Auryn Acquires Good Lucky Prospect and Discovers New Prospects at Sombrero

Auryn Acquires Good Lucky Prospect and Discovers New Prospects

at Sombrero

Vancouver, British Columbia – June 25, 2018 – Auryn Resources Inc. (TSX: AUG, NYSE

American: AUG) (“Auryn” or the “Company) is pleased to announce the acquisition of rights to the

Mollecruz concessions, which are key claims in the northern area of the Sombrero Project , located in

southern Peru. The Mollecruz concessions include the Good Lucky prospect, which is located five

kilometers from the Sombrero project , where Auryn recently trenched 99 meters of 0.46% copper

equivalent. Samples taken with in the Mollecruz concessions yielded results up to 5.12 g/t gold

and 4.29% copper.

In addition, t wo new prospects, Totora and Uchuy, have also been discovered through sampling. At

Totora, Auryn’s geologists have sampled gold values up to 5.07 g/t and copper values up to

3.14%. At Uchuy, strong arsenic and antimony values have been sampled which indicate the potential

for proximal base and precious metal mineralization.

A Message from Auryn’s Executive Chairman and Director:

Ivan Bebek s tated, “The Sombrero project continues to impress us both with the potential size of the

structures and grades of mineralization we continue to identify.”

The Good Lucky Prospect:

The Good Lucky prospect is located within the Mollecruz concessions which are approximately 1,000

hectares and represent another cluster of mineralizing intrusive bodies in the Sombrero district that are

characterized by copper-gold skarn mineralization (Figure 1).

The principle skarn body at the Good Lucky prospect demonstrates high- grade copper -gold

mineralization sampled over a 600 meter length and over 250 vertical meters (Figure 2) . Rock

samples graded up to 5.12 g/t gold and 4.2 9% copper in sulphide mineralization. A summary of the

highlights is presented below in Table 1.

Table 1: Highlights of Good Lucky Rock Samples

Importantly, the skarn mineralization encountered at Good Lucky occurs in the Gramadal limestone

sequence situated below the Ferrobamba limestone sequence. The Ferrobamba sequence hosts

mineralization at the Sombrero project as well a s the Tintaya and Las Bambas deposits (Figure 3 ).

This is sig nificant because it demonstrates that there are two mineralized limestone sequences within

the district, increasing the likelihood of a potential discovery. The outcropping mineralization is

interpreted to extend under thin volcanic cover t o the north. A magnetic survey will be conducted to

determine the extent of the system.

Terms of the Acquisition

Under the terms of an option agreement dated June 22, 2018, the Company may acquire a 100%

interest in the Mollecruz concessions by completing US$3,000,000 in work expenditures and by making

payments totaling US$1,600,000 to the underlying owner over a five year period. At signing, Auryn paid

US$50,000 and upon exercise of the option, the underlying owner will retain 0. 5% NSR royalty with an

advance annual royalty payment of US$50,000.

Totora and Uchuy Prospects:

Auryn has followed-up on results from its regional 2017 stream sediment survey in the concessions to

the west of Good Lucky and has identified previously unknown copper -gold porphyry -style of

mineralization (the Totora prospect ) and an area of abundant skarn mineralization (the Uchuy

Sombrero - Good Lucky Rock 2018 Highlights

Gold Copper

Sample ID Au (g/t) Sample ID Cu (%) Sample ID Cu (%)

W645039 5.12 W645035 4.29 W645151 1.06

W645082 2.25 W645081 4.27 W645115 1.04

W645068 1.16 W645097 3.05 W645080 1.04

W645090 1.08 W645087 2.9 W645047 0.94

W645077 0.71 W645090 2.71 W645088 0.90

W645071 0.68 W645041 2.64 W645074 0.90

W645069 0.64 W645077 1.90 W645112 0.87

W645038 0.59 W645049 1.78 W645118 0.86

W645075 0.42 W645068 1.75 W645075 0.79

W645151 0.39 W645071 1.71 W645110 0.75

W645081 0.38 W645093 1.68 W645082 0.62

W645040 0.31 W645066 1.51 W645105 0.59

W645074 0.30 W645086 1.19 W645067 0.57

W645099 1.13

All samples disclosed in this table were grab samples and were selectively taken. The results are not necessarily representative

of the mineralization hosted on the property.

prospect). These prospects have been discovered in an area with extensive post -mineralization

volcanic cover.

At Totora, a 50- meter-wide porphyritic monzonite dyke within a larger diorite body has been identified.

The dyke itself is completely altered by porphyry-style silica and clay and has extensive stockwork

veining over its entire width (Figure 4). Reconnaissance sampling from Totora has yielded gold and

copper mineralization over a 200 meter length with rock samples grading up to 4.92g/t gold and

3.14% copper along the margins of the monzonite dyke. Additional rock samples have been collected

across the stockwork vein system with results expected in the coming weeks.

Auryn’s technical team views the discovery of the Totora prospect as highly significant because it

demonstrates the potential for copper-gold porphyry-style mineralization within the Sombrero district. A

summary of the reconnaissance rock samples from Totora is presented below in Table 2.

Table 2: Highlights of Totora Rock Samples

At Uchuy, mineralization is characterized by jasperoid (silica) structures and skarn bodies associated

with Labra formation sndstones and the Gramadal limestone sequence , respectively. The jasperoids

and the skarn bodies occur over a one kilometer length in a north- south structural corridor. T hese

bodies are highly elevated in both arsenic and antimony demonstrating that they have the potential to

be in close proximity to a precious and base metal system at depth. The majority of the samples ran

greater than 200 g/t arsenic with multiple samples greater that 1%. Many samples also ran between 50

– 570 g/t antimony. A single sample from the sampling program collected off skarn body graded 0.5 g/t

gold, 285 g/t silver, 1.38% copper.

Auryn’s technical team views the observed skarn and jasperoid bodies at Uchuy to be important

because they are a part of a larger skarn- porphyry intrusive complex that extends from Good Lucky

through to Totora and Uchuy over a six kilometer length that is largely obscured by volcanic cover

(Figure 5).

Sombrero - Totora Rock 2018 Highlights

Gold Copper

Sample ID Au (g/t) Sample ID Au (g/t) Sample ID Cu (%)

W645131 5.07 W645160 0.37 W645164 3.14

W645164 1.08 W645162 0.33 W645162 1.28

W645132 0.89 W645161 0.33 W645159 1.17

W645135 0.76 W645159 0.23 W645136 1.16

W645136 0.55 W645138 0.21 W645163 1.12

W645163 0.40 W645160 1.03

All samples disclosed in this table were grab samples and were selectively taken. The results are not necessarily representative

of the mineralization hosted on the property.

A Message from Auryn’s COO and Chief Geologist:

Michael Henrichsen stated, “Our sampling and mapping over the northern half of the Sombrero Project

is identifying high-grade gold and copper mineralization over several kilometers. We view the new

prospects of Good Lucky, Totora and Uchuy as the next mineralized cluster of intrusive bodies within

the greater Sombrero district. The technical team is very excited about the potential of the district and

the effectiveness of our regional stream sediment survey in identifying mineralized bodies.”

Michael Henrichsen (Chief Operating Officer), P.Geo is the QP who assumes responsibility for the

technical contents of this press release.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURYN RESOURCES INC.

Ivan Bebek

Executive Chairman and Director

For further information on Auryn Resources Inc., please contact Natasha Frakes, Manager of Corporate

Communications at (778) 729-0600 or [email protected]

About Auryn

Auryn Resources is a technically driven junior mining exploration company focused on delivering shareholder value through

project acquisition and development. The Company’s management team is highly experienced with an impressive track record

of success and has assembled an extensive technical team as well as a premier gold exploration portfolio. Auryn is focused on

scalable high-grade gold deposits in established mining jurisdictions, which include the Committee Bay and Gibson MacQuoid

gold projects located in Nunavut, the Homestake Ridge gold project in British Columbia and a portfolio of gold projects in

southern Peru, through Corisur Peru SAC.

Forward Looking Information and additional cautionary language

This release includes certain statements that may be deemed “forward- looking statements”. Forward-looking information is

information that includes implied future performance and/or forecast information including information relating to or associated

with the acquisition and title to mineral concessions. These statements involve known and unknown risks, uncertainties and

other factors which may cause actual results, performance or achievements of the Company to be materially different (either

positively or negatively) from any future results, performance or achievements expressed or implied by such forward- looking

statements. Readers should refer to the risks discussed in the Company’s Annual Information Form and MD &A for the year

ended December 31, 2016 and subsequent continuous disclosure filings with the Canadian Securities Administrators available

at www.sedar.com and the Company’s registration statement on Form 40- F filed wi th the United States Securities and

Exchange Commission and available at www.sec.gov.

Grabs 2018 Sampling (Sombrero, Peru):

All samples were approximately 2kg of rock chips material per sample and were collected for analysis and sent to ALS Lab in

Lima, Peru for preparation and analysis. All samples are assayed using 30g nominal weight fire assay with ICP finish (Au-

ICP21) and multi-element four acid digest ICP-AES/ICP-MS method (ME-MS61). Where ICP21 results were > 3 g/t Au the

assay were repeated with 30g nominal weight fire assay with gravimetric finish (Au-GRA21). Where MS61 results were greater

or near 10,000 ppm Cu, Zn or Pb the assay were repeated with ore grade four acid digest method (OG62). QA/QC programs

for 2018 rock grab samples using internal standard and blank samples; field and lab duplicates indicate good overall accuracy

and precision. Grab samples were selectively taken and are not representative of the average mineralization in the area.

Disclaimer

The T oronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this

release.

Figure 1: Illustrates the Sombrero North district land position of approximately 51,300 hectares.

It also shows the position of the recently acquired Good Lucky licenses and the Totora and

Uchuy prospects.

Figure 2: Illustrates the Good Lucky prospect. High -grade sulphide gold and copper

mineralization occurs over a 600 meter length and over 250 vertical meters.

Figure 3: Illustrates the observed mineralization within the Sombrero district and within the

stratigraphic sequence. This figure also illustrates its analogous nature to mineralization

observed within the Las Bambas district.

Figure 4: Illustrates the observed mineralization at the T otora prospect and the stockwork

veining and porphyry-style silica and clay alteration within the mineralized porphyry dyke.