Mr. Tonno Vahk reports

ATON DRILLS FURTHER HIGH GRADE GOLD MINERALISATION AT ITS NEW SEMNA DRILL DISCOVERY, INCLUDING 12.54 G/T AU OVER AN INTERVAL OF 16 METRES, AND DOUBLES THE STRIKE EXTENT

Aton Resources Inc. has provided an update on the latest results from the recent reverse circulation (RC) percussion drilling at the Semna prospect, located within its 100-per-cent-owned Abu Marawat concession in the Eastern Desert of Egypt.

Highlights:

• 21 holes were drilled at the Semna prospect, for a total of 3,662 metres, during the recently completed RC drilling program. Preliminary drill results of four m composite sampling of the final four holes, SMP-017 to SMP-020, are now available;
• Three of the final four holes, targeting a potential eastern extension of the Semna Main vein zone (MVZ), intersected significant zones of gold mineralization, assaying more than five grams per tonne (g/t) gold (Au);
• Significant high-grade mineralized intersections include:
  • 12.54 g/t Au over a 16 m interval, from 60 m downhole depth (hole SMP-018);
  • 5.19 g/t Au over a 16 m interval, from 56 m downhole depth (hole SMP-017);
  • 6.30 g/t Au over a 16 m interval, from 124 m downhole depth (hole SMP-019). This hole also returned an additional lower-grade mineralized intersection of 1.69 g/t Au over a 20 m interval, from 96 m downhole depth.
• The holes confirm the existence of blind and previously unrecognized high-grade mineralization to the east of the historically exploited Semna MVZ, buried beneath alluvial wadi sediments approximately 10 m in thickness;
• The best drill intersection of the entire program was returned from the easternmost hole, SMP-018, indicating the mineralization remains open to the east;
• The final four holes of the program have doubled the strike length of the drilled mineralization on the Semna MVZ, which remains fully open at depth and along strike to both the east and the west.

"We are delighted with these exceptional results from the eastern extension of the Semna Main vein zone, which clearly demonstrate the potential of Semna to develop into a very significant new drill discovery for us," said Tonno Vahk, interim chief executive officer. "During the 20th century period of gold mining in Egypt, the Semna mine was regarded as one of the most significant and prospective by the British mining syndicates working there, and the high grades from our first phase of RC drilling appear to confirm anecdotal evidence suggesting the existence of very-high- to bonanza-grade mineralization at Semna. We are particularly encouraged by the results from these last four holes that have effectively doubled the strike length of the known mineralization on the Main vein zone. We believe that the blind mineralization drilled in these holes was not previously identified or exploited as it is covered by alluvial wadi sediments, and it is likely that the high-grade mineralization subcrops under this thin veneer of alluvial cover, which is very encouraging. Our application for the mining licence at Abu Marawat, based on the Hamama and Rodruin open-pit mine and heap leach oxide projects, is proceeding in accordance with the terms of our concession agreement, and we expect to be able to provide a positive update on this soon. It is our intention to fast-track ongoing exploration of the Semna project, and to start a follow-up second phase of diamond drilling in early 2024."

Semna prospect

The Semna prospect is located approximately 27 kilometres east-northeast of the Hamama West deposit and 13 km north-northeast of the Rodruin deposit, and is accessed via desert tracks from either Hamama, Rodruin or the Abu Marawat deposit to the north. The Semna area has a long history of gold mining, during both ancient and modern times. There was archaeological evidence in the area suggesting that mining dates back as far as the Old Kingdom period, over 4,500 years ago. In modern times, Semna was exploited between 1904 and 1906 by two British companies, which worked the Main Vein on two underground levels. By about 1908, however, the British gold mining industry in Egypt had been almost totally eclipsed by the discovery of oil, and was more or less moribund. There was also some further development work carried out at Semna in the 1950s by a subsidiary of the Egyptian Phosphate Company. It has been reported that the Semna mine had the widest vein exploited during the British era of mining in Egypt, which reached up to six m width in places, and the British companies reported mining grades of over two ounces per ton. Reports from the Mining Journal from 1905 indicated that some remnant pillars within the ancient Pharaonic-era stopes assayed up to 5.5 ounces per ton of gold.

The mineralization at Semna appears to be mainly hosted in a granodiorite body that has been intruded into a package of mafic to intermediate composition metavolcanic rocks. The mineralization is strongly structurally controlled, and is hosted in a series of steeply south-dipping shear zones that contain the gold-bearing quartz veins. These subparallel quartz veins strike approximately east-west and dip 60 degrees to 75 degrees to the south, but the dip and strike is quite variable within each vein, and the veins noticeably pinch and swell.

Aton completed a first phase of RC drilling at the Semna prospect in August, 2023, and has reported the results of the first 17 holes (see news release dated Oct. 13, 2023). Previously reported results include high-grade mineralized intercepts, including 14.63 g/t Au over a 12 m interval (hole SMP-016) and 29.8 g/t Au over a four m interval (hole SMP-003). Aton has also undertaken a survey of the underground workings at Semna, which have recently been further exploited by artisanal miners, confirming that the mineralization is continuous beneath the old British mine workings to an approximate elevation of 550 m (see news release dated Oct. 13, 2023).

Semna gold mine RC drilling

Twenty-one drill holes, SMP-001 to SMP-020, were completed at the Semna prospect, for a total of 3,662 m metres, during the recently completed RC drill program. Preliminary results are now available from the final four holes, SMP-017 to SMP-020, from four m composite samples (refer to the next section for details of sampling procedures). Following receipt of the four m composite sample assay results, selected one m samples have now been dispatched to the laboratory for final analysis, and the results of these will be reported soon.

The final four holes of the RC program, SMP-017 to SMP-020, were drilled from the wadi to the east of the historic British mine workings, and were designed to intersect an interpreted extension of the MVZ mineralization beneath the wadi sediments east of the old mine. All four holes intersected mineralization, with three of the holes returning high-grade intercepts grading more than five g/t Au over significant widths (see the table entitled "Significant intersections from Semna RC drilling").

Hole SMP-017 was drilled on a northerly azimuth on the 558850E section approximately 80 m east of the now-exposed eastern entrance to the underground mine workings, and the most easterly mineralization drilled to date (holes SMP-015 and SMP-016, see news release dated Oct. 13, 2023). SMP-017 returned a mineralized intersection of 5.19 g/t Au over a 16 m interval, from 56 m downhole depth, or approximately 40 m beneath ground level. This interval included a single four m composite sample which returned an assay of 11.65 g/t Au. The true width of this zone is interpreted as being approximately 12 m.

Hole SMP-019 was drilled beneath hole SMP-017 and returned mineralized intersections of 1.69 g/t Au over a 20 m interval, from 96 m downhole depth, or approximately 75 m below ground level, and 6.30 g/t Au over a 16 m interval. The lower intercept included a single four m composite sample which returned an assay of 18.65 g/t Au. The true width of the overall zone, including both the mineralized intercepts, is interpreted as being approximately 30 m to 35 m.

Hole SMP-018 was drilled oblique to the 558930E section approximately 160 m east of the underground mine workings, and was the easternmost hole in the program. SMP-018 returned a mineralized intersection of 12.54 g/t Au over a 16 m interval, from 60 m downhole depth, or approximately 45 m beneath ground level. This interval included two consecutive four m composite samples, which returned assays of 33.8 g/t Au and 11.1 g/t Au. The true width of this zone is interpreted as being approximately 10 m to 12 m.

Hole SMP-020 was drilled on a northerly azimuth on the 558890E section between the other holes, and returned a mineralized intersection of 1.20 g/t Au over a four m interval, from 100 m downhole depth, or approximately 75 m below ground level. This hole is believed to have missed the eastern extension of the MVZ, which is interpreted as having been offset by a north-northeast-striking fault, oblique to the section.

Discussion of results

In the Semna area, both the mineralization and topography are structurally controlled. The historic Semna mine is located between two wadis orientated in a north-northeast direction, which are interpreted as being controlled by north-northeast-striking faults. Mapping has indicated the presence of a subparallel series of these north-northeast fault structures, which offset the mineralized zones. There is a significant such structure close to the eastern entrance to the mine workings, which appears to offset the MVZ to the south. There is also a change in the orientation of the MVZ associated with this fault. In the underground workings to the west of this fault, the MVZ has an east-southeast strike, but this changes to an east-northeast strike to the east of this structure. There is also a significant jog in the eastern wadi in this location, and this is thought to be controlled by the subcrop of the MVZ beneath the wadi alluvium.

The final four holes of the RC drilling program have intersected good widths of high-grade gold mineralization subcropping under alluvial wadi sediments to the east of the MVZ, where it has been historically mined at Semna. This mineralization in this eastern extension of the MVZ is expected to subcrop immediately beneath the alluvial cover, which is interpreted as being approximately 10 m thick.

The mineralization at Semna is orogenic in style, and is interpreted as being associated with dilational zones, accompanied by shearing, which are localized between the series of north-northeast-striking fault structures. Mineralization on the MVZ is associated with at least one mineralized quartz vein, which anastomoses and pinches and swells. Historically, the mineralized zone has been described as being up to six m in thickness, but interpretation of the results from holes SMP-017 to SMP-019 suggests that the mineralization is associated with multiple veins, and the overall mineralized zone to be potentially as much as 10 m to 35 m in true width in the eastern extension of the MVZ under the alluvial wadi sediments.

The mineralization is open along strike at both ends, with the final four holes having now doubled the drilled strike length of the mineralization on the MVZ to approximately 400 m, with the best mineralized intersection in the program coming from the easternmost hole, SMP-018. The mineralization is open at depth along the entire drilled strike length. Grades of the mineralized intersections are high, typically above five g/t Au, and locally of bonanza grade, which is consistent with historical anecdotal information about the old Semna mine.

Sampling and analytical procedures

The RC holes were drilled at 5-3/4-inch or 5-1/2-inch diameter, and the bulk percussion chip samples were collected directly into prewritten large plastic bags from the cyclone every metre, numbered with the hole number and hole depths, and laid out sequentially at the drill site. Between each metre of drilling, the cyclone and top box were cleaned out with compressed air. The bags were logged on the drill sites by Aton geologists. The bulk one m samples were weighed, and subsequently riffle split through a three-tier splitter at the drill site by Aton field staff, to produce an approximately one-eighth split, which was collected in cloth bags, and numbered and tagged with the hole number and depth. The splitter was cleaned with compressed air between each sample. The reject material from this initial bulk split was rebagged, labelled and tagged, and retained on the drill sites. A representative sample of each metre was washed and stored in marked plastic chip trays, each containing 20 m of samples, photographed and retained on site as a permanent record of the drill hole.

The one m split samples, weighing approximately five kg each, were then transported to the Rodruin sample processing facility, where they were one-half riffle split into two separate subsamples, weighing approximately 2.5 kg. One of these subsamples was marked and labelled, and retained at the laboratory for storage. The second one m subsamples were then combined into four m composite samples, weighing approximately 10 kg. These were thoroughly mixed and again riffle split to produce nominal, approximately 250-gram to 500 g, four m composite samples which were dispatched to ALS Minerals for analysis. Again, the splitter was cleaned with compressed air between each sample. The four m composite samples were allocated new sample numbers. The bulk reject material from the riffle split four m composite samples was disposed of. Quality assurance/quality control (QA/QC) samples were inserted into the four m composite sample stream at a rate of approximately one certified reference material every 60 samples, one blank sample every 30 samples and one field duplicate split sample every 30 samples.

The four m composite samples were shipped to ALS Minerals sample preparation laboratory at Marsa Alam, Egypt, where they were pulverized to a size fraction of better than 85 per cent passing 75 microns. From this pulverized material, a further subsample was split off with a nominal approximately 50 g size, which was shipped on to ALS Minerals at Rosia Montana, Romania, for analysis. The four m composite samples were analyzed for gold by fire assay with an atomic absorption spectroscopy (AAS) finish (analytical code Au-AA23). High-grade samples (Au over 10 g/t) were reanalyzed using analytical code Au-GRA21 (also fire assay, with a gravimetric finish).

Following the receipt of the final four m composite assay results for the full Semna program from ALS, a number of the retained one m subsamples were selected by a senior Aton geologist for reassaying, corresponding to four m composite assays deemed to be of significance. The selected one m subsamples were again riffle split to produce nominal approximately 250 g to 500g one m split samples which were allocated new sample numbers. These have been dispatched to ALS Minerals for the same sample preparation at Marsa Alam, and for subsequent analysis at Rosia Montana. The bulk reject material from the one m subsample splits was rebagged and retained on site for storage at Rodruin. QA/QC samples were inserted into the one m split sample stream at a rate of approximately one standard every 30 samples, one blank sample every 15 samples and one field duplicate split sample every 15 samples.

The one m split samples will again be analyzed for gold by fire assay (analytical code Au-AA23), and for silver, copper, lead and zinc using an aqua regia digest followed by an AAS finish (analytical code AA45). Any high-grade gold samples (Au over 10 g/t) will again be reanalyzed using analytical code Au-GRA21 (also fire assay, with a gravimetric finish). Any high-grade Ag and base metal samples (Ag over 100 g/t, and Cu, Pb and Zn over 10,000 parts per million (ppm), or over 1 per cent) will be reanalyzed using the ore-grade technique AA46 (also an aqua regia digest, followed by an AAS finish).

All intersections herein reported relate to four m composite samples, results from the subsequent one m splits will be reported when they become available.

About Aton Resources Inc.

Aton Resources is focused on its 100-per-cent-owned Abu Marawat concession, located in Egypt's Arabian-Nubian Shield, approximately 200 kilometres north of Centamin's world-class Sukari gold mine. Aton has identified numerous gold and base metal exploration targets at Abu Marawat, including the Hamama deposit in the west, the Abu Marawat deposit in the northeast and the advanced Rodruin exploration prospect in the south of the concession. Two historic British gold mines are also located on the concession at Sir Bakis and Semna. Aton has identified several distinct geological trends within Abu Marawat, which display potential for the development of a variety of styles of precious and base metal mineralization. Abu Marawat is 447.7 square km in size and is located in an area of excellent infrastructure; a four-lane highway, a 220-kilovolt power line and a water pipeline are in close proximity, as are the international airports at Hurghada and Luxor.

Qualified person

The technical information contained in this news release was prepared by Javier Orduna, BSc (honours), MSc, MCSM, DIC, MAIG, SEG(M), exploration manager for Aton Resources. Mr. Orduna is a qualified person (QP) under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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