Stuhini Exploration Ltd. Options Ruby Creek Property

Stuhini Exploration Ltd. Options Ruby

Creek Property

VANCOUVER, July 30, 2019 /CNW/ - Stuhini Exploration Ltd.

("Stuhini" or the "Company") (TSX-V:STU) is pleased to announce

that it has entered into an option agreement (the "Agreement") with

Global Drilling Solutions Inc. ("Global Drilling") whereby Stuhini can

acquire a 100% interest in Global Drilling's Ruby Creek Property (the

"Property"), located in north western British Columbia, Canada (the

"Option").

"We are delighted with this Agreement as it provides the Company a

low risk opportunity to conduct a modern gold exploration program on

these tenures in what we believe to be an emerging gold district", said

David O'Brien, President and CEO. "This project is road accessible

and at lower elevation than our Metla property, thus allowing a longer

and less expensive window for exploration while at the same time

enjoying the benefits that both of these projects are serviced out of

Atlin. The unique aspect of the Ruby Creek Property as a potential

gold prospect is that the Property also hosts the Ruby Creek

Molybdenum (Mo) historic resource. This potential acquisition is in line

with our goal of enhancing shareholder value by acquiring and cost-

effectively exploring high potential mineral projects in western

Canada."

The Property is 26,990 hectares in size, is road accessible and is

located 20 kilometres from the nearby town of Atlin. There are 48

different documented mineral occurrences on the Property, of which

16 are gold-related, with 4 active gold placer creeks. The Property

also hosts the Ruby Creek Moly resource which, using a 0.04% Mo

cut-off grade, has a historic measured mineral resource of 43.642

million tonnes at 0.078% Mo, an indicated mineral resource of

231.712 million tonnes grading 0.065% Mo and an inferred mineral

resource of 39.076 million tonnes at 0.062% Mo.

The Ruby Creek Mo resource estimate was prepared by K. Palmer of

Golder Associates in a report dated May 28, 2009 titled Ruby Creek

Molybdenum Project in Northern British Columbia, Canada. The

resource estimate was established using 338 drill holes with a

combined length of approximately 69,200m and 21,651 assay

samples. A Qualified Person has not done sufficient work to classify

the historical estimate as a current mineral resource or mineral

reserve. Stuhini is not treating the historical estimate as a current

mineral resource or mineral reserve, has not verified the historical

resource estimate and is not relying on it. Stuhini currently does not

plan to conduct any work to verify the historical resource estimate.

Stuhini can earn a 100% interest in the Property by issuing up to

7,300,000 common shares and making cash payments of up to

$1,060,000 over a four year term to exercise the Option.

The only committed payment is the issuance of 800,000 shares at the

Approval Date, being the date of acceptance of the Agreement by the

Exchange. The balance of the share issuances and the cash

payments are all at the Company's election should it wish to maintain

the Option after year 1. Upon exercise of the Option, Global Drilling

would be entitled to a 1% net smelter returns royalty on the Ruby

Creek property. In the event that the Company has not received

Exchange approval within 120 days of the date of execution of the

Agreement, Global Drilling is entitled to terminate the Agreement, in

which event the Company is obligated to pay Global Drilling a fee of

$60,000.

Date for Completion Shares Cash Payment

Approval Date 800,000 Nil

1st anniversary of Approval Date 1,250,000 Nil

2nd anniversary of Approval Date 1,750,000 $120,000

3rd anniversary of Approval Date 1,750,000 $300,000

4th anniversary of Approval Date 1,750,000 $640,000

TOTAL 7,300,000 $1,060,000

Global Drilling is a private BC Company wholly owned by Mr. Barry

Hanslit, an insider of the Company who currently holds 1,250,000

shares of the Company, representing 12.26% of the outstanding

shares of the Company. As Mr. Hanslit is an insider of the Company,

the transaction with Global Drilling constitutes a "related party

transaction" within the meaning of TSX Venture Exchange policy 5.9

and Multilateral Instrument 61-101 ("MI 61-101"). The Company is

relying on the exemptions from the formal valuation and minority

approval requirements of MI 61-101 contained in sections 5.5(b) and

5.7(1)(b) of MI 61-101 in respect of the related party transaction.

The Agreement is subject to approval of the TSX-V and will require

disinterested approval of the shareholders of the Company.

The technical disclosures contained in this news release have been

approved by Andrew Wilkins, P. Geo. who is a "Qualified Person" for

the purposes of National Instrument 43-101 - Standards of Disclosure

for Mineral Projects.

About Stuhini Exploration Ltd.: Stuhini is a mineral exploration

company focused on the exploration and development of precious and

base metals properties with its primary focus on the Metla Property

located in northwestern British Columbia, Canada, approximately 150

kilometres south of the town of Atlin.

Forward-Looking Statements

This was release contains "forward‐looking information " within the

meaning of Canadian securities laws, which may include, but are not

limited to statements relating to the Option, the exercise of the Option

and obtaining regulatory and shareholder approvals. All statements in

this release, other than statements of historical facts, that address

events or developments that the Company expects to occur, are

forward-looking statements. Although the Company believes the

expectations expressed in such forward-looking statements are based

on reasonable assumptions, such statements are not guarantees of

future performance and actual results may differ materially from those

in the forward-looking statements. Factors that could cause the actual

results to differ materially from those in forward-looking statements

include regulatory actions, fluctuations in metal and commodity prices,

market prices, failure to obtain permits, and continued availability of

capital and financing, and general economic, market or business

conditions. In particular, there is no guarantee that exploration work,

as proposed, or otherwise, will be completed on the Property or that

the Option will be exercised. Such forward-looking information reflects

the Company's views with respect to future events and is subject to

risks, uncertainties and assumptions, including those set out in the

Company's prospectus. Investors are cautioned that any such

statements are not guarantees of future performance and actual

results or developments may differ materially from those projected in

the forward-looking statements. There can be no assurance that any

forward-looking statements or information will prove to be accurate as

actual results and future events could differ materially from those

anticipated in such statements or information. Accordingly, readers

should not place undue reliance on forward-looking statements or

information. Except as required by applicable securities laws, the

Company undertakes no obligation to update these forward-looking

statements in the event that management's beliefs, estimates or

opinions, or other factors, should change.

Neither TSX Venture Exchange nor its Regulation Services Provider

(as that term is defined in policies of the TSX Venture Exchange)

accepts responsibility for the adequacy or accuracy of this release.

SOURCE Stuhini Exploration

View original content:

http://www.newswire.ca/en/releases/archive/July2019/30/c5634.html

%SEDAR: 00046568E

For further information: David O'Brien, President & Chief Executive

Officer, Telephone: (604) 418-4019, Email: [email protected]

CO: Stuhini Exploration

CNW 09:00e 30-JUL-19