Eskay Mining Corp. announced it has confirmed the presence of a precious metal-rich volcanogenic massive sulfide mineralized system at Tarn Lake-Scarlet Knob in the northeastern part of its 100% controlled Consolidated Eskay Property in the Golden Triangle, British Columbia. Tarn Lake and Scarlet Knob During the 2022 exploration campaign, a 300m wide zone of Au- and Ag-rich VMS mineralization was discovered by Eskay Mining's geologic team at Tarn Lake.

The highest-grade spot rock chip sample, collected along the western margin of Bruce Glacier, yielded 9.2 g/t Au and 9.3 g/t Ag. Additional spot rock chip samples collected at Tarn Lake in 2022 as well as recently identified legacy sample data bear gold grades ranging from less than 0.1 g/t up to 7.8 g/t and silver grades ranging from less than 1 g/t up to 174 g/t. Near the end of the 2022 diamond drill program, Eskay Mining's geologic team completed the first ever drilling at Tarn Lake, a series of widely spaced holes targeting areas underneath the location from which promising surface samples had recently been collected. Preliminary results from the first ever drill holes completed at Tarn Lake include: 4.10 g/t Au and 98.30 g/t Ag (5.39 g/t Au Eq) over 5.43m within 2.47 g/t Au and 72.20 g/t Ag (3.42 g/t Au Eq) over 11.34m within 0.80 g/t Au and 22.97 g/t Ag (1.10 g/t Au Eq) over 41.41m in hole TN22-10, and 3.96 g/t Au and 11.86 g/t Ag (4.12 g/t Au Eq) over 1.91m within 1.90 g/t Au and 7.94 g/t Ag (2.00 g/t Au Eq) over 6.95m in hole TN22-12.

Remaining assays from Tarn Lake drill holes will be reported once they have returned from the lab. Mineralization at Tarn Lake is associated with sets of east-west trending andesite dikes, interpreted to represent VMS syn-volcanic feeder structures, and occurs as sub-seafloor sulfide replacement of favorable stratigraphic horizons. It is hosted by the Eskay rhyolite, one of the primary host rocks at the Eskay Creek mine.

Assay results show that both the semi-massive and disseminated sulfide mineralization are Au- and Ag-bearing, an encouraging sign indicating that precious metal mineralization may be more extensive in this area. Spot rock chip sampling at Scarlet Knob in 2022 yielded a notable high-grade sample grading 56.9 g/t Au and 154 g/t Ag. Additional spot rock chip samples collected by Eskay's exploration team as well as recently identified legacy sample data bear gold grades ranging from less than 0.1 g/t up to 56.6 g/t and silver grades range from less than 1 g/t up to 142 g/t. These collectively define a northeast trending zone approximately 500m long.

Rock chip samples from Scarlet Knob, on the eastern flank of Bruce Glacier, bear a strong resemblance to those collected at Tarn Lake, on the western side, some 800m distant. Like Tarn Lake, mineralization at Scarlet Knob is hosted by the Eskay rhyolite. Eskay Mining's geologic team thinks there is a likelihood that VMS mineralization connects between these two areas underneath the toe of the rapidly receding Bruce Glacier.

Further exploration will focus on establishing connectivity along this ~1 km long east-west corridor. Ability to drill through ice in this area is being examined. Scarlet Ridge and Scarlet Valley In 2022, Eskay Mining's geologic team identified zones of stockwork and replacement-style VMS mineralization at Scarlet Ridge and Scarlet Valley.

Mineralization is associated with east-west trending andesite dikes interpreted to be syn-volcanic VMS feeder structures. Surface sampling and diamond drilling were conducted at both locations, both techniques yielding anomalous gold and silver grades. Eskay Mining's geologic team views the hydrothermal alteration and anomalous precious metal concentrations at Scarlet Ridge and Scarlet Valley to be distal components of the VMS system centered around Scarlet Knob-Tarn Lake.

Therefore, emphasis will be placed on follow up exploration around the latter location in 2023. SkyTEM data indicates the presence of a significant conductive feature immediately southwest of Tarn Lake in need of field follow up examination. 2022 Exploration Program The fundamental goal of the 2022 exploration program was to identify new precious metal-rich VMS deposits across the Consolidated Eskay Project through early-stage work including mapping and geochemical sampling, and more advanced work including widely spaced drilling.

During the 2022 exploration season, Eskay Mining successfully completed 29,500m of diamond drilling along the TV-Jeff corridor and along the Scarlet Ridge-Tarn Lake trend. Drill results discussed in this news release come from holes drilled along the Scarlet Ridge-Tarn Lake trend. Further analytical data is expected back over the next few weeks.

This includes assays from additional drill holes drilled along the Scarlet Ridge-Tarn Lake trend, holes drilled at the TV deposit and analyses from substantial numbers of soil, surface rock chip, and infill BLEG samples from across the project. These will be presented to the market as they become available. Au Eq and Ag Eq Calculations and True Width: Note on use of Au eq (Au eq=Au+Ag/76) and Ag eq (Ag eq=Au*76+Ag): Mineralization at the TV and Jeff deposits displays similar characteristics and mineralogy to the Eskay Creek deposit and therefore for Au eq, and Au:Ag, a ratio of 76:1 is used and Au eq and Ag eq values are deemed to be reasonable based on assumed gold recovery (84.2%) and silver recovery (87.3%) as reported in the Eskay Creek Project NI 43-101 Technical Report and Prefeasibility Study, British Columbia, Canada, Effective Date: 22 July, 2021, Prepared for: Skeena Resources Ltd., Prepared by: Absence Engineering Canada Inc. True widths of reported intercepts are not fully understood at this time but given the moderately dipping tabular nature of these deposits and the steep angle of drilling, Eskay geologists estimate true widths represent approximately 70-90% of the reported drill intercept lengths.