ABRA.TO · 2018-08-02 12:00:00

Evaluating Underground Exploitation Potential of High Grade Mineralization Historical Intercepts Include 862 g/t Ag and 3.98 g/t Au over 41.9m

Exploration Programs

Evaluating Underground Exploitation Potential of High Grade Mineralization

Historical Intercepts Include 862 g/t Ag and 3.98 g/t Au over 41.9m

BUENOS AIRES – August 2, 2018 , - AbraPlata Resource Corp . (TSX.V:ABRA; OTC : ABBRF; Frankfurt: 1AH )

("AbraPlata" or the "Company" ) is pleased to announce an update on its Diablillos property, located in

northwestern Argentina. The Company has been conducting a review of historical drill data to determine if higher

grade silver and gold zones could potentially be exploited using underground mining methods. An underground

mining approach could entail significantly less initial capital than the large open pit approach contemplated in the

Company's 2018 Preliminary Economic Analysis (" PEA") on the Diablillos project. The PEA demonstrated that

Diablillos has the potential to product an average of 9.8 million silver -equivalent ounces per year over an eight

year min e with robust economics. Building such a large operation would require estimated initial capital of

US$293 million. (Refer to technical report filed April 16, 2018, on SEDAR.com for full details of the PEA.)

The comprehensive drill database review by AbraPlata follows the identification by Nick Tate, the Company's

consulting geologist and epithermal specialis t, that high grade mineralized cores are strongly correlated with

steeply dipping, tabular hydrothermal breccia bodies in the main Oculto deposit (Figure 1). Historical drilling,

which totals about 88,000m in 450 drill holes, intercepted these breccias in numerous drill holes with the best

mineralization being encountered at the intersection of the Main Breccia Zone and the Cross Breccia Zone.

Highlights of historical drill the core of the Oculto deposit are provided in Table 1. The collars of the drill holes

listed in Table 1 cover a strike length of over 400 metres and a width of over 200 metres, suggesting that Oculto

has a thick, high grade core where there is pervasive brecciation.

Table 1 - Historical drill intercepts from the high grade core of the Oculto Deposit

Hole

Collar X-

Coord.

Collar Y-

Coord. Dip From (m) To (m)

Interval

(m)

Silver

(g/t)

Gold

(g/t) AgEq (g/t) AuEq (g/t)

RC-97-096 3,418,123 7,201,889 -90 120.0 152.0 32.0 461 2.27 631 8.41

DDH-93-001 3,418,275 7,201,932 -60 125.45 223.90 98.5* 861 3.98 1,160 15.47

including 139.55 152.12 12.6 6,183 1.46 6,292 83.89

including 164.85 182.00 17.2 89 13.54 1,104 14.73

RC-97-047 3,418,332 7,201,888 -71 207.0 217.0 10.0 149 8.13 758 10.11

DDH-08-078 3,418,103 7,201,989 -52 4.1 13.2 9.1 160 3.88 451 6.02

and 174.0 192.0 18.0 1,547 0.31 1,571 20.94

DDH-97-005 3,418,315 7,202,001 -90 143.0 170.8 27.7 2,192 0.45 2,226 29.68

including 148.0 158.0 10.0 4,470 0.79 4,530 60.39

RC-96-018 3,418,368 7,202,063 -77 140.0 165.0 25.0 3,367 0.24 3,385 45.13

DDH-07-030 3,418,271 7,202,075 -60 117.5 171.5 54.0 1,292 0.46 1,326 17.68

and 186.5 203 16.5 586 1.67 711 9.48

and 212.0 227.0 15.0 335 2.11 493 6.58

DDH-07-032 3,418,295 7,202,075 -60 123.1 189.1 66.0 826 0.47 861 11.48

including 142.6 165.1 22.5 1,246 0.70 1,299 17.32

DDH-97-007A 3,418,318 7,202,151 -75 210.0 220.62 10.6 39 16.63 1,287 17.16

RC-96-028 3,418,367 7,202,211 -65 187.0 232.0 45.0 171 3.21 412 5.50

Notes

1. Intervals are down -the-hole and do not represent Tr ue Widths (* true width of broad intercept in hole DDH -93-001 is

estimated to be 42.5% of reported interval, or 41.9m)

2. No grade capping has been applied

3. Equivalent grades (AgEq or AuEq) have been calculated on the basis of Au:Ag = 75:1

“The implications from the improved geological understanding of the Oculto deposit are that the near-vertical

breccia bodies are largely untested at depth and, as indicated in our April 30, 2018, news release, we believe that

Oculto has the potential to host high grade gold mineralization below the current mineral resource, ” commented

Willem Fuchter, President and CEO of AbraPlata. “ An underground option may indicate a processing plant of

reduced capacity and increased recoveries due to a higher grade feed, and would requir e less capital. In addition,

significant pre-stripping of waste material would no longer be necessary , resulting in further savings and the high

grade zones at depth can then be tested from underground. Furthermore, in the event that Oculto makes sense

as an underground operation, then the potential high grade gold mineralization at depth becomes significantly

more compelling than in an open pit approach . While we believe the open pit approach to Diablillos remains a

viable option, the Company plans to c onduct additional work to assess if an underground mining approach that is

less capital intensive may be a viable alternative and if a PEA on such a scenario is warranted.”

Diablillos Overview

The Diablillos property hosts high sulphidation epithermal Ag-Au mineralization associated with a large epithermal

system underlying the property. The great majority of resources reported from the property are located in the

Oculto deposit (Figure 1) which is centered over the core of the epithermal system.

Figure 1 - Surface Geology of the Oculto Deposit showing the outline of the PEA pit shell

The h igher grade mineralization at Oculto tends to be structurally controlled . AbraPlata has done considerable

work over the past year mapping the surface and re -logging of key drill holes in order to interpret the structural

geology at Oculto and arrive at a geological and geometrical model of the mineralized zones. The most important

mineral bearing zones are the Main, Cross, and West Zones, although mineralizatio n has been intercepted in the

other zones. In addition, breccia zones have been also identified in the satellite occurrences surrounding Oculto,

notably at, Fantasma, Laderas, Enigmatica, Concepcion, and Nebulosa.

More specifically, m ineralization appea rs to be controlled by NW - and NE -trending structures along which

significant tabular zones of hydrothermal breccia have been developed that, in turn, host the high grade

mineralization. To date, six specific breccia zones have been identified at Oculto: Main Breccia Zone; Cross Breccia

Zone; East Breccia Zone ; West Breccia Zone ; NW Breccia Zone ; and North Breccia Zone (Figure 1). The M ain

Breccia Zone and the Cross Breccia Zone have an estimated strike extent of at least 800m. The East and West

Zones have strikes of 650m and 450m respectively. The Main and Cross Breccia Zones form a continuous zone of

mineralization which extends for more than 1000m (Figure 2), and a significant vertically dipping pipe -like body

over 80m in diameter and extending some 150m in depth lies at the intersection of the Main and Cross Zones

(Figure 3a). This mineralized plug is open at depth. Likewise, the general lack of drilling below the current PEA pit

shell together with the results of few deep holes that have been cont inued below the current pit depth such as

DDH-97-007A (see Figure 3b) indicate the considerable potential for the definition of additional resources at depth

in the basement rocks.

Figure 2 - Long Section A-A’ of the Oculto deposit showing drill intercepts through the Main and Cross Breccia

Zones (looking northwest) with intercepts over 200 g/t Ag and 2.5 g/t Au indicated

Figure 3a – Section B-B’ through the pipe-like body at the intersection of the Main and Cross Breccia Zones

Figure 3b – Section C-C’ through the West Breccia Zone, showing the high grade gold potential below the pit

Given the fact that mineralization at Oculto is of an epithermal, high sulphidation nature, mineralization may

extend for hundreds of meters below the current pit shell. This creates the potential of increasing resources from

Oculto significantly, especially gold resources. High grade gold -rich zones are associated with hydrothermal

breccias at the interface of the basement rocks with the overlying volcanics and v olcaniclastics and confined to

tight structures within the basement. Oculto has multiple characteristics of a gold deposit with a silver cap.

The long section through the Main and Cross Zones (Figure 2) shows elevated levels of silver and gold

mineralization occurring in a zone that is 5 to 30m in thickness and occurs approximately 90 to 120m below

current topography and just below the current water table (blue line on sections), which lies about 80m below the

surface. This enriched mineralized zone has been interpreted as a supergene enrichment zone developed just

below the water table during emplacement. Numerous high grade silver and gold drill intercepts have been

encountered in this zone with grades reporting over 200g/t AgEq. Sample intercepts from historical drilling of the

high grade silver and gold mineralization in the enrichment zone are shown in Table 2.

Table 2 - Significant intercepts in the supergene enrichment zone

Hole Collar X-

Coord.

Collar Y-

Coord.

Dip From (m) To (m) Interval

(m)

Silver

(g/t)

Gold

(g/t)

AgEq (g/t) AuEq (g/t)

DDH-94-003 3,418,228 7,201,892 -60 145.55 158.33 12.8 436 0.29 457 6.10

RC-96-001 3,418,081 7,201,751 -65 120.0 154.0 34.0 510 4.55 851 11.35

RC-96-023 3,418,009 7,201,681 -64 116.0 123.0 7.0 354 3.45 613 8.18

RC-96-029 3,418,716 7,202,177 -73 83.0 91.0 8.0 406 0.75 462 6.16

RC-97-039 3,418,178 7,201,903 -88 125.0 158.0 33.0 494 0.03 496 6.62

including 147.0 155.0 8.0 992 0.06 996 13.28

RC-97-043 3,418,178 7,202,151 -90 102.0 106.0 4.0 21 7.24 564 7.52

RC-97-050 3,418,315 7,202,142 -70 98.0 113.0 15.0 1,274 0.02 1,275 17.00

RC-97-054 3,418,239 7,201,985 -60 78.0 82.0 4.0 60 11.33 909 12.12

RC-97-059 3,418,239 7,202,171 -83 97.0 102.0 5.0 39 5.35 440 5.87

RC-97-064 3,418,365 7,202,213 -75 92.0 105.0 13.0 445 1.68 571 7.61

RC-97-083 3,418,447 7,202,154 -72 97.0 101.0 4.0 519 0.07 524 6.99

DDH-97-004 3,418,179 7,201,981 -90 109.35 129.0 19.7 348 0.40 378 5.05

DDH-97-006 3,418,370 7,202,066 -77 122.3 137.5 15.2 731 0.47 766 10.21

DDH-97-015 3,418,271 7,201,989 -90 119.2 190.8 71.6 163 3.73 443 5.90

DDH-99-017 3,418,272 7,201,988 -90 137.6 151.4 13.8 601 0.25 620 8.27

DDH-99-021 3,418,179 7,201,901 -90 142.0 153.2 11.2 642 0.06 647 8.62

DAR-03-016 3,418,312 7,202,001 -78 117.0 128.0 11.0 922 0.01 922 12.30

DDH-07-038A 3,418,249 7,201,883 -53 140.0 150.5 10.5 401 0.28 422 5.62

DDH-07-047 3,418,049 7,201,720 -45 121.5 127.6 6.0 157 4.19 471 6.28

DDH-07-049 3,418,049 7,201,660 -45 154.7 184.7 30.0 716 0.81 777 10.36

DDH-07-050 3,418,024 7,201,640 -45 158.8 185.8 27.0 893 1.95 1,039 13.86

DDH-07-051 3,418,024 7,201,690 -45 117.5 126.5 9.0 125 5.61 546 7.28

DDH-07-055A 3,417,973 7,201,783 -55 108.0 120.0 12.0 23 4.79 382 5.09

DDH-07-060A 3,418,475 7,202,090 -87 87.0 96.0 9.0 570 0.14 581 7.75

DDH-08-063 3,418,349 7,202,211 -60 105.8 116.3 10.5 393 0.12 402 5.36

DDH-08-065 3,418,199 7,201,944 -90 153.2 165.2 12.0 312 0.61 358 4.77

DDH-08-066 3,418,177 7,201,897 -63 139.5 148.5 9.0 722 0.14 732 9.76

DDH-08-077 3,418,075 7,202,025 -50 94.0 115.0 21.0 111 4.29 433 5.77

DDH-08-080 3,418,124 7,201,862 -90 128.4 413.4 15.0 612 0.16 624 8.32

DDH-08-089 3,418,237 7,201,971 -86 125.0 135.5 10.5 482 0.23 499 6.66

DDH-08-098 3,418,221 7,202,171 -90 98.9 106.2 7.3 54 11.16 891 11.88

DDH-08-102 3,418,477 7,202,093 -72 87.5 97.0 9.5 584 1.71 712 9.49

Notes: 1. Intervals are down-the-hole and do not represent True Widths

2. No grade capping has been applied

3. Equivalent grades (AgEq or AuEq) have been calculated on the basis of Au:Ag = 75:1

A gold-rich zone lies at an angle to the silver zone, and is generally better developed at depth. Much of the gold in

this zone is hosted by breccia bodies both within the NE-trending structures and also in breccias developed at the

intersection of the basement rocks and overlying volcanics and volcaniclastics. At depth, the gold generally occurs

in the vicinity of the oxide -sulphide interface (maroon line on the sections ) and is interpreted to represent

hypogene mineralization. Examples of historical drill interc epts in breccia zones of the gold rich zones are shown

in Table 3.

Table 3 - Gold intercepts near the oxide-sulphide interface

Hole

Collar X-

Coord.

Collar Y-

Coord. Dip From (m) To (m)

Interval

(m)

Silver

(g/t)

Gold

(g/t) AgEq (g/t) AuEq (g/t)

RC-96-003 3,418,268 7,201,840 -60 206.0 214.0 8.0 767 0.81 828 11.04

RC-96-005 3,418,369 7,202,154 -64 208.0 242.0 34.0 61 3.64 334 4.46

including 234.0 242.0 7.0 69 8.77 727 9.69

DDH-93-004 3,418,328 7,201,939 -52 238.55 253.85 15.3 197 4.61 543 7.23

DDH-94-001 3,418,279 7,201,888 -60 192.84 218.54 25.7 254 4.54 595 7.93

and 236.57 242.86 6.3 416 1.86 555 7.40

DDH-94-003 3,418,219 7,201,892 -60 187.51 202.11 14.6 140 5.37 542 7.23

DDH-94-004 3,418,260 7,202,104 -65 192.3 211 18.7 208 4.66 557 7.43

DDH-97-007A 3,418,318 7,202,151 -75 210.0 220.6 10.6 39 16.67 1,289 17.19

DDH-97-015 3,418,271 7,201,989 -90 215.0 237.8 22.8 272 13.18 1,260 16.80

RC-97-048 3,418,227 7,201,889 -60 179.0 195.0 16.0 168 3.56 435 5.80

RC-97-050 3,418,315 7,202,142 -70 192.0 210.0 18.0 126 5.01 502 6.69

and 214.0 223.0 9.0 413 0.71 466 6.21

RC-97-056 3,418,273 7,201,989 -90 185.0 192.0 7.0 357 5.38 761 10.15

RC-97-063 3,418,365 7,202,212 -80 187.0 202.0 15.0 17 7.00 542 7.22

RC-97-069 3,418,450 7,202,251 -73 219.0 226.0 7.0 39 5.95 485 6.47

RC-97-101 3,418,900 7,202,496 -65 245.0 250.0 5.0 9 6.82 520 6.93

RC-97-117 3,418,749 7,201,606 -60 271.0 275.0 4.0 17 13.70 1,044 13.92

RC-98-125 3,418,370 7,202,540 -60 203.0 208.0 5.0 45 5.10 428 5.71

and 217.0 222.0 5.0 32 4.69 384 5.12

RC-98-127 3,418,483 7,202,504 -60 222.0 231.0 9.0 40 3.26 284 3.79

RC-98-131 3,418,713 7,202,673 -60 234.0 238.0 4.0 91 4.26 410 5.47

RC-98-135 3,418,604 7,202,394 -60 327.0 341.0 14.0 29 5.10 411 5.48

and 368.0 370.0 2.0 192 61.17 4,780 63.73

including 369.0 370.0 1.0 327 116.00 9,027 120.36

RC-98-141 3,418,780 7,202,780 -60 169.0 188.0 19.0 94 4.56 436 5.81

DAR-03-016 3,418,312 7,202,001 -78 204.0 222.0 18.0 165 3.33 415 5.53

including 204.0 210.0 6.0 204 4.96 576 7.68

DAR-03-017 3,418,329 7,202,262 -80 209.0 213.0 4.0 16 5.64 439 5.85

DAR-05-002 3,418,416 7,202,258 -70 243.0 246.0 3.0 61 7.18 599 7.99

DDH-07-022 3,418,325 7,202,019 -65 223.0 242.5 19.5 159 5.01 534 7.12

DDH-07-024 3,418,299 7,202,200 -55 207.6 218.1 10.5 199 4.63 546 7.28

DDH-07-029 3,418,200 7,202,080 -60 199.5 210.0 10.5 204 7.12 738 9.85

DDH-07-038A 3,418,249 7,201,883 -53 200.0 212.0 12.0 109 4.03 411 5.48

DDH-08-063 3,418,349 7,202,211 -60 201.8 233.3 31.5 213 2.72 417 5.56

DDH-08-067A 3,418,571 7,202,295 -65 269.0 273.5 4.5 21 4.97 394 5.25

and 299.0 303.5 4.5 16 4.55 357 4.76

Notes

1. Intervals are down-the-hole and do not represent True Widths

2. No grade capping has been applied

3. Equivalent grades (AgEq or AuEq) have been calculated on the basis of Au:Ag = 75:1

The Diablillos property has an Indicated Mineral Resource Estimate of 27.1 million tonnes grading 93.1g/t Ag and

0.84g/t Au containing 80.9 million oz Ag and 732,000 oz Au (136Moz AgEq or 1.81Moz AuEq using Au:Ag of 75:1).

Further details can be found in technical reports from November 2016 and April 2018 which are available from the

Company’s profile on SEDAR.com.

Qualified Person

All scientific and technical information in this news release has been approved by Willem Fuchter, PhD PGeo,

President & CEO of AbraPlata Resource Corp and a qualified person as defined by National Instrument 43-101.

About AbraPlata

AbraPlata is a junior mining exploration company focused on delivering shareholder returns by unlocki ng mineral

value in Argentina. The Company's experienced management team has assembl ed an outstanding portfolio of

gold, silver and copper exploration assets, and is focused on advancing its flagship Diablillos silver-gold property

through the various stages of feasibility. In addition, AbraPlata owns the highly prospective Cerro Amarillo

property with its cluster of five mineralized Cu -(Mo-Au) porphyry intrusions located in a mining camp hosting the

behemoth El Teniente, Los Bronces, and Los Pelambres porphyry Cu -Mo deposits. As well, the Company is

exploring Aguas Perdidas, its wholly owned Patagonia-style epithermal Au-Ag property.

ON BEHALF OF THE BOARD

ABRAPLATA RESOURCE CORP.

"Willem Fuchter"

Willem Fuchter

President & Chief Executive Officer

For further information concerning this news release, please contact:

Willem Fuchter - President & CEO Rob Bruggeman - Investor Relations

Tel: +54.11.5258.0920 Tel: +1.416.884.3556

E-mail: [email protected] Email: [email protected]

This news release includes certain "forward -looking statements" under applicable Canadian securities legislation.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while

considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause

the actual results and future events to differ materially from those expressed or implied by such forward -looking

statements. All statements that address future plans, activities, events or developments that the Company

believes, expects or anticipates will or may occur are forward -looking information. There can be no assurance that

such statements will prove to be acc urate, as actual results and future events could differ materially from those

anticipated in such statements. Accordingly, readers should not place undue reliance on forward -looking

statements. The Company disclaims any intention or obligation to update or revise any forward -looking

statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the 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.

For further information about AbraPlata and its projects, please visit the Company’s website at

www.abraplata.com.

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