Arcwest Exploration Inc. Provides Exploration Update on its Eagle and Sparrowhawk Porphyry Projects, Central B.C. and Stakes Newly Discovered Porphyry Copper Prospect

Vancouver, British Columbia--(Newsfile Corp. - August 23, 2019) - ArcWest Exploration Inc. (TSXV: AWX) ("ArcWest") is pleased to announce results of reconnaissance geological mapping and rock geochemical surveys on its Eagle and Sparrowhawk porphyry copper-gold (Cu-Au) projects, central British Columbia, as well as the acquisition of a newly discovered porphyry Cu prospect on northern Vancouver Island east of its Teeta Creek Cu-Au Project. Rock geochemical samples were select grabs from outcrops across the property. Highlights include:

• High grade Cu-Au lenses typical of alkalic porphyry systems were sampled over a mineralized strike length of 2.7 kilometers at the Eagle Project, including multiple grab samples over 1% Cu and 1 g/t Au.

• Two important Cu mineralized trends (DCA and Sparrowhawk) were delineated at the recently acquired Sparrowhawk Project in the Babine Porphyry Belt, indicating significant potential for buried porphyry systems in downdropped fault blocks on the west side of the property.

• ArcWest has acquired by staking a newly discovered porphyry Cu prospect on northern Vancouver Island east of its Teeta Creek Cu-Au Project near Port Alice.

Note that grab samples are selective by nature and may not be representative of actual grades or styles of mineralization across the property.

Eagle Cu-Au Project

The 2530 Hectare Eagle project is located in the prolific Quesnel Trough Cu-Au belt 55 kilometers west of Centerra Gold's Mount Milligan Au-Cu mine and 46 kilometers southeast of Serengeti Resources' Kwanika Cu-Au deposit, currently undergoing pre-feasibility work. Historical work at Eagle by Noranda and others outlined a 3 km long trend of copper mineralization near the southern margin of the Hogem batholith. Reconnaissance mapping and rock sampling completed in 2019 by Arcwest focused on delineating higher grade lenses over 2.7 km of the mineralized trend. Noteworthy results include:

Mineralization in the Vector and Nighthawk zones is typical of silica undersaturated alkalic porphyry systems. Samples include magnetite-quartz-chalcopyrite veins and semi-massive sulfide pods associated with chlorite, epidote, actinolite and K-feldspar alteration. Veins and sulfide pods trend parallel to the overall northwest strike of the zone as well as north-south and east-west. Samples from the Mid zone consist of disseminated chalcopyrite and pyrite associated with hematite, quartz and carbonate veins hosted in fine grained monzonite.

The Vector zone has been traced for 200 meters and is covered by overburden to the northwest and southeast. Historical drilling tested the zone to a depth of less than 50 meters. Two drill holes intersected the mineralized zone and included 17.9 m of 0.82% Cu, 0.47 g/t Au and 4.1 g/t Ag in EA-91-12 (18.5-36.4 m). Historical soil sampling by Noranda delineated strongly anomalous copper in soils with multiple samples over 1000 parts per million (ppm) to a high of 3600 ppm up to 400 meters north of the outcropping zone. The Mid zone is near the center of a strong 1.5 by 0.4 km magnetic high and soil anomaly which has been tested by a single drill hole (EA-71-05).

The Nighthawk zone appears to consist of multiple lenses, one of which has been intersected at shallow depths in four drill holes (EA-71-01 and -02 and EA-91-06 and -07). Best intercepts include 0.87% Cu, 0.32 g/t Au and 3.85 g/t Ag over 27.3 meters in EA-91-06 (5.1-32.4 m). High grade mineralization sampled by ArcWest in 2019 (Samples 849805 and 849905) may be part of a separate lens which has not been tested by drilling and is open in all directions. Noranda drill holes EA-91-09 and EA-91-10 intercepted broad intervals of strong magnetite flooding with K-feldspar and biotite which indicate the Nighthawk zone is set within an area of intense potassic alteration. AWX samples 849805 and 849906 are located approximately 300 - 450 meters away from any of the Noranda drill holes.

Sparrowhawk Cu-Au Project

ArcWest's recently acquired 9913 hectare Sparrowhawk Cu-Au Project (see news release April 1, 2019) is located in the Babine Porphyry Copper District of north-central B.C., adjacent to Glencore Canada's past producing Bell and Granisle mines. Reconnaissance mapping and sampling by ArcWest in 2019 focused on defining two mineralized trends: the DCA and Sparrowhawk prospects. Both are located east of the regionally important Newman and Morrison faults. Highlight sample include:

The Sparrowhawk mineralized zone comprises silicified magmatic-hydrothermal breccias with quartz-magnetite-chalcopyrite-chlorite matrix cut by quartz-calcite-chalcopyrite-pyrite-magnetite-hematite veinlets. Silicified intrusive rocks with quartz-hematite-pyrite-chalcopyrite stringers are also present (S850058).

The DCA zone is a broad, diffuse zone of mineralized volcanic outcrops and intrusive float that extends over a 1 km strike length marginal to a 200 meter wide zone of fine grained diorite cut by intense quartz-magnetite stockworks (locally comprising over 50% of the rock). Both zones are open in all directions.

Important porphyry Cu-Au deposits in the Babine belt (e.g. Bell, Granisle and Morrison deposits) are preserved in downdropped fault blocks west of the regionally significant Morrison and Newman faults. Widespread mineralization east of these faults in the DCA and Sparrowhawk zones can be traced westward toward these regional structures, indicating strong potential for buried porphyry systems in the downdropped fault blocks on the west side of the faults. A similar relationship is observed between the Morrison porphyry deposit and the nearby Hearne Hill Breccia.

The west side of the Sparrowhawk property is almost entirely covered by glacial till, however local outcrops of Babine porphyry and zones of strongly silica-clay-pyrite altered lithologies with associated quartz stockwork have been documented by previous workers. Regional (Quest West) and property-scale airborne surveys have delineated multiple untested EM (electromagnetic) anomalies in this north-northwest trending extension of the Bell-Granisle corridor

New Vancouver Island Cu-Au Project

Recent exploration by AWX within a recently identified Miocene porphyry copper-gold belt on northern Vancouver Island has resulted in the discovery of a significant new porphyry copper occurrence. The recently staked NVI property covers an undated, multiphase, porphyritic intrusive complex of predominantly dioritic composition which cross cuts Middle to Upper Triassic mafic volcanic rocks of the Karmutsen Formation. The discovery showing comprises roadside exposures of fine grained, sugary textured diorite porphyry which contain early, anastamosing magnetite-chalcopyrite veins cross cut by wavy, quartz-magnetite-chalcopyrite+/-bornite veins. Disseminated magnetite-chalcopyrite is present within the matrix, largely as a replacement of mafic phenocrysts. Miarolitic cavities locally comprise up to 20% of the rock, and in places, contain the same hydrothermal mineral assemblage as the stockwork veins, including quartz, magnetite, chalcopyrite and trace bornite. Copper bearing stockwork has been mapped and sampled over a 115 meter distance before outcrop disappears under cover. The zone reappears in roadbed subcrop approximately 200 meters to the north, where additional mineralized phases are readily apparent, including strongly quartz-sericite-pyrite altered feldspar-biotite porphyry with relict potassic alteration in the form of chalcopyrite after mafic phenocrysts. Kirwin (2006) and others suggest that the presence of strongly copper mineralized miarolitic cavities is significant in porphyry copper exploration. They indicate that metals including copper have been retained and deposited in the nearby cupola or near-cupola environment. Further mapping and geochemical sampling to evaluate the prospectivity of the NVI property for hosting significant porphyry copper-gold mineralization is planned for the coming months. Assay results for grab samples collected during the previous program are pending.

Methods

Rock samples are of a reconnaissance nature, including chip, grab and select samples and may not be representative of a larger volume of rock. The samples were analyzed by ALS Geochemistry of North Vancouver, British Columbia. They were prepared for analysis according to ALS method Prep-31A: each sample was crushed to 70% passing -2mm and a 250g split was pulverized to better than 85% passing 75 micron mesh. Gold was tested by fire assay with ICP-AES finish on a 30g nominal sample (method Au-ICP21). An additional 35 elements were tested by ICP-AES using aqua regia digestion (method ME-ICP41). Quality assurance and control (QAQC) is maintained at the lab through rigorous use of internal standards, blanks and duplicates.

References

Kirwin, D.J. (2006). Unidirectional Solidification Textures, Miarolitic Cavities and Orbicles: Field Evidence for the Magmatic To Hydrothermal Transition in Intrusion-Related Mineral Deposits. Southeast Europe Geoscience Foundation Conference, October 2006.

Qualified Person

ArcWest's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Jeff Kyba, PGeo, VP Exploration, who serves as a Qualified Person under the definition of National Instrument 43-101.

For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695.

This news release contains statements about ArcWest's expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although ArcWest believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and ArcWest undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

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