Atico Mining Provides Exploration Update

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Atico Mining Provides Exploration Update

Vancouver, May 11, 2017 -- Atico Mining Corporation (TSX.V: ATY | OTC:

ATCMF)(“Atico” or the “Company”) is plea sed to announce , further to its February 8, 2017

press release, the complete results of the five hole exploration drill program at Santa Anita and

the four hole program at San Lorenzo targets, along wit h the planned 2017 exploration

program.

Fernando E. Ganoza, CEO, commented: “ Positive assay results of the new scout drilling

program, particularly at the Santa Anita target, continue to be very encouraging. The new drill

data confirms the presence of favorable pathfinders similar to those that we see inside the El

Roble mine and continues to support our thesis that this large target area remains highly

conducive to host ing new massive sul fide mineralization .” Mr. Ganoza added, “ We will

continue assessing these results to delineate further drilling at Santa Anita while we continue

to prepare additional targets for the 2017 regional surface drill program.”

Regional Exploration Drilling Update

Santa Anita Target

At Santa Anita, which lays south of the El Roble mine, the C ompany drilled 1207 meters of

core in five drill holes up to a depth of 300 meters. The holes were collared, and oriented to

test the contact between the favorable “black chert” unit – basalt contact and were between

200m and 300m apart. This contact is the locus of mineralization for th e El Roble mine

mineralization. Historic drilling carried out by the previous operator , at Santa Anita, had

intersected a quartz -chlorite breccia with pyrite and c halcopyrite (DDH MERSA -1 = 37.5

meters 0.54% Cu, MERSA-4 = 3.6 meters 0.16% Cu). In particular, anomalous gold values in

one of the drill holes interpreted by Atico’s geologist represent the lower lev els of a massive

sulfide feeder, which lays stratigraphically below the current drill holes.

The recent drilling clearly demonstrated a thickening of the “black chert” unit over a strike

length of approximately 600 m eters indicative of a sub-basin favorable for the deposition and

preservation of massive sulfide s. The sub-basin appears to be bounded by faults which might

have acted as feeders for mineralization. The black chert unit also contains 5 -10% bedding-

parallel stringers and blebs of pyrite-pyrrhotite suggesting a distal massive sulfide depositional

environment.

Hole ATSA-005, drilled on the northern margin of t he sub-basin intersected two intervals of

highly anomalous gold ( 3.9 m at 2.25 g/t Au from 114.80 m and 5.3 m at 2.31 g/t Au from

138.55 m) supporting the alteration and pathfinder element vectors.

The Company is highly encouraged by these results, which have outlined a depositional sub -

basin with potential for massive sulfide preservation, elevated basemetal, pathfinder and

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alteration element geochemistry rising sharply at the contact of basalt base ment and the

overlying favorable host “black chert” unit. The multi -element geochemistry vectors are

concentrated with the sub-basin and trend toward the northern margin of the basin.

The drill core was analyzed by ICP and AAS for 32 elements plus silver a nd gold. The

basemetal, pathfinder and alteration element geochemistry values (Au, Ag, Cu, Zn, Hg, Sb,

As, Ba, K) in the “black chert” rise strongly immediately above the contact of the underlying

basalt unit and show and increase toward the northern marg in of the sub -basin. The chlorite -

carbonate-pyrite alteration index (CCPI), an indicator of hydrothermal alteration commonly

associated with massive sulfide mineralization, also increases within the sub-basin and toward

the northern margin of the basin.

Further drilling will be directed to follow the geochemical vectors by drilling a fence of holes

beneath the current holes and both extending and closing the interval between drill holes

particularly at the northern end of the Santa Anita target area.

San Lorenzo Target

Drilling of 4 holes at the San Lorenzo target was also directed to test the basalt -“black chert”

contact. All holes intersected the contact but basemetal, pathfinder, alteration geochemistry

was much more subdued and there was very little var iation in thickness of th e “black chert”.

In addition, a reddish “ash unit” occurs within the “black chert” suggesting oxidation

conditions at the time of deposition which are generally not compatible with preservation of

massive sulfide deposits. Consequ ently the San Lorenzo prospect has been given lower

priority for future exploration.

Further Exploration Priorities Planned

Several other high priority exploration targets exist within the “El Roble property”,

specifically Anomaly 28, about 1 km NE of Santa Anita which shows elevated rock chip

geochemistry on basalt -“black chert” contact and is on trend with geochemical vectors at

Santa Anita. This geochemically anomalous portion of contact is also associated with a ground

magnetic anomaly.

The ma ssive pyrite -pyrrhotite outcrop, announced on November 22, 2016 , between the La

Dicha prospect and A nomaly 42 i s approximately 4.5 k m NW of El Roble Mine, is another

high priority target which has locally elevated, gold, copper and lead geochemistry. It will

require mapping and trenching to fully define the prospect, since it is structurally offset from

the main “El Roble property”.

The Company plans to drill at least test two of the above mentioned new targets along with

another drill program at Santa Anita, which is scheduled to continue in the following weeks.

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El Roble Mine

The El Roble mine is a high grad e underground copper and gold mine with nominal

processing plant capacity of 800 tonnes per day, located in the Department of Choco in

Colombia. Its commercial product is a copper-gold concentrate.

Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation

from a nominal capacity of 400 tonnes per day. The mine has a continuous operating history

of twenty-two years, with recorded production of 1.5 million tonnes of ore at an average head

grade of 2.6% copper and an esti mated gold grade of 2.5 g/t. Copper and gold mineralization

at the El Roble property occurs in volcanogenic massive sulfide (“VMS”) lenses.

Since entering into the option agreement in January 2011 to acquire 90% of El Roble, Atico

has aggressively explore d the mine and surrounding claims. The Company has completed

31,377 meters of diamond drilling and identified numerous prospective targets for VMS

deposits on the 6,679 -hectare property. This exploration led to the discovery of high -grade

copper and gold m ineralization below the 2000 level, the lowest production level of the El

Roble mine. Atico has developed a new adit access from the 1880 elevation to develop these

new resources.

El Roble has a measured and indicated resource of 1.87 million tonnes grad ing 3.46% copper

and 2.27 g/t gold, at a cut -off grade of 0.93% copper equivalent. Mineralization is open at

depth and along strike and the Company plans to further test the limits of the resource.

On the larger land package, the Company has identified a prospective stratigraphic contact

between volcanic rocks and black and grey cherts that has been traced by Atico geologists for

ten kilometers. This contact has been determined to be an important control on VMS

mineralization on which Atico has identified numerous target areas for VMS type

mineralization occurrence, which is the focus of the surface drill program at El Roble.

Qualified Control

Dr. Demetrius Pohl, Ph.D., AIPG Certified Geologist, a qualified person under NI 43-101

standards and independent of the Company, is responsible for ensuring that the information

contained in this news release is an accurate summary of the original reports and data provided

to or developed by Atico Mining Corporation. Dr. Pohl has approved the scientific and

technical content of this news release

About Atico Mining Corporation

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Atico is a growth-oriented Company, focused on exploring, developing and mining copper and

gold projects in Latin America. The Company operates the El Roble mine and is pursuing

additional acquisition opportunities. For more information, please visit www.aticomining.com.

ON BEHALF OF THE BOARD

Fernando E. Ganoza

CEO

Atico Mining Corporation

Trading symbols: TSX.V: ATY | OTC: ATCMF

Investor Relations

Igor Dutina

Tel: +1.604.633.9022

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the po licies of

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

No securities regulatory authority has either approved or disapproved of the contents of this news release. The

securities being offered have not been , and will not be, registered under the United States Securities Act of 1933,

as amended (the ‘‘U.S. Securities Act’’), or any state securities laws, and may not be offered or sold in the United

States, or to, or for the account or benefit of, a "U.S. pers on" (as defined in Regulation S of the U.S. Securities

Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not

constitute an offer to sell or a solicitation of an offer to buy any securities of the C ompany in any jurisdiction.

Cautionary Note Regarding Forward Looking Statements

This announcement includes certain “forward -looking statements” within the meaning of Canadian securities

legislation. All statements, other than statements of historical fact, included herein, without limitation the use of

net proceeds, are forward -looking statements. Forward - looking statements involve various risks and

uncertainties and are based on certain factors and assumptions. There can be no assurance that such sta tements

will prove to be accurate, and actual results and future events could differ materially from those anticipated in

such statements. Important factors that could cause actual results to differ materially from the Company’s

expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade

of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional

financing to maintain its interest in and/or explore and d evelop the Company’s mineral projects; uncertainty of

meeting anticipated program milestones for the Company’s mineral projects; and other risks and uncertainties

disclosed under the heading “Risk Factors” in the prospectus of the Company dated March 2, 20 12 filed with the

Canadian securities regulatory authorities on the SEDAR website at www.sedar.com