The Cerro Verde Mill is Nearing Completion – Interconnection Between the Federal Electricity Commission (CFE) Network and the San Javier Power Grid Has Begun and the Secretariat of the Environmment and Natural Resources Agency (Semarnat), Environmental Permits Are
ARCTIC HUNTER ENERGY INC.
Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2
Telephone: (604) 681-3131
NEWS RELEASE
March 1, 2018 TSX-V Trading Symbol: AHU
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THE CERRO VERDE MILL IS NEARING COMPLETION – INTERCONNECTION BETWEEN
THE FEDERAL ELECTRICITY COMMISSION (CFE) NETWORK AND THE SAN JAVIER
POWER GRID HAS BEGUN AND THE SECRETARIAT OF THE ENVIRONMMENT AND
NATURAL RESOURCES AGENCY (SEMARNAT), ENVIRONMENTAL PERMITS ARE
PENDING
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VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the
“Company”) is pleased to announce that the Company management has received the recently completed
January 2018 report, monitoring th e rapid progress of the work be ing conducted on the Cerro Verde
Flotation Mill situated in the Gold & Silver mining district of the Sierra Madre Gold belt, in the State of
Sonora, Mexico. The Cerro Verde M ill is currently nearing completi on and the newly re-furbished and
upgraded equipment is expected to be a fully opera tional 100 Ton per day capacity flotation mill. Work
is being conducted by e xperienced local Mexican electrical cont ractors, employing more local workers
and skilled tradesmen who have been working around the clock in two, twelve hour shifts per day, seven
days a week. The Cerro Verde Mill is currently ma intaining schedule guidelines and is complying with
all budgetary guidelines, and the Mill is expected to be commissioned as soon as al l electrical testing is
completed and all necessary environmental permits have been issued to the Company.
Cerro Verde Mill - Progress Report (January 2018) - Updates include the following:
The Mexican Federal Electricity Company (CFE), the state-owned electric utility of Mexico, has
begun circuit testing the in terconnection between the area networks, with that of the San Javier Mill
power grid. Minor modifications have been recommended and work on the network is nearing
certification and completion.
The Mexican Federal Agency of Environmental Protection, the Secretariat of Environment and
Natural Resources (SEMARNAT), is expected to be issuing the required environmental permits
sometime in mid-December. The Se cretariat is charged with the mi ssion of conserving the area’s
rich ecosystems, while managing and implementi ng site guidelines, site specifications and
overseeing the tailings dams located on the mill site with the goal of fostering sustainable
development of natural mining resources expected to be utilized on the project.
Real de Rebeico Gold S.A. de C.V. (“Rebeico Gold”) has re-named its flotation mill, formally
known as the Government Riel Viejo /San Javier Mill. The Mill has now been re-named the Cerro
Verde gold and silver Flotation Mill by manageme nt. The newly named facility, which has been
fully upgraded and fully re-furbished, is situated in the heart of the San Javier mining district.
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Real de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), in which the Company holds a 30% interest,
has now received and been duly co nfirmed, as fully registered at the Foreign Investment Registar in
Mexico City. This is the second approval received by the Company. February 12, 2018
Real de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), in which the Company holds a 30% interest,
has now received and been duly confirmed, as fully registered at the Public Mining Registry of
Property and Commerce at the Economy Secretariat located in Mexico City. February 7, 2018
All conveyer belts have been upgrad ed with all new rubber and head pulleys. All new motors have
been installed on the Mill’s crushing cones.
All new electrical equipment has been installed in the Master control room , which includes all new
magnetic switches and new control panels. All electrical updates have followed the strictest
guidelines implemented by the Mexican Federal Electricity Company.
The new Cell flotation area has been completely updated and re-furbished, and fully equipped with
brand new agitators, impeller pumps and water delivery pipes. The units are now fully operational.
The giant Ball Mill area has been installed with a new pulp sampler/crusher, stainless steel balls
inserted that has been fully installed and is opera tional. All new motors’ have been installed to the
crusher cones.
New restroom facilities are fully operational, with fully updated water and shower facilities.
All ancillary facilities, living qua rters, sanitation facilities, fully operational metallurgy laboratory,
managers offices have been fully updated and are operational.
Concrete foundations have been re-excavated and a ll re-bar have been set in place with proper
footings formed and set with newly poured concrete for added strength.
The Grizzly on the coarse ore bi n has been completely updated, with double reinforced welding
updates and repairs to the surrounding floor decki ng. Roofing and cat walk s have all been fully
updated.
Road access to the Cerro Verde Mill has been gi ven continuous road care and is currently in
excellent shape.
The complete upgrade of the Mill facilities electrical system and structural lighting has been
completed. The electrical system has been tested and deemed fully operational and is now waiting to
be connected to the regional power grid.
Newly installed concrete fire-re sistant power poles have replaced all obsolete old wooden poles.
The new poles have been installed along the 3 k ilometer corridor connecting the Cerro Verde Mill
with the regional main electrical grid, situated at the highway access point at Kilometer 145.
All new electrical transformers have also been installed on site and are fully operational.
An announcement will be made shortly regarding the Grand Inauguration and opening of the Mill.
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Tim Coupland, President & CEO stated, “We have ma de significant progress to date and continue
meeting our installation and set-up timelines. We are still waiting for the required environmental
permits which are expected to be issued by the S ecretariat of Environment and Natural Resources
(SEMARNAT) in mid-December. The Company is now nearing the complete re-furbishment and
modernization of the mill. The Cerro Verde Mill is nearing final co mpletion, set-up, and is now fully
operational. The Company is making pr eparation for final equipment and electrical grid and power grid
testing. The Cerro Verde Mill has no w been fully modernized, with the intent to identify and capture all
potential milling and direct-ship mining opportunities that are situated within this mining district with its
many gold and silver mines.”
THE CERRO VERDE GOLD & SILVER FLOTATION MILL - SONORA STATE, MEXICO
The Company has paid the sum of USD $250,000 and has successfully acquired a 30% interest in Real
de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), wh ich owns this interest in a State owned 100 ton per
day flotation mill situated near the city of Herm osillo in Sonora State, Mexico. The formal option
agreement with Rebeico Gold of Sonora, Mexico allo ws Arctic Hunter to earn the initial 30 % interest
for USD $250,000 (earned and vested), and an additiona l 20% interest (for up to a 50% interest) in
Rebeico Gold for an additional USD $250,000. Rebeico Go ld holds the right to operate the strategically
located Cerro Verde Flotation Mill situated in the Sa n Javier mining district a nd the right to receive its
pro-rata production proceeds derived therefrom pursu ant to an assignment agreement between Rebeico
Gold and Exlporacion y Desarollo del Desierto, S.A de C.V. (“EDDSA”) dated April 24, 2017. EDDSA
holds the operating rights and the right to receive a ll proceeds from the Cerro Verde Gold & Silver Mill,
and the right to conduct ancillary ac tivities on the project s ite pursuant to a 10 year lease agreement
between EDDSA and the state of Sonora, Mexico, da ted February 24, 2015. The Cerro Verde Flotation
Mill and Project site is located within the heart of the prolific Sierra Madre Gold belt and mining district
of northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The
Cerro Verde Mill is a former working and operationa l State owned flotation mill that is surrounded by a
region that has had widespread hi storical mining, dating back from colonial times through to the 21 st
century. The Mill formerly serviced many of the working gold, copper and silver mineral concessions
and mines located in this mining region in the past.
ABOUT ARCTIC HUNTER – OIL AND GAS PRODUCTION & MINING PRODUCTION
The Company is a Canadian Oil & Gas exploration and mining resource development Company that is
now focused on developing its’ pr oduction capabilities, obt aining potential future production revenues,
discovering and advancing high grad e gold, silver and copper deposits and mining concessions situated
within this large mining district in Sonora, Mexico. The Company has now successfully acquired a 30%
interest in Rebeico Gold of S onora, Mexico, and has been grante d the option to ear n up to 50% in
Rebeico Gold. Rebeico Gold holds the right to operate the Cerro Verde Mill, strategically located in the
Sierra Madre Gold Belt, and the ri ght to receive gold & silver pr oduction proceeds pursuant to an
assignment agreement dated April 24, 2017 between Rebeico Gold and Exploracion y Desarollo del
Desierto, S.A. de C.V (“EDDSA”). The Company is now strategi cally positioned to identify and
capture all potential milling and direct-ship mining opportunities situated in the region. The Company is
continually reviewing future mining production and exploration opportunities, by identifying low risk
exploration through selective acquisitions and de velopment of mining, petroleum and natural gas
resource assets situated in these favorable resource jurisdictions.
The Company has qualified management and has Oil & Gas and Mining teams of professionals seasoned
in production, field exploration and drilling. The Company has the necessary manpower in place to
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develop its natural resource properties and manage its production properties. The Company is committed
to minimizing risk through the selective acquisition, exploration and development of petroleum and
natural gas resource and mining assets.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO
Arctic Hunter Energy Inc.
Tel: (604) 681-3131
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the
Policies of the TSX Ventur e Exchange) accepts respon sibility for the adequacy or accuracy of this
release.