AAN.V · 2017-01-24 12:00:00

Aton Announces Maiden Resource Estimate FOR Hamama WEST; Provides a Blueprint FOR Continued Resource Growth at Hamama

Resource Estimates

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

FOR IMMEDIATE RELEASE:

ATON ANNOUNCES MAIDEN RESOURCE ESTIMATE FOR HAMAMA WEST;

PROVIDES A BLUEPRINT FOR CONTINUED RESOURCE GROWTH AT HAMAMA

Vancouver, January 24, 2017: Aton Resources Inc. (AAN: TSX-V) (“Aton” or the “Company") is pleased to

announce a resource estimate for Hamama West, one of three contiguous zones that comprise the

Hamama Project (“Hamama” or the “Project”), located within the Company’s 100% owned Abu Marawat

Concession (“Abu Marawat”) in Egypt. Hamama West hosts an Inferred Mineral Resource of 341,000

ounces gold equivalent (“AuEq”) (see Table 1) and an Indicated Mineral Resource of 137,000 ounces AuEq

(see Table 2).

Highlights:

• Excellent potential to grow resource s along strike and at depth: Hamama West resource represents

only 750 metres of the 3,000-metre-long mineralized horizon at Hamama and the entire area remains

open at depth (see Figure 1).

• Attractive open pit characteristics: Broad zones of gold mineralization starting at surface with oxide

and transitional Inferred resources grading 1.28 g/t AuEq (see Table 1). In addition, Hamama is close

to major infrastructure and is located in a low-cost operating environment.

• Opportunity to improve grade , increase resources and upgrade the resource category in the oxide

cap: Aton believes that it will be able to increase the grade and the resources in the oxide cap with a

short reverse circulation (“RC”) drill program. Further, the Company believes that it will be able to

upgrade the oxide and transitional resource from the Inferred to Indicated category.

• Continued resource growth at Abu Marawat: F ocus of the Company’s exploration progra m in 2017

will be expanding resources at both Hamama and the Abu Marawat gold deposit.

“I’m very pleased with the maiden resource estimate for Hamama West,” said Mark Campbell, President

and CEO of Aton. “We set out to demonstrate Hamama’s overall potential with this resource estimate and

I b elieve that we have done that. I n addition to provid ing us with a blueprint for c ontinued resource

growth at Hamama, the resource estimate materially expands upon our existing resource base. As a

Company, we are fortunate to have two gold deposits, Hamama and the Abu Marawat gold deposit, that

have such great potential for resource growth along strike and at depth. Furthermore, we have more than

a dozen explora tion targets along the 40-km-long gold trend between the Hamama and Abu Marawat

gold deposits.”

Rick Cavaney, Vice President of Exploration of Aton, noted that “In the near term, Aton will commence a

multi-pronged exploration program that will look to accomplish several goals. We will look to increase the

grade and resources from Hamama West’s oxide cap with a short reverse circulation program and will to

seek to identify potential massive sulphide targets at Hamama with a geophysics program , which will

include ground magnetics and ground and downhole electromagnetics. The Company will then focus on

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

expanding resources at both Hamama and the Abu Marawat gold deposit. 2 017 marks an exciting new

phase for the Company, one of resource growth with an eye towards a Preliminary Economic Assessment

and converting our exploration permit to an exploitation permit in 2018.”

Table 1: Inferred Mineral Resources at Hamama West

Weathering

type Tonnes Au (g/t) Ag (g/t) AuEq (g/t) Au (koz) Ag (koz) AuEq (koz)

Oxide &

Transitional 2,580,000 0.87 28.1 1.28 72 2,334 106

Sulphide 5,630,000 0.87 30.4 1.30 157 5,503 235

Total 8,210,000 0.87 29.7 1.29 230 7,836 341

Table 2: Indicated Mineral Resources at Hamama West

Weathering

type Tonnes Au (g/t) Ag (g/t) AuEq (g/t) Au (koz) Ag (koz) AuEq (koz)

Sulphide 3,805,000 0.72 27.6 1.12 88 3,376 137

1. Mineral resources are not mineral reserves and do not demonstrate economic viability.

2. All tonnage, grade and ounces have been rounded and minor discrepancies in additive totals may occur.

3. Weathering classification is based on visual assessment of drill core by geologists and does not represent a definitive geo -metallurgical

classification.

4. The mineral resource are quoted at a minimum cut -off grade of 0.5 g/t Au equivalent, where the silver contribution has been based on a

silver:gold ratio of 70:1.

5. Reasonable prospects of eventual economic extraction have been determined using assumptions based upon some African open pit projects

of similar scale, and have included a gold price of US $1250/oz, generic open pit mining and processing costs and generic metallurgical

recoveries for gold and silver. At this stage of the property's development, no detailed economic, mining or metallurgical studies have been

completed. The classification does not infer that mineral resources demonstrate economic viability.

Figure 1: Hamama West Resource Boundary

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

The independent mineral resource estimate for Hamama West was completed in accordance with

National Instrument (“NI”) 43 -101 and was undertaken by Cube Consulting Pty Ltd (Perth). Notes

regarding the interpretation and estimation methodology can be found in the Appendix at the end of the

news release. The Company will prepare and file a Technical Report under NI 43-101 within 45 days of the

date of this news release.

Upcoming milestones:

• 240km2 WorldView-3 multispectral survey over the Hamama and Abu Marawat gold deposit areas;

• Ground magnetic, ground EM and downhole EM geophysical surveys at Hamama, with the primary

goal of identifying potential massive sulphide targets;

• RC drilling with the aim of increasing the grade and resources from Hamama West’s oxide cap, and

upgrading the oxide and transitional resource from the Inferred to Indicated category;

• Geophysical survey over an 8-km long hydrothermally altered and mineralized zone between the Abu

Marawat gold deposit and Miranda;

• Drill testing potential targets generated by the geophysical survey at Hamama, the Abu Marawat gold

deposit and Miranda (see Figure 2 for Abu Marawat Concession map);

• Metallurgical test work;

• Resource expansion at both Hamama and the Abu Marawat gold deposit.

Figure 2: Abu Marawat Concession map

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

Table 3: Mineral Resources at Abu Marawat

INFERRED MINERAL RESOURCES

Deposit Class Tonnes

Grade Contained Metal

(g/t)

(%)

(koz)

AuEq

(koz)

(m lbs)

Abu

Marawat

Inferred

(open pit & u/g) 2,879,000 1.75 29.3 0.77 1.15 162 2,713 - 49 73

Hamama

West

Inferred

(oxide & transitional) 2,580,000 0.87 28.1 - - 72 2,334 106 - -

Inferred

(sulphide) 5,630,000 0.87 30.4 - - 157 5,503 235 - -

TOTAL Inferred 11,089,000 1.10 29.6 - - 391 10,550 341 49 73

INDICATED MINERAL RESOURCES

Deposit Class Tonnes

Grade Contained Metal

(g/t)

(g/t) Zn

(%)

(koz)

AuEq

(koz)

(m lbs)

Hamama

West

Indicated

(sulphide) 3,805,000 0.72 27.6 - - 88 3,376 137 - -

TOTAL Indicated 3,805,000 0.72 27.6 - - 88 3,376 137 - -

1) Hamama West mineral resource estimate is estimated using a 0.5 g/t AuEq cut-off grade

2) Hamama AuEq is based on an Au price of US$1250/oz (average Au price since May 2013), and a Au/Ag price ratio of 70:1 (indicating an Ag

price of US$17.86/oz)

3) Abu Marawat mineral resource estimate is based upon NSR cut-offs of US$20 per tonne and US$50 per tonne for open-pit and

underground, respectively.

4) No AuEq value is presented for Abu Marawat as it was not included in the Abu Marawat NI 43-101 technical report. See the independent

technical report titled “Technical Report on the Abu Marawat Concession, Egypt” dated April, 2012 by Wayne W. Valliant, P.Geo., and

Bernard Salmon, ing. of Roscoe Postle Associates Inc., available under the Company’s profile on SEDAR at www.sedar.com

About the Hamama project

The Hamama project (“Hamama”) is located at the western end of the 40-km long gold trend at the Abu

Marawat concession and is comprised of three zones, Hamama West, Hamama Central and Hamama East.

The mineralized horizon at Hamama has a strike length of ap proximately 3-km and remains open to the

west and the east. Mapping indicates that the horizon may extend another 1.8-kms to the east. Further

exploration work will be conducted to confirm this. Other potentially mineralized horizons, separate from

the main mineralized horizon, have also been mapped in the general Hamama area.

About Aton Resources Inc.

Aton Resources Inc. (AAN: TSX -V) is focused on its 100% owned Abu Marawat concession, located in

Egypt’s Arabian-Nubian Shield, approximately 200-km north of Centamin’s Sukari gold mine. Aton has

identified a 40-km long gold trend at Abu Marawat, anchored by the Hamama project in the west and the

Abu Marawat gold deposit in the east. In addition to the Hamama project and the Abu Marawat gold

deposit, the trend contains numerous gold exploration targets, including two historic gold mines. Abu

Marawat is over 738km2 in size and is located in an area of excellent infrastructure, a four-lane highway,

a 220kV power line and a water pipeline are in close proximity.

Qualified Persons’ statement

Scientific or technical information in this news release that relates to the preparation of the Company’s

mineral resource estimate is based on information compiled or approved by Matt Bampton, BSc (Hons.

Geology), MSc (Env. Science), who is an employee of Cube Consulting Pty Ltd . and is considered to be

independent of Aton Resources Inc. Mr. Bampton is a Member in good standing of the Australian Institute

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

of Geosciences and has sufficient experience which is relevant to the c ommodity, style of mineralization

under consideration and activity which he is undertaking to qualify as a Qualified Person under National

Instrument 43-101. Mr. Bampton consents to the inclusion in this news release of the information, in the

form and context in which it appears.

Qualified Person

The technical information contained in this News Release was prepared by Roderick Cavaney BSc, MSc

(hons), MSc (Mining & Exploration Geology), FAusIMM, SEG, GSA, SME, Vice President, Exploration, of

Aton Resources Inc. Mr. Cavaney is a qualified person (QP) under National Instrument 43-101 Standards

of Disclosure for Mineral Projects.

For further information regarding Aton Resources Inc., please visit us at www.atonresources.com or

contact:

Mark Campbell

President and Chief Executive Officer

Tel: +1-936-689-2589

Email: [email protected]

Blaine Monaghan

Vice President, Investor Relations

Tel: +1 (604) 331-5092

Email: [email protected]

Note Regarding Forward-Looking Statements

Some of the statements contained in this release are forward-looking statements. Since forward- looking

statements address future events and condition s; by their very nature they involve inherent risks and

uncertainties. Actual results in each case could differ materially from those currently anticipated in such

statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that ter m is defined in policies of

the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Appendix

The following notes outline the interpretation and estimation methodology for the Hamama West Mineral

Resource estimate:

1. The mineral resource estimate was undertaken by Cube Consulting Pty Ltd ., a minerals industry

consultancy based in Perth, Western Australia, which is independent of Aton Resources.

2. The validated mineral resource drilling database contained the following drill hole data that was used

directly in the mineral resource estimate: 74 mostly HQ-gauge diamond drill holes (6,597m).

3. The mineral resource estimate used only diamond drilling data, but interpretation of geological

boundaries with respect to surface outc rops were also informed by information from a number of

trenches throughout the deposit.

4. The drilling was completed in several phases by Aton Resources between December 2011 and August

2016.

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

5. Drilling was generally oriented on north -south lines, with a rang e of drill-line spacings varying from

approximately 30m to 50m depending on surface access and the intent of the drill programs.

6. Collars for drill holes used in the mineral resource estimate have been surveyed by local survey

contractors, Arab Nubia Group, using a Leica Viva GS10 DGPS unit.

7. Downhole surveys have been conducted on the large majority of all diamond holes using a Reflex EZ-

Trac multifunctional magnetic downhole survey tool. Surveying was undertaken by the drilling

contractors.

8. Geological logg ing of drill holes includes state of weathering, lithology, alteration, mineralogy,

structural defects and geotechnical parameters. All drill hole logging data was compiled into a master

drilling database.

9. Diamond holes were logged and sampled over varying intervals according to geological observations,

but generally were 1m length away from geological contacts. Samples submitted for assay were half-

core.

10. Diamond drilling from the older drilling campaigns had variable and often poor core recoveries near

surface within the oxide mineralization domain. Approximately 20% of mineralized samples had core

recoveries of less than 60%. These holes and these intervals were assessed collectively to determine

the suitability for inclusion in the mineral resource estimation, and the confidence associated with

this is reflected in the resource classification.

11. Diamond core sawing and sample crushing (to nominally <4mm) was undertaken at Hamama’s on -

site sample preparation facility. Samples were securely transported to Cairo, inspected at the

Egyptian Geological Museum, and transport by commercial courier to an ALS Laboratory in Romania.

12. Sampling and sample submission was conducted in accordance with a quality assurance/quality

control program which includes the use of certified reference materials for diamond drill holes.

13. At the ALS Laboratory, 500g sub-samples are pulverized to a standard of +85% passing 75µm. Gold

content is determined by fire assay methods using a 30g charge, lead collection and an atomic

absorption spectroscopy finish, with a lower detection limit of 0.01 ppm Au. Silver content is

determined after an Aqua Regia digest, an atomic absorption spectroscopy finish, and with a lower

detection limit of 0.2 ppm Ag.

14. Structure, lithology, mineralization, weathering and surface topography surfaces were interpreted in

3D using GEOVIA SurpacTM software.

15. Lithological, structural and alteration information from drill hole logging was primarily used to

develop interpretations of the mineralized domains and gold assays were used as a secondary

determinant.

16. Mineralized interpretations were not done at a specific lower grade cut-off, and the grade estimation

method (ordinary kriging, followed by localized uniform conditioning) was considered acceptable to

estimate the grade distribution and reflect its variability.

17. No additional dilution beyond the major geological domain boundaries was included in the

estimation.

18. The mineralization interpretation consists of 8 individual domains, defined by lithological, weathering

and spatial characteristics. All the material that was considered for classification as a resource was

from 2 domains, being the fresh component and the combined oxide and transitional component, of

the main interpreted mineralized horizon.

19. For the purposes of density measurement, a total of 1,612 samples were collected from drill holes

within the deposit, covering all weathering types and representative lithologies. A density value was

then assigned for each of the weathering types and representative lithologies in the mineral resource

estimate.

20. Two metre downhole composites were extracted from the assay database based on the mineralized

wireframes and form the basis for statistical analysis, variography and grade interpolation.

Address: 1020-800 West Pender Street, Vancouver, BC, Canada V6C 2V6 Tel: 604-331-5092 Web: www.atonresources.com

21. Gold and silver assays were reviewed on an individual domain basis to determine appropriate top -

cuts for each domain to reduce the influence of grade outliers. A top -cut of 150g/t was applied for

silver in the main mineralized domains, with the exception of a poorly-defined high grade zone in the

central part of the deposit, where a top-cut of 400g/t was applied for silver in two drill holes. No top-

cuts for gold were considered to be warranted. In general, the grade domains represent distinct

geological and statistical populations and provide a robust basis for mineral resource estimation.

22. Variography was completed to analyze the spatial continuity of the grade within the major

mineralized domains using ISATIS ® software. The two main domains were selected for analysis t o

characterize the grade continuity for grade interpolation. Resultant variogram models were used to

determine the appropriate estimation parameters for grade interpolation into the block model.

23. A Quantitative Kriging Neighbourhood Analysis (QKNA) was perf ormed on both the fresh and oxide

material to help inform decisions on the minimum and maximum number of composites used to

estimate a block.

24. For the main domains, Ordinary Kriging using ISATIS ® software was used to undertake the grade

estimation, with block estimates based on grade interpolation into parent cells with dimensions of

20m x 20m x 10m (XYZ). This was followed by localized uniform conditioning to provide a better

estimate for what was considered to be a reasonably diffuse grade distribution within the mineralized

domain, and where with the current drill density ordinary kriging may result in an over- smoothed

estimate.

25. For some minor mineralized domains (none of which has been classified as a resource), Ordinary

Kriging using GEOVIA SurpacTM software was used for the grade estimation. All block estimates were

based on grade interpolation into parent cells with dimensions of 20m x 20m x 10m (XYZ) for each

individual mineralized domain.

26. Upon completion of the block model, swath plots were generated for the major mineralized domains

to compare the gold and silver grades estimated in the blocks against composited raw grades on 40m

cross-sections, and in 10m RL increments. The block model was further validated by conduct ing an

‘inverse-distance-squared’ estimate for comparison as a check on the potential for global systematic

bias in the mineral resource estimate.

27. The block model was classified according to geological and estimate confidence. Consideration was

given to d ata density, geological and grade continuity, drill spacing, drill quality and core recovery,

material type, suitability of estimation methodology and local estimation bias.

28. The block model was assessed for the likelihood of the mineralization having reasonable prospects of

eventual economic extraction. The assessment included factors such as commodity pricing, potential

processing methods, potential mining methods, preliminary metallurgical test work results, and level

of geological knowledge of the project. As a result of this assessment process, estimated blocks that

did not meet the criteria remained as unclassified and are not included in mineral resource reporting.

The final cut-off grade of 0.5 g/t gold equivalent was based on criteria including a $1 ,250/oz. gold

price and a silver: gold ratio of 70:1, to produce a final mineral resource classification of Indicated and

Inferred as defined by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition

Standards as required for NI 43-101 compliance.

29. The final block model included the estimated mineralized domains with attributes for weathering,

lithology, density, estimation domain code, material type, elements estimated, and mineral resource

classification.

30. Tonnage-grade curves were generated for a range of reporting cut-off grades for the main mineralized

domains.

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