Dr. Michael Gunning reports

VR EXTENDS CONTINUOUS REE MINERALIZATION AT HECLA-KILMER TO OVER 500 METRE VERTICAL DEPTH IN HOLE 13, STARTING AT SURFACE AND ENDING IN 2.84 % TREO WITH GOLD

VR Resources Ltd. has released results from the first of five drill holes completed last fall at its Hecla-Kilmer project (H-K) and critical metal discovery located in Northern Ontario. Data from the remaining drill holes are expected shortly.

Highlights:

• Drill hole HK22-013:
  • 361 metres at 0.96 per cent TREO (total rare earth oxide), of which 20 per cent are PMREO*, within 461 m at 0.85 per cent TREO and 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 extended hole, to 504-metre depth, ends with two m at 2.84 per cent TREO and 1.1 grams per tonne (g/t) gold (Au). Gold increases with TREO grades, and is associated with REE (rare earth element) mineralization in monazite.

*PMREO is the sum of high-value rare earth oxides (REOs) used in permanent magnet motors and turbines used in electric vehicles (EVs) and wind turbines (Pr2O3 (praseodymium oxide), Nd203 (neodymium oxide), Tb2O3 (terbium oxide) and Dy2O3 (dysprosium oxide)).

Five drill holes were completed at Hecla-Kilmer in November, 2022, for 1,437 m.

The first drill hole completed in the fall program was an extension of hole 13, completed in June from 330 m to 504 m. Salient features include:

• Mineralization starts at the bedrock surface, below an overburden of glacial till;
• Mineralization is continuous in nature, from bedrock surface to the end of the hole at 504 m;
• The REE mineralization remains open to depth, and is as strong as any REE interval higher in the 461 m intersection -- there are no systematic changes down hole in geology, density of carbonatite dikes and veins, or intensity of potassic alteration;
• There are 49 one-metre samples with greater than 2 per cent TREO, and they span the entire 504 m hole;
• The proportion of the high-value PMREO does not vary from the range of 17 per cent to 22 per cent of TREO;
• Gold mineralization at the bottom of the hole correlates with a corresponding increase in REE mineralization and is part of the same polymetallic fluid system.

Drill core photographs

A series of four drill core photographs of the high-grade TREO mineralization from bedrock surface to 504 m depth in hole HK22-013 are available on the company's website. They provide examples of the carbonatite dikes and vein breccia mineralization, and associated high-temperature potassic alteration overprint present throughout the entire 461-metre intersection. Grades are provided in each figure caption.

Significance

Scale. The potential of the polymetallic REE-Nb mineralization with gold at Hecla-Kilmer is leveraged by scale -- the sheer lateral breadth of the hydrothermal breccia system and high-temperature potassic alteration, and the 500-metre-plus vertical extent of REE mineralization intersected to date:

• There are now intersections with more than 1 per cent TREO, including 19 per cent to 22 per cent PMREO, in 11 of the first 17 holes;
• There is continuous mineralization from bedrock surface to 504 m depth, and it remains open;
• There is high-grade mineralization in at least three separate areas, which span 2.5 km of the complex.

PMREO content. The consistent 17 per cent to 22 per cent proportion of TREO mineralization contributed by the PMREOs in the 461-metre intersection in hole 13, particularly praseodymium, neodymium and terbium, are comparable with, or exceed the proportion of, existing global best-of-breed REE mines at Bayan Obo in China (the largest deposit) and at Mountain Pass in California (the highest grade deposit). For additional comparison, published resources for most Canadian REE deposits in carbonatite generally contain between 12 per cent and 15 per cent PMREO, which is roughly 40 per cent lower than the proportion at Hecla-Kilmer.

PMREO are essential in the manufacturing of motors for electric vehicles and wind energy turbines, critical components in the emerging green economy. The high price of the four PMREOs (neodymium, praseodymium, dysprosium and terbium) in world markets reflects the constraints on demand because of the current global monopoly controlled by China. As such, the consistently elevated levels of these high-value PMREO elements within all of the mineralized drill intersections at Hecla-Kilmer highlight the niche and value potential of the Hecla-Kilmer discovery in the context of known North American deposits, and demand for new production going forward in response to the green economy.

Gold. Visible gold grains were first discovered at Hecla-Kilmer in the remnant fines of historic drill core rubble found in an abandoned field camp. VR confirmed gold in the system in the second drill hole of the project in 2020, with 15 parts per billion to 184 ppb gold reported over several 10 m to 40 m intervals in drill hole HK20-002, occurring in strongly altered porphyry dikes. The occurrence of 1.1 g/t gold over two m at the bottom of hole 13, in association with intense REE mineralization at 2.84 per cent TREO, simply expands the potential of the broad, polymetallic hydrothermal vein and breccia system at Hecla-Kilmer.

Next steps planned for the Hecla-Kilmer project in 2023

This REE critical metal discovery at H-K has progressed continuously since mineralization was first intersected at surface in hole 4 during the first reconnaissance program in October, 2020. Since then, VR has expanded geochemical techniques to include analysis by lithium-borate fusion to optimize detection of all REEs, and utilized QEMSCAN thin-section analysis to characterize REE mineralogy. Going forward:

1. VR has commenced a study of drill core samples from holes 13 and 15 using scanning electron microprobe (SEM) to determine exactly which minerals host the high-value magnet rare earth elements. Results are anticipated this quarter, and work will be continuing through 2023;
2. VR has initiated the scoping for concentration, metallurgy and mineral extraction studies using a bulk sample obtained from core from a dedicated drill hole with a representative, broad intersection of REE mineralization, starting at surface. This work is planned for the first half of 2023, utilizing the world-class REE expertise at SGS Lakefield Laboratories in Ontario.

Follow-up drilling is planned for the spring of 2023. It will focus on supporting the aforementioned advanced-stage studies, and completing additional drill holes to evaluate the extent of mineralization discovered in the central core and south rim of the complex.

The path forward for this emerging discovery is strengthened by its location, just 23 km to the west of the provincial hydroelectric dam at Otter Rapids, with supporting and active Ontario Northern railroad and Highway 634 infrastructure.

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 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 (inductively coupled plasma mass spectrometry) 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 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, vice-president of exploration, and a non-independent qualified person oversees all aspects of the company's mineral exploration projects. The content of this news release has been reviewed on behalf of the company by the chief executive officer, Dr. Michael Gunning, PGeo, a non-independent qualified person.

About the Hecla-Kilmer property

The Hecla-Kilmer complex is located 23 km 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 H-K property is large. It consists of 224 mineral claims in one contiguous block approximately six km by seven km 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 (MNDM). 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 and Taykwa Tagamou first nations.

About VR Resources Ltd.

VR Resources is an established junior exploration company focused on greenfield opportunities in critical metals, copper and gold. VR is the continuance of four years of active exploration in Nevada by a Vancouver-based private company. The foundation of VR is the diverse experience and proven record of its Board in early-stage exploration, discovery, and mergers and acquisitions. The company is well financed for its exploration strategies and corporate obligations, and focuses on underexplored, large-footprint mineral systems in the Western United States and Canada. VR owns its properties outright and evaluates new opportunities on an continuing basis, whether by staking or acquisition.

We seek Safe Harbor.