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Successful Sorting Test Work Upgrades Feed Grade to 1.36% Cu from Samples from the Haib Copper Project IN Namibia

Drill Results Metallurgy & Processing

Suite 162, 2912 West Broadway, Vancouver, British Columbia, V6K 0E9

Tel: 604-340-0140. E-mail: [email protected]

Web site: http://www.deepsouthresources.com

SUCCESSFUL SORTING TEST WORK UPGRADES FEED

GRADE TO 1.36% CU FROM SAMPLES FROM THE HAIB

COPPER PROJECT IN NAMIBIA

Vancouver, B.C., Canada – August 15, 2019 – Deep-South Resources Inc.

("Deep- South" or “the Company") (TSX-V: DSM) announces results from the

sorting test work on stockpile material from the Haib Copper Project in Namibia.

The sorting test work is managed by METS Engineering of Australia and is

undertaken by Steinert in Australia. Sorting was tested with a X-Ray transmission

system by utilising Steinert’s KSS FL1 XT sensor sorter.

Sorting test work results summary:

- The test recovered 71.94% of the copper in 41.80 % of the mass. It

resulted in an upgraded Cu grade of 1.36%, which provided an

upgrade factor of 1.73 times.

Steinert tested a 20 kg sample with a head assay of 0.788% and a size of P100

31.5 + 8mm. The samples have been collected from a stockpile extracted from an

adit dug in the higher grade area of the main Haib deposit. The samples have not

been weathered and are considered representative of the sulphide mineralized

material at Haib.

Ore sorting was applied to the feed sample on a tw o-pass basis to generate a high-

grade product and a high recovery product.

The results showed that the first pass recovered 52.45% of the copper in 19.75% of

the mass. It resulted in an upgraded grade to 2.091% Cu, resulting in an upgrade

factor of 2.66.

The sorting was performed on a two-pass basis with the same algorithm but a more

aggressive recovery setting applied to the “waste of the first pass”. The cumulative

first and second passes results were as follows:

The cumulative pass recovered 71.94% of the copper in 41.80% of the mass. It

resulted in an upgraded Cu grade of 1.36%, resulting in an upgrade factor of 1.73.

Grade in the remaining waste was 0.38% Cu.

Steinert recommends additional test work on a larger sample to confirm the sorting

results and to allow for program optimization.

Mr John Akwenye, Chairman of Deep-South stated that: “The Steinert test is

very promising. The high copper grade generated by nearly half of the mass

treated opens up new options to extract the copper from the minerali zed

material. With the recent Mintek results, we also know that bio-assisted

leaching is a good option to extract the copper from the lower grade tails”.

The Steinert KSS FL1 XT sensor sorter uses X-ray transmission, which measures

the absorption (atomic density). The rock is conveyed on a belt in a closed system.

The X-ray source is situated below the belt. The X-rays are emitted from below and

pass through the rock and reach up the detector board over the belt. The detector

uses a 3D laser sensor and a colour camera. The board will then detect the lower

and higher grade material by calculating the X-ray absorption levels by the rocks.

The lower grade material will then be conveyed on a specific belt and the higher

grade material will be conveyed on another route. See the diagrams below:

XRT Detector Board XRT Detector Board

XRT Source XRT Source

X-rays Transmitted

X-rays absorbed by rock

X-rays Emitted

Source of the diagrams: Steinert, Australia.

Heap leaching test work:

The column leaching test is underway at Mintek in Johannesburg, South Africa. The test

is run at a temperature of 60 °C for a total duration of 200 days. However, interim results

will be available regularly and will be disclosed during the test work scheduled to

continue until December 2019.

Qualified Person:

Damian E.G. Connelly, BSc (Applied Science), FAusIMM, CP (Met), Director of Mineral

Engineering Technical Services (METS) is responsible for the technical part of this press

release and is the designated Qualified Person under the terms of National Instrument

43-101.

About Steinert:

Steinert was founded in 1899 in Germany and today has subsidiaries in the USA,

Australia and Brazil. Steinert is a worldwide leader in magnetic and sensor sorting and

separation technologies. Its technologies are used in a diversity of markets such as

metal recycling, waste recycling, slag and ash, and mining. You can visit Steinert at:

https://steinertglobal.com

About Mintek:

Mintek is South Africa’s national mineral research organisation established in 1934

to assist in ensuring sustainable growth in the minerals and metal industries through

research, development & innovation (RDI). The organisation has grown over the years

into an internationally competitive, respected research and development centre of

metallurgical and mineral processing technologies. Mintek’s biotechnology division has

been involved in the development of tank and heap bio-leaching technologies for over 30

years. Mintek also specialises in hydrometallurgy, including leaching, precipitation,

solvent extraction and electrowinning. You can visit Mintek at : https://www.mintek.co.za

About METS :

Established in 1988, Mineral Engineering Technical Services provides a range of

services in the fields of minerals processing, hydrometallurgy and pyrometallurgy. METS

is the engineering company that produced Deep-South’s Preliminary Economic

Assessment (PEA) disclosed on February 26, 2018. You can visit METS at :

https://www.metsengineering.com

About Deep-South Resources Inc.

Deep-South Resources Inc. is a mineral exploration company largely held by Namibian

shareholders and Management with 25% and Teck Resources Ltd with 28% of Deep-

South share capital. Deep-South currently holds 100% of the Haib Copper project in

Namibia, one of the largest copper porphyry deposits in Africa. Haib hosts a 43-101

indicated resource of 457 million tonnes @ 0.31% Cu and an inferred resource of 342

million tonnes @ 0.29% Cu. Deep-South also holds 75% of the Kapili Tepe copper,

nickel, cobalt project in Turkey. Deep-South’s growth strategy is to focus on the

exploration and development of quality assets, in significant mineralized zones, close to

infrastructure, in stable countries.

This press release contains certain "forward -looking statements," as identified in Deep - South’s

periodic filings with Canadian Securities Regulators that involve a number of risks and uncertainties.

There can be no assurance that such statements will prove to be accurate and actual results and future

events could differ materially from those anticipated in such statements. 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.

More information is available by contacting Pierre Léveillé, President & CEO at

+1-819-340-0140 or at: [email protected] or

Paradox Public Relations at +1-514-341-0408.