News

Toronto, Canada – June 8, 2018 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) invites interested parties to participate in a conference call and webcast of the results of its feasibility study on the Kombat surface mining operations and plant restart as released on June 5, 2018.

Date: Monday, June 11, 2018
Time: 11:00 EDT

Conference call and webcast details:
• North American participants: toll-free number 1 (844) 462-0592
• International participants call: (409) 983-9723
• The conference call is being webcast and can be accessed live at Trigon’s website at: www.trigonmetals.com
• Presentation slides of the feasibility study results will also be accessible on Trigon’s website at www.trigonmetals.com
A replay of the webcast will be made available on the Company’s website following the presentation.

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HIGHLIGHTS OF THE FEASIBILITY STUDY (PHASE 1) PRODUCTION RESTART:

• Positive Feasibility Study confirms Phase 1 of the restart program to self-fund mill refurbishment and the reopening of the AFW shaft
• Robust base case after tax IRR of 103.4%
• Start-up capital cost for the Kombat open pits of US$6.4 million, includes US$4.7 million for plant refurbishment
• In 2020, 10.7 million lb of copper produced, generating projected revenue of US$30.7 million, at a copper price of US$3.10/lb and a C1 cash cost of US$1.85/lb (base case)
• Base case free cash flows of US$5.7 million (US$7.7 million, at a high case copper price of US$3.28/lb) to be utilized to fund exploration at AFW underground mine to achieve life of mine strategy
• Offtake and project finance facility (announced in September 2017) to be finalized on the back of the Feasibility Study submission to the lender
• Pre-Feasibility Study for the underground reopening to be completed in near term

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HIGHLIGHTS

• NI 43-101 Mineral Resource estimate for the Kombat Mine, comprising both the surface accessible (targeted open pit) and underground, of 1.529 million tonnes of Indicated Mineral Resources at a grade of 1.14% copper, 0.72% lead and 2.88 g/t silver and 5.511 million tonnes of Inferred Mineral Resources at a grade of 3.05% copper, 1.25% lead and 22.93 g/t silver.
• Further optimized PEA NPV of estimated US$96 million with highly attractive internal rate of return of 85.2%.
• Combined surface accessible (targeted open pit) and underground life of mine of eight years at an average mined grade of 2.84% copper, producing 106,629 CuEq tons.
• C1 cash cost of $1.33/lb.
• Phase 1 strategy of open pit mining, at a rate of 30,000 tonnes per month, to facilitate early cash flow generation only requiring start-up capital of US$7.16 million.
• Feasibility study expected to be completed by May 2018.

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Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) has closed the second and final tranche (the “Second Tranche”) of its previously announced non-brokered private placement of units (the “Offering”). In this Second Tranche, the Company issued 271,428 units (the “Units”) at a price of $0.35 per Unit for aggregate gross proceeds of $95,000.

Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Share at a price of $0.50 for a period of 24 months following the closing date of the Second Tranche, subject to an acceleration provision whereby in the event that at any time after the expiry of the statutory hold period, the Shares trade at $1.00 or higher on the TSX Venture Exchange (on an average trading volume of not less than 200,000 Shares per day) for a period of 20 consecutive days, the Company shall have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise the acceleration right.

Under the initial tranche of the private placement, which closed on January 15, 2018, Trigon issued a total of 1,428,571 Units for aggregate gross proceeds of $500,000 (the “Initial Tranche”). Pursuant to the Initial Tranche and the Second Tranche, the Company has raised a total of $595,000.

The Company intends to use the net proceeds from the Offering to update its resource estimate in respect of the surface accessible (open pit) portion of the Kombat mine, preparation of a bankable feasibility study on the surface accessible (open pit) portion of the Kombat mine, exploration and development of the Kombat mine, to secure equipment for the refurbishment of the existing mill and concentrator at the Kombat mine and for working capital and general corporate purposes.

The Second Tranche is subject to final approval of the TSX Venture Exchange. The securities issued pursuant to the Second Tranche will be subject to a four month and one day statutory hold period expiring on July 3, 2018. In connection with the Second Tranche, Trigon paid finder’s fees of $3,500.

Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core operations focused on copper resources in Namibia, one of the world’s most prospective copper regions, where it has substantial assets in place with significant upside. The Company continues to hold an 80% interest in five mining licenses in the Otavi Mountain lands, an area of Namibia particularly known for its high-grade copper deposits. Within these licenses are three past producing mines including the Company’s flagship property, the Kombat Mine.

For further information, contact:
Blake Hylands
Investor Relations +1 (416) 216 5445
Email: bhylands@trigonmetals.com
Website: www.trigonmetals.com

Cautionary Notes
Neither 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.

This news release may contain forward-looking statements. These statements include statements regarding the Second Tranche, the expected use of proceeds of the Second Tranche and the Company’s future plans and objectives. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not
assume any obligation to update any forward-looking statements, except as required by applicable laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.