Royal Road Minerals Ltd. press release

Royal Road Minerals Announces Initial Gold Channel - Sampling Results from the Luna Roja Gold Skarn Project; Nicaragua

2018-09-25

TSXV - TSX Venture Exchange · Copper · Gold · Silver · Bismuth · Tungsten · Zinc · Jersey

Toronto, Ontario--(Newsfile Corp. - September 25, 2018) - Royal Road Minerals Limited (TSXV: RYR) ("Royal Road" or the "Company") is pleased to announce initial surface channel rock-chip sample results from its newly identified Luna Roja Gold Skarn project in the Golden Triangle region of northeastern Nicaragua.

The Luna Roja prospect forms a part of the Company's 50-50 Strategic-Alliance agreement (see press release; September 6, 2017) with HEMCO Nicaragua (a subsidiary of Colombia's Grupo Mineros S.A. MINEROS:CB) and is located in the highly prospective Golden Triangle of northeastern Nicaragua (Figure 1), a region characterized by epithermal style gold veins, skarn and porphyry-style mines that have combined to produce in excess of an estimated 8 million ounces of gold since the early 1900's. HEMCO Nicaragua own and operate the Bonanza gold mine in the Golden Triangle and manage an innovative toll-treatment program which processes mineralized material from artisanal operations throughout the region. Royal Road Minerals is operator of the Strategic Alliance.

The Luna Roja project is a newly identified gold-skarn mineralized system represented by a metasomatized sequence of felsic intrusive and carbonate rocks, overprinted by a low-sulfide, skarn-type alteration characterized by: 1) a strongly oxidized and well-exposed exo-skarn, developed in marble; and 2) a partially-exposed massive endo-skarn developed in intrusive rocks. Gold skarn generally occurs as massive bodies with individual outcrops ranging from 2 to 25 meters in width and 2 to 50 meters in strike length. Skarn bodies are subvertical or dip steeply towards the southwest and where exposed, the skarn system extends over a known strike distance of 1100 meters and over a width of 380 meters (the system remains open under recent cover rocks: Figure 1).

[](https://orders.newsfilecorp.com/files/4008/38894_figure2.jpg)

Figure 1: Geologic map and rock-chip channel localities. Luna Roja Project, Nicaragua

To view an enhanced version of Figure 1, please visit: https://orders.newsfilecorp.com/files/4008/38894_figure2.jpg

So far the company has collected 318 continuous rock-chip channels from 50 localities over an area of 550 x 250m across the project with results presented in Table 1. Where continuous outcrop was present, channels were cut in a northeasterly direction across the strike of mineralized skarn bodies.

Best results are as follows:

Locality 2 40.65 meters at 2.5 grams per tonne gold Locality 5 23.5 meters at 5.1 grams per tonne gold Locality 1 21.85 meters at 1.1 grams per tonne gold Locality 1 13.4 meters at 0.9 grams per tonne gold Locality 33 12.0 meters at 7.1 grams per tonne gold Locality 16 8.4 meters at 7.2 grams per tonne gold Locality 10 8.3 meters at 3.2 grams per tonne gold Locality 1 7.25 meters at 2.0 grams per tonne gold Locality 12 5.05 meters at 2,3 grams per tonne gold Locality 11 6.5 meters at 4.0 grams per tonne gold Locality 2 6.15 meters at 8.1 grams per tonne gold Locality 31 6.0 meters at 6.4 grams per tonne gold Locality 2 5.5 meters at 12.2 grams per tonne gold Locality 35 5.2 meters at 7.0 grams per tonne gold Locality 16 4.8 meters at 9.1 grams per tonne gold

The Company plans to complete further geologic mapping, channel sampling and ground geophysics at Luna Roja before advancing the project to drilling stage.

"We believe that the Luna Roja project is further testament to the remarkable and undiscovered potential of Nicaragua's Golden Triangle area" said Tim Coughlin, Royal Road Minerals President and CEO "Together with the nearby Caribe Project, we now have two promising systems which management believes have the potential to host multi-million ounce gold projects"

[](https://orders.newsfilecorp.com/files/4008/38894_figure4.jpg)

Table 1: Luna Roja Project, Rock-Chip Channel Results

To view an enhanced version of Table 1, please visit: https://orders.newsfilecorp.com/files/4008/38894_figure4.jpg

_ 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. _

The information in this news release was compiled, reviewed and verified by Dr. Tim Coughlin, BSc (Geology), MSc (Exploration and Mining), PhD (Structural Geology), FAusIMM, President and CEO of Royal Road Minerals Ltd and a qualified person as defined by National Instrument 43-101. Royal Road Minerals employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. More information can be found on Royal Road Minerals web site at www.royalroadminerals.com

_Quality Assurance and Quality Control__:_

Rock-chipchannel samples are collected continuously over 1-2 meter horizontal intervals (unless otherwise indicated) using either a rock-saw or rock hammer and chisel. Samples are prepared and assayed by independent and ISO accredited laboratories of Bureau Veritas Minerals (BVM) and their local subsidiaries. Bagged samples are collected from site and delivered to BVM sample preparation laboratories in Managua.Samples arepreparedusing the BVMcodes PRP70-250 plus PUL85, where samples are crushed to 70% less than two millimeters, a riffle split of 250 gramsis collected and then pulverizedto better than 85 per cent passing 75 microns.Prepared sample pulps are then sent for analysis to BVM labs in Vancouver Canada.Gold isanalyzed by fire assay with anatomic absorption finish anda measurement range of 0.005 to 10 ppm. Samples over 10-ppm gold arere-analyzed by fire assay with a gravimetric finish. Multielement concentrations are analyzed by four-acid digestion and inductively coupled plasma mass spectrometer. Samples over 10,000 ppm Cu, Zn, Pb or Mnand 200 ppm W,arere-analyzed with four acid digestion and Inductively Coupled Plasma Emission Spectrometer (ICP-ES). Commerciallyprepared standards (gold-copper pulps), blanks (pulps and coarse chips) and field duplicatesareinserted into the sample stream by Royal Road Mineralsfor a total of 15% QA/QC to ensure sample precision. In the case of duplicate analyses of a sample, the average of both analyses isused as the final reported value. Unless otherwise stated, gold grades arenot capped for calculation of length-weighted averages.

Cautionary statement:

This news release contains certain statements that constitute forward-looking informationand forward-looking statements within the meaning of applicable securities laws(collectively, "forward-looking statements") including estatements relating to the Allianceand those describing the Company'sfuture plans and the expectations of its management that a stated result or condition will occur. Such forward-lookingstatements involve known and unknown risks, uncertainties and other factors that maycause the actual results, performance or achievements of the Company, ordevelopments in the Company's business or in the mineral resourcesindustry, or with respect tothe Alliance, to differ materially from the anticipated results, performance,achievements or developments expressed or implied by such forward-looking statements.Forward-looking statements include all disclosure regarding possible events, conditions orresults of operations that is based on assumptions about, among other things, futureeconomic conditions and courses of action, and assumptions related to governmentapprovals, and anticipated costs and expenditures.The words "plans", "prospective", "expect", "intend", "intends to" and similar expressions identify forward lookingstatements, which may also include, without limitation, anystatement relating to future events, conditions or circumstances. Forward-looking statements of the Company contained in this news release, which may prove to be incorrect, include, but are not limited to, those related to the Alliance, Hemco, and the Company's plans exploration plans.

The Companycautionsyou not to place undue reliance upon any such forward-looking statements, whichspeak only as of the date they are made. There is no guarantee that the anticipated benefits of theAllianceand the Company's business plans or operations will be achieved. The risks and uncertainties that may affectforward-looking statements include, among others: economic market conditions, anticipatedcosts and expenditures, government approvals, and otherrisks detailed from time to time in the Company'sfilings with Canadian provincialsecurities regulatorsor other applicable regulatory authorities. Forward-looking statements included herein are basedon the current plans, estimates, projections, beliefs andopinionsof the Company management and, in part,oninformation provided to the Company by Mineros Nicaragua, and, except as required by law, the Companydoesnot undertake anyobligation to update forward-looking statements should assumptions related to these plans,estimates, projections, beliefs and opinions change.

For further information please contact: Dr. TimothyCoughlin President and Chief Executive Officer

USA-Canada toll free 1800 6389205 +44 (0)1534 887166 +44 (0)7797 742800 info@royalroadminerals.com

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