Mr. Mike Hodge reports

SAVILLE RESOURCES INC. OPTIONS THE COVETTE NICKEL-COPPER-COBALT PROPERTY, QUEBEC

Saville Resources Inc. has entered into an option agreement with Astorius Resources Ltd. to sell a 100-per-cent interest in the Covette nickel-copper-cobalt property located in the James Bay region in the province of Quebec.

The property is located approximately 190 kilometres east of Raddison and 10 km north of the all-weather Trans-Taiga road and adjacent LG-3 transmission line. The claim area consists of 12 contiguous claims, encompassing an area of approximately 613 hectares (about 6.13 square km). A property map can be found on the Saville website.

In late 2016, a 1,402 line km versatile time-domain electromagnetic (VTEM) survey was completed over the Covette property by Geotech Ltd., of Aurora, Ont. It identified several high-priority electromagnetic (EM) conductors coincident with strong and distinct magnetic high anomalies, as well a broad and large coincident EM and magnetic high anomaly. These areas are considered prospective for base and precious metal targets. The property was subsequently explored during two early-stage exploration programs conducted by Saville in 2017 and 2018. Results from the 2017 prospecting program returned rock samples with values up to 0.09 per cent copper and 0.19 per cent nickel in grab samples. In 2018, eight samples were taken in a newly discovered surficial gossanous bedrock outcrop with samples grading up to 1.20 per cent zinc, 68.7 parts per million silver, 0.15 per cent copper and 0.19 per cent nickel. The sulphide mineralization is associated with amphibolite units within an intermediate-ultramafic suite of rocks. The nature of the mineralization remains uncertain due to limited exploration work. The ground work and surface sampling were not sufficient to explain the source of the VTEM anomalies, and collectively, appear to indicate a source at depth.

Geologically, a greenstone belt underlies the region, comprising various mafic to ultramafic rock units considered prospective for base and precious metals (nickel-copper-cobalt-platinum group elements-gold-silver (Ni-Cu-Co-PGE-Au-Ag), as well as pegmatite-hosted rare metals (lithium-tantalum). Komatiites have also been described in the region with such rock types known to host significant Ni-Cu massive sulphide deposits at other localities globally, adding further to the prospective nature of the region.

Under the terms of the option agreement the issuer will acquire a 100-per-cent interest and rights in the property by paying the vendor an aggregate of $1.25-million in cash, payable over 36 months of signing the agreement. A 2-per-cent net smelter return (NSR) is included in the agreement payable to the vendor. The issuer must spend a minimum of $300,000 qualified exploration and development expenditures by Feb. 5, 2021.

National Instrument 43-101 technical report

The company has completed a National Instrument 43-101 technical report on Covette nickel-copper-cobalt property prepared by Edward Lyons, PGeo, of Tekhne Research Inc. The report is available on SEDAR.

The report recommends a phase 1 work program that will focus on detailed geological mapping and surface sampling of areas confirmed in having high conductivity by the 2016 VTEM survey; detailed sampling of the several types of sulphide types (dissemination, veins) and petrographic studies to determine the mineralogy; channel sampling to determine the bulk grades in showings; and design and execution appropriate geophysical surveys to test extension of the showings and well as determine property-wide prospecting methods.

Qualified person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Nicholas Rodway, PGeo, Saville's director and technical adviser on the Covette property.

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