TORONTO, ONTARIO--(Marketwired - July 12, 2016) - Probe Metals Inc. (TSX VENTURE:PRB)
("Probe" or the "Company") is pleased to announce that it has entered into an
arm's length agreement with Vaaldiam Mining Inc ("Vaaldiam"), wholly owned subsidiary of Orion Resources
Partners LP, to buy back a 20% net proceeds of production royalty (the "Royalty") covering certain mineral
claims at the Company's Val d'Or East Project. The Royalty also covers the current mineral resources contained within the
project's boundaries. Under the terms of the agreement, Probe will issue 500,000 common shares in consideration for the
Royalty.
Pursuant to an agreement dated August 17, 1992 (the "Royalty Agreement") between New Pascalis Mines Limited
(now known as Vaaldiam) and Cambior Inc., Vaaldiam was entitled to a 20% net proceeds of production royalty in the mineral
properties subject to the Royalty Agreement. Pursuant to an agreement dated March 17, 2008, between IAMGOLD-Quebec Management
Inc. (formerly Cambior Inc.) ("IAMGOLD") and Adventure Gold Inc. ("Adventure Gold"), a wholly
owned subsidiary of Probe, Adventure Gold acquired the Properties and assumed all of the obligations of IAMGOLD under the Royalty
Agreement.
The transaction is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
About the Val d'Or East Project
The Company owns a 100% interest in its Val-d'Or East Project containing the past-producing L.C. Beliveau Mine. The
project encompasses more than 90 square kilometres of highly prospective ground and is located less than 25 kilometres along main
roads from the city of Val-d'Or. The property currently hosts a NI 43-101 inferred resources of 770,000 ounces at 2.6
g/t gold calculated at a 1.0 g/t cut-off above 350 metres depth and 1.5 g/t cut-off below 350 metres depth. Drilling results
to-date have demonstrated significant widths of gold (Au) mineralization ranging from 60 metres to 300 metres and typically
averaging between 1.0 g/t Au and 3.0 g/t Au. Mineralized intervals also contain thick sections of high-grade gold, including
impressive intercepts of 10.4 g/t Au over 10 metres, 4.8 g/t Au over 33.1 metres and 5.4 g/t Au over 20 metres.
In 2015, channel sampling to the west of the past-producing L.C. Beliveau Mine confirmed the extension of gold mineralized
system at surface, returning impressive sections of high-grade gold, including:
- 19.7 m of 6.4 g/t Au
- 25.7 m of 4.6 g/t Au
- 13.9 m of 7.6 g/t Au
- 18.5 m of 3.2 g/t Au
Exploration permitting is in progress at the Val-d'Or East Project and the 2016 summer and fall program will include drilling,
ground and airborne geophysical surveys and mechanical stripping in order to confirm and expand the current mineral resource and
also test for new gold-mineralized structures.
The Val-d'Or East Project hosts the past-producing L.C. Beliveau Mine, which was operated by Cambior from 1989-1993. A total
of 1.8 million tonnes of ore at a grade of 3.2 g/t Au were mined and milled, producing 171,725 ounces with overall metallurgical
recoveries of 93%.
Jules Riopel, P.Geo., is the qualified person for all technical information in this release. To find out more about Probe
Metals Inc., visit our website at www.probemetals.com.
About Probe Metals:
Probe Metals Inc. is a leading Canadian gold exploration company focused on the acquisition, exploration and development of
highly prospective gold properties. The Company is well-funded and controls a strategic land package of over
1,000-square-kilometres of exploration ground within some of the most prolific gold belts in Ontario and Quebec: Val d'Or, West
Timmins, Casa-Berardi and Detour Quebec. The Company is committed to discovering and developing high-quality gold projects,
including its key asset the Val-d'Or East Gold Project. The Company was formed as a result of the sale of Probe Mines Limited to
Goldcorp on March 13, 2015. Goldcorp currently owns a 15% stake in the Company.
On behalf of Probe Metals Inc.,
Dr. David Palmer, President & Chief Executive Officer
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain
"forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and
statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as
"believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements
are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and
uncertainties. Although these statements are based on information currently available to the Company, the Company provides no
assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially
from those expressed or implied by such forward-looking information.
Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future
plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine
development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual
results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral
resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain
required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate
First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the
future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the
mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although
the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and
no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention
or obligation to update or revise any forward-looking information, whether as a result of new information, future events or
otherwise, other than as required by law.
Shares Issued: 71,341,800