Mr. Stephen Stares of Benton reports

BENTON RECEIVES CONDITIONAL REGULATORY APPROVAL FOR GREAT BURNT COPPER-GOLD OPTION AND EXPANDS DISCLOSURE OF OUTSTANDING NET SMELTER RETURNS

Benton Resources Inc. announced on Aug. 17, 2023, that it had entered into a binding letter of intent with Spruce Ridge Resources Ltd. whereby Benton can earn an undivided 70-per-cent interest in Spruce's Newfoundland properties, including the Great Burnt copper deposit and the South Pond gold and copper zones. The company has received conditional approval by the TSX Venture Exchange for the option, pending this disclosure of the net smelter return (NSR) from previous operators/owners of the property. Under previous agreements, there exists a 2-per-cent NSR royalty in favour of Glencore (as a successor to Noranda) on mining lease ML211 and part of exploration licence 21732M that was part of former exploration licence 10210M, which covers the area of the Great Burnt copper deposit. In addition, if commercial production commences from this lease, then a cash payment of $1-million or the issuance of common shares representing equivalent value must be made to Glencore.

Under the agreement between Pavey Ark and Spruce, Pavey Ark will retain a 0.5-per-cent NSR royalty on any production from mining lease ML211 and that part of exploration licence 21732M that was part of former exploration licence 10210M. Pavey Ark will retain a 2-per-cent NSR royalty on any production from the mineral exploration licences 6682M, 6683M, 9881M and 20961M and that part of 21732M that was not part of former exploration licence 10210M.

Highlights of the option

Under the terms of the option, Benton can earn a 70-per-cent undivided interest in the property by:

• Making a $40,000 cash payment to Spruce upon receipt of final exchange approval;
• Issuing to Spruce 15 million common shares in the capital of Benton as follows:
  • Five million Benton shares subject to a four-month regulatory trading restriction;
  • Five million Benton shares subject to a four-month regulatory trading restriction plus an additional eight-month trading restriction;
  • Five million Benton shares subject to a four-month regulatory trading restriction plus an additional 20-month trading restriction;
• Completing $2.5-million in exploration expenditures on the property within 36 months of the date of the LOI, of which $1.0-million must be expended by the first anniversary of the LOI, subject to the right of Benton to accelerate the completion of such expenditures and share issuances at its election.

Once a 70-per-cent interest in the property is earned by Benton, the property will be operated as a participating joint venture.

Company president and chief executive officer Stephen Stares stated: "This project provides Benton with another prospective opportunity in central Newfoundland, which is ranked one of the best mining jurisdictions worldwide. We're excited to be building off a great land position with many known zones that are open for expansion, and the potential for new discoveries provides confidence for future exploration success. Benton will plan an aggressive exploration program that will commence as soon as possible."

Commenting on the option, interim Spruce president and chief executive officer Steve Balch explained: "Spruce is very pleased to be partnering with Benton, a well-known exploration company with deep roots in Newfoundland. This agreement forms part of our plan to diversify our property obligations while acquiring additional critical mineral resources through a combination of expertise and leverage of our security portfolio, including our 5.5 million common shares of Canada Nickel Company Inc. We see this as a good time to expand and diversify our asset base."

Great Burnt copper-gold project

The Great Burnt Main zone has a National Instrument 43-101-compliant resource prepared in 2022 for Spruce by P&E Mining Consultants Inc. of 667,000 tonnes (47.2 million pounds) copper at 3.21 per cent (indicated) and 482,000 tonnes (25.0 million pounds) copper at 2.35 per cent (inferred) contained within mining lease 211(10210M). The copper resource remains open to the south and at depth. Highlights of the drill programs to date include:

• GB20-05: 27.20 metres of 8.06 per cent copper, including 7.75 m of 16.88 per cent Cu;
• GB20-20: 22.75 m of 6.89 per cent Cu, including 12.55 m of 10.59 per cent Cu;
• GB18-05: 20.94 m of 6.21 per cent Cu, including 6.98 m of 10.71 per cent Cu;
• GB18-06: 9.97 m of 7.45 per cent Cu, including 5.03 m of 11.42 per cent Cu;
• GB16-08: 7.50 m of 9.45 per cent Cu, including 3.00 m of 19.30 per cent Cu;
• GB16-09: 5.75 m of 6.68 per cent Cu, including 1.50 m of 11.70 per cent Cu.

Exploration at the South Pond zone has identified potential for both copper and gold along several kilometres of strike. Highlights of the 2021 drill program include:

• SP21-01: 1.69 g/t Au over 51.00 m, including 3.19 g/t Au over 11.00 m, within 10 m of surface;
• SP21-03: 2.36 g/t Au over 15.00 m, including 11.33 g/t Au over 1.00 m;
• SP21-08: 1.75 g/t Au over 21.20 m, including 2.82 g/t Au over 10.20 m;
• SP21-11: 1.34 g/t Au over 17.60 m, including 2.48 g/t Au over 4.20 m;
• SP21-14: 2.06 g/t Au over 21.00 m;
• SP21-16: 1.72 g/t Au over 10.00 m.

Note: Widths quoted are true core length. True widths are estimated at approximately 70 per cent of core lengths.

Qualified person

Stephen House (PGeo), vice-president of exploration for Benton, the qualified person under National Instrument 43-101, has approved the scientific and technical disclosure in this news release and prepared or supervised its preparation.

About Benton Resources Inc.

Benton is a well-financed mineral exploration company listed on the TSX Venture Exchange under the symbol BEX. Following a project generation business model, Benton has a diversified, highly prospective property portfolio of gold, silver, nickel, copper, platinum group elements, and, most recently, lithium and cesium assets. In addition, it currently holds large equity positions in other mining companies that are advancing high-quality assets. Whenever possible, Benton retains net smelter return royalties with potential long-term cash flow.

Benton is also a 50/50 partner in a strategic alliance with Sokoman Minerals Corp. through three large-scale joint venture properties, including Grey River gold, Golden Hope and Kepenkeck in Newfoundland.

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