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MKR.V ·

Melkior Drilling Update

Exploration Programs

Head Office: 66 Brousseau Ave., Suite 207, Timmins, ON P4N 5Y2 Canada

MELKIOR DRILLING UPDATE

September 12, 2017 Trading Symbol: MKR

TSX Venture Exchange

Timmins, Ontario. Melkior Resources Inc. (“Melkior ”) is pleased to provide an update to ongoing

exploration in the Target “G” Area of the Carscalle n Project in Timmins, Ontario, henceforth

referred to as the “Behemoth Zone”. Drilling is ong oing, with sixteen holes (~3,000m) completed

to date. The drill program has generally been imple mented as described in the 2017 Exploration

Plan available on the Melkior website ( http://www.melkior.com/wp-content/uploads/MKR-2017-

Exploration-Plan.pdf ).

This news release focuses on initial observations from the Behemoth Zone.

CAR-17-13 (Az 250 -45, UTM NAD83 Zone 17 451735E 5356571N) was drilled to final depth of

565 m.

CAR-17-14 (Az250/ -50), CAR-17-15 (Az250/ -70) were both drilled from the same setup 50 m

north of CAR-17_13 to 195 m and 164 m, respectively.

The most recently completed drill hole, CAR-17-16, was collared 50 m south of CAR-17-13 (Az

250/-52) and drilled to a depth of 550 m.

These four drill holes have collectively identified 100 m of strike length of a north-south trending

mineralized fault zone. This mineralized structure was encountered at shallow depths (<100m) in

close proximity to Melkior’s eastern boundary. This structure is on-strike with the Zamzam Zone,

located 1.8 km to the north. Visual observations are encouraging, assays are expected in about one

month.

The “Behemoth Zone”, a second and larger area of in terest, has been encountered by both CAR-

17-13 and CAR-17-16 at depths ranging from 225 m to 425 m downhole. The Behemoth Zone is

comprised of multiple distinct mineralized zones in both of these drill holes. Observations indicate

that the mineralization in these two drill holes is related to a broad complex (north-south trending?)

structure that has experienced multiple periods of deformation. There seems to be a general

commonality to the zones where the granite has been crushed, circulating hydrothermal fluids

produce a pronounced silicified zone marginal and within these cataclastic zones. Multiple periods

of deformation have locally produced further cataclastic deformation, brittle failure with associated

quartz veining, brecciation with associated intense silicification and shearing. Pyrite is commonly

associated with these cataclastic zones and later s ilicifying and mineralizing events. Visible gold

was observed in one location in CAR-17-13 within a structural zone.

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Of note is the newly documented surficial gold occu rrence within the swampy area overlying the

Behemoth Zone that assayed 9.5 g/ton gold. The mineralization observed in the outcrop is within a

silicified cataclastic zone in the granite that hosts a multi-episodic quartz vein (Az 290, -70E) up to

30 cm wide. One of the interesting sections observe d in CAR-17-13 is thought to be the 200 m

down dip extension of this new gold showing.

Of special note is that the Behemoth Zone appears t o be co-located with an interpreted IP

chargeability anomaly with a north-south trend. His torically it has been difficult to correlate IP

anomalies on the Carscallen project to gold occurrences due to the narrow width of the mineralized

zones. The correlation of the Behemoth Zone to an IP anomaly would be considered to be a positive

development.

Also of special note is that within the central portion of the Behemoth Zone is a lamprophyry dyke

several meters wide. Lamprophyrs are indicative of deep seated structural breaks. The magnetic

signature lamprophyre indicates its trend is subpar allel to the surficial gold bearing whaleback

outcrop and the adjacent regional diabase dyke to t he west. The colocation of these individual

intrusive members with the Behemoth Zone reinforces the potential for a large and complex north-

south trending structural zone.

Jim Deluce, CEO of Melkior comments, “Visible gold within the Behemoth Zone is encouraging

however its significance needs to be established th rough assays. I anticipate a pause in drilling to

allow us to assess the assay results. We hope that the assays will support our continued drilling.”

Wade Kornik, P.Geo., has approved the information c ontained in this release. Mr. Kornik is the

Exploration Manager of the Company and is Qualified Person as defined by National Instrument

43-101.

ON BEHALF OF THE BOARD

Keith James Deluce, CEO

For more information, please contact:

Melkior Resources Inc.

E-mail: [email protected]

Tel: 705-267-4000

The reader is invited to visit Melkior's web site www.melkior.com.

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.