Pinecrest Announces Drill Program at Its 100% Owned Enchi GOLD Project, Ghana

PINECREST RESOURCES LTD.

NEWS RELEASE

PINECREST ANNOUNCES DRILL PROGRAM AT ITS 100% OWNED ENCHI GOLD PROJECT, GHANA

May 24, 2017 TSX-V: PCR

Vancouver, British Columbia: Pinecrest Resources Ltd. (TSX -V: PCR ) (the “ Company” or “ Pinecrest”) is

pleased to announce a 3,000 metre Reverse Circulation (“RC”) drill program planned to commence during Q3,

2017 on the 100% owned Enchi Gold Project (“Enchi or the Project”) , located in Southwest Ghana, a region

well-known for prolific gold production. The region hosts numerous historical and current operating open pit

and underground gold min es located along strike to the n ortheast of the Project. All figures are in United

States dollars, unless otherwise stated.

Highlights

 Pinecrest to initiate RC drilling program on shallow extensions of the existing , one million ounce,

heap leach, Inferred gold resource (37.36 Mt @ 0.9 g/t) at Enchi

 Planned work program includes 3,000 meters in 27 RC drill holes

 Past work at Enchi has included extensive RC and diamond drilling (52,385 m in 646 holes), resource

estimation and a Preliminary Economic Assessment (“PEA”) study (Pre-Tax NPV 5%: $10 2 million

using $1,300/oz gold)

 The Enchi gold deposit remains open for further resource expansion along strike and to depth.

Numerous, additional high priority gold targets exist on the 568 km2 property

Ryan King, President of Pinecrest, commented: “Pinecrest is please d to be advancin g the Company’s

logistically sound Enchi Gold Project. The Enchi gold deposit covers 40 km of the prolific Bibiani Shear Zone

that host the Chirano gold mine operated by Kinross Gold Corporation located 70 km northwest of the

Project. The Enchi deposit i s open along strike and to depth with the 2017 drill program focussed on testing

potential deposit extensions and high priority targets generated by previous exploration and drilling.”

The Enchi Gold Project is road accessible, is on the Ghanaian power grid and is situated along t he eastern

margin of the Sefwi g old belt that hosts multi-million ounce producing mines such as the Chirano Gold Mine

and past producing Bibiani Gold Mine . Enchi includes six prospecting licenses within a total 568km 2 land

package. Previous work carried out on the project has included: RC and diamond drilling (52,385 m), airborne

surveys, soil samples and trenching from numerous targets which resulted in an Inferred Resource Estimates

and a Preliminary Economic Assessment conducted on three main gold zones (Boin, Nyam and Sewum) . All

zones within the Inferred Resource are open for expansion down dip and along strike, particularly the Boin

zone that has undrilled internal gaps in the well -defined structure of up to 400 metres in strike length .

Additional new high priority targets include Boin Northwest and Kojina Hill both located within 10 km of the

main Boin zone where previous work completed includes trenching and drilling.

Enchi Gold Project Preliminary Economic Assessment Highlights

A NI 43 -101 compliant Preliminary Economic Assessment (the “PEA” or the “Study”) was prepared by WSP

Canada Inc. (“WSP”) using a base case Inferred Mineral Resource of 1.07 million ounces (oz) of gold (37 .3

million tonnes grading 0.9 gram of gold per tonne (g/t Au), at a cut -off of 0.5 g/t Au). The PEA contemplated

an owner operated, open pit, heap leach operation processing 3.0 million tonnes per year (Mtpy). Using a

base case gold price of $1,300/oz, the Study shows that the Project has net Pre-Tax cash flow of $145 million,

a Pre-Tax Net Present Value (NPV) at 5% discount rate of $102 million and an Int ernal Rate of Return (IRR) of

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34%. (See news release linked here dated June 29 , 2015 for full details and Technical Report filed on Sedar

under Pinecrest Resources Ltd.)

Base Case $1,300/oz gold price

Average Mined Gold Grade (g/t) 0.91

Processing Rate (Mtpy) 3.0

Mine Life (years) 8.7

Life-of-Mine (LOM) Strip Ratio 3.16:1

IRR Pre-Tax (%) 34

NPV Pre-Tax (5% Discount Rate) (US$ Million) 102

IRR After-Tax (%) 25

NPV After-Tax (5% Discount Rate) (US$ Million) 62

Initial Capital Cost (US$ Million) 84

LOM Sustaining Capital Cost (US$ Million) 39

Payback (Pre-Tax) (years) 2.8

Payback (After-Tax) (years) 3.4

LOM Cash Costs (US$/oz) 802

Metallurgical Recoveries (oxide/transition/sulphide %) 75/75/73

Total Recovered Gold (oz) 538,450

Average Annual Gold Production (oz) 61,749

Peak Annual Gold Production (oz) 76,210

The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too

speculative geologically to have the economic considerations applied to them that would enable them to be

categorized as mineral reserves. There is no certainty that the preliminary economic asses sment will be

realized. Numbers may not add exactly due to rounding. Cash cost includes all operating costs, royalties,

refining charges, environmental monitoring, tenure fees as well as general and administration costs. Cash

cost excludes any capital cost , either initial or sustaining and closure and remediation costs. Mineral

resources that are not mineral reserves do not have demonstrated economic viability.

Financial Models

The financial models were completed using a base case gold price of US$1,300 per ounce. The Base Case Pre-

Tax economic evaluation has an IRR of 34%, payback of capital in 2.8 years and a pre-tax NPV of $102 million

at a discount rate of 5%.

Table 1 Pre-Tax Financial Model Sensitivity Analysis

Units Metal Price Scenarios

(Base Case)

Gold US$/oz 1,200 1,250 1,300 1,350

NPV, 5% M US$ 62.5 82.5 101.9 122.5

Payback Years 3.4 3.0 2.8 2.7

IRR % 24 29 34 39

The Pre-Tax financial model include s: an initial capital cost of $72.7 million, a contingency of $11.8 million

(20% of direct costs); sustaining capital of $38.6 million including a contingency of $5.3 million and

reclamation and closure costs of $18.3 million. The Financial Model was comple ted on a 100% Project

ownership basis and includes a 5% NSR to the Ghanaian Government and a 2% NSR to Red Back Mining

Ghana, a subsidiary of Kinross. The After -Tax financial model includes a 35% corporate tax, demonstrating a

base case NPV of $62 million at a discount rate of 5%. The Government of Ghana have the right to a 10% free

carry interest in the Project.

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The PEA was based on the July 15, 2014 NI 43-101 Inferred Mineral Resource estimate prepared by WSP and

using a 0.5 g/t cut-off (see Table 2 for details).

Table 2 Enchi Gold Project - Inferred Mineral Resource (0.5 g/t Cut-Off)

Cut-off Zone Tonnes Grade Contained Gold

Au (g/t)

Au (g/t) (ounces)

0.5 Boin 15,872,000 0.96 489,892

0.5 Nyam 5,350,000 0.96 165,129

0.5 Sewum 16,135,000 0.82 423,676

TOTAL 37,357,000 0.90 1,078,697

1. CIM definition standards were followed for the resource estimate.

2. The 2014 resource models used ordinary kriging (OK) grade estimation within a three -dimensional

block model with mineralized zones defined by wireframed solids.

3. A base cut-off grade of 0.5 g/t Au was used for reporting resources with a capping of gold gra des at

18 g/t.

4. A US$1,300/ounce gold price, open pit with heap leach operation was used to determine the cut -off

grade.

5. A density of 2.45 g/cm3 was applied.

6. Numbers may not add exactly due to rounding.

7. Mineral Resources that are not mineral reserves do not have economic viability

The 2014 Mineral Resource estimate was based on 52,385 metres of diamond and RC drilling in 646 holes as

well as data from 102 surface trenches totalling 13,799 metres. The drilling is generally spaced at 25 to 50

metre intervals.

The 2017 Enchi Drill Program

The 2017 RC drill program will include approximately 27 holes totalling 3,000 metres of infill, step out and

exploration drilling on the B oin and Sewum Zones and two new zones outs ide of the maiden I nferred

Resource Boin northwest and Kojina Hill both representing high priority targets based on geological ,

geochemical and geophysical surface work and previous drilling.

BOIN NORTHWEST (‘NW”) TARGET

The Boin NW target is located approximately 1000 metres northwest of the main Boin zone and importantly

not currently included in the NI 43-101 Inferred Resource Estimate or PEA. Previous trenching intersected 26

metres grading 0.61 g/t Au and 40 metres grading 0.54 g/t Au including 10m at 1.64 g/t Au. Past limited

drilling intersected 23m at 0.43 g/t Au and 39m at 0.43 g/t Au within the near surface oxidized material.

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KOJINA HILL TARGET

Kojina Hill is located approximately 400 metres northwest of the Nyam Zone and was not included in the

previous NI 43 -101 Inferred Resource Estimate. P revious drilling highlights from only 8 drill holes included

near surface intercepts of: 42 metres grading 1.68 g/t Au and 17 metres grading 0.94 g/t Au.

Mr. Gregory Smith, P.Geo, the Vice -President of Exploration of the Company, is th e Qualified Person as

defined by NI 43 -101, and is responsible for the accuracy of the technical data and information contained in

this news release.

Subject to regulatory approval, the Company has granted 250,000 stock options to a consultant of the

Company. The options are at an exercise price of $0.53 per share and valid for a period of five years from the

date of grant and have vesting provisions.

About Pinecrest Resources

Pinecrest engages principally in the acquisition, advancement and developme nt of precious metal properties

with the Company’s primary focus being the 100% owned Enchi Gold Project located in Southwest Ghana.

Major shareholders of Pinecrest include Kinross Gold Corporation, Management and Directors.

Pinecrest Resources Ltd.

“Ryan King”

Ryan King

President & Director

For further information contact:

Ryan King

604 628-1012

www.pinecrestresources.com

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.

Cautionary Note Regarding Forward Looking Statements

This news release contains certain forward -looking statements, Any statements that express or involve discussions with respect

to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, bu t not

always, using words or phrases such as “expects” or does not expect”, “is expected”, anticipates” or “does not anticipate”

“plans”, “estimates” or “intends” or stating that certain actions, events or results “ may”, “could”, “would”, “might” or “wi ll” be

taken, occur or be achieved) are not statements of historical fact and may be “forward -looking statements”. Forward-looking

statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially diffe r from

those reflected in the forward-looking statements.

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of

historical fact contained herein, the information presented constitutes “forward -looking statements” within the meaning of

the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with

respect to the price of gold, potential mineralization, reserve and resource determination, exploration results, and future

plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the

actual results, performance or achievement of the Company to be materially different from any future results, performance

or achievements expressed or impl ied by such forward -looking statements. There can be no assurance that such statements

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

statements. Accordingly, readers should not place undue reliance on forward-looking statements.