Eastmain Announces Mineral Resource Estimate at Eastmain Mine Project; Reports Increase in Contained Ounces over Historic Estimate

TORONTO, ONTARIO–(Marketwired – Jan. 9, 2018) – Eastmain Resources Inc. (TSX:ER)(OTCQX:EANRF) (“Eastmain” or the “Company”) reports results of its first NI 43-101 Mineral Resource Estimate for the 100%-owned Eastmain Mine Project, located in the Otish Mountains region, James Bay, Québec (see FIGURE 1). The new Mineral Resource Estimate demonstrates the high average gold grade of the Eastmain Mine mineralization and consistency with historic interpretation and Mineral Resource Estimates. (see TABLES 1 to 4 and FIGURES 1 to 6).

The new Mineral Resource Estimate is built from historic information developed by previous operators and the inclusion of 26 drill holes completed by Eastmain within the Deposit’s Mineral Resource domains, of which seven were specifically drilled as verification holes in 2017. A NI 43-101 Technical Report to be prepared by P&E Mining Consultants Inc. (“P&E”) with an effective date of January 9, 2018, will be posted on www.eastmain.com and the Company’s profile on SEDAR at www.SEDAR.com within 45 days of the date of this news release.

Highlights

• Increase in tonnes and contained gold ounces over historic estimate
  • Total Indicated Resources: 899,000 tonnes at 8.19 g/t Au for 236,500 gold ounces
  • Total Inferred Resources: 579,000 tonnes at 7.48 g/t Au for 139,300 gold ounces
    Reduction of Mineral Resource cut-off grade due to a higher current gold pricing of $US1,250/oz and the inclusion of Mineral Resources from the C Zone have added significantly to gold endowment within the deposit.
• Strong confirmation of historic high gold grades by verification holes
  A program of verification drilling returned significant gold mineralization results including:
  • EM17-116 (Triangulation) 23.1 g/t Au over 4.4 m
  • EM17-118 (Twin) 12.9 g/t Au over 7.0 m
  • EM17-119 (Twin) 17.0 g/t Au over 3.0 m EM17-120 (Triangulation) 14.7 g/t Au over 2.0 m

    All verification holes report comparable grades to those in neighbouring historic holes (see TABLE 4).

• Opportunity for Continued Mineral Resource Growth
  Exploration 600 m to the NW of the A Zone Mineral Resource domain intersected an interval returning 9.33 g/t Au, 23.8 g/t Ag and 0.44% Cu over 2 m in hole EM17-126. Historic holes in this area suggest the potential for a new mineralized zone similar to the Eastmain Mine can be explored.
• Additional Exploration Potential Along Mine Trend
  Geophysics, trenching, geological mapping and drilling were completed in 2017 near the Julien and Hillhouse targets, providing important geological and structural information to guide exploration of new targets along, or in zones parallel to, the Mine Trend.

Claude Lemasson, Eastmain Resources President and CEO, stated: “The game changer for the Eastmain Mine Project was the construction of the new road (Route 167 Nord) under Quebec’s Plan Nord about 3 years ago, providing all-season access to our property. This infrastructure has allowed us to re-evaluate the potential of this former producer, re-assess the historic Mineral Resource Estimate and initiate an extensive exploration program. We have established that the robust high-grade nature of the Deposit will limit sensitivity to gold price fluctuation. With additional verification drill holes, we are confident that we will be able to convert more Inferred Mineral Resources to the Indicated Mineral Resource category. The historic on-site infrastructure, including a ramp to the shallow mining areas, provides an advantageous head-start for advanced exploration.”

TABLES 1 and 2 summarize the Eastmain Mine Deposit Mineral Resource Estimate and estimation parameters.

FIGURES 3 and 4 show the current Mineral Resource domains for Zones A, B and C in plan and isometric view.

FIGURES 5 and 6 show distribution of gold grade and Mineral Resource category in isometric view, respectively.

MINERAL RESOURCE ESTIMATE
Eastmain Mine Deposit

TABLE 1: Mineral Resource Estimate at 2.5 g/t Au Cut-Off (effective January 9, 2017) ^(1)(2)(3)(4)

TABLE 2: Selected Parameters

TABLE 3: Mineral Resource Estimate Sensitivity to Cut-Off Grade

Eastmain Mine

The Eastmain Mine is a partially-developed historic high-grade gold-copper deposit located in the south-eastern branch of the Upper Eastmain River Greenstone Belt. The Deposit was discovered in 1970 by Placer Development Ltd., however, extensive exploration only began in 1981. Placer Development continued exploration between 1981 and 1987 at which time the newly amalgamated Placer Dome Inc. entered into an agreement with MSV Resources Inc. Under the joint venture, 862 m of ramp development, 226 m of sub-level drifting and 95 m of raising were completed. In 1995, MSV mined 118,356 t of mineralized material at a grade of 10.6 g/t Au and 0.13% Cu which was shipped by winter road to the Copper Rand Mill in Chibougamau, Quebec. 40,000 ounces of gold were recovered. Mining ceased in 1995 due to low gold prices and difficulties with the winter road.

The Property consists of 152 mineral claims and one industrial lease permit. The Eastmain Mine, as defined by the perimeter of an historic mining lease, is subject to a production royalty (NSR) of 2.3% through production of the next 250,000 oz produced and 2% thereafter. A package of claims surrounding the mine precinct is subject to a production royalty (NSR) of 2%. The Eastmain Mine Deposit has Historic Mineral Resources of 255,750 oz. of gold in 878,110 short tons of mineralized material at a cut-off grade of 4.32 g/t Au (Campbell Resources Inc. Annual Report 2003). Historic Mineral Resource Estimates should not be relied upon as they have not been reviewed for Eastmain by a Qualified Person under National Instrument 43-101 (“NI 43-101”).

The Property contains a minimum of four interpreted volcanic cycles, each including an ultramafic base, overlain by a mafic volcanic flow pile with interlayers of felsic volcanic rock and terminated (capped) by a silicified and mineralized exhalite horizon. The Eastmain Mine Gold Deposit is interpreted as the mineralized cap to the third cycle which is part of the auriferous mineralization identified as the Mine Trend, a very distinctive marker horizon which can be traced for over 10 km across the Property along a NW-SE strike. The entire lithological sequence in the mine area is interpreted to be overturned.

The Eastmain Mine Gold Deposit consists of three gold-rich zones known as the, “A”, “B” and “C” Zones (see FIGURE 2) which strike southeast and dip and plunge to the northeast at 45° to 50°. The Deposit occurs as massive sulfide lenses, stringers and disseminated sulphides, containing up to 15-20% Pyrrhotite+Pyrite+Chalcopyrite with traces of magnetite, sphalerite and molybdenite. The zones range from 2 m to 7 m in thickness and are associated with deformed (boudinaged) exhalite in a sequence of rhyolitic tuffs, mafic tuffs, basalt and ultramafic rock. Eastmain interprets the deposit as a gold-rich VMS type.

Mineral Resource Estimate

The new Mineral Resource Estimate prepared by P&E is based on data from 242 drill holes (42,251 m) within the limits of the Mineral Resource domains, with an effective date of January 9, 2018.

All historic and current exploration data in the form of drill holes and assay information were verified and compiled by Eastmain in a Geotic™ database. Topographic data is sourced from a LIDAR survey completed by Eastmain. Underground mine infrastructure (ramp and workings) are derived from digitization of historic level plans and sections obtained upon acquisition of the Eastmain Mine Property in 2011. All information was subsequently entered into GEMS™, reverified and mineralized domains were wireframed by the Company. Eastmain delivered the Mineral Resource wireframes and all underlying date to P&E for review and editing.

Drill Hole Verification Program

As part of the Mineral Resource Estimation, seven drill hole locations were selected to verify results of historic drilling. Two holes were selected as twin holes while five were selected as triangulation points between several near neighbour holes representing a range of several years of historic drilling from 1987 to 1989. The verification holes tested between 3 neighbour holes at distance ranging from 10 m to 25 m to each. Table 4 presents analytical results from the verification holes and the targeted neighbour holes.

The verification work was successful in corroborating the position of the mineralized horizon developed from the historic database and the continuity of mineralization with neighbouring holes.

Eastmain conducts quality control under the supervision of Qualified Persons at all its exploration projects to ensure best practices from sample preparation to data collection and analysis. Drill core is logged and split with half-core samples packaged and delivered to ALS Minerals laboratories. Samples are dried and subsequently crushed to 70% passing a 2 mm mesh screen. A 1,000 gram sub-sample is pulverized to a nominal 85% passing 75 micron mesh screen. The remaining core, crushed sample (reject) and pulverized sample (pulp) are retained for further analysis and quality control. All samples are analyzed for gold by Fire Assay with an Atomic Absorption (AA) finish using a 50 gram aliquot of pulverized material. Assays exceeding 5 g/t Au are re‐assayed by Fire Assay with a Gravimetric Finish. Silver and copper analyses are obtained by 48 element four-acid ICP analysis. Eastmain regularly inserts 3rd party reference control samples and blank samples in the sample stream to monitor assay performance and performs duplicate sampling of pulps and rejects at a second certified laboratory. For recent programs at Eastmain Mine Project (2016-2017), approximately 6% of samples submitted are part of the Company’s laboratory sample control protocols.

Resource Calculation and Categorization

Grades for Au (g/t) were interpolated into blocks by the inverse distance cubed (“ID³“) method. In the view of both P&E and Eastmain, the conservative methodology provides the best framework for the planning and execution of exploration and potential future development and production of this asset.

Three passes were used to interpolate grade into all of the blocks in the wire frames (Table 3). For Pass 1, the search ellipse size (m) for all vein domains was set at 5 x 30 x 20 in the X, Y, Z direction; for Pass 2, the search ellipse size for each domain was set at 10 x 60 x 40; and for Pass 3, the search ellipse size was set at 20 x 120 x 80. Blocks were classified as Measured if they were populated with grade during Pass 1 and Indicated if they were populated with grade during Pass 2 of the interpolation procedure. Pass 3 search ellipse size was set to assure all remaining blocks within the wire frames were assigned a grade. These blocks were classified as Inferred. In this estimate no blocks were categorized as Measured.

Grades were interpolated into blocks using a minimum of 5 and maximum of 16 composites in 3 holes to generate block grades during Pass 1; a minimum of 3 and maximum of 16 composites in 2 holes were required for Pass 2. A minimum of 1 and maximum of 16 composites in one hole were used to generate block grades during Pass 3.

A block model was constructed in UTM coordinates using a block size of 2.5 m (X) 5.0 (Y) and 2.5 (Z).

Exploration and Mineral Resource Building

Exploration hole EM17-126 intersected a 2 m interval returning 9.33g/t Au, 23.8g/t Ag and 0.44% Cu at a vertical depth of 220 m along strike on the Mine Trend, 600 m to the NW of the A Zone Mineral Resource envelope. This intersection is located 100 m NW of historic hole 83CH029 which intersected a 1.5 m interval of 19.2 g/t Au, 7.85 g/t Ag (no Cu analysed) at a depth of 240 m (see FIGURE 2). Hole 83CH029 is located approximately 480 m NW of the current limit of the A Zone resource envelope. This area represents a potential new parallel zone at the Eastmain Mine and will be a priority target for further drill evaluation. The new zone identified by EM17-126 is approximately midway between the A Zone and the Hillhouse target. The Company is currently compiling the results of field work along the Mine Trend to establish whether mineralized zones are developed at common spatial intervals so as to optimize drill targeting.

Eastmain has actively explored the Eastmain Mine Property Mine Trend in 2017 since the discovery of the Julien Zone (see press release date January 19, 2017), completing an Induced Polarization survey (see press release dated August 23, 2017), trenching and drilling. Recent exploration at the Julien target suggest the presence of NW-SE trending exhalite horizons similar to Mine Trend and NE trending sheared and mineralized structural zones which may represent feeder systems. Further modeling of this information will be completed in advance of target selection for a new phase of drilling.

P&E Mining Consultants Inc.

P&E has been in operation since 2004, providing geological and mine engineering consulting reports, Mineral Resource Estimate technical reports, Preliminary Economic Assessments and Pre-Feasibility Studies as well as working with major mining sector consulting firms for the purposes of joint preparation of Feasibility Studies. P&E’s range of experience includes diamonds (over 300 technical reports) gold, silver, base metals, PGM and iron deposits for extraction by both open pit and underground methods.

P&E associates and professionals have experience in geological interpretation, 3D geologic modeling, technical report writing, Mineral Resource and Mineral Reserve Estimates, property evaluations, mine design, production scheduling, operating and capital cost estimates and metallurgical engineering. P&E Mining Consultants Inc. operates under Certificates of Authorization from the provinces of Ontario, Newfoundland and Saskatchewan. Associates are also licensed in the provinces of British Columbia, Saskatchewan, Newfoundland and Labrador, Quebec and New Brunswick.

All scientific and technical data pertaining to the Eastmain Mine Deposit Mineral Resource Estimate contained in this press release has been reviewed by Eugene Puritch, P.Eng, FEC, CET of P&E.

To view FIGURES 1-6, please click on the following link: http://www.eastmain.com/_resources/news/Images/ER-180109-EM_Resource_images.pdf

TABLE 4: Results from Data Validation Program (all intervals in core length)

About Eastmain Resources Inc. (TSX:ER)

Eastmain is a Canadian exploration company with 100% interest in the Eau Claire and Eastmain Mine Gold Deposits, both of which are located within the James Bay District of Quebec. Clearwater, host of the Eau Claire Deposit, is the Company’s core asset with access to superior infrastructure in a favourable mining jurisdiction. Eastmain also holds a pipeline of exploration projects in this new Canadian mining district, including being a partner in the Éléonore South Joint Venture.

Forward-Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or timing of future plans, and include, but not limited to, statements with respect to the potential success of the Company’s future exploration and development strategies, the prospective nature of the Company’s properties including the Eau Claire Deposit, and the Company’s plans to prepare a PEA for delivery in Q2 2018. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, the availability of financing, timely completion of proposed studies and technical reports, and risks associated with the exploration, development and mining industry generally such as economic factors as they affect exploration, future commodity prices, changes in interest rates, safety and security, political, social or economic developments, environmental risks, the risks set out in any technical reports in respect of the Company’s properties, risks related to the assumptions underlying Mineral Resource Estimates, insurance risks, capital expenditures, operating or technical difficulties in connection with development activities, personnel relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of Mineral Resources, contests over property title, and changes in project parameters as plans continue to be refined. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update such information, except as may be required by law.