RKR.V · 2019-08-16 12:00:00

Rokmaster Announces Execution of an Indicative Term Sheet for an Option to Acquire the J&L Gold-Polymetallic Project From Huakan

Mergers & Acquisitions Property Options & Staking

Rokmaster Announces Execution of an

Indicative Term Sheet for an Option to Acquire

the J&L Gold-Polymetallic Project From

Huakan

VANCOUVER

Aug. 16, 2019

/CNW/ - Rokmaster Resources Corp. ("

Rokmaster

" or the

Company

") is pleased to announce that on

August 7, 2019

it has executed a non-binding Indicative

Term Sheet (the "

Term Sheet

") with Huakan International Mining Inc. ("

Huakan

") in respect of

Huakan's grant to Rokmaster of an option (the "

Option

") to acquire a 100% interest in the J&L

Project, one of the larger undeveloped precious and polymetallic deposits in British Columbia (the

J&L Property

" or "

J&L

"), including mineral claims, surface lands, crown grants, equipment,

improvements and all associated assets, which Rokmaster can exercise by paying Huakan an

aggregate of

Cdn$44,200,000

in cash on the following schedule:

Cdn$200,000

on the date of execution (the "

Execution Date

") of a Definitive Agreement in

respect of the Option;

an additional

Cdn$1,000,000

on or before the date which falls 12 months from the Execution

Date;

an additional

Cdn$4,000,000

on or before the date which falls 24 months from the Execution

Date;

an additional

Cdn$6,000,000

on or before the date which falls 36 months from the Execution

Date;

an additional

Cdn$13,000,000

on or before the date which falls 48 months from the Execution

Date; and

an additional

Cdn$20,000,000

on or before the date which falls 60 months from the Execution

Date.

In addition, to maintain the Option, Rokmaster is to complete an updated Preliminary Economic

Assessment on the J&L Property during the first year following the Execution Date.

Rokmaster is to have the right and option, upon 4 months prior written notice to Huakan of

Rokmaster's intention to exercise the Option, to require Huakan's shareholders to transfer all of

Huakan's shares to Rokmaster upon Rokmaster having paid the Aggregate Option Price to Huakan.

Rokmaster has been granted exclusivity for a 60-day period commencing

August 7, 2019

, during

which it shall complete due diligence and the parties are to negotiate the Definitive Agreement.

The J&L Property

The J&L Property consists of 18 mineral tenure claims and 10 crown granted claims for a total of

3,150.74 hectares. Huakan currently owns a 100% interest in the J&L Property and assets thereon

without any underlying royalties.

The J&L Property is located 35 km north of

Revelstoke

within the Selkirk Mountains near the north

end of the Kootenay Arc, a complex sequence of east dipping Neoproterozoic to Lower Paleozoic

metasedimentary and metavolcanic rocks. The belt is characterized by tight to isoclinal folds and

generally west verging thrust faults and greenschist grade regional metamorphism. The J&L

Property is underlain by north to northwest striking, moderate to steeply east dipping metasediments

and metavolcanic rocks of the Hamill and Lardeau Group and Badshot and Mohican

Formation rocks.

The J&L Property has two known and significant precious and polymetallic mineral deposits. The

Main Zone is a structurally controlled replacement deposit overprinting a pre-existing silver-lead-zinc

deposit known as the Yellowjacket Zone. The Main Zone sheeted sulphide system is composed of

banded massive and stringer arsenopyrite-pyrite-sphalerite-galena mineralization with appreciable

content of gold and silver. The Main Zone has been traced on surface by geological mapping,

prospecting, trenching and soil sampling for a strike length of over 3 km and traced by drilling for

1,500 meters in strike length and 800 meters down dip, generally dipping approximately 60 degrees

to the northeast with an average true thickness of 2.5 metres, however, in places it reaches 15

metres in true thickness.

The silver-lead-zinc-rich Yellowjacket Zone is considered to be an Irish type carbonate replacement

deposit composed of multiple parallel siliceous sphalerite-galena bearing zones. The individual

mineralized zones making up the Yellowjacket Zone occur as lenticular bodies each up to 8 metres

thick at the contact between alternating units of volcanic rocks and limestone. The Yellowjacket

Zone sub parallels and is in the immediate hanging wall of the Main Zone, and has higher silver, lead,

and zinc grades than the Main Zone.

Numerous exploration companies including several major mining companies have explored and

advanced the J&L Property deposits since the Main Zone's discovery in 1912, including Selco - BP

Exploration Canada Limited, Pan American Minerals, Equinox Resources Ltd., Cheni Gold Mines Inc.

and Huakan (then known as Merit Mining Ltd. ("

Merit

")). At least 315 diamond drill holes have been

completed on the J&L Property since 1983, totaling 41,076 metres of drilling. 3.1 km of underground

workings are present on the J&L Property. The 1.4 km long 830 track drift (

2.4m

profile) has

exposed the Main Zone for approximately 800 metres in length. The 550-metre-long (

profile) 832 trackless drift installed by Merit in 2008, connects to the track drift and can provide

underground access to the 830 drift. Five cross-cuts totaling 1.15 km provided access to drill

stations that were utilized to drill-define the deposits. Several raises have aided in the extraction of

several bulk samples.

In late 2010, Merit completed a 60 hole, 7,897 metre underground diamond drill focused on the Main

Zone with the objective of verifying historic drilling and sampling and infilling a 800 metre strike by

200 metre dip of the Main Zone on 30 metre drill centers. This program supported the first NI 43-

101 Mineral Resource Estimate in

September 2011

and a subsequent Preliminary Economic

Assessment (the "

PEA

") in

May 2012

. This was followed in 2012 by a 450-metre drifting and 45-

hole, 9,725 metre underground drill program to expand the Mineral Resource Estimate of the Main

Zone. The 2012 program was successful in more than doubling the Indicated Mineral resource

tonnes of the Main Zone and for the first time produced an NI 43-101 Mineral Resource Estimate on

the Yellowjacket Zone. An updated PEA was not completed to include the 2012 updated Mineral

Resource. No physical work has been done on the J&L Property since then.

March 14, 2018

, Golden Dawn Minerals Inc. ("

Golden Dawn

") filed a National Instrument 43-

101 Technical Report on SEDAR entitled "Technical Report and Updated Mineral Resource Estimate

on the J&L Property,

Revelstoke, British Columbia

, Canada" with an effective date of

January 23,

2018

and authorized by

Eugene Puritch

, P.Eng, FEC, CET;

Fred Brown

, P.Geo.;

Alfred Hayden

P.Eng.;

Jarita Barry

, P.Geo.; and

Richard Routledge

, P.Geo. (the "

Prior

Technical Report

"). The

Prior Technical Report contained an update of the Mineral Resource Estimate on J&L, which results

are shown in the table below (the "

Historical Estimate

").

A qualified person has not, on behalf of

Rokmaster, done sufficient work to classify the Historical Estimate as current mineral resources or

mineral reserves, and Rokmaster is not treating the Historical Estimate as current mineral

resources or mineral reserves. Rokmaster considers the Historical Estimate to be relevant, as they

were reported by

Golden Dawn

on the basis of the recently prepared Prior Technical Report. To

the best of Rokmaster's knowledge and belief, there is no new material scientific or technical

information that would make this disclosure of the Historical Estimate inaccurate or misleading.

J&L HISTORICAL MINERAL RESOURCE

ESTIMATE

(1-7)

Class

Tonnes

(000's)

(g/t)

Au oz

(000's)

(g/t)

Ag oz

(000's)

(%)

AuEq

(g/t)

AuEq oz

(000's)

Main

Zone

Measured

1,337

6.19

266

63.3

2,721

2.21

4.12

9.69

417

Indicated

2,778

5.42

485

49.8

4,450

1.75

3.16

8.14

727

Meas & Ind

4,115

5.67

751

54.2

7,172

1.9

3.47

8.65

1,144

Inferred

4,433

4.42

630

63.0

8,978

1.92

2.65

7.13

1,016

Zone

Indicated

280

0.91

57.1

515

2.59

5.93

5.33

Inferred

0.24

77.7

3.16

5.89

5.11

Zone

Inferred

319

4.04

25.9

265

0.54

0.47

4.77

Yellow-

jacket

Zone

Indicated

764

0.09

62.8

1,544

2.61

9.98

Inferred

0.12

55.5

2.67

7.75

While preparing and publishing the above resource estimate, Huakan made the following cautionary

statements:

Mineral Resources which are not Mineral Reserves do not have demonstrated economic

viability. The estimate of Mineral Resources may be materially affected by environmental,

permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied

to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is

reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an

Indicated Mineral Resource with continued exploration.

The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining,

Metallurgy and Petroleum ("

CIM

"), CIM Standards on Mineral Resources and Reserves,

Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and

adopted by CIM Council.

The following parameters were used to derive the NSR block model cut-off values used to

define the Mineral Resource:

Dec 31, 2017

US$ two-year trailing avg. metal prices:

Pb $0.95/lb, Zn $1.13/lb, Au $1,253/oz, Ag $17.08/oz

Exchange rate of

US$0.76

CDN$1.00

Process recoveries of Pb 74%, Zn 75%, Au 91%, Ag 80%

Smelter payables of Pb 95%, Zn 85%, Au 96%, Ag 91%

Refining charges of Au

US$10

/oz, Ag US$0.50/o

Concentrate freight charges of

C$65

/t and Smelter treatment charge of US185/

Mass pull of 5% and 8% concentrate moisture content

NSR cut-

off of CDN$110 per tonne was derived from $75/t mining, $25/t processing, $10/t G&A.

AuEq= Au g/t + (Ag g/t x 0.011) + (Pb % x 0.422) + (Zn % x 0.455)

Underground bulk samples have been taken from the Main Zone to conduct metallurgical test work.

The Main Zone is a complex polymetallic deposit high in arsenic concentrations which create a

challenge in the production of saleable zinc and lead concentrates and the economic recovery of

gold. Comprehensive metallurgical testing between the mid 1980's and 2014 have considered

various options and have produced a number of effective options for acceptable recoveries of gold,

silver, zinc and lead by making 3 separate concentrates, including using heavy media separation.

Based on the currently envisioned circuit and corresponding laboratory test response, the overall

process recoveries for the Main Zone are expected to be approximately 93% Au, 70% Ag, 74% Pb,

and 80% Zn. Limited metallurgical test work from drill core has been performed on the Yellowjacket

Zone which appears to have less complex metallurgy than the Main Zone. The expected process

recoveries for the Yellowjacket Zone are 94% Ag, 88% Pb, and 93% Zn.

Rokmaster believes that both the Main Zone and the Yellowjacket Zone have potential for

expansions, remaining open in a number of directions. The Main Zone particularly has a tabular

predictable geometry and grade distribution and is laterally extensive as defined by drilling to date.

Its surface strike length has been established to be in excess of 3 km, of which only a portion has

been drill-tested.

The grant of the Option to Rokmaster is subject to receipt of regulatory approval.

A finder's fee, subject to regulatory approval may be paid to certain arm's length parties.

The technical information in this news release has been prepared in accordance with Canadian

regulatory requirements as set out in National Instrument 43-101 and reviewed and approved by

Mark Rebagliati

, P. Eng. Mr. Rebagliati is independent of Rokmaster.

On behalf of the Board of Directors of

ROKMASTER RESOURCES CORP.

"John Mirko"

John Mirko

, President & Chief Executive Officer

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the

TSXV) nor any other regulatory authority accepts responsibility for the adequacy or accuracy of

this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release may contain forward-looking information within the meaning of applicable

securities laws ("forward-looking statements"). Forward-looking statements are statements that are

not historical facts and are generally, but not always, identified by the words "expects," "plans,"

"anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that

events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the

interpretation of drilling results may also be deemed to be forward-looking statements, as it

constitutes a prediction of what might be found to be present when and if a project is actually

developed. These forward-looking statements are subject to a variety of risks and uncertainties

which could cause actual events or results to differ materially from those reflected in the forward-

looking statements, including, without limitation: the risk that Rokmaster and Huakan may not

successfully negotiate a Definitive Agreement; risks related to fluctuations in metal prices;

uncertainties related to raising sufficient financing to fund planned work in a timely manner and on

acceptable terms; changes in planned work resulting from weather, logistical, technical or other

factors; the possibility that results of work will not fulfill expectations and realize the perceived

potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes

or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated

expenses in the work program; the risk of environmental contamination or damage resulting from

Rokmaster's operations and other risks and uncertainties. Any forward-looking statement speaks

only as of the date it is made and, except as may be required by applicable securities laws, the

Company disclaims any intent or obligation to update any forward-looking statement, whether as a

result of new information, future events or results or otherwise.

SOURCE

Rokmaster Resources Corp.

View original content:

http://www.newswire.ca/en/releases/archive/August2019/16/c3995.html

%SEDAR: 00031923E

For further information:

For additional information on the Company and its projects, please visit

the Company's website www.rokmaster.com or call (604) 290-4647.

CO: Rokmaster Resources Corp.

CNW 09:00e 16-AUG-19

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