BMC Minerals (No. 1) Ltd. 30th May 2016

BMC Minerals (No.1) Ltd Incorporated in British Columbia, Canada, Reg No. BC 1014247

Vancouver Office: Suite 530, 1130 West Pender St, Vancouver, BC V6E2X3,

Website: www.bmcminerals.com

Major Contracts for Kudz Ze Kayah 2016 field season awarded to Yukon and Kaska Dena First Nation associated companies

Highlights

The 2016 field season is underway and drilling has now commenced at the Kudz Ze Kayah project

Formal tender process concluded based on performance capacity, safety and transparency

Nearly 100% of total major suppliers to BMC Minerals (No. 1) Ltd (“BMC”) for the 2016 field program are from the Yukon or have a strong Yukon background, and of that number 70% are from businesses or corporations associated with Kaska corporations or members.

Operational contracts worth approximately C$9 million awarded to date for 2016 field activities

Kudz Ze Kayah project website located at http://kudzzekayah.com

BMC is committed to the utilisation of local suppliers and businesses and we are very pleased that, following a successful field season in 2015, we are beginning the 2016 season having been able to appoint a significant amount of service providers from northern BC, Yukon and First Nation corporations and businesses. Among our major strategic business suppliers appointed for the 2016 field program at Kudz Ze Kayah are:

Equity Exploration – an experienced geological management company that has operated in the Yukon for over 17 years, Equity will be managing the 2016 drilling program and has already employed over 20 Ross River Dena and Liard First Nation members for the program;

Tu Lidlini Fuel Company – a Ross River Dena Council business, Tu Lidlini has been awarded a 2 year contract to supply fuel to the project. Tu Lidlini has also been awarded a contract to provide local logistical support to the project in partnership with Smalls Contracting of Whitehorse.

Ross River General Store – another Ross River Dena Council business, the store is the primary provider of lumber and fresh food supplies to the project;

New Age Drilling Solutions– an experienced Yukon drilling business partly owned by a partner of Kaska Dena ancestry, New Age has been awarded an initial contract for a significant portion of the 2016 drilling program;

Hytech Drilling – a BC drilling company with strong Yukon links, Hytech have also been awarded a contract covering a significant portion of the drilling program;

T Moon Construction – a local Ross River Kaska owned business, Moons was the first contract awarded by BMC in the Yukon in 2015 and has been awarded the 2016 contract for the seasonal opening of the main access road and providing the equipment for its ongoing maintenance over the drilling season;

C McLeod Contracting – another local Ross River Kaska business, McLeods has been the lead site contractor for pad construction and general earthworks since

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their appointment in early 2015 and has had their contract extended to the end of 2016.

The above list does not include the additional Yukon technical consulting firms that have been awarded contracts for environmental and feasibility studies which will form the basis of the commercial decisions around permitting and development in 2017.

C McCleod Contracting at work constructing drilling pads near the ABM deposit.

Equity Exploration and BMC geologists at work in the site office.

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Tintina Air, a joint venture partner with Dena Nezzidi Corporation, at Finlayson airstrip just north of

Kudz Ze Kayah.

BMC, a subsidiary of UK based BMC (UK) Limited, purchased the Kudz Ze Kayah project in 2015. The BMC team believe the Kudz Ze Kayah Project has potential to become a sustainable long-term mine producing copper, lead and zinc concentrates and the Company has begun the detailed environmental, drilling and feasibility work required to determine the likely economics of a future mining and processing operation.

T Moon Construction crew undertaking road maintenance

BMC will only appoint site contractors which meet high safety and operational standards. Following a formal tender and review process, we are delighted that nearly 100% of the total suppliers to the 2016 BMC drilling program are from companies either based in the Yukon or that have a strong history of operating in the Yukon. A significant portion of those are also companies associated with Kaska Dena First Nation. A total contract value

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of approximately C$10 million is expected to be deployed amongst these site based exploration and drilling supply and service partners in 2016 with another C$6.0 million to be allocated to environmental studies and permitting for the project.

Doug and Liz Ann Walker, the owners and operators of New Age Drilling.

Commenting today: BMC CEO, Scott Donaldson stated, “While a bit colder than we are used to, working at the Kudz Ze Kayah Project in the Yukon was great last year and being able to take the decision to carry on, following the results and support here, is brilliant. We have a lot of work to do in 2016 on a tight budget and it helps seeing the quality and professionalism of the contractors involved in the tender round. BMC has a good team around it and we feel that being able to work in partnership with local businesses is a critical factor in successfully progressing the Kudz Ze Kayah Project.” Doug and Liz Ann Walker, who are long time Yukoners and the owners and operators of New Age Drilling, commented: “Being a Yukon-owned and First Nations partnered business, New Age Drilling Solutions is eager to demonstrate leadership and teamwork on the Kudz Ze Kayah project. BMC has provided an amazing opportunity to utilize New Age Drilling Solutions extensive experience fly-drilling in some of the most remote areas of the North. BMC has gone out of its way to inspect and provide support for our A-5 diamond drills and Occupational Health and Safety Program to ensure the safety of all working on the Project. Although BMC is an international mining company, their representatives make time to meet with us on a regular basis and have provided clear expectations for safety as well as local First Nation and community inclusion in the KZK Project. New Age Drilling Solutions is based out of Whitehorse, YT and focuses on providing the most effective and efficient diamond drilling services while keeping everyone including the environment protected and safe. Souga Senla to BMC!”

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(Liz Ann traces her First Nations ancestry through her mother Minnie Rowlands (nee Jakesta) and her great grandmother's from Ross River who were both of Kaska ancestry). Additional Information The initial 2016 drilling program, comprising 10,000 to 15,000 metres of diamond drilling, will aim to: • Upgrade the resource classification at the ABM and GP4F deposits from Inferred

to Indicated (JORC 2012) so that they can be included in economic studies, • Provide further geotechnical data required for infrastructure design, • Contribute metallurgical samples for the ongoing test work program, • Sterilize potential infrastructure sites, and • Test a number of “near-mine” exploration targets in the vicinity of ABM where the

discovery of additional mineral resources may influence the current PFS and near term permitting applications.

Figure 1: Location of Kudz Ze Kayah Project, Yukon, Canada

The majority of drilling program at the project, both historical and that undertaken by BMC during 2015, has been restricted to the immediate area of the ABM and GP4F deposits with drilling to relatively shallow depths below surface (<300m). Volcanogenic massive sulphide deposits such as the ABM and GP4F deposits at Kudz Ze Kayah often

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occur in clusters, and in this context BMC are of the view that the project remains highly prospective for the discovery of additional mineral resources at a relatively shallow depth below surface. The exploration activities will also include airborne and ground-based geophysical programs similar to those which originally identified the ABM deposit. The 2016 work program also incorporates ongoing environmental studies required for future permitting processes, as well as comprehensive metallurgical, geotechnical, plant design, engineering and economic studies that are required for completion of the Prefeasibility Study (“PFS”) that has now been in progress for several months. The PFS, once completed, will provide insight into the potential economics of a future project in the light of technical, environmental, cultural, and statutory requirements and community input. Contacts: Scott Donaldson Chief Executive Officer scottd@bmcminerals.com +61 429 081 116 +1 604 727 0738

Rob McIntyre Senior Advisor robyukonbc@gmail.com +1 867 336 3537 Website: http://kudzzekayah.com