Mr. Jonathon Deluce reports

MELKIOR INTERSECTS 0.75% COPPER OVER 8.45M EXTENDING THE GENEX SYSTEM 200M NORTH

Melkior Resources Inc. has released the remaining results from its maiden, Melkior-operated, 4,194-metre drill program at the Genex project. On April 21, 2022, the company signed an option agreement for the Genex project to earn 100 per cent over seven years from International Explorers & Prospectors Inc. (see news release dated April 21, 2022). The Genex project is a polymetallic exploration target with near-term resource potential based on a high density of historical drilling around the former Genex deposit, which is located from surface down to 100 metres in depth. These results continued to demonstrate the wide development possibility of this type of polymetallic and volcanogenic massive sulphide target.

Program highlights include GEN-22-24, intersecting 0.75 per cent copper and 12.08 grams per tonne silver over 8.45 metres, including 1.48 per cent Cu and 22.03 g/t silver over 2.4 metres. GEN-22-25 intersected 1.24 per cent zinc over 13.85 metres, within 0.76 per cent Zn over 30.25 metres. These intercepts extend the Genex system up to 200 metres north of the historical mine.

Jonathon Deluce, chief executive officer of Melkior, remarked: "We are excited about these results, as they highlight the expansion potential of the historical Genex deposit, situated approximately 200 metres away from existing underground infrastructure. These findings affirm the existence of shallow-depth satellite or extension zones. We look forward to leveraging what we have learned to plan our next phase of drilling and start follow-up surface work this month. Further details of our summer program will be provided shortly."

Program details

These 14 holes total 2,220 metres, with lengths between 75 metres and 246 metres, located at the margin of the composite grade shell modelled using Leapfrog software (see news release dated Oct. 27, 2022, for technical information). The program tested continuities and satellite lenses of base metal and gold mineralization extending the historical Genex mine. Additionally, four holes were drilled to test the Gossan target defined by induced polarization chargeability anomalies. The Gossan target is located about 600 metres northeast of Genex, identified from a thick layer of rusty sand mixed with quartz fragments and identified during previous drilling operations.

Genex Northwest extension

Five holes (GEN-22-17, GEN-22-18, GEN-22-23, GEN-22-24 and GEN-22-25) were drilled on a staggered section following a north-northwest section, up to 200 metres away from the Genex mine. The objective was to assess a sequence of parallel northeast induced polarization chargeability anomalies, which extend for about 300 metres on both sides of the historical Genex area. Additional investigation is required to confirm the relationship between the Genex historical deposit and the northwest target. This target is based on a compilation of historical drill holes that revealed a concentration of gold and copper anomalies at an average vertical depth of 100 metres, within a formation consisting of felsic, tuffaceous-to-sedimentary layers in contact with mafic intrusions. The north-northwest drilling strategy aimed to intersect geophysical anomalies at a perpendicular angle.

Holes GEN-22-24 and GEN-22-25 encountered substantial mineralized intervals within trends situated approximately 200 metres northwest of the Genex infrastructure. These intervals may be associated with a succession of sulphide stringers occurring at intervals of 10 metres to 30 metres.

Hole GEN-22-24 yielded the most-significant result, with values of 0.75 per cent Cu and 12.08 g/t Ag over 8.45 metres. This includes a higher-grade section measuring 2.4 metres, returning values of 1.48 per cent Cu, 22.03 g/t Ag and 0.014 per cent cobalt. Additionally, farther down the hole, there is a zinc-enriched interval measuring 11.3 metres, with a grade of 0.93 per cent Zn (refer to an attached table for detailed results). The copper mineralization, resembling the Genex system, is hosted in strong chlorite alteration. The zinc mineralization is associated with pyrite in stringers, occurring alongside a dominant sericite alteration that surrounds the chlorite zone. The entire zoning is constrained in the same vesicular andesitic flow.

Hole GEN-22-25 intersected a significant mineralized interval of 1.24 per cent Zn over 13.85 metres, which is part of a broader mineralized envelope characterized by lower grades. The mineralization is observed as a cluster of replacements, with pyrite occurring within the porosity of the andesite flow. In addition, there are stringer veins hosting the zinc mineralization, situated within layers exhibiting strong interlayered sericite and chlorite alteration.

Genex trend

Hole GEN-22-14 was drilled longitudinally inside the Genex historical trend to test the potential intersection of northeast-oriented mineralized structures between Genex zones C and A. Notably, a repeated occurrence of stringers and breccia, ranging from one metre to five metres in thickness, was observed down to a vertical depth of 80 metres. The highlight intercept was 0.46 g/t gold and 0.93 per cent Zn over five metres. GEN-22-14 helped fill the gap between historical zones A, H and C by highlighting wide, low-grade disseminated mineralization around the historical high-grade lenses.

Holes GEN-22-17 and GEN-22-18 were drilled perpendicular to the southwest extension of the shaft area, positioned between 50 metres and 100 metres from historical underground workings. GEN-22-17 intersected the direct up-dip continuity of the southwest extension, with a chlorite-hosted sulphide stringer yielding 0.56 per cent Cu over 5.7 metres between 15 metres and 21.4 metres. Additionally, minor silver content was observed, along with a sporadic presence of gold and cobalt values, reaching up to 0.3 g/t Au and 0.03 per cent Co, respectively.

At the end of GEN-22-18, a new mineralized structure was identified following the down-dip extension to the west of the Genex system. The result of 0.58 per cent Cu and 0.4 g/t Au over 4.1 m takes the form of chalcopyrite-rich stringer veins hosted in a chlorite-silica pervasive alteration.

Located approximately 200 metres northward, shallow holes GEN-22-19, GEN-22-20 and GEN-22-22 were drilled to explore targets near the historical C zone. Hole GEN-22-19 was positioned along the strike immediately south of the C zone underground development, while the other two holes targeted the footwall of the zone. Together, these three holes cover around 100 metres of strike and dip extension, with the objective of intersecting a gently dipping pillow lava basalt.

Each hole successfully intercepted the crucial contact before encountering mafic intrusive formations. Notably, in hole GEN-22-20, a chalcopyrite-bearing stringer with a grade of 0.2 per cent Cu over 1.2 metres was identified. On the other hand, hole GEN-22-22 revealed an intriguing discovery, passing through a prominent pyrite stringer spanning 15 metres. This pyrite stringer was hosted within a carbonatized andesite, although no significant metal enrichment was observed. The results and observations from both holes will be utilized to refine the targeting of the fertile structure.

Gossan target

Four holes were drilled to test strong and wide chargeability anomalies correlated from line to line going northeastward, about 100 metres south of the Gossan target. The program is a first attempt to understand the alteration signature and geometry.

None of the four holes intercepted significant copper or gold anomalies. However, the series of holes, spanning over 400 metres along strike, revealed the presence of strong pervasive alteration, locally hosting sulphides, and a volcanic flow top represented by a sulphide-bearing graphitic horizon. The eastern section of the area exhibited a transition to a thick sequence of tuffaceous and sedimentary rocks, where strong sericitization and pyritization were also observed.

Consequently, the program successfully identified amygdaloid carbonatized andesite, similar to the main host rock in the Genex deposit, located more than 500 metres east-northeast from the Genex mine.

The field program was run by SL Exploration, and the drill core was split, with half sent to AGAT in Timmins, Ont., and fire assayed with an atomic absorption finish, with any samples over 10 g/t being assayed with a gravimetric finish. Whole metallic assays are performed on samples if they contain visible gold. Additionally, for base metals, a metals package by four-acid digestion with ICP-OES finish was used, with overlimits tested by four-acid dilution testing. Duplicates, standards and blanks were inserted into the sample stream.

Genex option update

The company has completed all first-year option obligations, including:

• Paid $50,000 to International Explorers & Prospectors;
• Issued 500,000 common shares to IEP, subject to a statutory hold period of four months and one day from the date of issuance;
• Completed first-year work commitment by incurring over $750,000 in work expenditures;
• Delivered an annual report which summarized the work done on the property, along with supporting documentation.

The company is financed and on track to complete its second-year obligations.

Qualified person

All technical information in this press release has been reviewed and approved by Martin Demers, PGeo (PGO registration No. 3785). Mr. Demers is a consultant for Melkior and a qualified person for the purposes of National Instrument 43-101.

About Melkior Resources Inc.

Melkior Resources is an exploration-stage resource company in world-class mining jurisdictions with a strong partner. Melkior's flagship Carscallen project is being advanced by Agnico Eagle Mines Ltd. through an option agreement, pursuant to which Agnico Eagle has the option (but not the obligation) to acquire up to a 75-per-cent interest in the Carscallen project by spending $110-million on the Carscallen project over a 10-year period. Melkior, under 100-per-cent ownership, is focused on advancing its Genex, Val D'Or, White Lake and Maseres projects. Agnico Eagle also owns approximately 6 per cent of the issued and outstanding common shares of company.

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