Mr. Mac Balkam reports

ESKAY MINING CONFIRMS NEW PRECIOUS METAL RICH VMS DISCOVERIES AT ITS CONSOLIDATED ESKAY PROJECT, GOLDEN TRIANGLE, BC

Eskay Mining Corp. has received very encouraging assay results from its 2023 diamond drill and exploration campaign at its 100-per-cent-controlled Consolidated Eskay gold project in the Golden Triangle of British Columbia. Precious-metal-rich volcanogenic massive sulphide (VMS) deposits are the focus of Eskay's exploration.

Cumberland VMS discovery

Nine short diamond core holes were completed at the Cumberland showing in 2023, several of which encountered very promising precious-metal-rich and base-metal-rich stockwork and massive mineralization. Notable results include:

• 3.02 grams per tonne gold, 68.66 g/t silver, 0.24 per cent copper, 0.73 per cent lead and 4.86 per cent zinc (6.28 g/t gold equivalent) over 15 metres, including 8.48 g/t Au, 103.27 g/t Ag, 0.23 per cent Cu, 1.08 per cent Pb and 4.16 per cent Zn (12.02 g/t AuEq) over 3.41 m, in hole CBL23-28;
• 1.21 g/t Au, 29.22 g/t Ag, 0.12 per cent Cu, 0.32 per cent Pb and 2.94 per cent Zn (2.96 g/t AuEq) over 22.52 m, including 3.45 g/t Au, 108.21 g/t Ag, 0.65 per cent Cu, 0.54 per cent Pb and 19.40 per cent Zn (13.24 g/t AuEq) over 1.75 m, in hole CBL23-29;
• 0.68 g/t Au, 15.72 g/t Ag, 0.07 per cent Cu, 0.27 per cent Pb and 0.90 per cent Zn (1.39 g/t AuEq) over 45.67 m in hole CBL23-30;
• 0.95 g/t Au, 29.04 g/t Ag, 0.07 per cent Cu, 0.29 per cent Pb and 1.31 per cent Zn (two g/t AuEq) over 61.23 m, including 1.57 g/t Au, 58.80 g/t Ag, 0.16 per cent Cu, 0.60 per cent Pb and 3.13 per cent Zn (3.91 g/t AuEq) over 20.08 m, in hole CBL23-31.

Cumberland lies approximately six kilometres due south of the TV deposit and is similarly situated along the east side of the Eskay anticline. Eskay's geologic team thinks this discovery opens up considerable exploration potential in areas between Cumberland and the TV-Jeff VMS complex. It is notable that mineralization at Cumberland displays very high base metals, an indicator of high formational fluid temperatures, a potential sign that this area lies in proximity to a major feeder vent or vents.

Based on data from this limited first-phase drill program, the Cumberland VMS deposit is interpreted to be tabular with a north-south orientation and a near-vertical dip, perhaps slightly overturned. It remains open along strike and at depth. A review of historical soil data from areas up to 1.5 kilometres south of Cumberland indicates a broad area of strongly anomalous geochemistry, especially elevated silver values, confirming a likely extension of mineralization in this direction. Eskay's geologic team observed significant outcropping sulphide mineralization while conducting traverses in this region south of Cumberland.

While prospecting late in the season, a notable area of outcropping sulphide mineralization was observed approximately 2.5 km to the northeast of Cumberland and is potentially part of the same VMS system. This area has been named Mahogany Ridge. Historical rock chip sample data from the broader Cumberland trend include samples grading 25.0 g/t and 27.9 g/t Au.

Given the strong drill and rock chip sample results from the Cumberland-Mahogany Ridge area, Eskay Mining views this discovery as a high-priority exploration target. Compelling evidence is emerging that the corridor starting at TV-Jeff in the north through Mahogany Ridge and Cumberland and continuing 1.5 km farther south of Cumberland is highly prospective for further precious-metal-rich VMS discoveries. Eskay Mining thinks this corridor requires urgent follow-up work, including drilling, in 2024.

"Cumberland is shaping up to be a very compelling and unique target," commented John DeDecker, Eskay's vice-president of exploration. "Intense polymetallic sulphide mineralization ranges from stockwork-style to massive seafloor-hosted mineralization. The seafloor-hosted mineralization is associated with barite breccia, and is capped by a non-mineralized and highly magnetic pillow basalt. Drilling and field investigations have defined the orientation of the mineralized seafloor horizon, and have shown that Ag anomalies in historic soil samples, and a pronounced magnetic anomaly evident in the 2021 EM [electromagnetic] survey, lie along the trend of mineralization extending at least 300 m south of Cumberland. Our team looks forward to investigating this area further in 2024. The confirmation of another mineralized seafloor horizon at Scarlet Knob, and extensive disseminated Au mineralization at Tarn Lake, opens these areas up to targeted exploration in 2024."

An attached table provides a summary of significant results from nine core holes completed at the Cumberland showing in 2023.

Scarlet Knob-Bruce Glacier discovery

Near the end of the exploration season at a time of maximum snowmelt, Eskay Mining's exploration team found outcrops of metal-rich VMS mineralization immediately adjacent to the eastern margin of Bruce Glacier. This area is called Scarlet Knob and is located in the northeastern part of the Consolidated Eskay gold project, approximately seven km southeast of the Eskay Creek mine. Four rock chip samples collected from a 100 m long, five m wide sulphide replacement body returned very strong precious and base metal values, as presented in an attached table.

Although this outcropping sulphide body is small, it appears to occur at or near the paleo-seafloor interface, a stratigraphic position conducive for hosting a deposit like that at the nearby Eskay Creek mine. Given the very strong precious metal values from these samples, Eskay Mining's geologic team takes a strong view that this occurrence suggests a bigger system may be present in this area.

Early in the drill season, four core holes were drilled in an area approximately 200 m south of this high-grade discovery. These holes were drilled based on a conceptual view formed by Eskay Mining's geologic team that the paleo-seafloor position, possibly mineralized, should be hiding under Bruce Glacier. All four of these drill holes, indeed, pierced the contact between volcanic rocks and seafloor mudstone, and two of these holes encountered highly elevated precious and base metal values, as seen in an attached table.

Although these intercepts are not long, the strong precious and base metal contents encountered in these holes are considered the sort of values that might occur proximal to a much-stronger VMS system. Combined with the latter surface discovery of high-grade precious and base metal mineralization discussed herein, this lends further strong evidence for a larger VMS system in this area. Eskay Mining's geologic team takes the view that more exploration, including core drilling, is warranted at Scarlet Knob in 2024.

Tarn Lake

Four diamond drill holes were completed at Tarn Lake during the 2023 drill campaign to follow up on encouraging drill results from this area in 2022. While all four holes encountered short-to-moderate-length intervals of mineralization, two holes, TN23-14 and TN23-16, encountered short, high-grade intervals: 4.84 g/t Au and 8.14 g/t Ag (4.94 g/t AuEq) over two m in TN23-14 as well as 7.83 g/t Au and 6.96 g/t Ag (7.92 g/t AuEq) over 2.45 m in TN23-16. These can be seen in an attached table.

Given the most promising results from Tarn Lake to date come from feeder-zone-type mineralization perhaps occurring deep in a VMS system, Eskay Mining's geologic team is considering where the upper part of this system, including the favourable paleo-seafloor position, might lie. Rock chip sampling conducted in 2023 shows that disseminated Au mineralization extends approximately 100 m to the west of and over 200 m to the north of the drill holes at Tarn Lake. More fieldwork and follow-up drilling will be needed to ascertain if the better part of this system is present in the Tarn Lake area.

Other targets

Targeting at Hexagon-Mercury, situated on the western flank of the Eskay anticline approximately nine km south of Eskay Creek mine, was driven by geophysical anomalies interpreted by Riaz Mirza of Simcoe Geoscience. One of two drill holes completed at the target yielded an intercept of over 100 m of appreciable stockwork sulphide mineralization hosted by volcanic rock thought to be part of the lower Hazelton Group. While no appreciable precious metals were encountered, moderately elevated pathfinder elements are present. Further work is needed in this location to refine future targets.

Two holes tested the Maroon Cliffs target, situated in the far northeast corner of the Consolidated Eskay gold project. Similar to Hexagon-Mercury, targeting at Maroon Cliffs was driven by geophysics. Neither hole encountered appreciable precious metal mineralization, and only weak pathfinder geochemistry. The magnetic expression that defined this target is believed to be driven by a package of conglomerate rock with magnetite-bearing clasts observed in core.

One hole was completed at Storie Creek, a target situated just 3.5 km south-southeast of the Eskay Creek mine. Prior to drilling, Eskay Mining's geologic team formed the view that favourable Hazelton Group host rocks dip westward under the drill site, thus making an intriguing blind target. Drilling determined that an east-dipping reverse fault underlies Storie Creek. Therefore, any prospective Hazelton Group rocks will only lie to the east of Storie Creek. Consideration is being given to what further exploration might be done in the area.

Quality assurance/quality control and methodology statement

Halved HQ drill core samples are submitted to ALS Geochemistry in Terrace, B.C., for preparation and analysis. ALS is accredited to the ISO/IEC 17025 standard for gold assays. All analytical methods include quality control standards inserted at set frequencies. The entire sample interval is crushed and homogenized, and 250 g of the homogenized sample are pulped. All samples were analyzed for gold, silver and mercury, and a suite of 48 major and trace elements. Analysis for gold is by fire assay fusion followed by inductively coupled plasma atomic emission spectroscopy (ICP-AES) on 30 g of pulp. Analysis for silver is by fire assay and gravimetric analysis on 30 g of pulp. Mercury is analyzed using the trace Hg inductively coupled plasma mass spectroscopy (ICP-MS) method. All other major and trace elements are analyzed by four-acid digestion followed by ICP-MS.

The assay results for rock chip samples reported for Scarlet Knob were obtained from Skeena Resources Ltd.'s field assay laboratory. The entire sample is crushed and homogenized, and 100 g of the homogenized sample are pulped. All samples were analyzed for gold, silver, arsenic, copper, lead and zinc. Duplicates of these samples were sent to ALS Geochemistry in Terrace, B.C., for certified analyses. Certified assay results for the Scarlet Knob rock chip samples are pending.

Historical rock chip and soil sample data are sourced from assessment reports AR17205 and AR22231. Eskay Mining is unable to fully verify these data, and they should be treated as such by the reader.

Mineralization at the TV and Jeff deposits displays similar characteristics and mineralogy to the Eskay Creek deposit, and, therefore, for AuEq and Au:Ag, a ratio of 78:1 is used and AuEq and AgEq values are deemed to be reasonable based on assumed gold recovery (84.2 per cent) and silver recovery (87.3 per cent), as reported in the Eskay Creek project National Instrument 43-101 technical report and prefeasibility study, British Columbia, Canada (effective date of July 22, 2021, prepared for Skeena Resources, prepared by Absence Engineering Canada Inc.).

True widths of reported intercepts are not fully understood at this time. More drilling is required to ascertain true widths at these newly identified mineralized areas.

Dr. Quinton Hennigh, PGeo, a director and technical adviser of the company, a qualified person as defined by NI 43-101, has reviewed and approved the technical contents of this news release.

About Eskay Mining Corp.

Eskay Mining is headquartered in Toronto, Ont. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwestern British Columbia known as the Golden Triangle, 70 kilometres northwest of Stewart, B.C. The company currently holds mineral tenures in this area comprising 177 claims (52,600 hectares).

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