LPK.V · 2018-05-04 12:00:00

Lupaka Provides Clarification on Disclosure

Regulatory & Compliance

VANCOUVER, BRITISH COLUMBIA, May 04, 2018 -- Lupaka Gold Corp. (" Lupaka

Gold" or the “Company") (TSX-V: LPK, FRA: LQP) reports that, as a result of a review by

the British Columbia Securities Commission (“ BCSC”), it is issuing this news release to

clarify certain technical disclosure.

The Company’s news release dated March 1, 2018 outlining the results of its recent

Preliminary Economic Assessment (“PEA”) did not adequately clarify that the Company’s

Preliminary Economic Assessment is preliminary in nature, that it includes inferred mineral

resources that are considered too speculative geologically to have the economic

considerations appl ied to them that would enable them to be categorized as mineral

reserves, and there is no certainty that the PEA will be realized. Furthermore, readers are

cautioned that mineral resources that are not mineral reserves do not have demonstrated

economic viability.

The Company would also like to clarify the Invicta Project only has Indicated Mineral

Resources and Inferred Mineral Resources, as shown in Table 1 below.

Table 1: Mineral Resource Statement*, Invicta Project, Huaura Province, Peru, SRK

Consulting (Peru) S.A., March 1, 2018

Zone Category

Metal Grade Contained Metal (000's)

Tonne

(000's)

AuEq

(g/t)

(%)

( %)

AuE

(oz)

(lb)

Atenea

All Zones

Indicated 2,516 6.03 4.19 26.68 0.64 0.39 0.47 488 339 2,158 35,513 21,429 25,988

Inferred 535 5.40 5.09 4.77 0.06 0.11 0.16 93 88 82 673 1,315 1,878

Dany

Indicated 55 4.03 1.36 31.57 1.39 0.05 0.06 7 2 56 1,683 59 77

Inferred 4 4.50 1.48 38.57 1.56 0.03 0.06 1 0 5 132 3 5

Pucamina

Indicated 229 4.63 4.02 10.27 0.09 0.31 0.30 34 30 76 443 1,582 1,495

Inferred 21 3.76 3.37 5.32 0.16 0.04 0.08 3 2 4 75 18 35

Ydalias

All Zones

(12)

Indicated 9 7.60 4.38 39.21 1.50 0.37 0.23 2 1 11 294 71 45

Inferred 0 8.00 3.91 51.60 2.00 0.27 0.18 0 0 0 13 2 1

Zone 4

Indicated 190 4.38 3.38 14.93 0.43 0.13 0.09 27 21 91 1,805 536 371

Inferred 16 3.92 1.72 20.79 1.17 0.08 0.05 2 1 11 417 28 20

Total

All Zones

Indicated 2,999 5.78 4.07 24.81 0.60 0.36 0.42 558 392 2,392 39,739 23,678 27,977

Inferred 577 5.29 4.91 5.49 0.10 0.11 0.15 98 91 102 1,311 1,365 1,939

* Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect

the relative accuracy of the estimate. All composites have been capped where appropriate.

** Underground mineral resources are reported at a cut-off grade of 3.0 g/tonnes of gold-equivalent. Cut-off grades are based on a price

of US$1,250 per ounce of gold, US$17.00 per ounce of silver, US$3.00 per pound of copper, US$1.05 per pound of lead and US$1.20

per pound of zinc. The gold -equivalent calculation assumes 85 percent recovery for gold, 80 percent recovery for silver, 82 percent

recovery for copper and lead and 77 percent recovery for zinc.

For additional supporting information please refer to the PEA dated April 13, 2018,

available under the Company’s profile on www.sedar.com as well as on the corporate

website.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term

is defined in the policies of the TSX Venture Exchange) accepts responsibility for

the adequacy of this news release.

About Lupaka Gold

Lupaka is an active Canadian-based company focused on creating shareholder value

through discoveries and strategic development of its assets in some of the most prolific

mining regions of Peru.

Invicta Gold Development Project – 100% owned, the Company’s flagship project is an

advanced stage gold-copper polymetallic underground deposit located approximately 120

kilometres north of Lima. Over $12 million of capital has been spent by previous owners

on development and infrastructure at Invicta , and m anagement expects to commence

potential production in the second half of 2018 by using third-party mining contractors and

utilizing the existing adit and workings. The Invicta project is fully permitted and community

agreements are in place.

The potential underground operation will be focused on the extraction of Indicated Mineral

Resources and Inferred Mineral Resources from the Atenea vein within close proximity to

the existing 3400 Level adit (up to 130 metres above the 3400 Level).

Invicta’s approved EIA allows for mine production of up to 1,000 tpd, although the current

mining plan is targeting 350 tpd.

FOR FURTHER INFORMATION PLEASE CONTACT:

Will Ansley, President & C.E.O.

[email protected]

Tel: (416) 862-5257

or visit the Company’s profile at www.sedar.com or its website at www.lupakagold.com

Qualified Person

The technical information in this document has been reviewed and approved by Julio

Castañeda Mondragon, MAIG, the President of Lupaka Gold Peru S.A.C. , a Peruvian

subsidiary of the Company, and a Qualified Person as defined by National Instrument 43-

101.

Cautionary Statements Regarding Forward Looking Information

All statements, trend analysis and other information contained in this press release relative

to anticipated future events or results constitute forward -looking statements. All

statements, other than statements of historical fact, included herein, includin g, without

limitation, statements relating to improvements in the road to the Invicta Project and its

anticipated benefits and the timing of completion of the improvements, the timing of the

commencement of potential production from the Invicta Project and the generation of cash

therefrom, the anticipated methods of production, the receipt of and anticipated use of

proceeds of the PLI Financing, the Company’s plans and intentions for Invicta, mineral

resource estimates , are forward -looking statements. Forwa rd-looking statements are

based on assumptions, estimates and opinions of management at the date the statements

are made that the Company believes are reasonable, including: that the repayment of the

PLI Financing is consummated on the anticipated terms, t hat the supplies, equipment,

personnel, permits, and local community approvals required to conduct the Company's

planned pre-production and development activities will be available on reasonable terms,

that the Company will be able to comply with the delivery and other obligations in the PLI

Financing Agreement, that results of exploration activities will be consistent with

management's expectations and that the Company will not experience any material

accident, labour dispute, or failure of equipment and with respect to the planned mining

operations at Invicta; that pre-production mine development can be completed in the time

and for the cost projected; that the Company will be able to obtain funding for planned

production expenses; that mineralization at I nvicta will be of the grades and in the

locations expected; that the Company will be able to extract and transport mineralized

rock efficiently and sell the mineralized rock at the prices and in the manner and quantities

expected; that permits will be received on the terms and timeline expected and that other

regulatory or permitting issues will not arise; that mining methods can be employed in the

manner and at the costs expected and that such methods yield the results the Company

expects them to. However , forward -looking information involves known and unknown

risks, uncertainties and other factors which may cause the actual results, performance or

achievements of the Company to be materially different from any future results,

performance or achievements e xpressed or implied by the forward -looking information.

Such risks, uncertainties and other factors include, among others: all of the risks

described in this news release; failure of the PLI Financing to complete on the proposed

terms or at all, including due to the Company’s inability to complete the conditions

precedent, the risk that actual results of exploration and development activities will be

different than anticipated; that the Company will not be able to comply with the delivery or

other obligations in the PLI Financing Agreement and the risk that PLI will enforce its

security over the Company’s assets, including its mineral properties; that cost of labour,

equipment or materials will increase more than expected; that the future price of gold will

decline; that the Canadian dollar will strengthen against the U.S. dollar; that mineral

resources are not as estimated; unexpected variations in mineral resources, grade or

recovery rates; risks related to shipping mineralized rock; the risk that local mi lls cannot

or will not buy or process mineralized rock from the planned production for the prices

expected or at all; risk of accidents, labour disputes and other risks generally associated

with mineral exploration; unanticipated delays in obtaining or failure to obtain community,

governmental or regulatory approvals or financing; and all of the risks generally associated

with the development of mining facilities and the operation of a producing mine, as well as

the risks described in the Company’s annual i nformation form, which is available on

SEDAR at www.sedar.com. Although the Company has attempted to identify important

factors that could cause actual actions, events or results to differ materially from those

described in forward-looking information, there may be other factors that cause actions,

events or results to not be as anticipated, estimated or intended. There can be no

assurance that forward-looking information will prove to be accurate, as actual results and

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

are cautioned not to place undue reliance on forward -looking information due to the

inherent uncertainty thereof. Lupaka Gold does not undertake any obligatio n to update

forward-looking statements except as required by applicable securities laws. Investors

should not place undue reliance on forward-looking statements.

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