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Group Eleven Opens Significant New Exploration Potential at Ballinalack via Seismic Re-interpretation

Corporate Updates

Group Eleven Opens Significant New Exploration

Potential at Ballinalack via Seismic Re-interpretation

Vancouver, B.C., January 1 8, 2018 – Group Eleven Resources Corp. (“ Group Eleven ” or the

“Company”), is pleased to announce the results from an initial re-interpretation of existing seismic data

(“the Study”) at the Ballinalack zinc-lead project in Ireland (“the Project”). The Project is a joint venture

between Group Eleven (60% equity interest) and Shenzhen Zhongjin Lingnan Nonfemet Company

Limited (“Nonfemet” ; 40% equity interest ), a China -based mining and processing company ,

representing one of the largest zinc producers in the world.

The Study has led to a new interpretation of the regional structure of the Ballinalack property, specifically

in the vicinity of the historical estimate (7.7 million tonnes grading 7.3% Zn+Pb 1).

Highlights of the Study:

• In addition to the Ballinalack fault, which is adjacent to the historical estimate and dips to the NW,

there appears to also exist a seemingly larger, hitherto unrecognized structure (“New Fault”)

that dips to the SE (i.e. opposite dip to the Ballinalack fault);

• This new interpretation places known Ballinalack mineralization in the footwall of the New Fault

rather than its hanging wall;

• Given the best mineralization in Ireland is most commonly found in the hanging wall of major faults,

the re-interpretation has potentially significant implications for further exploration at the Project,

especially SE of the historic estimate (now the postulated hanging wall);

• The author of the Study, Dr Alastair Beach, was a key contributor on the seismic interpretations

that led to the recent discovery of the Tara Deeps at the Tara (Navan) Mine, 50 km from Ballinalack.

“We are very pleased to see such exciting results come from the very first steps in our on-going program

to leverage the latest geological thinking and geophysical technology towards systematically rethinking

key aspects of the Irish zinc district” stated Bart Jaworski, CEO.

“While at a preliminary stage , the new seismic re -interpretation is a radical rethink of the structural

framework of the Ballinalack area and could be transformational for the Project. Importantly, the Study

has potential to add high-priority drill targets which would complement our already exciting suite of

targets along strike and at depth from the historical estimate. We look forward to the start of our

upcoming drill program , as well as, the continuation of our regional rethink on the balance of our

320,000-hectare land package across the historically overlooked part of the camp in south -western

Ireland.”

Drill Program to commence:

Group Eleven’s Phase 1 drill program at Ballinalack (totalling approximately 3,700 metres) is scheduled

to commence over the next few weeks. Drilling will focus on:

• Confirmatory drilling at the historic estimate

• Step-out drilling from the boundary of the historic estimate

• Pale Beds target (Navan-analogue) below the historic estimate; and

• New Fault and the SE area (once targets are confirmed)

1 Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before

this historical estimate can be classified as a current resource. A qualified person has not yet undertaken sufficient work to

classify this historical estimate as a current resource and the Company is not treating the historical estimate as a current

resource. (“Independent Report on a Base Metal Exploration Project at Ballinalack, Co. Westmeath, Ireland” by SLR

Consulting Ireland, dated November 20, 2017).

Details on the Study:

The Study was conducted by Alastair Beach, Ph.D., who aimed to provide a preliminary independent

view of the structural setting of the Ballinalack occurrence with the view to present a framework for

further evaluation.

Dr Beach is a renowned expert on seismic interpretation and structural geology. Importantly, Dr Beach

was a key contributor (along with Dave Coller) to the seismic interpretation at Boliden’s Tara (Navan)

mine in Ireland , which led to the recent (2012) ‘Tara Deeps’ d iscovery (currently hosting an inferred

resource totalling 10 million tonnes grading 8.5% Zn and 1.8% Pb; Boliden, Annual Report, 2016).

The previous operator of Ballinalack (Teck Ireland Ltd.) conducted 63 line kilometres of 2D seismic on

the Project from 2010 to 2013. Of this, two seismic lines (see Figure 1) totalling 12.6 km were interpreted

as part of the Study:

• Line 1 (a merge of IM-10-01 and IM-11-04) – with a total length of 5.3 km and

• Line 2 (a merge of IM-10-02 and IM-11-03) – with a total length of 7.3 km

Figure 1. Location of seismic lines re-interpreted as part of study, Ballinalack Project, Ireland

Source: Group Eleven

The previous interpretation at Ballinalack shows the main fault in the region as the Ballinalack fault,

dipping to the NW (see bottom of Figure 2).

Figure 2. Previous interpretation of Seismic Data (Line 1) at the Ballinalack Project, Ireland

Source: de Morton, et. al., 2015, modified by Group Eleven (Note: ‘Navan Group’ hosts the Pale Beds horizon)

The Study shows that there appears to also exist a larger structure (the “New Fault”) with dip and down-

throw to the SE (Figure 3). The New Fault and possible rifting has not been previously recognized.

Figure 3. Preliminary new interpretation of Seismic Data (Line 1) at Ballinalack Project, Ireland

Source: Alastair Beach, labels by Group Eleven

Specific implications of the above re-interpretation include:

• Prospectivity to the immediate (approximate 2km) area SE of the historic al estimate (i.e. in the

newly hypothesized hanging wall; Figure 3) could be much higher than previously believed

• This SE region is relatively unexplored with only 14 holes drilled historically (some shallow)

• One of these, hole 92-BL-1 intersected 4.6 m grading 5.2% Zn+Pb in the Pale Beds (see top of

Figure 2)

• In light of the above seismic interpretation, hole 92-BL-1 may be more significant than previously

believed and may require follow-up.

Appointments – Corporate Secretary

The Company is pleased to announce the appointment of Sheryl Dhillon as Corporate Secretary. Ms.

Dhillon has over 10 years of corporate secretarial and securities regulation experience is a highly

experienced corporate secretary with o ver ten years of experience. She has extensive knowledge of

corporate governance, as well as , strong management and corporate communications skills. Ms.

Dhillon acts as Corporate Secretary for several TSX, TSXV and CSE listed companies.

Other Matters

The Company has also, subject to regulatory approval, retained Venture Liquidity Providers Inc. (VLP)

to initiate its market -making service to provide assistance in maintaining an orderly trading market for

the common shares of the company. The market-making service will be undertaken by VLP through a

registered broker, W.D. Latimer Co. Ltd., in compliance with the applicable policies of the TSX Venture

Exchange and other applicable laws.

VLP is a specialized consulting firm based in Toronto providing a variety of services focused on issuers

listed on the TSX Venture Exchange . For its services, the Company has agreed to pay $5,000 per

month for a period of 12 months. The agreement may be terminated at any time by the corporation or

VLP. The corporation and VLP act at arm's length, and VLP has no present interest, directly or indirectly,

in the Company or its securities. The finances and the shares required for the market -making service

are provided by W.D. Latimer. The fee paid by the Company to VLP is for services only.

Qualified Person

EurGeol, P. Geo. John Barry, a Qualified Person as defined by NI 43 -101 and the Vice President ,

Exploration Strategy of the Company , has reviewed and approved the scientific and technical

information set out in this news release.

About Group Eleven Resources

Group Eleven Resources Corp. (TSXV -ZNG) is focused on zinc exploration in Ireland . Key projects

include Ballinalack (with Joint Venture partner Nonfemet), Stonepark (with Joint Venture partner

Connemara Mining), Silvermines and Tralee. The Company’s large land package (99 prospecting

licenses totalling 3,200 square kilometres) allows Group Eleven to leverage new geol ogical thinking

and geophysical technology to systematically rethink key aspects of the Irish zinc district. The

Company’s team is comprised of accomplished mining executives with direct experience in finding

mines, building companies and exploring Irish zinc deposits.

Additional information about the Company is available at www.groupelevenresources.com.

For more information, please contact:

Group Eleven Resources

Bart Jaworski, P.Geo.

Chief Executive Officer & Director

E: [email protected] | T: +353-85-833-2463

Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news

release.

Cautionary Note Regarding Forward-Looking Information

This press release contains forward -looking statements within the meaning of applicable securities

legislation. Such statements include, without limitation, statements regarding the future results of

operations, performance and achievements of the Company, including the timing, content, cost and

results of proposed work programs, the discovery and delineation of mineral deposits/resources/

reserves and geological interpretations . Although the Company believes that such statements are

reasonable, it can give no assurance that such expectations will prove to be correct . Forward-looking

statements are typically identified by words such as: believe, expect, anticipate, intend, estimate,

postulate and similar expressions, or are those, which, by their nature, refer to future events. The

Company cautions investors that any forward-looking statements by the Company are not guarantees

of future results or performance, and that actual results may differ materially from those in forward

looking statements as a result of various factors, including, but not limited to, variations in the nature,

quality and quantity of any mineral deposits that may be located. All of the Company's public disclosure

filings may be accessed via www.sedar.com and readers are urged to review these materials, including

the technical reports filed with re spect to the Company's mineral properties, and particularly the

technical report entitled “NI 43 -101 Independent Report on a Base Metal Exploration Project at

Ballinalack, Co. Westmeath, Ireland” with an effective date of November 20, 2017 by John Kelly an d

Paul Gordon (SLR Consulting Ireland) with respect to the Ballinalack Property.