Mr. Jonathon Deluce reports

MELKIOR ANNOUNCES STRATEGIC ACQUISITION OF THE BESCHEFER EAST PROJECT WITHIN THE PROLIFIC SELBAIE CAMP

Melkior Resources Inc. has entered into a letter of intent to acquire 100 per cent of the Beschefer East project from SOQUEM Inc., an entity at arm's-length to the company. SOQUEM is a subsidiary of Investissement Quebec. The Beschefer East project is located approximately 90 kilometres west of Matagami and 100 km north of La Sarre, Que., with good road access and a powerline running through the project.

The project has significant gold and polymetallic potential, with geological similarities to SOQUEM's B26 deposit, located seven km east, which hosts an indicated resource of 6.97 million tonnes (Mt) at 1.32 per cent copper (Cu), 1.80 per cent zinc (Zn), 0.60 gram per tonne (g/t) gold (Au) and 43 g/t silver (Ag), and an inferred resource of 4.41 Mt at 2.03 per cent Cu, 0.22 per cent Zn, 1.07 g/t Au and nine g/t Ag. The project shares a border with Goldseek Resources' Beschefer project, where historical drilling has identified 55.63 g/t gold over 5.57 metres, including 224 g/t over 1.23 metres within the B14 gold zone.

Jonathon Deluce, chief executive officer of Melkior, stated: "We believe that the project has significant potential given the multikilometre gold-copper-silver targets identified by SOQUEM. With the amount of mineralization intercepted to date amongst these large targets, we believe there is a higher metal factor source which we will target in upcoming programs. We also believe that the B14 gold zone extends onto the Beschefer East project, which is one of our top targets for phase 1 drilling. During our due diligence, we have been impressed by the density and quality of the database compiled by SOQUEM. This will enable us to capitalize on prior program investment while rapidly determining the next steps for the project, including a surface geochemical survey to target a new discovery. We look forward to finalizing a definitive agreement with SOQUEM in the coming weeks."

Project summary

Location: The project comprises 55 claims covering 2,906 hectares in the Eeyou Istchee Baie-James territory, Quebec.

History: The project was worked intensively from the 1960s to the early 1990s by BHP Billiton, while operating the Selbaie mine. The use of diverse geophysical approaches in conjunction with overburden gold sampling was essential due to the thick overburden blanket. It led to the discovery of multiple gold, copper, silver and zinc anomalies in a felsic volcanic rock environment.

The project was then systematically explored by SOQUEM between 1992 and 2012, building a tight grid of geophysical anomalies, followed by drill testing. Exploration was done using a checkered geophysics line pattern to evaluate the potential of different structural orientations. Around 300 km of surveyed lines were completed in conjunction with drilling 11,200 metres distributed in 42 holes. The company aims to expand on the gold, copper and silver anomalies identified in prior drill programs, and integrate data to confirm gold trends spatially associated with extensive low-grade base metal mineralized systems.

Results: The best gold results were obtained from the Power Line target located in the northern part of the project. Hole 1172-99-30 returned a series of individual mineralized intervals from two g/t to five g/t over lengths of 0.5 m to six m within a large interval of 70 metres. Hole 1172-13-40 intercepted 2.1 g/t over 5.4 metres, including 7.9 g/t over 0.9 metre. Gold mineralization is hosted in a quartz-carbonate centimetric veins network crosscutting felsic to the intermediate volcanic rock affected by variable pervasive alteration associated with minor amounts of pyrite. Hole 1172-98-24 intersected the same type of mineralization but was hosted in deformed and carbonate-altered andesite located in the southern half of the property.

Short anomalous copper anomalies were intersected in a sector identified as the Noramco target. From prior SOQUEM programs, the best results were 0.26 per cent over 4.8 metres and 0.24 per cent over four metres (1172-98-24 and 1172-99-30, respectively).

A summary of selected historical drill results is reported the associated table.

Geology: The project is located in the eastern part of the Brouillan volcanic complex, which is a part of the North Volcanic zone of the Abitibi greenstone belt. The drill coverage has highlighted the felsic dome facies, along with related lapillis and fine tuffs that have been affected by a northeast-trending polyphased folding pattern. To the south, basalt and gabbros have been identified interlayered with graphitic sediments and cherts. Hydrothermal alterations have favourable characteristics for the exploration of volcanogenic massive sulphide (VMS) deposits. On the west side of the Brouillan syn-volcanic intrusion, the Selbaie mine produced 53 million tonnes (Mt) of ore at grades of 0.96 per cent Cu, 1.9 per cent Zn, 40.7 g/t Ag and 0.58 g/t Au. The rock units of the project have been affected by deformation and structural elements related to the Bapst fault. Additionally, the northeast deformation zones, including the extension of the Beschefer gold structure, are interpreted to pass through the property.

Terms of the LOI agreement

Under the terms of the LOI, Melkior has the right to earn a 100-per-cent interest in the project through an option, subject to a net smelter return royalty of up to 2.5 per cent on certain claims, made up of an historical NSR of 1.5 per cent and 1 per cent granted to SOQUEM. To earn an undivided 100-per-cent interest in the project, Melkior must make total cash payments of $50,000, issue $500,000 worth of common shares in the capital of Melkior to SOQUEM and incur work expenditures of $1.5-million in total, all in accordance with the anniversary dates in the associated table.

The LOI will shortly be replaced with the definitive agreement, and the definitive agreement and issuance of shares to SOQUEM thereunder is subject to TSX Venture Exchange approval and the company's filing requirements with the TSX-V. All common shares of Melkior issued under the definitive agreement will be subject to a hold period of four months and one day from the date of issuance.

Qualified person

This press release was reviewed and approved by Martin Demers, PGeo, OGQ No. 770, who is a qualified person as defined under National Instrument 43-101, and responsible for the technical information provided in this news release. Mr. Demers is a consultant for Melkior.

We seek Safe Harbor.