ExGen Resources Provides Update on Phase 1 Infill Drilling at Empire Mine Project

VANCOUVER, British Columbia, Aug. 03, 2017 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX-V:EXG) (OTC:BXXRF) (“ExGen”) is pleased to provide an update in respect of Phoenix Global Mining Ltd.’s (“Phoenix”) exploration and development activities at the Empire Mine project in Idaho, USA. ExGen understands that Phoenix has completed 19 of a planned 28 drill holes which are intended to fill-in gaps in the existing drill-hole block which in turn is intended to be used as the foundation for a potential NI43-101 resource calculation and a potential pre-feasibility study, which ExGen understand is currently a goal of the exploration and development activities being conducted by Phoenix.

EMPIRE UPDATE - HIGHLIGHTS

• 19 drill holes completed as part of the 28-hole (2,200 metre) “infill” drilling program at the AP Pit
• Phoenix reports drill assays from the first five holes; reported total-copper, gold and silver values and intervals are similar or better than values/intervals from adjacent holes.
• Metallurgical studies and exploration and development activities are being conducted toward the potential development of a preliminary feasibility study ("PFS").
• Initial steps taken to appoint the mining contractor potentially to re-open the 300, 700 and 1100 Level portals and refurbish and ventilate the old workings to allow sampling, mapping and drilling to assess the underground sulphide mineralization potential.

Further to press releases dated July 21, 2015, November 14, 2016 and July 6, 2017, ExGen, Phoenix, a private British Virgin Islands based mining company focused on base metals development, and Konnex Resources, Inc. (“Konnex”), which holds the leases to ExGen’s Empire Mine Project (“Empire Mine Project”), have entered into an Option Agreement, as amended, on ExGen’s Empire Mine Project, pursuant to which Phoenix acquired 80% of the common shares of Konnex (the “Option”) and the remaining 20% are continued to be held by ExGen. As part of the consideration under the Option, ExGen was granted a 2.5% NSR royalty and issued 11,300,000 common shares of Phoenix, which represents just under 5% of the currently outstanding shares of Phoenix after the Phoenix IPO. For further information on the Option, including the circumstances pursuant to which the Konnex common shares would be transferred back to ExGen, please see the November 14, 2016 news release.

Phase 1: Anderson Pit Drilling

The current 28-hole surface drill program is focussed on identifying further oxide mineralization within the Anderson Pit area. A total of 21 holes are reverse circulation type (RC). The remainder are core holes. Of the latter, four holes (PQ-size) will be used for the purposes of new metallurgical studies to build on the historic knowledge from prior studies.

As of July 26, 2017, Phoenix reports that 14 of 21 RC holes had been completed to a total of 1,156 metres, and 5 of the 7 core holes have been completed for a total of 434 metres. Three of these are PQ metallurgical holes.

Phoenix has reported drill assays from the first five holes. It has reported that total-copper, gold and silver values and intervals are well within the range of values/intervals from adjacent historical holes.

To date, samples from the first twelve drill holes have been shipped to the ALS Global’s laboratory in Nevada, USA for assaying. The following summarises the status as of 26 July 2017:

Significant assay results from the first five drill holes are summarised as follows:

Drill holes KX17-1 and KX17-5 contained 15.2 metres averaging 9.6g/t Ag, and 4.6 metres averaging 0.17% Total Cu, respectively. ExGen understands that the above intercepts are not considered to be true widths. Copper, zinc and silver were determined by the ICP method after four-acid digestion, whereas gold was determined by a 30gm fire assay followed by atomic absorption. The QP for this news release notes that Phoenix inserted industry standards, blanks and duplicates into their sample stream, as standard QA/QC protocol.

Phase 2: Sulphide Exploration

In addition to their in-fill drilling program, Phoenix reports that it has completed the MSHA (Mines Safety & Health Administration) surface and underground training plans as required for safety compliance in preparation for the planned reopening of the underground workings as part of the deep sulphide evaluation program. Phoenix plans to reopen the 300, 700 and 1100 portals to allow access for mapping, sampling and drilling of the sulphide mineralization which underlies the near-surface oxide mineralization.

Mr. Jason Riley, CEO of ExGen commented: “ExGen is pleased to see the rapid progress that Phoenix is making with the Phase 1 in-fill drilling program. The results to date were well within expectations for the Anderson Pit and provide additional data points towards building a block model for a possible NI43-101 compliant resource later this year. We look forward to the next group of assays to be released soon along with updates on the potential of reopening the portals at the 300, 700, and 1100 levels.”

The reader is referred to ExGen’s November 14, 2016, January 30, 2017, and July 6, 2017 news releases for additional technical information on the Empire Mine Project.

Phil van Angeren, P. Geo., a Qualified Person as defined by National Instrument 43-101, and less than 1% shareholder of Phoenix Global Mining, has reviewed and verified the technical mining information provided in this release.

About ExGen Resources Inc.

ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.