Silver North Resources Ltd. press release

Solis Withdraws from Mostazal Option Agreement

2022-06-30

TSXV - TSX Venture Exchange · Silver · Gold · Lead · Zinc · Copper · Canada

Vancouver, British Columbia--(Newsfile Corp. - June 30, 2022) - Solis Minerals Limited(TSXV: SLMN) (ASX: SLM) (OTCQB: SLMFF) ("Solis" or the "Company") announces that it has elected to withdraw from its option agreement on the Mostazal Project in Chile. Accordingly, Solis will have no future claim on the Mostazal Project, or any contiguous exploration ground acquired through staking, and will be released from any further obligations to the vendor.

Pursuant to the Option Agreement dated June 23rd, 2021, Solis, through its wholly owned subsidiary Westminster Chile SpA, was granted the right to earn up to a 100% interest in the Mostazal Project in Chile's Atacama Desert by spending US$5m on exploration and making payments of US$5m to the vendor over four years.

Jason Cubitt, Solis' president and CEO, stated: "Mostazal presented an exciting prospect for us with a known copper mineralised system at surface and historical data supported an exploration thesis testing deeper targets. However, results from our first phase of drilling and geophysical surveys undertaken by the Company in 2022 ultimately did not meet our minimum expectations and management determined that it is in the best interest of shareholders to re-allocate the Company's resources."

With a current cash balance of approximately A$3m, the Company remains in a strong position to advance its portfolio of porphyry and IOCG copper projects in Peru, including Ilo Norte and Ilo Este, and will provide updates on these and other projects currently under review as developments occur.

In early 2022 the Company expanded its footprint in Peru through the application of seven concessions in the Tacna Region of Southern Peru0F1, 15kms along trend from Southern Copper Corporation's Toquepala Mine. The applications lie along the regional Incapuquio Fault system in southern Peru, which is associated with three large copper-molybdenum deposits currently in production: Cuajone, Quellaveco and Toquepala.

Peru Copper Projects

The Company owns a 100% interest in a number of copper-focused projects located in the Departments of Moquegua and Tacna, in southern Peru.

The Company's Ilo Este Copper Project (Figure1) is located approximately 20 kilometres northeast of the port city of Ilo, and is hypothesised to be a large, eroded porphyry containing copper, gold, silver and molybdenum, with an identified mineralised trend over 3 square kilometres.

The Ilo Norte Copper Project is located approximately 20 kilometres north-northeast of the city of Ilo and consists of a 10km long alteration system, hosting iron-oxide-copper-gold mineralisation (IOCG), (Figure 1).

[](https://orders.newsfilecorp.com/files/1134/129621_solis_figure1.jpg)

Figure 1: Solis Minerals Ltd - Peruvian Projects' Location Plan

To view an enhanced version of this graphic, please visit: https://orders.newsfilecorp.com/files/1134/129621_solis_figure1.jpg

The Ilo Este and Ilo Norte projects represent a portfolio of exploration concessions in the highly prospective coastal IOCG/porphyry copper belt of southern Peru. Solis believes that the mineralisation identified on Ilo Norte is part of an IOCG system, with a high-grade copper-skarn target; while the mineralisation at Ilo Este is part of a copper-gold-molybdenum porphyry system.

Proposed work

The Company intends to undertake remote sensing surveys on sections of the Ilo project areas using WorldView-31F[2]data acquisition to guide regional alteration mapping and target generation and complement the extensive ground mapping carried out to date. Combined with previous drilling, these exploration tools are aimed to provide a strong vector for identification of new drill targets in the short to medium term on the permits.

Additional Tenement Applications

The Company applied for new tenements 15km south, and on the trend of, the Toquepala Mine and is in the process of being granted 3,025 Ha of largely contiguous exploration ground in eight concessions2F[3]after some subdivisions for overlapping applications were effected.

The Company is currently compiling all of the available historic exploration and regional government data for the project area. This prospective area will also be subject to WorldView-3 data acquisition to assist in target generation and future exploration.

About Solis Minerals Ltd.

Solis Minerals is a Latin American-focused mining exploration company. The Company holds a 100% interest in a package of highly prospective IOCG (iron oxide copper/gold) and porphyry copper projects in southwestern Peru within the country's prolific coastal copper belt - a source of nearly half of Peru's copper production.

This Announcement has been authorised for release to ASX by the Board of Solis Minerals Ltd.

For further information please contact:

Jason Cubitt President and CEO Solis Minerals Ltd. +01 (604) 209 1658

Stephen Moloney Investor Relations Corporate Storytime +61 (0) 403 222 052

Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.

Forward-Looking Statements

This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company's exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.

Qualified Person Statement

Fred Tejada, P. Geo., is a qualified person as defined by National Instrument 43-101 (NI 43-101) and a consultant to the Company and has reviewed and approved the technical content of this news release.

Competent Person Statement

The information in this ASX release in relation to Geological Information and Exploration Results is based on and fairly represent information compiled by Mr Anthony Greenaway, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is an employee of Solis Minerals Ltd. and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the exploration activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves". Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Mr Greenaway has provided his prior written consent as to the form and context in which the Geological Information and Exploration Results and supporting information are presented in this Announcement.

All information relating to exploration results that have been previously released to the market is appropriately referenced in this document.

APPENDIX 1

Table 1 Mostazal Copper Project Drill Collar Table

| Hole ID | Hole Status | East (m) | North (m) | RL (m) | Planned (m) | EOH (m) | DIP | AZI | | MODD001 | Complete | 440,853 | 7,049,571 | 2748 | 500 | 362.0 | -90 | 0 | | MODD002 | Complete | 440,374 | 7,049,835 | 2760 | 500 | 494.7 | -65 | 90 | | MODD003 | Complete | 440,103 | 7,049,295 | 2521 | 500 | 528.0 | -90 | 0 | | MODD004 | Complete | 441,881 | 7,049,630 | 2949 | 500 | 446.1 | -90 | 0 |

Table 2 Mostazal Copper Project significant copper intersections

| Hole | From | To | Interval | Cu | | (m) | (m) | (m) | (%) | | | MODD001 | 10 | 40 | 30 | 0.12 | | Including: | 30 | 40 | 10 | 0.17 | | | 136 | 138 | 2 | 0.76 | | | 258 | 260 | 2 | 0.11 | | | 304 | 306 | 2 | 0.26 | | MODD002 | 148 | 150 | 2 | 0.25 | | | 218 | 222 | 4 | 1.06 | | | 240 | 256 | 16 | 0.32 | | Including: | 244 | 246 | 2 | 0.68 | | | 292 | 294 | 2 | 0.16 | | | 328 | 332 | 4 | 0.13 | | | 342 | 358 | 16 | 0.11 | | | 378 | 380 | 2 | 0.11 | | | 446 | 448 | 2 | 0.48 | | | 470 | 474 | 4 | 0.52 | | MODD003 | 66 | 68 | 2 | 0.17 | | | 434 | 451 | 17 | 0.1 | | Including | 434 | 438 | 4 | 0.15 | | Including | 447 | 451 | 4 | 0.1 | | | 464 | 466 | 2 | 0.22 | | | 501 | 512 | 11 | 0.29 | | Including | 506 | 512 | 6 | 0.44 | | Including | 510 | 512 | 2 | 0.99 | | MODD004 | 29 | 50 | 21 | 0.28 | | Including | 29 | 37 | 8 | 0.42 | | Including | 34 | 36 | 2 | 0.78 | | Including | 35 | 36 | 1 | 1.1 | | Including | 42 | 50 | 8 | 0.3 | | Including | 42 | 46 | 4 | 0.42 | | | 57 | 58 | 1 | 0.14 | | | 67 | 68 | 1 | 0.13 | | | 156 | 158 | 2 | 0.13 | | | 193 | 196 | 3 | 0.16 | | | 220 | 221 | 1 | 0.22 | | | 245 | 246 | 1 | 0.12 |

Table 3 Recent Peruvian Project tenement application details

[](https://orders.newsfilecorp.com/files/1134/129621_solis_figure2.jpg)

Figure 2: Mostazal Copper Project location

To view an enhanced version of this graphic, please visit: https://orders.newsfilecorp.com/files/1134/129621_solis_figure2.jpg

[](https://orders.newsfilecorp.com/files/1134/129621_solis_figure3.jpg)

Figure 3: Mostazal Copper Project drill hole location plan

To view an enhanced version of this graphic, please visit: https://orders.newsfilecorp.com/files/1134/129621_solis_figure3.jpg

APPENDIX 2 Mostazal Project JORC Tables

JORC Code, 2012 Edition - Table 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections)

| Criteria | JORC Code explanation | Commentary | | Sampling techniques | - Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. | - Sampling across the project has included rock chip sampling of open pit exposure, trenches, rock outcrops, soil sampling and diamond drilling. Soil, trenching and outcrop sampling was undertaken by Sociedad Legal Minera Mostazal between 2005 and 2008, Galileo Minerals Ltd in 2008, and IMT Exploraciones between 2011 and 2013. Diamond drilling was undertaken by IMT Exploraciones between 2012 and 2013. Soil sampling and rock chip sampling was used to identify zones of potential mineralisation. These is no detailed record of how outcrop sampling was completed or the size of the samples. Trenches were sampled on 1m intervals; however the size of the sample is not recorded. Diamond drill holes were samples on either 1 m, 3 m or 4 m, intervals as half core samples. Solis Minerals is completing a diamond drilling program at Mostazal, comprising up to 4,000m of diamond drill core. | | Drilling techniques | - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). | - All historical drilling completed to date at the Mostazal Copper Project has been diamond drilling. 60 diamond drill holes were completed by previous explorers for a total of 11,381m. Historical diamond drilling was undertaken using a Boart Longyear LF-900 drilling rig. Drill holes were completed as HQ size (63.5mm core diameter). There is no record of the drill tube type used, i.e. triple tube or standard tube. Solis Minerals is completing HQ2 (63.5mm core diameter) diamond drilling utilising wirelines drilling techniques. | | Drill sample recovery | - Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | - Diamond core recovery was recorded for each sample interval by measuring the recovered core against the drill depth. Diamond core recovery varied between 0.25% and 100%, but typically averaged 95%. There is no apparent relationship between core recovery and grades from historical data. There is no apparent sample bias due to preferential loss/ gain of fine/ coarse material. | | Logging | - Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. | - Rock chip and soil sampling was usually completed as part of a geological mapping campaign. Historical diamond drill holes were geologically logged at varying intervals based on lithology. Logging included, lithology, colour, mineralogy, texture, alteration, structure, mineralisation and RQD. All diamond drill core has been logged. Solis Minerals has logged all current drill holes in detail including lithology, colour, mineralogy, texture, alteration, structure, mineralisation and RQD. | | Sub-sampling techniques and sample preparation | - If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. | - Diamond core was cut using a core saw and sampled as either half core or quarter core. Soil and rock chip samples collected by Galileo Minerals Ltd were sent to Vigalab laboratory in Copiapo, whereas samples collected by IMP Exploraciones were sent to Andes Analytical Assay Ltda in Santiago for sample preparation and analysis. There are no records for rock chip samples and soil samples collected by Sociedad Legal Minera Mostazal. There is no detailed description of the sample preparation methods for the historical soil and rock chip samples. Diamond drill core was sent to Andes Analytical Assay Ltda in Santiago for sample preparation and analysis. There is no detailed description of sample preparation methods used for historical diamond drill core. Quality control samples were inserted into each of the soil, rock chip and diamond drilling sample batches and included field duplicates, blanks and certified reference material samples. There is no record of any internal laboratory quality control sampling. Solis Minerals drill core is being cut using a core saw and sampled as half core. Solis Minerals samples are being sent to ALS in La Serena Chile for sample preparation including crushing (70% <2mm), riffle splitting 1kg sub sample and fine pulverisation (85%<75um). Sample sizes are appropriate for the material being sampled. | | Quality of assay data and laboratory tests | - The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. | - There are no assay records for rock chip and soil samples for samples collected by Sociedad Legal Minera Mostazal. Rock chip and soil samples collected by Galileo Minerals Ltd were assayed for copper, soluble copper, solvent copper extraction from pregnant solution, gold silver, lead, zinc, molybdenum arsenic and iron. The analytical method is not recorded. Rock and soil samples collected by IMT Exploraciones were assayed for 39-elements using Inductively coupled mass spectrometry (ICP-MS). Diamond core samples were assayed for a 39-element suit using Inductively coupled mass spectrometry (ICP-MS). Quality control samples were inserted into each of the soil, rock and diamond drilling sample batches and included field duplicates, blanks and certified reference materials. There is no record of any internal laboratory quality control sampling. ICP-MS is considered to be a total assay method. 6,830 diamond core samples ranging in length from 0.04m to 20m were submitted for SG analysis using Archimedes method. Solis Minerals drill core samples are being assayed for a 33-element suite via 4 acid digestion with ICP-AES finish, as well as gold by 50gm fire assay/AAS. Solis Minerals routinely inserts reference standards and blanks and duplicates into the sampling system at a 1:25 frequency. | | Verification of sampling and assaying | - The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. | - Reported significant intersections have been calculated as length weighted averages by Soils Minerals. There have been no twin drill holes completed. There have been no adjustments made to the historical assay data. | | Location of data points | - Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. | - Drill holes have been located using a handheld GPS (model unknown). Down hole surveys were conducted for each diamond drill hole on 50m intervals. There is no description of the survey tool used. All data has been collected in UTM zone 19S coordinates. The topography was surveyed on 1-5m contours intervals in 2012 over the entire project area by contract surveyors (method unknown). Artisanal open cut and underground mining occurred throughout the project area between 1950s and 2006. Sociedad Legal Minera Ltda then conducted a small scale open cut surface and room and pillar underground mining between 2006 and 2008. The surface mining has been surveyed during the topographic survey in 2012, however the underground workings have not been surveyed. Solis Minerals has located initial drill site via a hand held GPS, and will have final hole locations survey by an independent contractor. Solis Minerals reports all coordinates in PSAD56 - 19S. | | Data spacing and distribution | - Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. | - Geological sampling (rock and soil) has been completed on a nominal 200m x 200m grid over the entire project area. Diamond drilling was previously completed over the central parts of the project area on a nominal 150m x 100m grid. The sampling data is sufficient to establish the general extents and orientation of the near surface manto copper-silver style mineralisation, however the mineralisation remains open along strike and at depth. Sample compositing has not been applied. Solis Minerals is undertaking selected drilling at this stage, with no set drill spacing. | | Orientation of data in relation to geological structure | - Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | - The historical diamond drilling was completed in three phases. The initial phase of drill holes were angled to the southwest and were fanned off drilling platforms spaced approximately 100m apart on a northwest-southeast line. The subsequent drilling programs were drilled steeply towards the east or northeast to intersect the manto structures at a perpendicular angle. Solis Minerals is drilling both vertical and angel holes designed to test specific targets. Drilling is designed to intersect the planned targets at a perpendicular angle. | | Sample security | - The measures taken to ensure sample security. | - There is no detailed record of sample chain of custody between the project site and the assay laboratories for historical programs. Remnant drill core is securely stored at Sociedad Legal Minera Mostazal's property in Copiapo. Solis Minerals staff and contractors manage the movement on site, including the transport of cut samples from site to the laboratory in La Serena. | | Audits or reviews | - The results of any audits or reviews of sampling techniques and data. | - There have been no detailed audits or reviews of the historical or recent sampling techniques. Solis Minerals has conducted an internal technical review of the historical Mostazal Copper Project data. |