August 17, 2017 NR # 138-17 NEWS RELEASE Constantine Drills More High-Grade at Nunatak AG Zone Discovery, Palmer Project, Alaska 1.21 kilograms per tonne (38.9 opt) Silver over 2.7 meters 461 g/t (14.7 opt) Silver and 0.9 g/t Gold over 10.3 meters 11.3% Zinc over 17.8 meters and 9.9% Zinc over 20.4 meters Vancouver, BC Constantine Metal Resources Ltd. (TSX Venture CEM) ("Constantine" or the "Company") is pleased to report assay results for three additional drill holes from the Nunatak AG Zone, a new VMS discovery located 3 km from the known mineral resource at the Palmer Project, Alaska (8.1 million tonnes inferred grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver*). High-grade base and precious metals have been intersected over long intervals in followup drilling to discovery hole CMR17-89 (see news release dated July 27, 2017). To date, mineralization has been intersected over an area measuring approximately 180 m x 50 m, and over a vertical distance of approximately 200 meters and remains open in all directions. The drill program has been expanded to 10,000 meters to continue the ongoing exploration of this significant new discovery. AG Zone Highlights CMR17-92: 17.8 meters grading 11.7% zinc, 0.2% copper, 6.3 g/t silver, 0.2 g/t gold, and 6.7 meters grading 5.7% zinc, 2.2% lead, 30 g/t silver, 0.2 g/t gold CMR17-94: CMR17-96: 24.6 meters grading 260 g/t (8.3 opt) silver, 0.5 g/t gold, 1.4% zinc, 0.5% lead; Includes 10.3 meters grading 461 g/t (14.7 opt) silver, 0.9 g/t gold, 2.0% zinc, 0.7% lead, and 1214 g/t (38.9 opt) silver, 1.3 g/t gold in a 2.7 meter subinterval 20.4 meters grading 9.9% zinc, 0.2% copper, 14.4 g/t silver, 0.1 g/t gold Garfield MacVeigh, President, states The initial four holes released for the AG Zone discovery have defined a significant new zone of mineralization that is wide open to expansion. While it is very early days in our exploration of the AG Zone, the length, grade and broad area of the drill intersections in combination with the scale and intensity of hydrothermal alteration indicate excellent potential for a sizeable deposit. The discovery is a major new development for the Palmer Project and we look forward to the results of ongoing exploration drilling.
Discussion of Drill Results Assay results have been received for three new holes completed at the AG Zone, and all three have intersected significant mineralization (Table 1). Two holes, CMR17-92 and 94, were drilled on the same section as previously released hole CMR17-89 with the third hole, CMR17-96, testing 50 meters off section to the west-northwest (see Figures 1 and 2). Mineralization has been intersected over an area measuring approximately 180 m x 50 m, and over a vertical distance of approximately 200 meters. CMR17-92 intersected 17.8 meters of high-grade zinc mineralization approximately 140 meters south of the previously reported 9.2 meter high grade silver-gold intersection in discovery drillhole CMR17-89. A second, 6.7 meter wide zone of zinc-lead-silver-gold mineralization was intersected at the bottom of hole CMR17-92, which was lost prematurely within mineralization. Hole CMR17-94 intersected 24.6 meters of silver-rich polymetallic mineralization in a 50 meter up-dip step-out from hole CMR17-92. The CMR17-94 intersection includes a higher grade interval grading 461 g/t silver, 0.9 g/t gold, 2.0% zinc, and 0.7% lead over 10.3 meters, including a very high grade sub-interval grading 1.21 kilograms per tonne silver over 2.7 meters. Strong metal zonation occurs between holes, grading from silver-gold-barite dominant to zinc dominant. Mineralization varies from massive barite-sulphide to semi-massive sulphide, stockwork and replacement. CMR17-96 intersected 20.4 meters of strong zinc mineralization in a 50 meter step-out along strike to the west-northwest from CMR17-92. Mineralization in CMR17-96 is similar to CMR17-92, and demonstrates excellent continuity of grade and width along trend between the two holes. Nunatak Prospect The Nunatak prospect was drilled as part of the Company s dual focus plan of exploring for new deposits across the district-scale property while also expanding and upgrading the South Wall-RW Zone inferred mineral resource. The new AG Zone discovery has confirmed the multi-deposit potential of the Palmer Property. It also highlights the opportunity for significant precious metal mineralization, which is characteristic of other Late Triassic VMS deposits in the region such as Greens Creek, one of the largest and lowest cost primary silver mines in the world.
Table 1. Nunatak AG Zone Assay Results Drill Hole From To Width 1 Width Cu Zn Pb Ag Au (meters) (meters) (meters) (feet) % % % (g/t) (g/t) CMR17-92 122.3 140.1 17.8 58.4 0.21 11.70 0.13 6.3 0.15 CMR17-92 244.2 250.9 6.7 22.0 0.10 5.73 2.17 30.0 0.20 Including 244.2 246.2 2.0 6.6 0.14 12.65 4.35 47.8 0.24 CMR17-94 35.9 41.1 5.2 17.1 0.01 0.09 0.11 34.6 0.56 CMR17-94 89.3 128.2 38.9 127.6 0.01 0.95 0.32 183.5 0.39 Including 93.7 118.3 24.6 80.7 0.05 1.35 0.45 260.0 0.53 Including 93.7 104 10.3 33.8 0.06 2.03 0.69 460.8 0.90 Including 93.7 96.4 2.7 8.9 0.13 4.03 1.86 1214.4 1.34 CMR17-96 128.8 149.2 20.4 66.9 0.21 9.88 0.29 14.4 0.07 Including 128.8 132.8 4.0 13.1 0.22 15.41 0.37 32.9 0.11 CMR17-89 2 25.1 28.8 3.7 12.1 0.03 0.27 0.22 28.8 0.49 CMR17-89 2 127.9 137.1 9.2 30.2 0.09 0.19 0.21 312.6 0.89 1 Drill intercepts reported as core lengths; true widths are unknown. Averages are weighted for length and density. 2 previously reported drill intersection About the Palmer Project Palmer is an advanced stage, high-grade volcanogenic massive sulphide (VMS) project, with an Inferred Mineral Resource of 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver*. The Project is being advanced as a joint venture between Constantine (51%) and Dowa (49%), with Constantine as operator. The project is located in a very accessible part of coastal Southeast Alaska, with road access to the edge of the property and within 60 kilometers of the year-round deep sea port of Haines. Mineralization at Palmer occurs within the same belt of rocks that is host to the Greens Creek mine, one of the world s richest VMS deposits. VMS deposits are known to occur in clusters and with at least 25 separate base metal and/or barite occurrences and prospects on the property, there is abundant potential for discovery of multiple deposits at Palmer. About the Company Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. In addition to the Company s flagship copper-zincsilver-gold Palmer Joint Venture Project, Constantine also controls a portfolio of high-quality, 100% owned, gold projects in the Timmins camp Ontario. This includes the large, well located Golden Mile Property in Timmins and the Munro Croesus Gold Property that is renowned for its exceptionally high-grade past production. Management is committed to providing shareholder value through discovery, meaningful community engagement, environmental stewardship, and responsible mineral exploration and development activities that support local jobs and businesses. Please visit the Company s website (www.constantinemetals.com) for more detailed company and project information.
On Behalf of Constantine Metal Resources Ltd. Garfield MacVeigh President For further information please contact: Garfield MacVeigh, President or Darwin Green, VP Exploration Phone: 604-629-2348. Email: info@constantinemetals.com * 8.125 million tonne inferred resource grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver. See the Company's news release date May 11, 2015 and available on www.sedar.com. Resource estimate utilizes an NSR cut-off of US$75/t with assumed metal prices of US$1200/oz for gold, US$18/oz for silver, US$2.75/lb for copper, and US$1.00/lb for zinc. Estimated metal recoveries are 89.6% for copper, 84.9% for zinc, 75% for gold (61.5% to the Cu concentrate and 13.5% to the Zn concentrate) and 89.7% for silver (73.7% to the Cu concentrate and 16% to the Zn concentrate) as determined from metallurgical locked cycle flotation tests. An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.
Figure 2 Geological Plan Map Nunatak AG Zone Palmer Project, Alaska CMR17-89 TSX-V:CEM CMR17-90 QSP Alteration CMR17-96 4.7m Chip: 128.3 g/t Ag, 0.5 g/t Au 4.0% Zn, 3.5% Pb, 778 g/t Ag, 0.68 g/t Au 3.2% Zn, 0.9% Pb, 128 g/t Ag _ ^ _ ^ _ ^ ^_ 4.7m Chip: 20 g/t Ag, 0.5 g/t Au CMR17-89: 9.2m @ 313g/t Ag, 0.9g/t Au Nunatak Prospect Planned Drill Holes Limestone + Siltstone Hanging Wall Basalt MHC GULLIES BOUNDARY _ ^ _ ^ HG CAP WATER FALL RW ^_ 3km SouthWall Resource Nunatak JAG Rhyolite 5.3% Zn, 4.3% Pb 1.3% Zn, 8.5% Pb CMR17-92: 17.8m @ 11.7% Zn, 0.2% Cu 25.1% Zn JV Claims 51% Constantine 2 _ ^ RED CREEK 100% Constantine Km Glacier Creek Rd. Inset Location Map CMR17-96: 20.4m @ 9.9% Zn, 0.2% Cu Prospective Mineral Horizon Hanging Wall Basalt 015 Azimuth Section Line See Figure 1 CMR17-92 eters Satellite Image Base CMR17-94: 24.6m @ 260 g/t Ag, 0.5 g/t Au Incl. 10.3 m @ 461 g/t Ag, 0.9 g/t Au, 2.0% Zn CMR17-92: 6.7m @ 5.7% Zn, 2.2% Pb, 30 g/t Ag (Hole lost in mineralization) ² Hanging Wall Basalt JAG Showing ^_ 20% Zn, 10.4% Pb, 537 g/t Ag, 0.73g/t Au
1300 RL 1200 RL 1100 RL 1000 RL 900 RL 800 RL 6581800 N 6581800 N FIGURE 1 Cross Section (Azimuth 015 ) Looking WNW 6581900 N 6581900 N Palmer Project Nunatak AG Zone 100 50 m Section Width August 2017 17.8m @ 11.7% Zn, 0.21% 0.2% Cu 6.7m @ 5.7% Zn, 2.2% Pb, 30 g/t Ag Legend 0 100 g/t 0 10% Ag Assay Zn Assay CMR17-92 200 Hole lost in mineralization Calculated Assay Intersection & Outlined Subinterval Inferred Mineralized Mineralized zone zone 6582000 N 6582000 N 419700 E 419700 E 300 200 CMR17-94 Additional assays pending 6582100 N 6582100 N 3.7m @ 28.8 g/t Ag, 0.5 g/t Au 10.5m @ 25.8 g/t Ag, 0.2 g/t Au 200 200 300 CMR17-90 0 50 6582200 N 6582200 N 9.2m @ 312 g/t Ag 0.9 g/t Au 24.6m @ 260 g/t Ag, 0.5 g/t Au Incl. 10.3 m @ 461 g/t Ag, 0.9 g/t Au, 2.0% Zn CMR17-96 (50m behind section) 20.4m @ 9.9% Zn, 0.2% Cu Massive barite-sulphide-chert surface exposures 4.7m Chip: 128.3 g/t Ag, 0.5 g/t Au 300 All assays pending 6582300 N 6582300 N CMR17-89 1300 RL 1200 RL 1100 RL 1000 RL 900 RL 800 RL
TSX-V:CEM Figure 3 Palmer Project: Prospects and Access Nunatak AG Zone RW Zone HG JAG CAP South Wall Zones Inferred Mineral Resource 8.1 MT @ 1.41% Cu, 5.25% Zn, 0.32 g/t Au, 31.7 g/t Ag* * At a $75/tonne NSR cutoff. Assumed metal prices are US$2.75/lb for copper (Cu), and US$1.00/lb for zinc (Zn), US$1200/oz for gold (Au), US$18/oz for silver (Ag). NSR equals (US$45.69 x Cu% + US$11.70 x Zn% + US$25.04 x Au g/t + US$0.43 x Ag g/t).
Notes: Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and half placed back in the original core box for permanent storage. Sample lengths typically vary from a minimum 0.3 meter interval to a maximum 2.0 meter interval, with an average 1.0 to 1.5 meter sample length. Drill core samples were shipped by transport truck in sealed woven plastic bags to ALS Minerals laboratory facility in North Vancouver for analysis. ALS Minerals operate according to the guidelines set out in ISO/IEC Guide 25. Gold was determined by fire-assay fusion of a 30 g sub-sample with atomic absorption spectroscopy (AAS). Various metals including silver, gold, copper, lead and zinc were analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion. The elements silver, copper, and zinc were determined by ore grade assay for samples that returned values >10,000 ppm by ICP analysis. Density measurements were determined at the project site by qualified Constantine personnel on cut core for each assay sample. The 2017 exploration program for the Palmer project is managed by Darwin Green, P.Geo, the Company s Vice President Exploration for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101. Mr. Green has either prepared or supervised the preparation of the scientific and technical disclosure contained in this news release and has reviewed and approved it for disclosure. He has also verified the analytical data for drill core samples disclosed in this release by reviewing the blanks, duplicates and certified reference material standards and confirming that they fall within limits as determined by acceptable industry practice. The analytical results have also been compared to visual estimates for the base metals to check for any obvious discrepancies between analytical results and the visual estimates. Forward looking statements: This news release includes certain forward-looking information within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements"). Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as seek, anticipate, believe, plan, estimate, "forecast", expect, "potential", "project", "target", "schedule", budget" and intend and statements that an event or result may, will, should, could or might occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and geological merits of the Palmer Project and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements. 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.