Dr. Michael Gunning reports

VR REPORTS NEW REE INTERSECTIONS AT HECLA-KILMER, CONFIRMS APATITE-MONAZITE REE MINERALOGY FROM INITIAL BULK SAMPLE RESULTS, AND IS AWARDED A THIRD ONTARIO OJEP CRITICAL METALS EXPLORATION GRANT

VR Resources Ltd. has released results for the recent -- spring, 2023 -- drill program, as well as the initial results on mineralogy from the bulk sample extraction and beneficiation study for rare earth element mineralization (REE), at the company's Hecla-Kilmer (H-K) project in Northern Ontario.

REE critical metals were discovered at Hecla-Kilmer in the very first reconnaissance drill program in 2020, with 24 holes completed to date, including the three from this spring.

Broad intersections with carbonatite dikes and vein breccia were obtained in two of the three new drill holes. The composite intersection for hole 024 is shown in the table entitled "Table of assays for drill hole REE intersections, 2020 to 2023, Hecla-Kilmer property," the evolving assay table for all 24 holes completed to date at Hecla-Kilmer. Most importantly, hole 024 at Pike zone intersected a series of six vein and vein breccia zones with greater than 1 per cent TREO (total rare earth oxides).

Mineralogy

Drill core from the entire intersection in hole 013 was submitted in May to the SGS Lakefield laboratory in Ontario as a bulk sample for a mineralogical, beneficiation and metallurgical study. SGS is a recognized world leader in mineralogical and metallurgical studies on REE mineral systems. The intersection includes:

• 361 metres at 0.96 per cent TREO, of which 20 per cent are PMREO (permanent magnet rare earth oxides), within 461 m at 0.85 per cent TREO plus 0.13 per cent Nb2O5 (niobium pentoxide), starting at bedrock surface, including:
  • 39 m at 2.01 per cent TREO within 66.6 m at 1.57 per cent TREO, with 20 per cent as PMREO.
• The hole ended with two m at 2.84 per cent TREO and 1.1 grams per tonne (g/t) gold (Au).

The new mineralogy data are from TESCAN integrated mineral analyzer (TIMA) analyses. Eight initial representative samples spanning the 361 metres of REE mineralization were crushed, sorted and analyzed with TIMA for elemental and mineral mapping of grains ahead of beneficiation studies.

Initial results indicate that 80 per cent of the REEs are contained within the phosphate mineral apatite, with the remainder hosted in monazite, a phosphate, and parisite-synchysite fluorocarbonates, which themselves occur most commonly as fine-grained inclusions in apatite. The results underscore the volume potential for REEs at Hecla-Kilmer based on the sheer breadth of phosphate intersections containing REE.

The new REE mineralogy from the bulk sample is consistent with previous data:

• The strong correlation between P205 and per cent PMREO in ICP-MS (inductively coupled plasma mass spectrometry) geochemical data from more than 1,500 geochemical samples from all 24 drill holes completed to date.
• On-site, XRF (X-ray fluorescence) and SWIR (shortwave infrared) scanning of whole drill core in 2021 showed the correlation between TREO and P2O5 in the near-surface mineralization in hole 004.

The new REE mineralogy from the bulk sample does not change from surface to 460 m depth.

The new REE mineralogy at Pike zone is consistent with the South Rim, located 2.5 kilometres to the south.

SGS reports that the 5 to 7 weight per cent REE contained in apatite at H-K is unique, even amongst other igneous deposits mined for phosphate in apatite. Further, the igneous apatite at H-K is pristine compared with the apatite in the world's sedimentary deposits mined for phosphate.

Ontario Junior Exploration Program grant

The company was informed by the Ontario Ministry of Northern Development, Mines, Natural Resources and Forestry (MNDM) on Aug. 23, 2023, that its application to the Ontario Junior Exploration Program for critical metals (OJEP) was successful for the third consecutive year. The grants cover 50 per cent of exploration costs up to a maximum of $200,000.

Dr. Michael Gunning, VR's chief executive officer, said: "The new intersections are simply reinforcing the breadth of the polymetallic REE mineralization, including P205 and Nb2O5 at Hecla-Kilmer.

"While we are only seeing glimpses of 1 to 3 per cent TREO vein mineralization away from the 461 m continuous intersection starting from surface in hole 13, the data from the new drill holes once again confirm the unusually high, 20-per-cent proportion of TREO as the high-value PMREO (permanent magnet) REO at Hecla-Kilmer, a proportion that is maintained both across the hydrothermal system from South Rim to Pike zone some 2.5 km to the north, and vertically, from surface to greater than 450 m depth at Pike zone.

"The new mineralogy date are no surprise. They are entirely consistent with results obtained from each of the state-of-the-art technologies that have been utilized since 2020, the very beginning of our exploration at Hecla-Kilmer, in order to better understand the REE mineralization, including whole-core XRF scanning by GeologicAI, QEMSCAN [quantitative evaluation of materials by scanning electron microscopy] mineralogy by SGS, ICP-MS geochemistry utilizing lithium-borate fusion for trace REE detection by ALS and scanning electron microprobe analyses of individual mineral grains by RGS Inc. in London. Canada is plagued with REE discoveries made during the past 60 years that have never been developed because of the difficulty in extracting and recovering REEs contained in silicate and/or refractory minerals -- the REE mineralogy at Hecla-Kilmer is a clear distinction.

"Finally. I wish to convey my sincere appreciation to the Ontario MNDM for the recognition and support of our Hecla-Kilmer project through the OJEP critical metals exploration grant program. The grants make a material difference to advancing this discovery."

Technical information

Summary technical and geological information for the company's various exploration properties is available at the company's website.

VR submits sawn drill core samples for geochemical assay to the ALS Global Ltd. laboratory facilities in Timmins or Thunder Bay, Ont., with final geochemical analytical work done at the ALS laboratory located in North Vancouver, B.C., including lithium-borate fusion, ICP-MS and ICP-AES (inductively coupled plasma atomic emission spectroscopy) analyses for base metals, trace elements and full-suite REE analysis, and gold determination by atomic absorption on fire assay. Analytical results are subject to industry-standard and National Instrument 43-101-compliant quality assurance/quality control (QA/QC) sample procedures, including the systematic insertion of sample duplicates, blanks and certified reference material (CRM), done both externally on the project site by the company and internally at the laboratory by ALS, as described by ALS.

Technical information for this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101. Justin Daley, PGeo, VP vice-president of exploration and a non-independent qualified person, oversees all aspects of the company's mineral exploration projects, and the content of this news release has been reviewed on behalf of the company by the Dr. Gunning, CEO, PGeo a non-independent qualified person.

About the Hecla-Kilmer property

The Hecla-Kilmer complex is located 23 kilometres northwest of the Ontario hydroelectric facility at Otter Rapids, the Ontario Northland Railway and the northern terminus of Highway 634, which links the region to the towns of Cochrane and Kapuskasing to the south, itself located on the northern Trans-Canada Highway.

The Hecla-Kilmer property is large. It consists of 224 mineral claims in one contiguous block approximately six kilometres by seven kilometres in size and covering 4,617 hectares. The property is owned 100 per cent by VR. There are no underlying annual lease payments on the property, nor are there any joint venture or back-in interests. Hecla-Kilmer is located on provincial Crown land, with mineral rights administered by the Ontario Ministry of Northern Development, Mines, Natural Resources and Forestry. There are no annual payments, but the MNDM requires certain annual exploration expenditures and reporting. The property falls within the traditional territories of the Moose Cree First Nation and Taykwa Tagamou First Nation.

About VR Resources Ltd.

VR Resources is an established junior exploration company based in Vancouver. VR evaluates, explores and advances opportunities in copper, gold and critical metals in Nevada, United States, and Ontario, Canada, and most recently, a kimberlite breccia pipe discovery in Northern Ontario. VR applies modern exploration technologies and leverages in-house experience and expertise in greenfield exploration to large-footprint mineral systems in underexplored areas/districts. The foundation of VR is the proven record of its board in early-stage exploration, discovery, and mergers and acquisitions. The company is well financed for its mineral exploration and corporate obligations. VR owns its properties outright and evaluates new opportunities on a continuing basis, whether by staking or acquisition.

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