Mr. Gordon Ellis reports

LUPAKA GOLD COMPLETES FIRST RUN-OF-MINE BULK PROCESSING TEST

Lupaka Gold Corp. has completed its first run-of-mine bulk test of 342 tonnes achieving total recoveries of 83.6 per cent for gold and 95.5 per cent for copper, and has received the final report on the results. The processing test was run at a local Peruvian toll mill under the supervision of CERTIMIN SA, the company's metallurgical consultant.

Copper/gold, lead/silver and zinc concentrate streams were produced over six days of processing, with concentrate tonnes and average grades per tonne achieved as shown in the table.

             CONCENTRATE TONNES AND GRADES PER TONNE 
                (342-tonne average over six days)

Concentrate   Con. prod.    Au       Ag    Cu    Pb    Zn    Fe  
stream               (t)  (g/t)    (g/t)   (%)   (%)   (%)   (%)  

Copper             16.1   88.0  1,032.1  28.8   6.4   4.5  25.5  
Lead                8.4   88.2  1,339.3  13.1  25.7   8.5  16.9  
Zinc                3.9   49.6    692.2   8.1   2.7  37.1  11.8

Over the six days of continuous flotation, various modifications were made to improve the protocols. The table demonstrates the concentrate grades achieved during the best production run of 110 tonnes (equilibrium phase).

            CONCENTRATE TONNES AND GRADES PER TONNE 
              (110-tonne attempt at optimization) 

Concentrate   Con. prod.    Au       Ag    Cu    Pb    Zn    Fe  
stream               (t)  (g/t)    (g/t)   (%)   (%)   (%)   (%) 

Copper             5.24  108.4  1,109.4  30.1   5.8   2.6  26.6  
Lead               2.46   61.5  1,294.2  10.5  31.5  7.21   5.1  
Zinc               1.21   30.2    393.9   5.1   1.6  47.7   8.0  

"As a first bulk test of run-of-mine material from our Invicta mine site, we are very pleased with these results. All three concentrates report attractive grades, and the test demonstrates that Invicta mineralization floats cleanly and is absent of any penalty elements. These are very saleable products. These results are a big step towards establishing Invicta mine's commercial viability," commented Gordon Ellis, president and chief executive officer of Lupaka Gold.

Recovery

Overall average percentage recoveries for each of the three concentrate streams produced are shown in the table.

  DISTRIBUTION OF METAL RECOVERY OF METAL IN CONCENTRATE STREAMS 

Concentrate stream      Au      Ag      Cu      Pb      Zn      Fe  
                        (%)     (%)     (%)     (%)     (%)     (%)

Copper                50.3    45.9    73.1    27.8    19.4     8.5  
Lead                  26.4    31.2    17.4    58.1    19.4     3.0  
Zinc                   6.9     7.5     5.0     2.8    39.5     1.0  
Total                 83.6    84.7    95.5    88.7    78.3    12.4

Mr. Ellis continued: "We are pleased with these results and, in particular, with the quality of the concentrates. Bench tests previously carried out by the company's independent metallurgists indicate that overall recoveries could be improved by up to 10 per cent. We look forward to continuing the bulk test program towards attaining those levels of recovery."

Qualified person

The technical information in this document has been reviewed and approved by Julio Castaneda Mondragon, MAIG, the president of Lupaka Gold Peru SAC, a Peruvian subsidiary of the company, a qualified person as defined by National Instrument 43-101. Mr. Castaneda has verified the scientific and technical information, including sampling, analytical and test data, underlying the information or opinions contained in this news release.

Quality assurance and quality control

The analyses for this processing supervision were carried out by CERTIMIN, an accredited consulting firm in Lima, Peru, exercising a thorough quality assurance and quality control program. CERTIMIN is ISO 9001 certified for the metallurgical testing at laboratory level, and ISO 14001, OHSAS and ISO 17025 for the preparation and assay of geochemical, metallurgical and environmental samples.

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