Awalé Resources Limited (TSX-V: ARIC) is pleased to announce results from its Diamond Drilling program for the Fako and Casino prospects at the Bondoukou Project, Côte d’Ivoire (Figure 1). These prospects were defined from the Company’s maiden scout RC drill program (see releases February 2, 2018 and March 1, 2018).

Following the success of the initial RC program, a diamond drilling program was designed to enhance the understanding of the geometry, geology and down dip/plunge continuity of the Fako and Casino prospects. At Fako and Fako South 6 holes for 1201.6 metres were drilled, and at Casino 3 holes for 402.9 metres were drilled, for a total of 9 holes for 1604.5m (Figure 2 and 3).

HIGHLIGHTS

Fako Prospect:

• BEDD0004 – Step out hole testing down dip of 20m at 0.96 g/t Au from 60m downhole in previously reported RC hole BERC0008 returned the following intercepts demonstrating continuity of mineralisation (Figure 4).
  • BEDD0004 1.07m at 15.7 g/t Au from 147.3m and 9m at 0.3 g/t Au and 10 metres at 0.4 g/t Au from 153 and 165.8m downhole respectively.
• BEDD0003 – 8m at 6.2 g/t Au (from 0m) Including 1m at 43.3 g/t Au from surface
• BEDD0005 – 4.5m at 1.4 g/t Au from 163m including 0.55m at 7.55 g/t Au downhole.

Hole BEDD0003 was a step out from previous RC hole BERC0019 and BEDD0005 was a diamond tail of the same RC hole. Both holes intercepted new mineralisation to the south of the previously reported 18m at 1g/t Au from 1m downhole in BERC0019.

Casino Prospect:

• Drill holes BEDD0007 and BEDD0008 designed to test for plunging mineralisation from the previous RC drill program returned high grade intercepts with visible gold that was not evident in the RC program. Suggesting steeply plunging high grade lodes at Casino.
  • BEDD0007 – 1m at 4.6 g/t Au from 5m and 1.3m at 8.5 g/t Au from 61m downhole respectively
  • BEDD0008 – 0.46m at 21.1 g/t Au from 10.5m and 0.5m at 10.6 g/t Au from 60.89m downhole respectively (Figure 5).

Further to the successful drill intercepts, Kim Hein from Orefind Consultancy was contracted during this period to complete a structural analysis of the Bondoukou Project and relate this to the drill core. Findings from this study show structural confluences where later NE structures cross cut the older NW trend as well as their association with late intrusions are key to economic mineralisation at the project. The completed study highlights the Bondoukou Project area as a potential gold camp in West Africa with the geological setting having similarities with the Essakane and Mana gold camps in Burkina Faso.

View attached figures: http://www.awaleresources.com/_resources/maps/CDI_AugustXX_NR.pdf

CEO Glen Parsons commented today:

“These encouraging results follow our recent gold results from the initial 5,000m RC drill program, completed at the beginning of 2018, which yielded positive gold mineralisation along the initial 15km at the Fako prospect on the 40km Awari Shear zone, as well as high grade mineralisation to the north at the Casino Prospect.

Additional to testing continuation and extent of mineralisation, the drill program was designed to enhance understanding and confidence in our geological model. This has been achieved and, furthermore, Kim Hein from Orefind Consultancy has corroborated our belief in the potential of a significant gold camp at Bondoukou, which is our ultimate strategy for this district scale project.

Concurrently, we have recently completed some 13,000m of our 16,000m regional and infill auger program along the balance of the Awari Shear zone, covering an untested 25km of strike. Awalé’s aim is to continue defining multiple anomalous gold targets for follow up and scout drilling in the last quarter of 2018 and 2019.

We look forward to updating the market as these regional exploration programs results are received.”

Background

The recently completed diamond drill program at the Fako and Casino prospects have confirmed mineralisation down dip and plunge from previous intercepts and favourable geology reported on February 2, 2018 from the Company’s maiden RC drill program. Each program completed at the project delivers confidence in the exploration model and discovery potential at Bondoukou. The Company has also recently completed over 13,000m of a planned 16,000m Auger geochemistry program along the Awari Shear, this will further enhance the companies understanding of mineralisation along the 38km shear, the Company eagerly awaits full results for this program in the ensuing weeks.

Further to this, the geological and structural framework of the project has been both confirmed and enhanced. The project continues to deliver confidence in a large mineralised system at Bondoukou, and studies from Kim Hein of Orefind suggest the Bondoukou Project area as a potential gold camp and highlight similarities to other well-known gold camps in west Africa, including Essekane and Mana in Burkina Faso among others.

Highlights from the Maiden RC program included:

• BERC0001 – 3 metres at 5.02 g/t Au from 31m downhole
• BERC0005 – 5 metres at 1.46 g/t Au (including 1m at 3.24 g/t Au) from 78m downhole
• BERC0008 – 20 metres at 0.96 g/t Au (including 3m at 1.98 g/t, 4m at 1.62 g/t and 2m at 1.6 g/t Au) from 60m downhole (hole ends in mineralisation)
• BERC0009 – 7 metres at 1.2 g/t Au (including 1 metre at 5.6 g/t Au) from 16m downhole
• BERC0019 (Fako) – 18 metres at 1.0 g/t Au from 1m downhole
• BERC0050 (Casino) – 6 metres at 5.19 g/t Au (including 1m at 25.4 g/t Au) from 7m downhole
• BERC0033 (Casino) – 2 metres at 6.07 g/t tonne Au (including 1 metre at 11.0 g/t Au) from 90m downhole
• BERC0040 (Casino) – 2 metres at 1.94 g/t Au from 42m downhole
• BERC0049 (Casino) – 2 metres at 2.39 g/t Au from 26m downhole
• BERC0022 – 2 metres at 4.69 g/t Au from 42m downhole
• BERC0023 – 1 metres at 2.25 g/t Au from 56m downhole

Diamond hole BEDD0004 at the Fako prospect intercepted high grade mineralisation down dip from 20m at 0.96 g/t in previous RC hole BERC0008, confirming presence of a broad mineralised shear zone at the Fako prospect – A hanging wall quartz/molybdenite vein was intercepted returning 1.07m at 15.7 g/t Au followed with broad footwall mineralisation in quartz carbonate altered mafic volcanic (9m at 0.3 g/t Au and 10m at 0.4 g/t Au from 153m and 165.8m respectively). This relationship is consistent with the interpretation that structural confluences between earlier NW structures and later NE structures form high-grade targets.

Holes BEDD0007 and BEDD0008 at Casino were designed to test for a plunge on mineralisation from RC holes that traversed the target structure, but with little or no mineralisation. Both holes intercept quartz veining that was not evident in the RC program suggesting the mineralisation does plunge and highlights potential for steeply plunging high grade lodes. Figure 5 is a cross section through BEDD0008.

The rocks contained within the shear are lower Birimian and consist of greenschist facies altered ultramafic, mafic to andesitic volcanic and volcaniclastic rocks. Rocks in the footwall of the shear consist of an amphibolite to granulite facies metamorphic complex which is interpreted to predate the deposition of the volcanic and volcaniclastic rocks contained within the Awari Shear. There is an abrupt change in the metamorphic grade in the drill core between these two major geologic units. Mineralisation in hole BEDD0004 sits close to the contact between these two units.

The drill holes discussed above, along with geological mapping and interpretation of the entire diamond drilling program by Kim Hein has confirmed the Company’s hypothesis that the Awari Shear is an old deep-seated structure with origins in the earliest phases of Birimian evolution and the subsequent polyphase Eburnean orogeny. Findings from this study highlight multiple phases of deformation and mineralisation through a protracted tectonic history for the project area. High-grade targets are steeply plunging shoots where later NE structures cross cut the older NW trend. Late intrusions in the project area also present as classic mineralisation targets throughout the Birimian. The geological setting of the Bondoukou Project area has similarities with the Essakane and Mana gold camps in Burkina Faso, as well as Ity and Tongon in Côte d’Ivoire. The company is excited about ongoing exploration on the project and looks forward to economic discoveries at Bondoukou.

Table 1: All Significant Intercepts

Quality Control and Assurance

Analytical work for geochemical samples and rock chip samples is being carried out at the independent Intertek Laboratories Ghana Ltd. an ISO 17025 (2017) Certified Laboratory. Samples are stored at the Company’s field camps and put into sealed bags until collected by Intertek from the Company’s secure Bondoukou office and transported by Intertek to their laboratory in Tarkwa, Ghana for preparation and analysis. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%, passing a 2-mm screen. A split of up to 1,000-gram is taken and pulverized to better than 85%, passing a 75-micron screen, and a 50-gram split is analysed by fire assay with an AAS finish. Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis.