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PEX.V ·

Pacific Ridge Closes Fyre Lake Option to Bmc Minerals

Corporate Updates

N E W S R E L E A S E #17 - 01

Suite 1100 ‐ 1111 Melville Street

Vancouver, British Columbia V6E 3V6

Tel.: 604.687.4951

www.pacificridgeexploration.com

PACIFIC RIDGE CLOSES FYRE LAKE OPTION TO BMC MINERALS

Vancouver, B.C. – January 18, 2017 – Pacific Ridge Exploration Ltd. (TSX Venture: PEX) ("Pacific Ridge" or the

"Company") reports that it has closed the Fyre Lake option to BMC Minerals (No. 1) Ltd. (“BMC”) announced

December 28, 2016. In addition to the initial $25,000 deposit, BMC has now paid the remaining $50,000

signing payment and the initial $300,000 option payment. Total consideration payable to the Company to

exercise the option is $2,575,000 in the case of the one year option or $3,095,000 in the case of the two year

option (see below). In addition, a bonus payment of $1,000,000 is payable to the Company if the option is

exercised and if and when BMC’s Kudz Ze Kayah property has reached commercial production for one year.

BMC has been granted two options effective as of the closing; the first, a one year option whereby, in order to

maintain and exercise the option , in addition to the $3 75,000 payment already made, it must pay the

Company $2,200,000 no later than one year after closing, or the second, a two year option whereby , in order

to maintain and exercise the option , in addition to the $375,000 payment already made , it must pay the

Company $300,000 no later than one year after closing and $2,420,000 no later than two years after closing.

About Pacific Ridge

Pacific Ridge is a mineral exploration company with a successful history of over 30 years.

The Company’s TL Zinc project is a 6,420 hectare, road accessible zinc -lead-silver property located 80 km

northeast of Vernon, British Columbia, ideally situated with nearby highways, electrical power grid and rail.

The target at TL is a large Broken Hill type or SEDEX (Sedimentary Exhalative) Zn-Pb-Ag massive sulfide deposit.

The Phase I drill program was temporarily suspended after 2 holes due to extreme winter weather and is

planned to re-commence in late spring.

The Company’s Poker Brown gold-silver project is located 190 km from Reno, Nevada. The target is a large,

bulk tonnage, heap leachable gold deposit. Numerous gold mines and advanced projects are located within an

80 km radius of the property. Drill testing of Poker Brown is planned for early spring 2017.

The Company holds a well-located project portfolio in Yukon’s White Gold District, including Mariposa, Eureka

Dome and Gold Cap, in the same geological environment as Goldcorp’s Coffee Gold Project (acquired from

Kaminak Gold earlier in 2016) and Kinross Gold’s White Gold deposit.

About BMC

BMC Minerals (No.1) Limited is the Canadian subsidiary of BMC (UK) Limited, a mining development company.

It was created as the result of a strategic relationship between a team of established mine developers and a

major natural resources private equity group focused on advancing superior base metals assets into

development. The BMC executive team has a strong track record of discovery, development and operation of

independent zinc, copper and other base metals projects worldwide. BMC seeks to identify, acquire and

develop a portfolio of metals assets during the current depressed commodity prices, with the express intent of

delivering a new suite of mining ready production assets into the next commodity cycle upturn.

BMC is the owner of the Kudz Ze Kayah (“KZK”) project in the south east Yukon nearby the Fyre Lake Cu-Au-Co

project. The company identified the KZK Project as having the potential for full mine development due to its

size, grade, metallurgical properties and the opportunity for resource growth. BMC is currently engaged in a

program of assessing histori cal work, extensive seasonal resource drilling, economic assessment, baseline

environmental studies and community engagement which should culminate in the submission of a mine

development application for KZK to the Yukon Environmental and Socio -Economic Assessment Board in the

first quarter of 2017.

On behalf of the Board of Directors,

“Gerald G. Carlson”

Gerald G. Carlson

President & CEO

Pacific Ridge Exploration Ltd.

For further information, contact:

Pacific Ridge Exploration Ltd.

Gerald G. Carlson

President & CEO

Tel: (604)687-4951

www.pacificridgeexploration.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture Exchange) accepts

responsibility for the adequacy or accuracy of this release.

The technical information contained within this News Release has been reviewed and approved by Gerald G. Carlson ,

Ph.D., P.Eng., President and CEO of Pacific Ridge and Qualified Person as defined by National Instrument 43-101 policy.

Forward-Looking Information: This release includes certain statements that may be deemed "forward -looking statements". All statements in this

release, other than state ments of historical facts, that address exploration drilling and other activities and events or developments that Pacific Rid ge

Exploration Ltd. ("Pacific Ridge") expects to occur, are forward -looking statements. Forward-looking statements in this news rel ease include statements

regarding the exercise of the options and future exploration plans and expenditures. Although Pacific Ridge believes the expectations expressed in such

forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual r esults or

developments may differ materially from those forward -looking statements. Factors that could cause actual results to differ materially from those in

forward looking statements include market prices, exploration successes, and continued availability of cap ital and financing and general economic,

market or business conditions. These statements are based on a number of assumptions including, among other things, assumptio ns regarding general

business and economic conditions, that one of the options will be exe rcised, the ability of Pacific Ridge and other parties to satisfy stock exchange and

other regulatory requirements in a timely manner, the availability of financing for Pacific Ridge’s proposed programs on reasonable terms, and the ability

of third party s ervice providers to deliver services in a timely manner. 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. Pacific Ridge does not

assume any obligation to update or revise its forward -looking statements, whether as a result of new information, future events or otherwise, except as

required by applicable law.