60,000 in cash savings for Takara, this LOI with Gold Bullion on the Golden Corridor zone has other substantial benefits for the company:

• As a 100-per-cent owner, Takara can move forward with its cobalt strategy for the Beaver and Violet properties near the town of Cobalt, roughly 80 kilometres southeast of the Castle mine at Gowganda.
• With Gold Bullion acting as operator of the gold project at Castle, Takara will be able to focus its efforts more efficiently on leveraging not only the high-grade silver but the cobalt opportunities elsewhere at Castle, outside the Golden Corridor zone.
• Gold Bullion's involvement will accelerate the exploration timeline and enhance the potential for the discovery of a first-ever gold deposit at the Castle silver property, where a regional east-west gold trend in highly altered Archean rocks runs parallel to the past-producing silver mines on the property.

Takara and cobalt

Takara's Castle mine as well as its Beaver and Violet cobalt properties are taking on new importance in light of the increasing global demand for cobalt, considered a technology-enabling substance as it is at the forefront of technological developments and innovation.

A hand-cobbed 20-kilogram geological test sample from the Beaver property had an average calculated assay of 7.98 per cent cobalt and 1,246 grams per tonne silver as reported by Gold Bullion Development in a news release dated Feb. 14, 2013.

Castle mine -- silver and cobalt

Takara's wholly owned subsidiary, Castle Silver Mines Inc., owns a 100-per-cent interest in the 33-square-kilometre Castle property, a former producer of both high-grade silver and cobalt.

Investors can refer to Takara's Aug. 21, 2015, National Instrument 43-101 technical report (effective date July 9, 2015) for detailed information regarding production history and recent exploration activity at Castle.

Takara carries out drone survey at Castle mine

Takara has just completed a drone survey over much of the Castle property to gain a high-resolution and high-accuracy elevation model to incorporate into its 3-D modelling of the underground workings at Castle. The 3-D model will serve as a valuable tool for the company to define the potential for residual recovery of silver-cobalt mineralization.

Qualified person

The technical information in this news release was prepared under the supervision of Frank J. Basa, PEng, Takara's president and chief executive officer, who is a member of the Ontario Association of Professional Engineers and a qualified person in accordance with National Instrument 43-101.

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