Mr. Tonno Vahk reports

ATON REPORTS THE FINAL RC DRILL RESULTS FROM ITS NEW SEMNA DRILL DISCOVERY, INCLUDING 50.07 G/T AU OVER AN INTERVAL OF 6 METRES FROM DRILL HOLE SMP-016

Aton Resources Inc. has released the final results from its reverse circulation percussion (RC) drilling at the Semna gold mine prospect, located within its 100-per-cent-owned Abu Marawat concession, in the Eastern Desert of Egypt.

Highlights:

• Twenty-one holes were drilled at the Semna prospect, for a total of 3,662 metres, with the preliminary drill results from four m composite sampling having previously been reported (see news releases dated Oct. 13, 2023, and Nov. 7, 2023).
• Assay results of the primary one m split samples through the mineralized zones are now available, and show good correlation with the four m composite sampling.
• Significant high-grade mineralized intersections from the Semna Main vein zone (SMV) include:
  • 50.07 grams per tonne over a six m interval, from 75 m downhole depth (hole SMP-016), including 222 g/t Au over one m, from 80 m;
  • 28.36 g/t Au, 28.4 g/t silver and 1.15 per cent copper over a four m interval, from 136 m downhole depth (hole SMP-003), including 94.8 g/t Au, 88.2 g/t Ag and 3.47 per cent Cu over one m, from 137 m;
  • 11.98 g/t Au over a 16 m interval, from 61 m downhole depth (hole SMP-018), including 36.03 g/t Au over four m, from 61 m;
  • 10.61 g/t Au, 24 g/t Ag and 1.20 per cent Cu over a nine m interval, from 130 m downhole depth (hole SMP-019), including 37 g/t Au, 145 g/t Ag and 8.72 per cent Cu over one m, from 133 m. SMP-019 also returned intersections of 5.82 g/t Au over a three m interval from 102 m, and 9.10 g/t Au over a two m interval from 111m;
  • 5.73 g/t Au over a 14 m interval, from 56 m downhole depth (hole SMP-017), including 14.85 g/t Au over three m from 60 m, and 8.67 g/t Au over three m from 66 m.

"We are pleased to be able to now provide the final assay results from the Semna RC drilling program. It is quite apparent to us, even at this early stage, that Semna is shaping up as a very significant new drill discovery. We plan to fast-track the exploration at Semna as soon as the mining licence has been issued at Abu Marawat, which we anticipate will be very soon now. Preparations are already well advanced to start a second phase of diamond drilling, and if all goes according to plan we expect to be back drilling again at Semna in January, 2024," said Tonno Vahk, interim chief executive officer. "We started this year with the overriding objective of completing our submission to EMRA, to demonstrate the existence of a commercial discovery at the Hamama West and Rodruin deposits, which, under the terms of our concession agreement with EMRA, is the most significant step on the road to the mining licence at Abu Marawat. We delivered our submission to EMRA in August, we believe that we are now very nearly there, and we are looking forward to working closely with EMRA as we move forwards together once the mining licence has been issued. Two thousand twenty-three has been a year of great progress for Aton, and we close the year with these exceptional drill results from our new Semna discovery. These results again further illustrate the undoubted potential of the Abu Marawat concession to host multiple economic gold deposits. With the anticipated issuance of the mining licence we look forward to being able to finally start realizing the full potential of the concession, as we move towards the development of multiple gold mining operations at Abu Marawat, starting in 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. Archeological evidence suggests 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. There was also some further development work carried out at Semna in the 1950s by a subsidiary of the Egyptian Phosphate Company.

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 metres during the recent RC drill program. Collar details of the holes and the results of four composite sampling have been previously reported (see news releases dated Oct. 13, 2023, and Nov. 7, 2023). Based on the results of the four m composite sampling a total of 310 primary one m split samples through the interpreted mineralized zones were selected and submitted for gold, silver, copper, lead and zinc geochemical analysis. These results are now reported herein.

Holes SMP-001 to SMP-014 were drilled on three north-northeast sections across the MVZ, the Central vein zone (CVZ) and the South vein zone (SVZ). Holes SMP-015 and SMP-016 were drilled on a northerly section at the now exposed eastern end of the 20th century workings, and holes SMP-017 to SMP-020 were drilled to test a postulated eastern extension to the MVZ (MVZ-EX).

Sporadic narrow mineralization was intersected from the CVZ and the SVZ. Assay results from the SVZ were unexpectedly low, in light of the presence of old 20th century and the large recent artisanal workings on this zone. More consistent narrow zones of low- to moderate-grade mineralization were intersected on the CVZ, for example in holes SMP-003, SMP-006 and SMP-014. The North vein zone (NVZ) was not tested in the phase 1 RC drill program.

Significant mineralized intersections were returned from the MVZ and the MVZ-EX extension zone, including 50.07 g/t Au over a six m interval, from 75 m downhole depth (hole SMP-016), 28.36 g/t Au, 28.4 g/t Ag and 1.15 per cent Cu over a four m interval, from 136 m downhole depth (hole SMP-003), 11.98 g/t Au over a 16 m interval, from 61 m downhole depth (hole SMP-018), and 10.61 g/t Au, 24 g/t Ag and 1.20 per cent Cu over a nine m interval, from 130 m downhole depth (hole SMP-019). Hole SMP-019 also returned intersections of 5.82 g/t Au over a three m interval from 102 m downhole depth, and 9.10 g/t Au over a two m interval from 111 m, indicating the presence of multiple mineralized structures in the MVZ-EX.

Seven holes targeted the MVZ beneath the old 20th century workings, on approximately 80 m spaced drill sections, specifically SMP-003, SMP-004, SMP-005 (Section 4), SMP-006, SMP-007 (Section 3) and SMP-013 and SMP-014 (Section 2). The old workings have recently been extended down to an approximate elevation of 550 m RL by the artisanal miners (see news release dated Oct. 13, 2023). All holes, except SMP-005 which intersected subgrade mineralization, returned mineralized intersections with true widths of between approximately two and four metres, grading between 4.14 g/t Au (five m interval from hole SMP-014) and 28.36 g/t Au (four m interval from hole SMP-003). Individual one m samples from this area returned assays including 94.8 g/t Au (hole SMP-003), 25.7 g/t Au (SMP-006) and 17.75 g/t Au (SMP-007). The drilling confirmed the continuity of the mineralization beneath the mined out upper parts of the MVZ. The MVZ continued at an average dip of approximately 70 degrees to the south-southwest, although the zone appears to shallow in the deepest holes. It is not clear if this is due to the MVZ actually shallowing, or if it is due to the presence of multiple en echelon mineralized structures. The mineralization on the MVZ was open at depth on all sections beneath the old mine workings.

Holes SMP-015 and SMP-016 were drilled at the eastern end of the 20th century workings, close to the eastern shaft, where the MVZ appears to swing around to a more easterly or east-northeasterly orientation. The MVZ appears to be faulted out here, and surface mapping of the area, now exposed by the artisanal miners, suggests that the MVZ has been sinistrally displaced by approximately 40 m to the southwest.

Holes SMP-015 and SMP-016 both intersected two discrete mineralized zones, with true widths of approximately two to four m. The northern or footwall zone is interpreted as being the main MVZ, while the southern hangingwall zone is interpreted as being a separate structure striking approximately southwest which appears to join with the CVZ. Both mineralized zones dip at approximately 75 degrees to the south. The hangingwall zone returned an intersection of 50.07 g/t Au over an interval of six m (true width approximately three m). Inspection of the drill chips indicated the presence of abundant coarse gold, with individual one m samples from this six m interval returning assays including 222, 40.8 and 20.3 g/t Au. Examination of blocks of mineralized rock from surface in this area also showed the presence of abundant coarse visible gold.

The final four holes of the program, SMP-017 to SMP-020, were drilled to test a postulated eastern extension of the MVZ, running parallel to a jog in the eastern wadi, the so-called MVZ-EX zone. Three of the holes returned wide zones of high-grade mineralization.

SMP-017 was drilled on a northerly azimuth on the 558850E section, and returned a mineralized intersection of 5.73 g/t Au over a 14 m interval, from 56 m downhole depth, and beneath it SMP-019 returned mineralized intersections of 5.82 g/t Au over a three m interval, from 102 m downhole depth, 9.10 g/t Au over a two m interval from 111 m, and 10.61 g/t Au over a nine m interval from 130 m downhole depth. Individual one m samples from SMP-017 returned assays including 18.25, 13.8 and 16.25 g/t Au, while individual one m samples from SMP-019 returned assays including 37, 22.6 and 15.6 g/t Au.

Hole SMP-018 was drilled slightly 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 11.98 g/t Au over a 16 m interval, from 61 m downhole depth. This interval included individual one m samples which returned assays including 51.8, 47.1, 24.1 and 21.1 g/t Au. In this locality the MVZ-EZ is interpreted as being approximately vertical, with a true width of approximately 10 to 12 m. Hole SMP-020 was drilled on the 558890E section between the other holes, and is interpreted as having missed the MVZ-EX zone, which had here been offset by a north-northeast-striking fault.

The results show good correlation in general and confirm the validity of the sample compositing methodology, and its execution. In general the results correlate very well, although in the case of SMP-016, the grade from the upper one m split sample intersection was significantly higher than that expected from the four m composite samples. This is clearly a response to the nugget effect of samples containing abundant coarse gold, with individual one m samples from this interval returning assays including 222, 40.8 and 20.3 g/t Au.

Discussion of results

The mineralization at Semna appears to be mainly hosted in a body of quartz diorite to granodiorite 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 to 75 degrees to the south, but the dip and strike are quite variable within each vein, and the veins noticeably pinch and swell, as has been historically reported.

The overall vein array is quite complex, with the various zones appearing to be connected in places. Drilling has indicated the best mineralization to be on the historically mined MVZ; however, mapping indicates numerous ancient and 20th century workings on the other structures, and previous surface sampling by Aton returned some of the best results from the SVZ (see news release dated Nov. 22, 2017).

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 (see news release dated Nov. 7, 2023). Mapping has indicated the presence of a subparallel series of these north-northeast fault structures, which offset the mineralized zones. The MVZ typically strikes in an east-southeasterly direction, dipping to the south-southwest. Toward the end of the now exposed underground workings, and in the interpreted eastern extension of the MVZ its strike appears to swing around to an east-northeasterly direction, where it is largely covered by wadi sediments, interpreted as being approximately 10 m thick. In this MVZ-EX zone the dip of the mineralization appears to be steepening to a more vertical orientation.

The mineralization at Semna is orogenic in style, and is interpreted as being associated with an array of structures, presumed to have formed in dilational zones, accompanied by shearing and weak to moderate phyllic wallrock alteration. The mineralized structures are localized between and offset by a 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, as confirmed by Aton's underground mapping reported (see news release dated Oct. 13).

Historically the MVZ mineralized zone has been described as being up to six m in thickness, but interpretation of the results from holes SMP-015 to SMP-019 suggests that the mineralization is associated with multiple veins and structures, to the east of the 20th century underground mine workings. The overall mineralized envelope may potentially be up to 10 to 35 m in true width in the eastern extension of the MVZ under the alluvial wadi sediments. In the MVZ-EX lower-grade mineralization appears to occur in wider zones, not exclusively adjacent to the mineralized quartz veins, and is apparently associated with heavily sheared and altered wallrock.

The mineralized structures are almost always associated with white quartz veins, with gold appearing to be distributed both within the quartz veins themselves, and also in altered selvages and wallrock adjacent to the veins. The mineralization at Semna is associated with low levels of sulphide gangue, and predominantly carries only gold. The gold at Semna appears to be coarse and nuggety, as indicated by examination of samples, and also analysis of the drill assay results. Twenty-three of the total of 310 one m split samples submitted for analysis returned gold values greater than 10 g/t, with 11 of these returning gold values greater than 20 g/t, including individual assays of 222, 94.8 and 51.8 g/t Au. The drill results appear to confirm the historical and anecdotal evidence that the gold mineralization at Semna is of a significantly high grade, and is locally of bonanza grade.

Levels of silver and copper are generally at Semna, but can be locally significant. Where silver and copper grades are elevated this is typically associated with high to very high grades of gold (such as 28.36 g/t Au, 28.4 g/t Ag and 1.15 per cent Cu over a four m interval in hole SMP-003, 19.78 g/t Au, 43.6 g/t Ag and 2.21 per cent Cu over a four m interval in hole SMP-019). Lead and zinc occurred only at very low levels in all the drill assay results.

The mineralization at Semna is open along strike at both ends, and has to date been drilled over a strike length on the MVZ of approximately 400 m. The mineralization is open at depth along the entire drilled strike length.

Exploration activity update

Aton intends to start a second phase of diamond drilling at Semna as early as possible in 2024, pending the anticipated issuance of the exploitation lease at Abu Marawat, with a view to fast-tracking the exploration at the Semna prospect. Pending the start of the phase 2 drilling the company has been continuing its exploration activities at Semna, while it awaits the issuance of the exploitation lease, as follows:

• A provisional plan for an initial 50-hole phase 2 diamond drilling program at Semna has been developed. The drilling will be undertaken by Energold Drilling (EMEA) Ltd., using its Global Drilling ID500-G track-mounted rig (see news release dated Nov. 23, 2021), which is currently in storage at Hamama. New drill pipe and other equipment have already been ordered, and preparations for their shipment to Egypt are under way. Drill site and pad preparation for the planned phase 2 drill program has largely been completed already.
• A short program of mechanical saw-cut channel sampling has been undertaken on exposed faces at Semna. Results from this program are anticipated soon, and will be reported in early 2024.
• A short program of metallic screen fire assay analysis on some of the high-grade samples from Semna has been undertaken, to assess the relative abundance of coarse gold in the Semna mineralization, and the results will again be reported in early 2024.
• Two composite samples of the Semna MVZ mineralization have been dispatched to Wardell Armstrong International in the United Kingdom for preliminary gravity separation and whole ore leach metallurgical test work. The results of this program are expected by the end of 2023, and will also be reported in early 2024.

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 was 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, 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 kilograms 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 subsample was then combined into four m composite samples, weighing approximately 10 kg. These were thoroughly mixed and again riffle split to produce nominal approximately 250-to-500-gram 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 samples were inserted into the four m composite sample stream at a rate of approximately one certified reference material (or standard sample) 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-gram 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 greater than 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-to-500-gram one m split samples which were allocated new sample numbers. These were again 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 obe m split samples were again 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 greater than 10 g/t) were reanalyzed using analytical code Au-GRA21 (also fire assay, with a gravimetric finish). Any high-grade Ag and base metal samples (Ag greater than 100 g/t, and Cu, Pb and Zn greater than 10,000 parts per million or greater than 1 per cent) were reanalyzed using the ore-grade technique AA46 (also an aqua regia digest followed by an AAS finish).

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 km 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 of Aton Resources. Mr. Orduna is a qualified person (QP) under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.