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PHD.V ·

Soil Sampling Discovers More Gold Targets at Providence

Exploration Programs Sampling & Geoscience Results

May 16, 2018 Trading Symbol: PHD

News Release

Soil Sampling Discovers

More Gold Targets at Providence

VANCOUVER, BRITISH COLUMBIA - Providence Gold Mines Inc. (TSXV: PHD) ("Providence" or the

"Company") is pleased to announce the final results of the soil sampling program completed at its

Providence Gold Property located in the Eastern Gold Belt of the California Mother Lode Gold Dist rict.

The results in the now completed phase one program successfully indicated a 2200 metre long by up to

900 metre wide area in which the Company’s 2017 exploration outlined four past producing, north

trending, east dipping, gold bearing veins. From east to west the veins are Starr, Providence Extension,

Fairplay and Providence. The veins are all part of the Providence Vein System that extends 10 km from

the former producing Buchanan Mine in the south to the Soulsby Mine in the north . Within the

sampled area, there are several past producing gold mines including the Providence, Consuelo,

McCarthy and Bonita. The results of the soil survey are summarized below.

SOIL SAMPLE RESULTS SUMMARY

PROVIDENCE GOLD MINES INC: BREAKDOWN OF SOIL SAMPLE -PROVIDENCE

PROPERTY

Description # of Samples

Total # Soil Samples Collected 472

Results Breakdown by Grouping Au PPB

10-14.9 47

15-24.9 35

25-49.9 14

50-99.9 9

>100 15

Total # Samples considered anomalous 120

Suite 750 – 580 Hornby Street, Vancouver, B.C. V6C 3B6

Telephone: 604-602-4935  Fax: 604-602-4936

Website: www.providencegold.com

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Maximum Values are as follows:

149 ppb Au Bonita (Fairplay Vein)

7290 ppb Au McCarthy Shaft Area (Consuelo-Fairplay Vein)

2456 ppb Au McCarthy Shaft Area (Consuelo-Fairplay Vein)

1852 ppb Au Providence Shaft (Fairplay Vein)

114 ppb Au Phoenix Shaft (Fairplay Vein S)

159 ppb Au Providence Ext Vein

258 ppb Au Providence (North)

1776 ppb Au Providence (South)

The 10 ppb Au in soil contour outlined all four gold bearing vein systems, and potential high grade

shoots within the veins.

The Fairplay Vein is overlain by a 2000 metre long by up to 100 metre wide and open along strike gold

in soil anomaly. The anomaly overlies the formerly producing Bonita, Consuelo, Providence and

Phoenix Mines. Within the anomaly gold values are generally less than 50 ppb Au with occasional

spikes from >250 ppb Au to a maximum of 7290 ppb Au. Higher grade soil values tend to cluster in the

vicinity of the shafts possibly reflecting ground contamination or gold bearing shoots. The Fairplay soil

anomaly is best develo ped on the property in the northernmost 1200 metres of the Fairplay Vein. To

the south the anomaly is less developed with higher values coinciding with samples taken in the vicinity

of the Phoenix Shaft.

Soil sampling in the northern portion of the projec tion of the Providence Vein outlined a 350 metre

long by up to 50 metre wide soil anomaly with values ranging to 258 ppb Au. Within the anomaly there

are several small adits. Approximately 600 metres to the south of th e above, limited sampling has

outlined a 100 metre long x 25 metre wide and open along strike gold in soil anomaly. Maximum value

is a sample assaying 1776 ppb Au taken from an area of historical drifting.

Sampling in the vicinity of the Providence Extension showed two sites to contain anomalous gold values

with one site assaying 159 ppb Au, the other 30 metres to the north assaying 12 ppb Au.

Soil sampling along strike to the north of the formerly producing Star King Mine located on the

properties eastern boundary showed a 400 metre long by up to 75 metre wide long anomaly in which

the values range between 10 and 25 ppb Au. The soil anomaly appears to merge with the Fairplay

Anomaly in the vicinity of the Consuelo Shaft.

Soil samples were collected on a grid using pre -determined GPS poin ts. The grid was oriented with

lines striking at 32 o. Spacing between lines was 50 metres with stations established at 25 metre

intervals along the lines. At each site the station was established and a “B Horizon” soil collected using

a mattock or shove l at depths ranging from 15 to 30 cm. The samples were placed into kraft paper

sample bags, identified and stored in company residences prior to being sent for analysis. All assaying

was completed by Bureau Veritas Inspectorate Labs in either Reno, Nevad a or Vancouver, Canada.

Bureau Veritas Inspectorate Labs has a worldwide ISO 9001 certification for its labs.

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Qualified Person

John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43 -101) has prepared

and approved the technica l information contained in this news release. Mr. Kowalchuk is a senior

geologist consulting to the Company.

ON BEHALF OF THE BOARD

“Ronald Coombes”

Ronald Coombes, President & CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

Telephone: 1-604-602-4935

Facsimile: 1-604-602-4936

Contact: Robert Eadie

or

Ronald Coombes

Mobile: 1- 604- 724-2369

[email protected]

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