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CRYSTAL LAKE MINING PROVIDES AN EXTENSIVE EXPLORATION UPDATE ON THE NEWMONT LAKE PROJECT – GOLDEN TRIANGLE, ESKAY CAMP, OUTLINING 2 MAJOR TARGET AREAS FOR HIGH-GRADE GOLD, SILVER AND COPPER SYSTEMS

September 4, 2019

Crystal Lake Mining Corporation (TSXV: CLM OTC: SIOCF FSE: SOG-FF) (“Crystal Lake” or the “Company”) is pleased to announce further positive results from the ongoing exploration program on the Company’s Newmont Lake Project in the heart of BC’s Golden Triangle, Eskay Camp. Drilling and surface work continue to expand known zones and turn up new discoveries with expansive footprints.

 The in-field exploration program that started in May 2019 has collected approximately (approximate values are given as exploration is ongoing):

  • 2,500 soil samples for assay
  • 1,500 rock samples for assay
  • 4,500 hyperspectral samples analyzed in-house via TerraSpec Halo
  • 700 core samples from historic un-sampled core for assay
  • 12 line-km of induced polarization (IP) geophysical survey
  • 300 km2 of geological mapping in a variety of detail
  • Over 4,000 meters of diamond drilling with all samples submitted for assay
  • Extensive 3D deposit modelling
  • Construction of a brand new state-of-the-art 50-person exploration camp
  • Construction of a logistical network for future lower-cost exploration

The results of the program have delineated major new discoveries in the Burgundy Ridge Copper-Gold-Silver (Cu-Au-Ag) alkalic porphyry trend, as well as new high-grade gold (Au) targets near the historic gold resource at the NW Zone and along the greater 10km long Newmont Lake Gold Corridor along the Mclymont Fault.

The program continues to produce new mineral discoveries on surface on a weekly basis and, two diamond drill rigs are still turning on both the Burgundy Ridge Copper-Gold-Silver System and the Newmont Lake Gold Corridor Trend.

Burgundy Ridge Cu-Au-Ag Alkalic Porphyry

Results from the 2019 surface exploration and diamond drilling program have confirmed the presence of a large Cu-Au-Ag alkalic porphyry trend over an area which includes Burgundy, Telena and the 72 Zone 2.3 kms away.

Crystal Lake is very pleased by the performance of SwiftSure Diamond Drilling as their drill continues to turn on the first ever diamond drill holes at Burgundy Ridge (See images of 2019 diamond drill core from Hole #7 below). Initial results have visually delineated a Cu-Au-Ag porphyry with related high-grade skarn system first sampled in 2012. No significant work was completed past 2014 until Crystal Lake intersected mineralization at depth in a late-season RC drill program in October 2018. (see press release March 7th, 2019).  Preliminary interpretations of surface and drill core indicate a large high-grade skarn body adjacent to megacrystic syenite / epidote-garnet hydrothermal breccia porphyry system.

Map 1

Newmont Lake’s Burgundy Ridge Copper-Gold-Silver Zone Displaying Completed Drill Hole Orientations and Mineralization Showings

Further drilling approximately 2.3 kilometers to the northeast along the Burgundy – Telena – 72’ Zone trend intercepted new mineralization hosted in potassic/hematite altered intrusions in the form of disseminated, and vein-hosted chalcopyrite + bornite adjacent to historic high-grade Cu-Au-Ag skarn-type mineralization.

Unprecedented ice/snow retreat is exposing new mineral showings on surface along the trend consisting of potassic/hematite altered megacrystic to porphyritic syenites with a variety of chalcopyrite mineralization styles.

figure 2

Chalcopyrite with minor malachite mineralization dominating the cement of a hydrothermal breccia with K-feldspar altered megacrystic syenite clasts. Assays pending. Image starting at 169m in BRDDH19-013; the 7th diamond drill hole at Burgundy Ridge. Note mineralization is visually high-grade and not representative of the entire hole.

figure 3

Massive chalcopyrite mineralization within potassic-altered megacrystic syenite hydrothermal breccia. Assays pending. Image starting at 172m in BRDDH19-013; the 7th diamond drill hole at Burgundy Ridge. Note mineralization is visually high-grade and not representative of the entire hole.

figure 4

K-feldspar altered megacrystic syenite with chalcopyrite mineralization found in outcrop at “Rock Island II”; a new showing ~470 meters NE of Burgundy Ridge. Assays pending. Approximate discovery date: August 15th, 2019.

figure 5

Chalcopyrite, pyrite, and sphalerite mineralization with potassic altered syenite clasts of a hydrothermal breccia at “Green Rock”; a new showing ~175m south of drill pad “C-2” along the Burgundy Ridge Trend. Assays pending. Approximate discovery date: September 1st, 2019.

figure 6

Chalcopyrite mineralization hosted in a potassic, hematite, and carbonate altered porphyritic syenite found at outcrop on “Rock Island I”; a new showing ~700m NE of Burgundy Ridge and ~500m NW of Telena. Assays pending. Approximate discovery date August 10th, 2019.

figure 7

Chalcopyrite, chalcocite, and malachite mineralization. Image starting at 77.5m in BRDDH19-001; the 1st diamond drill hole at Burgundy Ridge. Note mineralization is visually high-grade and not representative of the entire hole. Assays pending.

figure 8

Chalcopyrite, chalcocite, and malachite mineralization within k-feldspar altered hydrothermal breccia. Image starting at 282.4m in BRDDH19-004; the 3rd diamond drill hole at Burgundy Ridge. Note mineralization is visually high-grade and not representative of the entire hole. Assays pending.

figure 9

Chalcopyrite and pyrite mineralization starting at 197m in BRDDH19-001; the 1st diamond drill hole at Burgundy Ridge. Note mineralization is visually high-grade and not representative of the entire hole. Assays Pending.

figure 10

Disseminated chalcopyrite with chalcopyrite and magnetite/hematite mineralization in carbonate veins hosted within potassic altered bimodal syenite. Image starts at 231.4m of STDDH19-006; the 3rd diamond drill hole at 72’ Zone in 2019. This target area is apart of what is believed to be a 2.3km Cu-Au-Ag rich trend including the Burgundy Ridge – Telena – 72’ trend. Note mineralization is visually high-grade and not representative of the entire hole. Assays pending.

figure 11

Webby bornite-chalcopyrite and chalcopyrite stringers within hematite altered bimodal syenite. Image starts at 234.3m of STDDH19-006; the 3rd diamond drill hole at 72’ Zone in 2019. Note mineralization is visually high-grade and not representative of the entire hole. Assays pending.

figure 12

Disseminated chalcopyrite with chalcopyrite-carbonate veins with shreddy biotite halo hosted in a K-feldspar altered bimodal syenite. Image starts at 240.3m of STDDH19-006; the 3rd diamond drill hole at 72’ Zone in 2019. Note mineralization is visually high-grade and not representative of the entire hole. Assays pending.

The combination of new surface mineralization discoveries, lithological orientations, and mapping along the 2.3 km trend are all further evidence for the presence of a “large” alkalic, silica-undersaturated porphyry with adjacent high-grade skarn system. This preliminary model is geologically synonymous to the world-class Galore Creek Cu-Au-Ag porphyry deposit (814.7 million tonnes of 0.50% Cu, 0.31 g/t Au, 5.21 g/t Ag - BC MINFILE #104G 090) located 30 km to the NW.

Cole Evans, President / CEO of HEG commented “The vastness of copper with associated gold and silver mineralization of multiple styles starting at surface is really impressive. Our team has been tracking ice and snow retreat with a variety of tools. As it retreats, we are consistently being rewarded with new exposures of high-grade mineralization on surface. The first ever look at the subsurface from 2019 diamond drilling is giving us the confidence to make aggressive step outs with mineralization open along trend and at depth. Drilling continues while we eagerly await assays. The potential to have a large-scale copper-gold-silver deposit with similar lithologic, mineralization, alteration, and orientation characteristics of our world-class neighbour Galore Creek 30km to the northwest is very encouraging. An important distinction is the Burgundy Ridge Trend is roughly 1/5th the distance from road and power infrastructure making it a much more attractive system from that perspective.”

Newmont Lake Gold Corridor | High-Grade Au-Ag-Cu System

The technical team is pleased with the results of a recently completed IP survey by Walcott Geophysics and new high-grade Au discoveries at outcrop with highlights of 23.08 g/t Au, 6.49 g/t Ag, and 0.16% Cu (Sample ID B0003502) that has identified new drill targets with the potential for high-grade Au discoveries along the Mclymont Fault; a known prolific high-grade Au conduit with multiple showings over the 20km trend. Chargeable IP anomalies in the footwall of the Mclymont Fault system like those of the historic high-grade gold resource extend to the northeast and southwest of the NW Zone. This fault system has been mapped for 20km with 95% held within the Newmont Lake Property. Brand new discoveries adjacent to receding ice/snow of massive/semi-massive sulphides (pyrite and chalcopyrite) synonymous with high-grade Au in the area have also been discovered with assays pending.

Furthermore, new 3D modelling of the NW Zone high-grade Au system has outlined significant areas for expansion of the non-compliant historic inferred resource that contains 1,406 ktonnes at an average grade of 4.43 g/tAu, 0.22%Cu and 6.4 g/tAg at a projected “base case” cut-off grade of 2 g/tAu containing 200,000 oz Au, 6.79 million lbs of copper and 291,000 oz of silver  (Mineral Resource Estimate on the North West Zone, Newmont Lake Property, submitted to Romios Gold Resource Inc., May 11,2007). This resource estimate was based solely on the drill hole data collected by Gulf Minerals in the late 1980’s and early 1990’s. Hy-Tech Drilling has commenced the first-ever oriented, HQ drill core holes in the NW Zone targeting new high-grade Au with the objective to significantly expand the size of the known Au zone, and acquire oriented core data to aid in the vectoring of more high-grade Au targets in the area.

Several maps containing the surface geochemical results along with the completed geophysics data will be available on the website, www.crystallakemining.com, shortly.

Maurizio Napoli P.Geo., VP Exploration of Crystal Lake commented “We have been patient with the NW Zone to give our technical team the proper time required for thorough due diligence of this high-grade Au system developing along the 20km long Mclymont Fault Trend. Brand new high-grade gold discoveries have been made on surface with corresponding geophysical anomalies that suggests there is more high-grade Au in this area than previously understood. In addition, the non-compliant historic resource of 200,000 ounces gold completed in 2006 was limited to 1980’s drilling where the majority of core was not assayed or oriented. Our team has been able to model the deposit with the latest in 3D software and have identified probable extensions of the system. We have managed to prove this theory with brand new high-grade Au intercepts from previously unsampled drill core. When we factor in gold prices that have more than tripled since resource work was last done, and a new road and powerplant 10 miles down the valley; the potential is there for this to become one of the most important high-grade Au corridors in the district. Crystal Lake’s dominant land package is poised to capitalize on this.”

Cautionary Statement of Photo Gallery:

Please note the visualizations are selected images highlighting strong visual mineralization from a variety of new showings and recent diamond drill core. Mineral identification has been determined visually by geologists and cross-referenced via mobile X-ray Fluorescence elemental geochemical techniques (ThermoScientific Niton XL5 pXRF).  Portable XRF data is not provided as it is not an indicator of representative geochemistry of the entire rock mass. The reader should also note that while relative spatial information is provided, mineralization is not necessary representative of space between any given location and it should not be assumed that lateral continuity exists. Also note that mineralization in drill core is visually high-grade and should not be considered representative of the entire drill hole. The reader is encouraged to exercise caution, complete their due diligence, and determine their own conclusions with the information provided.

Qualified Person

The technical information in this news release has been reviewed and approved by Mr. Maurizio Napoli, P. Geo., VP Exploration for Crystal Lake Mining, a Qualified Person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.

About Crystal Lake Mining

Crystal Lake Mining is a Canadian-based junior exploration company focused on building shareholder value through high-grade discovery opportunities in British Columbia and Ontario. The Company has an option to earn a 100% interest in the Newmont Lake Project, one of the largest land packages among juniors in the broader Eskay region in the heart of Northwest B.C.’s Golden Triangle.

On Behalf of the Board of Directors,

CRYSTAL LAKE MINING CORP.

“Richard Savage”
President & CEO

Email: info@crystallakemining.com

www.crystallakemining.com

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