RNC Minerals Provides Production and Cost Guidance and Positive Operational Update

Press Release

• Mining of Baloo Stage 1 & growing pit pipeline – Baloo Stage 1 mining is performing well and meeting expectations. Results from grade control drill program have identified additional mineralised material that is expected to extend Stage 1 mining into the first quarter of 2020. Mining approval applications for Baloo Stage 2 remain on track for submission during the fourth quarter. In addition to Baloo, a second open pit is fully permitted and available for immediate mining as part of the growing pipeline of open pits.
• Exploration – Drilling north of a major fault previously thought to truncate the main Baloo mineralization has returned strong results, including 8.7g/t over 3 m from 63 m downhole¹ in drill hole BLOR003 (see below for additional drill results). These results demonstrate the potential to extend the Baloo open pit to the north, with additional follow-up drilling planned during the fourth quarter.
• New Beta Hunt Reserve – Remains on track to be completed in the fourth quarter of 2019.
• Re-sampling Historic Beta Hunt Drill Holes – This project has identified a number of new intersections that confirm or extend known mineralised areas, including²:
  • WFN-034 – 3.2 g/t over 4.9 m
  • WFN-042 – 6.6 g/t over 1.4 m

1. Drilling intervals reported for Western Flanks are estimated true thickness.
   
2. Drilling intervals reported for Baloo are down-hole lengths. True thickness cannot be estimated with available information.

TORONTO, Oct. 15, 2019 – RNC Minerals (TSX: RNX) (“RNC” or the “Company”) is pleased to announce that for the six month period ending December 31, 2019, management is targeting production of between 42,000 to 49,000 ounces of gold at an average all-in-sustaining-cost (AISC)³ of US$1,150 to US$1,250 per ounce.

Paul Andre Huet, Chairman & CEO, commented: “This is the first time, since completion of the Beta Hunt drilling campaign and acquisition of Higginsville Gold Operations (“HGO”) mine and mill, that the Company has provided production and cost guidance, demonstrating our commitment to keeping shareholders informed and more clearly able to measure our performance. As we have previously communicated, our focus moving forward remains on delivering on our production guidance, while continuing to reduce costs through all levels of our business. Third quarter 2019 production of 24,216 ounces is an excellent result for RNC’s first full quarter of production since acquiring the Higginsville Gold Operation (HGO). We look forward to continuing the momentum into the fourth quarter and building on what has already been a great start. At Baloo, we are encouraged by ongoing exploration results to the north and additional results to the east of the current pit, both of which have the potential to extend the current open pit”.

Mr Huet also noted, “At Beta Hunt, our maiden reserve estimate, based upon our updated resource estimate announced in August, remains on track for delivery in the fourth quarter. This will be a meaningful step forward for the Company and will position us to deliver our 2020 production and cost guidance to the market early next year, as is industry standard.”

Mining of Baloo Stage 1 is performing well to expectations. A grade control drill program in the northern end of the pit has identified additional mineralised material east of the area where the Company is currently mining. This material, which can be accessed via a small cut back, is expected to extend Stage 1 mining into the first quarter of 2020.

Baloo Stage 2 mining approvals remain on track to be submitted to the appropriate authorities in the fourth quarter of 2019.

Exploration drilling comprised of five reverse circulation (RC) drill holes north of a major fault (Buldania Fault) previously thought to truncate the main Baloo mineralization, has intersected strong mineralization including 8.7 g/t over 3 m from 63 m downhole in drill hole BLOR003. Further drilling is expected to be conducted over the fourth Quarter to determine the full extent of mineralization.

As part of the growing pipeline of open pits, a second fully permitted open pit is available for immediate mining upon the completion of current mining at Baloo, providing additional flexibility to the Higginsville operations.

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