TNR.V · 2017-10-10 12:00:00

TNR Gold Royalty Holding Update After News by McEwen Mining on the Los Azules Copper Project, Argentina

Corporate Updates

TNR Gold Royalty Holding Update After News by McEwen

Mining on the Los Azules Copper Project, Argentina

Vancouver, British Columbia--(Newsfile Corp. - October 10, 2017) -

TNR Gold Corp.

(TSXV: TNR)

TNR

" or the

Company

") advises that McEwen Mining Inc. ("McEwen Mining") has issued a news release "Copper Shines Brightly for

McEwen Mining — Enhanced Economics of Los Azules" dated

September 7, 2017 in relation to the Los Azules Copper Project

in San Juan Province, Argentina. TNR holds a 0.36% Net Smelter Returns Royalty ("NSR") on the Los Azules project.

The news release issued by McEwen Mining summarizes the results of a new Preliminary Economic Assessment (PEA) on its

wholly-owned Los Azules Copper Project. In its press release, McEwen Mining states, "The 2017 PEA is a substantial revision

of the previous 2013 PEA and contemplates an enhanced implementation strategy resulting in improved economics while

reducing execution risk. It envisions an owner-operated mine and conventional concentrator (flotation circuit) producing a copper

concentrate for export."

Summary

$2.2 Billion After-Tax NPV@8% and IRR of 20.1%

3.6 Year Payback at $3.00/lb. Copper and 36 Year Mine Life

415 Million lbs. Average Annual

Copper Production For The First 10 Years

$1.11/lb. Copper Average Cash Production Cost (C1) For First 10 Years

"Los Azules is a giant porphyry copper deposit that offers tremendous potential to generate wealth for McEwen Mining

shareowners and other stakeholders," said Rob McEwen, Chairman and Chief Owner. "Our next steps are to advance

permitting and prefeasibility/feasibility studies to move Los Azules towards production."

"We would like to congratulate McEwen Mining on a significant increase in the new resource estimations for copper, gold and

silver at Los Azules Copper project, important upgraded quality of these resources in all categories and reported enhanced

economics overall for the project," commented Kirill Klip, Executive Chairman of TNR. "The PEA provided by McEwen Mining

demonstrates a robust, high margin, rapid pay-back and long-life potential economics for the project and it will affect positively

the potential implied valuation of TNR Gold's royalty holding."

The McEwen Mining news release reports that the PEA study used commodity price assumptions of $3.00/lb copper, $1,300/oz

gold, and $17/oz silver, resulting in an after-tax Net Present Value (NPV) of $2.2 billion (discounted at 8%) and an Internal Rate

of Return (IRR) of 20.1%.

McEwen Mining also stated, "The project economics for Los Azules contemplates two years of permitting, drilling, and feasibility

studies; followed by a three year project implementation phase for production of the first copper concentrates. The economic

values presented in the 2017 PEA are after-tax financial outcomes at the point of commencing the project implementation

phase. The key financial results are summarized in Table 1 and Figure 1.

Table 1: After-tax Financial Results

Parameter

Unit

2017 PEA Result

Initial CAPEX

$ millions

2,363

Phase 2 CAPEX

$ millions

278

NPV

$ millions

2,239

IRR

20.1

Payback Period

Years

3.6

C1 Costs

(first 10 years)

$/lb.

1.11

C1 Costs

(Life-of-mine)

$/lb.

1.28

C1 cash costs include at-mine cash operating costs, treatment and refining charges, mine reclamation and closure costs, and

copper concentrate transportation.

Figure 1: Life-of-Mine Cash Flows

(M = millions)

To view an enhanced version, please visit:

http://orders.newsfilecorp.com/files/2014/29550_a1507346002278_39.jpg

Mineral Resource Estimate

The estimated mineral resources for the Los Azules deposit are shown in Table 2. Mineral resources are determined using a

base case cut-off grade of 0.20% copper, which is based on projected technical and economic parameters.

Table 2: Estimate of Mineral Resources for Los Azules Deposit (0.20% Cu Cut-Off)

Average Grade

Contained Metal

Category

Million

tonnes

g/t

Billion lbs.

Million oz.

Million lbs.

Million oz.

Indicated

962

0.48

0.06

0.003

1.8

10.2

1.7

57.3

55.7

Inferred

2,666

0.33

0.04

0.003

1.6

19.3

3.8

194.0

135.4

Cu = copper, Au = gold, Mo = molybdenum, Ag = silver

The mineral resource estimate for Los Azules was prepared utilizing three-dimensional block models based on geostatistical

applications. The mineral resources are estimated using ordinary kriging with a nominal block size of 20 m x 20 m x 15 m. To

ensure the reported resource exhibits reasonable prospects for economic extraction, the mineral resource is limited within a pit

shell generated around copper grades in blocks classified in the Indicated and Inferred categories. Generalized technical and

economic parameters include a copper price of $2.75/lb., site operating costs of $1.70/t for mining, $5.00/t for processing and

$1.00/t for general and administration, a pit slope of 34° and 90% metallurgical recovery.

Mining

The life-of-mine (LOM) ore tonnage is estimated to be 1,488 million tonnes of concentrator feed and 1,510 million tonnes of

waste stripping. The stripping ratio, including stockpile re-handling, is projected at 1.05 (tonnes of waste per tonne of sulfide ore

milled). Excluding the three-year preproduction period, the mine life is estimated at 36 years.

The concentrator feed during the first five years of operation is predicted to have a higher average grade of 0.73% copper.

These grades are approximately double the average grades in the later years of mining (after Year 20). In the first five years of

mining, 93% of this initial mill feed is presently classified as Indicated mineralized material and the remaining 7% is Inferred

mineralized material.

The 2017 PEA is preliminary in nature. The mine plan and economic model include the use of Inferred resources.

Inferred resources are conceptual in nature and are considered to be too speculative to be used in an economic

analysis except as allowed for by Canadian Securities Administrators' National Instrument 43-101 (NI 43-101) in PEA

studies. There is no guarantee that Inferred resources can be converted to Indicated or Measured resources. Mineral

resources that are not mineral reserves do not have demonstrated economic viability. As such, there is no guarantee

the project economics described herein will be achieved.

Processing

Preliminary metallurgical test work has been conducted intermittently since 2008 to determine how the mineralized material

responds to flotation as a means of recovering payable copper metal. Results have consistently proved favorable and flotation

has been adopted as the processing option of choice.

The Los Azules concentrator will produce copper concentrate as a final product. The process flowsheet has been modeled on

the Antapaccay copper concentrator (Glencore - Peru) due to similarities in ore properties and process plant altitudes. Some

minor design changes, in equipment sizing only, have been incorporated based on operating experience at Antapaccay. The

plant has been designed for average daily throughput of 80,000 tpd. The concentrator would be constructed on-site and would

employ one comminution circuit consisting of a primary crusher, stockpile feed conveyor, reclaim conveyor, one SAG mill, two

pebble crushers and two ball mills. The comminution circuit would be followed by flotation, thickening and filtration circuits, a

Tailings Storage Facility (TSF) and concentrate storage. LOM recovery of copper to concentrate is expected to be 91% at a

concentrate grade of 30% Cu.

It is planned to expand the capacity of the plant to 120,000 tpd by Year 5 through the installation of additional comminution and

flotation capacity. Gold and silver are recoverable to the copper concentrate. No other metals have been identified that would

yield by-product credits, nor that have significant amounts of penalty elements.

Capital Costs

A key desired outcome of this study was to provide a project capital estimate with a reasonable level of accuracy. A summary of

the initial capital estimate is provided in Table 3.

Table 3: Capital Cost Estimate

Area

CAPEX

($ Millions)

Mining Equipment

$215

Mine Pre-stripping Cost

$193

Surface Scope (Concentrator, Power Line, Tailings, etc.)

$979

Total Direct Cost

$1,387

Total Indirect Costs

$508

Contingency

$420

Owner's Cost

$48

Total Initial Capital Cost

$2,363

Operating Costs

This updated PEA for the Los Azules project has a total operating cost of $15.4 billion over the life of the mine. Table 4 displays

the operating cost summary.

Table 4: Operating Cost Estimate

Cost Area

LOM

($ millions)

$/t Mill Feed

$/t Cu

$/lb. Cu

Mining

5,404

3.63

980

0.44

Process

5,774

3.88

1,047

0.47

Transport

2,587

1.74

469

0.21

G&A

1,620

1.09

294

0.13

Subtotal OPEX

15,385

10.34

2,789

1.26

TCs/RCs

2,684

1.80

487

0.22

Au & Ag Credits

(2,449)

(1.65)

(444)

(0.20)

Net Costs

15,621

10.50

2,831

1.28

PEA Contributors

A list of the qualified persons responsible for the report that is the basis for the disclosure in this news release is provided in

Table 5.

Table 5: Summary of Qualified Persons

Responsible Person

Company

Primary Areas of Responsibility

D. Brown, C. P. Eng

McEwen

Mining, Project Infrastructure, Geology

M. Bunyard, C. Eng,

FAusIMM

Hatch Ltd

Metallurgical, Process Plant

B. Davis, FAusIMM

BD Resource Consulting, Inc.

Sampling, Data Verification, Resource Estimates

J. Duff, P. Geol

McEwen

Geology, Exploration

R. Duinker, P. Eng, MBA

Hatch Ltd

Financial Analysis

J. Farrell, P. Eng

Hatch Ltd

Environmental

W. Rose, P. E.

WLR Consulting Inc.

Mining

K. Seddon, CPEng

ATC Williams

Tailings

R. Sim, P. Geo

SIM Geological Inc.

Drilling, Resource Estimates

The Canadian National Instrument 43-101

Standards of Disclosure for Mineral Projects

("NI 43-101") technical report

containing the results of the updated PEA, with the effective date of September 1, 2017, will be filed on SEDAR and the

McEwen Mining website within 45 days.

McEwen Mining's press releases and website material appear to be prepared by Qualified Persons and the procedures,

methodology and key assumptions disclosed therein are those adopted and consistently applied in the mining industry, but no

Qualified Person engaged by TNR Gold Corp. has done sufficient work to analyze, interpret, classify or verify McEwen Mining's

information to determine the current mineral reserve or resource or other information referred to in their press releases.

Accordingly, the reader is cautioned in placing any reliance on the disclosures therein."

Details regarding the manner in which the PEA was calculated will be available under the profile of McEwen Mining at SEDAR

http://www.sedar.com

TNR's strategy with the Los Azules royalty holdings is to attract a strong financial partner and sell a portion of the NSR to

eliminate the long-term debt of the Company.

Jonathan Findlay, Geological Consultant of the Company and a "Qualified Person" for the purposes of NI 43-101, has reviewed

and approved the scientific and technical information contained in this news release.

ABOUT TNR GOLD

CORP

TNR Gold Corp. is working to become an energy metals royalty company. Over the past twenty-two years, TNR, through its lead

generator business model, has been successful in generating high quality exploration projects around the globe. With the

Company's expertise, resources and industry network, it identified the potential of the Los Azules copper project in Argentina

and now holds a 0.36% NSR on the prospect.

TNR is also a major shareholder of International Lithium Corp. ("ILC"), with current holdings of approximately 12% of the

outstanding shares of ILC. ILC holds interests in lithium projects in Argentina, Ireland and Canada.

TNR retains a 1.8% NSR on the Mariana property in Argentina. ILC maintains a right to repurchase 1.0% of the NSR on the

Mariana property of which 0.9% relates to the Company's NSR interest. The Company would receive $900,000 on execution of

the repurchase. The project is currently being advanced in a joint venture between ILC and GFL International Co. Ltd., a wholly-

owned subsidiary of Jiangxi Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium").

At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska (the Shotgun gold porphyry

project) and Argentina, and is committed to continued generation of in-demand projects, while diversifying its markets and

building shareholder value.

On behalf of the Board of Directors,

Kirill Klip

Executive Chairman

www.tnrgoldcorp.com

For further information concerning this news release please contact +1 604-700-8912

Neither 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.

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of

applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project",

"intend", "believe", "anticipate", "estimate", "will", "could" and other similar words, or statements that certain events or

conditions "may" or "could" occur

although not all forward-looking statements contain these identifying words

Specifically,

forward-looking statements in this news release include, but are not limited to, statements made in relation to:

TNR's

corporate objectives,

changes in share capital, market conditions for energy commodities,

the results of McEwan Mining's

PEA,

and improvements in the financial performance of the Company.

Such forward-looking information is based on a

number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the

sections entitled

"Risks" and

"Forward-Looking Statements" in the

Company's

interim and annual Management's Discussion

and Analysis which are available

under the Company's profile on

www.sedar.com. While management believes that the

assumptions made

and reflected in this news release

are reasonable, should one or more of the risks, uncertainties or other

factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those

described in forward-looking information.

In particular

there can be no assurance that:

TNR

will be

repay its loans

complete any further royalty acquisitions

or sales

;

debt or other financing will be available to

TNR; or that TNR will be able to

achieve any of its corporate objectives. Given these uncertainties, readers are cautioned that forward-looking statements

included

herein

are not guarantees of future performance, and such forward-looking statements should not be unduly relied

In formulating the forward-looking statements contained herein, management has assumed that business and economic

conditions affecting

TNR

and its royalty partners

, McEwen Mining Inc. and International Lithium Corp.

or its joint venture

partner,

Ganfeng Lithium

will continue substantially in the ordinary course, including without limitation with respect to general

industry conditions, general levels

economic activity and regulations. These assumptions, although considered

reasonable by management at the time of preparation, may prove to be incorrect.

Forward-looking information herein and all subsequent written and oral forward-looking information are based on estimates

and opinions of management on the dates they are made and are expressly qualified in their entirety by this cautionary

statement. Except as required by law, the Company assumes no obligation to update forward-looking information should

circumstances or management's estimates or opinions change.

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