REG-Auxico Resources Canada Inc.: Admission to the NEX Exchange Growth Market

Auxico Resources CanadaAnnouncement

26/10/2018 07:05

26 October 2018

Auxico Resources Canada Inc.

(“Auxico” or the “Company”)

Admission to the NEX Exchange Growth Market

Auxico (Canadian Securities Exchange: AUAG), the Canadian listed precious
(gold and silver) and base metals (coltan) company engaged in the acquisition,
exploration and development of mineral properties in Colombia and Mexico, is
pleased to announce that trading in its shares, consisting of 38,360,000
common shares of no par value (“Common Shares”) will commence at 8.00 a.m.
today on the NEX Exchange Growth Market (“NEX”), under ticker AUAG and
ISIN number CA05334L1094.

Auxico is the first Canadian company to dual-list on NEX.

Following admission to NEX, the Company’s Common Shares will continue
trading on the Canadian Securities Exchange (“CSE”), which provides the
primary listing of the Company. The Company’s dual listing of its Common
Shares provide full fungibility through a Depositary Interest (“DI”). The
DIs will carry the same ISIN as the Common Shares listed in Canada on the CSE.

Pierre Gauthier, Chairman and Chief Executive Officer, commented:

“The dual listing of Auxico’s Common Shares on the NEX Exchange Growth
Market will provide our Company with access to the capital markets of London,
one of the largest financial markets in the world. Access to growth capital
from London, through NEX, will help Auxico to advance its business plans in
Colombia and Mexico, where we have access to significant opportunities in the
mining sector. In addition, a NEX listing makes sense for our Company as a
significant portion of our common shares are already held by residents of the
UK.”

Company Information

The Company was admitted to trading on the Canadian Securities Exchange on 17
October 2017.

Auxico has a 100% interest in the Zamora Silver-Gold Property (“Zamora
Property”), which is located 85 km southeast of the city of Culiacan and
some 9 km northeast of the village of El Espinal in the state of Sinaloa,
Mexico. The property is easily accessible year round via gravel roads.
Historical underground workings date back to the 1800’s, during which an
undetermined amount of ore was mined following the main vein structures.

The Zamora Property is comprised of five individual lots measuring a total of
3,376.6265 hectares or 8,343.6441 acres.

The Zamora Property, according to historical records, is characterized by 15
mines / prospects, all of which have varying degrees of exploration,
development and production. There has never been a concentrating plant on this
property; the ore was so rich that it was direct shipping ore to the La Minita
plant located approximately 25 km from Zamora.

Auxico Resources S.A. de C.V., the Company’s only wholly-owned subsidiary,
incorporated under the laws of Mexico, has a 100% interest in the Zamora
Property.

Recent Developments

On 10 October 2018, Auxico announced results from a recent sampling campaign
carried out on Auxico’s Mina Villa Kelly Property located in Colombia.

Two channel samples were taken on the 22m level 25m apart along the drift with
the last sample in the drift No. M-8428.10-2 cutting 60cm of 148 g/t Au (4.76
oz/t Au). Twenty-five metres before M-8428-10-2 which was at the end of the
tunnel, sample M-8428-9-2 also cut a 60cm wide quartz vein retuning 66.6 g/t
Au (2.14 oz/t Au); the vein averages 107.3 g/t Au (3.45 oz/t Au) along the 25m
section in the drift at the 22m level.  A total of seven veins have been
identified on the Villa Kelly Property so far.

On 17 September 2018, Auxico announced it had signed an MOU to enter into a
Joint Venture with the Department of Guainia, Colombia on a 75% Auxico/25%
Guainia basis for the production of gold, coltan, tantalum, niobium and any
other associated minerals coming from artisanal miners. In addition to this
Auxico has also signed agreements with three property owners of 25 concessions
and has 120 days to conduct due diligence with the view of entering into a
formal joint venture in which net profits will be split on a 70 per cent.
Auxico/30 per cent. property owner basis for exploration and production.

Once Auxico has conducted due diligence on the Property, a joint venture will
be formalised, with the understanding that Auxico will invest 100 per cent. of
the capital required to implement industrial production of the precious metals
or base metals. If the due diligence process is successful, both parties will
negotiate the terms of the joint venture, including specifically the sharing
of profits.

On 12 September 2018, the Company announced sampling results from a recent
campaign carried out over some selected areas on Auxico’s 100% owned Zamora
Silver-Gold Property (Zamora) in Mexico, which confirm the high-grade nature
of the silver and gold mineralisation. Sample number 842 was channelled in the
volcanic breccia over a width of 80cm and returned a very high grade result of
4.027 kg/t Silver and 29.2 g/t Gold. This sample is located in the La Franca
title, which is an area of 12 hectares in the northeast part of the Zamora
Silver-Gold Property, and within the Campanillas claim. Zamora has a surface
expression of 3,376.63 hectares. Auxico does not hold title to La Franca,
however, La Franca is located 600 metres south-west of the Campanillas mine,
form which samples assayed as high as 14.6 kg/t Silver and 15 g/t Gold. The
structure can be followed for some 600m along strike with the Campanillas Mine
which is indicated by numerous workings between the two historic mines, La
Franca and Campanillas.

On 21 August 2018, the Company announced that it had completed the first
tranche of a non-brokered private placement of 2,550,000 units (“Units”),
issued at a price of $0.20 per Unit, for gross proceeds of $510,000. Each unit
consists of one Common Share and one-half transferrable Common Share purchase
warrant. Each full Common Share purchase warrant entitles the holder to
acquire one additional Common Share of the Company at a price of $0.40 per
Common Share for two years from the date of issuance. All dollar figures are
in Canadian dollars, unless noted otherwise.

On 7 June 2018, Auxico announced it had signed a Memorandum of Understanding
with Aucito S.A.S., a Colombian company, concerning the Villa Kelly Property
(the “Property”) in the Department of Bolivar, Colombia. The Villa Kelly
Property covers an area of 92.2 hectares. According to the report written by
M.Sc. Eng. Rene Florencio Lugo Primelles of ITKnowLogics S.A.S (Link to the
report: https://bit.ly/2JvakyL), a total of 12 veins have been prospected on
the Property, and limited sampling of these veins has resulted in values up to
200 g/t Au. The Kelly vein has a shaft down to 14 metres and had been
exploited from 2011 until 2014. There are 40 artisanal miners currently on the
Property.

The most recent Technical Report on the Zamora Gold Property authored by Joel
Scodnick, B.Sc., P.Geo (the “Author”), of Sierra Geological Consulting
Inc., who is a Qualified Person (as defined in NI 43-101) is dated March 25,
2016 and amended on January 2, 2017, prepared in accordance with the
requirements of NI 43-101 and filed on SEDAR (www.sedar.com).

Details of Directors

Pierre Gauthier, Chairman of the Board and Chief Executive Officer

Mr. Gauthier holds a Bachelor of Commerce from the University of Ottawa and a
M.B.A. from Concordia University. Founder, President and CEO of Dundee
Sustainable Technologies Inc. until December 2014. In the last 20 Years he has
been involved in raising over $500 million dollars of financing in various
projects.

Mark Billings, President and Director

Mr. Billings has an MBA from the Harvard Business School and he is a Chartered
Financial Analyst. He has been an investment banker, having raised hundreds of
millions of dollars for small-cap companies, including several junior mining
companies. Mr. Billings also founded and managed companies in the junior
resource sector, in addition to being CEO, CFO or a director of a number of
publicly traded resource companies in Canada and abroad.

Marc Filion, Director

Dr. Filion holds a PhD (Economic Geology and Geostatic) from Royal School of
Mines, Imperial College, London, U.K. (1973) and a M.B.A from École des
Hautes Études Commerciales, Montréal. He has more than thirty five years of
experience in the development and management of capital intensive world-class
industrial projects in joint venture with international business partners.

Rick Whittaker, Director

During his 20 year career in technology investment, Mr. Whittaker led
initiatives in product development, and managed several advanced technology
investment programs. He holds several patents on these technologies, which are
in production today. Mr. Whittaker has applied his experience in clean
technology development and investment to help traditional industries in the
energy, mining, manufacturing, transportation, agriculture and forestry
sectors become more sustainable. Mr. Whittaker was the founding Vice President
and Chief Technology Officer of Canada’s largest clean technology fund where
he helped grow the organization from $100M to over $1B in funds under
management, leveraged by an additional $1.9B in private sector capital. Mr.
Whittaker attracted over $430M of matching funding from the defence industry
as part of their offset and growth strategies. In addition to managing a
portfolio of over 200 companies, Mr. Whittaker has received the Governor
General’s Award for Academic Excellence.

Jun “Bernard” He, Director

Mr. He is an entrepreneur with over 20 years of operational and investing
experience. He has successfully completed a number of multijurisdictional
joint ventures transactions and has conducted business in China, Hong Kong,
North America, Africa and Europe. Mr. He has invested in mineral exploration
and mining projects in West Africa. He holds an MBA from the Université de
Nice Business School in France and a Diplôme des Études Approfondies from
IAE in Paris.

Company Documents

The Company Documents pertaining to the listing on the CSE can be found on
SEDAR at https://www.sedar.com/ and at
https://www.auxicoresources.com/uk-listing-information.

Directors’ Interests

On admission, the interests of the Directors and their families (within the
meaning set out in the NEX Exchange Growth Market – Rules for Issuers) in
the issued share capital of the Company, all of which are beneficial, and the
existence of which is known or could, with reasonable diligence, be
ascertained by that Director, are as follows:

 Director        Number of Common Shares  Percentage of Common Shares  
                                                                       
 Gencap Inc.*    3,060,000                6.17                         
 Mark Billings   550,000                  1.43                         
 Marc Filion     Nil                      Nil                          
 Rick Whittaker  Nil                      Nil                          
 Jun He          500,000                  1.30                         

*Gencap Inc. is a company owned 100% by Mr Pierre Gauthier

Significant Shareholders

Save as set out below, the Directors are not aware of any person who will,
directly or indirectly, jointly or severally be interested in 3 per cent. or
more of the issued Common Shares at Admission:

 Shareholder               Number of Common Shares  Percentage of Common Shares  
                                                                                 
 Roppongi Investments Ltd  2,366,000                6.17                         
 Broughton Limited         1,600,000                4.17                         
                                                                                 

The Directors of the Company accept responsibility for the contents of this
announcement.

--ENDS—

For further information, please contact:

 Auxico Resources Canada Inc. Mark Billings, President www.auxicoresources.com/                         + 1 514 296 1641 mb@auxicoresources.com  
 NEX Exchange Growth Market Corporate Adviser:  Peterhouse Capital Limited Guy Miller and Fungai Ndoro  +44 (0)20 7469 0930                      

About Auxico Resources Canada Inc.

Auxico Resources Canada Inc. (“Auxico”) is a Canadian company that was
founded in 2014 and based in Montreal. Auxico is engaged in the acquisition,
exploration and development of mineral properties in Colombia and Mexico.

The Canadian Securities Exchange (CSE) has not reviewed and does not accept
responsibility for the adequacy or the accuracy of the contents of this
release.



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