Rathdowney Announces Agm Results and Corporate Update
RATHDOWNEY ANNOUNCES AGM RESULTS AND CORPORATE UPDATE
June 18, 2019, Vancouver, BC – Rathdowney Resources Ltd. (“Rathdowney” or the “Company”) (TSX‐V: RTH) is pleased to announce
the results of its Annual General Meeting (“AGM”), held in Vancouver, BC on June 14, 2019, and to provide an update on its corporate
activities and plans.
At the AGM, shareholders voted in favour of all matters of business. These matters included appointing DeVisser Gray LLP as auditors;
ratifying and approving extension of the continuation of the Company's Share Option Plan; setting the number of directors at eight;
and re-electing Lena Brommeland, Rene Carrier, David Copeland, Barry Coughlan, George Ireland, Robert Konski, Michael Nolan and
Dick Whittington to the Company’s Board of Directors.
Following the meeting, management and directors affirmed management’s new direction and strategy. The Company is now
embarking on a focused, two-year plan to secure a Mining License for its 100%-owned Olza project in Poland. To meet that objective,
management and the project team will be working toward the following milestones:
• submitting a Land Re-Zoning Application by Q4 2019:
• completing an Environmental Impact Assessment by Q3 2020; and
• completing a Project Development Report by Q4 2020.
“It is an exciting time for the Company,” said Rathdowney President & CEO Dick Whittington. “Our strategy offers the opportun ity to
materially de-risk our advanced stage Olza project (“Project Olza” or “Olza”) through focused efforts to achieve the goal of securing a
mining license within two years which, we believe, will remove the number one risk factor facing mining projects world -wide.
Management is actively engaged to secure additional financing to support this work plan.”
Olza is zinc-lead-silver project located in the Upper Silesian Mining District of southwest Poland, a region of world-class Mississippi
Valley type zinc- lead-silver deposits. Deposits of zinc and lead were identified in the immediate area of Project Olza though core
drilling by Polish State companies, including the Polish Stat e Geological Institute (“PSGI”) , in the 1950s to 1980s. P SGI also
completed several historical estim ates, i ndicating the potential for significant zinc-lead resources. An example is PSGI’s 1990
estimate of 77 million tonnes at a grade of 6.15% combined zinc and lead. A qualified person has not done sufficient work to classify
this historical estimate as current mineral resources and the Company is not treating it as current.
Rathdowney acquired Project Olza in 2010, and initiated technical studies to advance the project. The Company’s technical team
assessed the historical data for the project, planned and conducted confirmatory core drilling over a portion - about 30% - of the area
of the historical core drilling, and completed geological and resource studies as well as metallurgical testing and other engineering
work for this area. Current inferred resources (in the 30% area described above) are 24 million tonnes at a grade of 7.02% (zinc plus
lead)i. In 2015, the Company announced the results of a Preliminary Economic Assessment (“PEA”) forecasting strong potential
financial returns, including an after-tax Internal Rate of Return (“IRR”) of 30%, a US$170 million Net Present Value (“NPV”) and a 2.4-
year payback for a 6,000 tonnes per day underground mine with on -site pro cessing facility at Project Olza ii. Moreover, the PEA
forecasts US$125 million of free cash flow annually, or US$375 million on a cumulative basis, over the first three years of operation.
Rathdowney believes that there is excellent potential to increase the mineral resources , supporting a long life mine at Project Olza.
Only 30% of the area of historical core drilling at Project Olza has been drill-tested so far by Rathdowney’s confirmatory core drilling
program. A recent Exploration Target Range study further assessed the potential in the area of the historical drilling but outside of the
area of Rathdowney’s current mineral resource. U sing conditional simulation, the study outlined a n Exploration Target Range (as
defined under 43-101) of 54 – 92 million tonnes at grades of 3.9- 5.2% zinc and 1.0-1.3% leadiii. This Exploration Target Range is
conceptual in nature and is not a mineral resource estimate. W hile there is no guarantee if further drilling will lead to a resource
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estimate in this range, this Exploration Target Range represents excellent potential to be followed-up after Project Olza has a mining
license.
Since the release of the positive results from the PEA, the Company has completed environmental baseline surveys, and conducted
land use planning, geotechnical and further engineering studies to prepare for the environmental assessment and mine permitting
processes in Poland. Specialists from Rathdowney’s project team in Poland have continued to meet regularly with local communities
in the area of Project Olza to discuss and obtain input on it is programs and plans, as has been done during each stage of its project
work.
“Rathdowney’s comprehensive work programs have put in place a strong foundation to enable the Olza project to move forward
through the permitting and development stage,” said President and CEO Dick Whittington. ”We are now shifting to a focused plan to
be deployed over the next two years, designed to secure a Mining License - the key step toward creation of an international standard,
first world mining operation at Project Olza.”
The Preliminary Economic Assessment is preliminary in nature and 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 Miner al
Reserves. There is no certainty that the PEA will be realized.
The technical disclosure in this release has been reviewed and approved by Qualified Person (“QP”) David Copeland, PEng, who is
Chairman and a director of the Company.
About Rathdowney and Project Olza
Rathdowney is focused on advancing Project Olza through permitting and toward production. Located in a region of with a long mining
history and well -developed infrastructure, Project Olza is along strike from ZGH Boleslaw's Pomorzany zinc -lead mine, which has
produced some 90 Mt (www.geoportal.gov.pl) over some 40 years, and 25 km north of the ZGH Boleslaw zinc smelter. A spur from the
main national railway line runs through the Olza property and provides access to local facilities and to other smelters via Baltic ports.
The project site is a one-hour drive from Krakow, a major city with full services, including an international airport. Access roads to and
from the property are already in place. Power is available from the existing electrical grid, and skilled mine workers live in the area.
Rathdowney acquired three land concessions - Zawiercie, Rokitno and Chechlo – at Project Olza in 2010 and 2011. Although some
drill-testing was done on all three concessions, the Company’s programs have mainly concentrated on the excellent potential on the
Zawiercie and Rokitno concessions. With a refocus of efforts toward obtaining a mining license for this core area, Rathdowney also
reviewed its land holdings, and has relinquished its interest in the Chechlo concession.
For further details on Rathdowney and Project Olza, please visit our website at www.rathdowneyresources.com or contact investor
services at 604-684-6365 or toll free (NA) at 1-800-667-2114.
On behalf of the Board of Directors
J.R.H. (Dick) Whittington
President & CEO
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.
This release includes certain statements that may be deemed "forward -looking statements". All statements in this release, other than statements of
historical facts, that address exploration drilling, exploitation activ ities and events or developments that the Company expects, 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 or developments may differ materially from those in the forward-looking statements.
Assumptions used by the Company to develop forward -looking statements include the following: Project Olza will obtain all required e nvironmental and
other permits and all land use and other licenses, studies and development of Project Olza will continue to be positive, and no geological or technical
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problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation
and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining
activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government
policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financin g, and general economic, market
or business conditions. 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. For more information on the Company, investors should review the Company's
continuous disclosure filings that are available at www.sedar.com.
i At 2% Zn cut-off, as audited and verified and restated at February 2015 by independent QP - L. Roberts, MAusIMM (CP) of SRK Consulting
(UK) Ltd. Individual metal grades are 5.53% Zn and 1.49% Pb. Mineral Resources that are not mineral reserves do not have demonstrated
economic viability.
ii For further details, see Rathdo wney news release dated April 20 , 2015 or the PEA technical report posted on the Company’s website and
on its profile at www.sedar.com.
iii Olza Project Exploration Target Range (ETR) Study, unpublished internal report, by R. Mohan Srivastava and David Gaunt (2019). Mr. Gaunt
is a QP that is not independent of the Company and Mr. Srivastava is an independent QP. The exploration target area of interest is inside the
Zawiercie and Rokitno concessions and substantially overlaps the area of historical estimates but excludes the footprint of the current
mineral resource and a buffer zone surrounding it. The exploration target ranges (ETR) of tonnages and grades were derived by completing a
series of 100 equally plausible conditional simulations. A histogram of the tonnage and grade values from these simulations was completed,
and the 10th and 90th percentile selected as the ETR bounds.