ARIC.V · 2018-08-01 12:00:00

High Grade Diamond Drill Results from Awalé Resources- Bondoukou Project.

Drill Results

Vancouver, BC, 1 August, 2018 – Awalé Resources Limited (“ Awalé” or the “Company”) (TSXV:

ARIC) is pleased to announce results from its Diamond Drilling program for the Fako and Casino

prospects at the Bondoukou Project, C ôte d’Ivoire (Figure 1). These prospects were defined from

the Company’s maiden scout RC drill program (see releases February 2, 2018 and March 1, 2018).

Following the success of the initial RC program, a diamond drilling program was designed to enhance the

understanding of the geometry , geology and down dip/plunge continuity of the Fako and Casino

prospects. At Fako and Fako South 6 holes for 1201.6 metres were drilled, and at Casino 3 holes for 402.9

metres were drilled, for a total of 9 holes for 1604.5m (Figure 2 and 3).

HIGHLIGHTS

Fako Prospect:

 BEDD0004 - Step out hole testing down dip of 20m at 0.96 g/t Au from 60m downhole in

previously reported RC hole BERC0008 returned the following intercepts demonstrating

continuity of mineralisation (Figure 4).

• BEDD0004 1.07m at 15.7 g/t Au from 147.3m and 9m at 0.3 g/t Au and 10 metres at 0.4

g/t Au from 153 and 165.8m downhole respectively.

 BEDD0003 - 8m at 6.2 g/t Au (from 0m) Including 1m at 43.3 g/t Au from surface

 BEDD0005 - 4.5m at 1.4 g/t Au from 163m including 0.55m at 7.55 g/t Au downhole.

Hole BEDD0003 was a step out from previous RC hole BERC0019 and BEDD0005 was a diamond tail of the

same RC hole. Both holes intercepted new mineralisation to the south of the previously reported 18m at

1g/t Au from 1m downhole in BERC0019.

Casino Prospect:

 Drill holes BEDD0007 and BEDD0008 designed to test for plunging mineralisation from the

previous RC drill program returned high grade intercepts with visible gold that was not evident in

the RC program. Suggesting steeply plunging high grade lodes at Casino.

• BEDD0007 - 1m at 4.6 g/t Au from 5m and 1.3m at 8.5 g/t Au from 61m downhole

respectively

• BEDD0008 - 0.46m at 21.1 g/t Au from 10.5m and 0.5m at 10.6 g/t Au from 60.89m

downhole respectively(Figure 5).

Further to the successful drill intercepts, Kim Hein from Orefind Consultancy was contracted during this

period to complete a structural analysis of the Bondoukou Project and relate this to the drill core. Findings

from this study show structural confluenc es where later NE structures cross cut the older NW trend as

well as their association with late intrusions are key to economic mineralisation at the project . The

completed study highlights the Bondoukou Project area as a potential gold camp in West Africa with the

geological setting having similarities with the Essakane and Mana gold camps in Burkina Faso.

View attached figures: http://www.awaleresources.com/_resources/maps/CDI_AugustXX_NR.pdf

CEO Glen Parsons commented today:

“These encouraging results f ollow our recent gold results from the initial 5,000m RC drill program,

completed at the beginning of 2018, which yielded posit ive gold mineralisation along the initial 15km at

the Fako prospect on the 40km Awari Shear zone, as well as high grade mineralisation to the north at the

Casino Prospect.

Additional to testing continuation and extent of mineralisation, the drill program was designed to enhance

understanding and confidence in our geological model. This has been achieved and, furthermore, Kim Hein

from Orefind Consultancy has corroborated our belief in the potential of a significant gold camp at

Bondoukou, which is our ultimate strategy for this district scale project.

Concurrently, we have recently completed some 13,000m of our 16,000m regional and infill auger program

along the balance of the Awari Shear zone, covering an untested 25km of strike. Awalé’s aim is to continue

defining multiple anomalous gold targets for follow up and scout drilling in the last quarter of 2018 and

2019.

We look forward to updating the market as these regional exploration programs results are received.”

Background

The recently completed diamond drill program at the Fako and Casino prospects have confirmed

mineralisation down dip and plunge from previous intercepts and favourable geology reported on

February 2, 2018 from the Company’s maiden RC drill program. Each program completed at the project

delivers confidence in the exploration model and discovery potential at Bondoukou. The C ompany has

also recently completed over 13,000m of a planned 16,000m Auger geochemistry program along the

Awari Shear, this will further enhance the companies understanding of mineralisation along the 38km

shear, the Company eagerly awaits full results for this program in the ensuing weeks.

Further to this, the geological and structural framework of the project has been both confirmed and

enhanced. The project continues to deliver confidence in a large mineralised system at Bondoukou, and

studies from Kim Hein of Orefind suggest the Bondoukou Project area as a potential gold camp and

highlight similarities to other well- known gold camps in west Africa, including Essekane and Mana in

Burkina Faso among others.

Highlights from the Maiden RC program included:

 BERC0001 – 3 metres at 5.02 g/t Au from 31m downhole

 BERC0005 - 5 metres at 1.46 g/t Au (including 1m at 3.24 g/t Au) from 78m downhole

 BERC0008 - 20 metres at 0.96 g/t Au (including 3m at 1.98 g/t, 4m at 1.62 g/t and 2m at 1.6 g/t

Au) from 60m downhole (hole ends in mineralisation)

 BERC0009 – 7 metres at 1.2 g/t Au (including 1 metre at 5.6 g/t Au) from 16m downhole

 BERC0019 (Fako) – 18 metres at 1.0 g/t Au from 1m downhole

 BERC0050 (Casino) - 6 metres at 5.19 g/t Au (including 1m at 25.4 g/t Au) from 7m downhole

 BERC0033 (Casino) – 2 metres at 6.07 g/t tonne Au (including 1 metre at 11.0 g/t Au) from 90m

downhole

 BERC0040 (Casino) – 2 metres at 1.94 g/t Au from 42m downhole

 BERC0049 (Casino) - 2 metres at 2.39 g/t Au from 26m downhole

 BERC0022 – 2 metres at 4.69 g/t Au from 42m downhole

 BERC0023 – 1 metres at 2.25 g/t Au from 56m downhole

Diamond hole BEDD0004 at the Fako prospect intercepted high grade mineralisation down dip from 20m

at 0.96 g/t in previous RC hole BERC0008, confirming presence of a broad mineralised shear zone at the

Fako prospect - A hanging wall quartz/molybdenite vein was intercepted returning 1.07m at 15.7 g/t Au

followed with broad footwall mineralisation in quartz carbonate altered mafic volcanic (9m at 0.3 g/t Au

and 10m at 0.4 g /t Au from 153 m and 165.8m respectively). This relationship is consistent with the

interpretation that structural confluences between earlier NW structures and later NE structures form

high-grade targets.

Holes BEDD0007 and BEDD0008 at Casino were designed to test for a plunge on mineralis ation from RC

holes that traversed the target structure, but with little or no mineralisation. Both holes intercept quartz

veining that was not evident in the RC program suggesting the mineralisation does plunge and highlights

potential for steeply plunging high grade lodes. Figure 5 is a cross section through BEDD0008.

The rocks contained within the shear are lower Birimian and consist of greenschist facies altered

ultramafic, mafic to andesitic volcanic and volcaniclastic rocks. Rocks in the footwall of the shear consist

of an amphibolite to granulite facies metamorphic complex which is interpreted to predate the deposition

of the volcanic and volcaniclastic rocks contained within the Awari Shear. There is an abrupt change in the

metamorphic grade in the drill core between these two major geologic units. Mineralisation in hole

BEDD0004 sits close to the contact between these two units.

The drill holes discussed above, along with g eological mapping and interpretation of the entire diamond

drilling program by Kim Hein has confirmed the Company’s hypothesis that the Awari Shear is an old deep-

seated structure with origins in the earliest phases of Birimian evolution and the subsequent polyphase

Eburnean orogeny. Findings from this study highlight multiple phases of deformation and mineralisation

through a protracted tectonic history for the project area. High-grade targets are steeply plunging shoots

where later NE structures cross cut the older NW trend. Late intrusions in the project area also present as

classic mineralisation targets throughout the Birimian. The geological setting of the Bondoukou Project

area has similarities with the Essakane and Mana gold camps in Burkina Faso, as well as Ity and Tongon in

Côte d’Ivoire. The comp any is excited about ongoing exploration on the project and looks forward to

economic discoveries at Bondoukou.

Table 1: All Significant Intercepts

Hole ID Prospect From To Width

Metres

True

Width

Metres

Gold g/t East North RL Azimuth Dip Total

Depth

BEDD0001 Fako 11 12 1 0.8 0.77 545833 928499 253 0 -50 157.75

107 108 1 0.8 0.26

BEDD0002 Fako Failed hole, No Results Reported – BEDD0003 is a re - drill of this hole.

BEDD0003 Fako 0 8 8 6.5 6.12 545757 928488 280 40 -50 191

Including 0 1 1 0.8 42.3

78.3 80.15 1.85 1.5 1.18

BEDD0004 Fako 88 89 1 0.8 0.26 546555 927903 255 40 -50 231.2

142.2 143.3 1.1 0.85 0.66

147.3 148.37 1.07 0.8 15.72

153 162 9 7.5 0.32

165.8 176 10.2 8 0.41

189 190 1 0.8 0.57

BEDD0005 Fako 120 121.6 1.6 1.3 0.48 545827 928553 289 220 -50 253

163 167.5 4.5 3.5 1.43

BEDD0006 Fako South 121 122 1 0.8 0.32 548347 926834 249 40 -50 300.1

149.25 153 3.75 3 0.52

263 263.52 0.52 0.4 0.31

270 271 1 0.8 0.57

280 281 1 0.8 0.28

285 286 1 0.8 3.67

296 297 1 0.8 1.05

BEDD0007 Casino 5 6 1 0.8 4.64 549591 939717 260 140 -60 90.3

51 52.8 1.8 1.5 0.31

61 62.3 1.3 1 8.5

66 66.7 0.7 0.55 0.95

70.62 72 1.38 1.1 0.72

82 85 3 2.5 0.25

89 90.3 1.3 1 0.38

BEDD0008 Casino 9 10.96 1.96 1.6 5.18 549649 939769 258 140 -50 102.3

Including 10.5 10.96 0.46 0.35 21.14

60.89 61.39 0.5 .4 10.57

BEDD0009 Casino 46 46.63 0.63 0.5 0.32 549625 939849 252 140 -60 210.3

66.85 67.87 1.02 0.8 1.43

162.6 163.38 0.78 0.6 0.29

205 206 1 0.8 0.33

* Significant intercepts calculated including 3m of internal waste with a trigger value of 0.25 grams per tonne gold.

Quality Control and Assurance

Analytical work for geochemical samples and rock chip samples is being carried out at the independent

Intertek Laboratories Ghana Ltd. an ISO 17025 ( 2017) Certified Laboratory. Samples are stored at the

Company’s field camps and put into sealed bags until collected by Intertek from the C ompany’s secure

Bondoukou office and transported by Intertek to their laboratory in Tarkwa, Ghana for preparation and

analysis. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%,

passing a 2-mm screen. A split of up to 1,000-gram is taken and pulverized to better than 85%, passing a

75-micron screen, and a 50-gram split is analysed by fire assay with an AAS finish. Blanks, duplicates and

certified reference material (standards) are being used to monitor laboratory performance during the

analysis.

ON BEHALF OF THE BOARD

AWALE RESOURCES LIMITED.

“Glen Parsons”

Glen Parsons, President and CEO

For additional information you are invited to visit the Awalé Resources Limited website at

www.awaleresources.com, or contact Karen Davies, Head of Investor Relations at Tel: 604.314.6270

Qualified Person

The technical and scientific information contained in this news release has been reviewed and approved

for release by Andrew Chubb, the Company’s Qualified Person as defined by National Instrument 43-101.

Mr Chubb is the Company’s Chief Operating Officer and holds an Economic Geology degree, is a Member

of the Australian Institute of Geoscientists (AIG), and is a Member of the Society of Economic Geologists

(SEG). Mr Chubb has 17 years of experience in international minerals exploration and mining project

evaluation.

End

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Readers

are cautioned not to place undue reliance on forward -looking information. Actual results and developments may

differ materially from those contemplated by such information. The statements in this news release are made as of

the date hereof. The Company undertakes no obligation to update forward- looking information except as required

by applicable law.

Cautionary Statement

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

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