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Skeena Announces Multiple 21A West Zone Expansions at Eskay Creek Including 48.48 g/t AuEq over 12.12 metres

Press Release

Vancouver, BC (September 6, 2022) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena” or the “Company”) is pleased to announce the first drilling results from the 2022 regional and near mine exploration programs at the Eskay Creek gold-silver Project (“Eskay Creek” or the “Project”) located in the Golden Triangle of British Columbia. Analytical results from the recently completed drill holes are detailed in this release. Additional results will be reported once available. Reference images are presented at the end of this release as well as on the Company’s website.

New 2022 Exploration Program Highlights:
•    1.66 g/t Au, 1.7 g/t Ag (1.68 g/t AuEq) over 31.30 m (SK-22-988, East Flank)
•    2.97 g/t Au, 3.0 g/t Ag (3.01 g/t AuEq) over 17.66 m (SK-22-990, East Flank)
•    2.27 g/t Au, 2.3 g/t Ag (2.30 g/t AuEq) over 21.00 m (SK-22-1006, 23 Zone)
•    1.31 g/t Au, 1.3 g/t Ag (1.33 g/t AuEq) over 47.50 m (SK-22-1008, 23 Zone)
•    1.85 g/t Au, 1.8 g/t Ag (1.87 g/t AuEq) over 27.68 m (SK-22-1018, East Flank)
•    1.52 g/t Au, 1.5 g/t Ag (1.54 g/t AuEq) over 31.60 m (SK-22-1023, East Flank)
•    1.74 g/t Au, 1.7 g/t Ag (1.76 g/t AuEq) over 46.77 m (SK-22-1028, 21AW)
•    1.45 g/t Au, 1.5 g/t Ag (1.47 g/t AuEq) over 29.50 m (SK-22-1032, 21AW)
•    47.50 g/t Au, 73.4 g/t Ag (48.48 g/t AuEq) over 12.12 m (SK-22-1093, 21AW)

Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths and zone geometries cannot be definitively determined at this time. Grade-capping of individual assays has not been applied to the Au and Ag assays informing the length-weighted AuEq composites. Metallurgical processing recoveries have not been applied to the AuEq calculation and are taken at 100%. Samples below detection limit were nulled to a value of zero. 

New In-Pit Discovery Enhances 21A West Zone
Expanding upon the in-pit mineralization discovered in 2021 by drill hole SK-21-997 which intersected high-tenor gold mineralization averaging 8.78 g/t Au, 13 g/t Ag (8.95 g/t AuEq) over 34.00 m, the Company is pleased to report that 2022 drill hole SK-22-1093 has predictably lengthened the Rhyolite-hosted 21A West Zone (“21AW”) with a new high-grade interval averaging 47.50 g/t Au, 73.4 g/t Ag (48.48 g/t AuEq) over 12.12 m. Occurring entirely within the intended open-pit, 75 metres north of SK-21-997 at a vertical depth of only 50 metres below surface, this area of the Resource was never populated by previous drilling and as such was modelled as barren waste rock. Analytical results for three other 2022 drillholes within this 75-metre gap are pending. The Rhyolite-hosted mineralization within 21AW is not characterized by elevated concentrations of the epithermal suite of elements (Hg-As-Sb) as is the case with the Contact Mudstone hosted mineralization. The limited drilling to date in 21AW indicates that precious metal grades typically increase vertically up stratigraphy with closer proximity to the Contact Mudstone.

Additional 21AW in-pit expansions have been delineated 50 metres below SK-21-997 with exploratory drill hole SK-22-1032 which intersected two zones averaging 1.73 g/t Au, 1.7 g/t Ag (1.75 g/t AuEq) over 11.02 m and 1.45 g/t Au, 1.5 g/t Ag (1.47 g/t AuEq) over 29.50 m.

“The new results from the Rhyolite-hosted synvolcanic feeders clearly validate the predictability and robustness of our geological thesis”, notes Paul Geddes, the Company’s Senior Vice President of Exploration and Resource Development. “Due to the high precious metal grade required by previous operators, the Rhyolite-hosted mineralization was never a focus for our predecessors and hence lacked systematic exploration. We are very encouraged by the results to date and look forward to further enhancing the already robust Mineral Resource and economics of the project”.

“These exploration drill results demonstrate the potential for adding new, open-pit mineralization in the near-term to Eskay Creek”, commented Skeena’s President, Randy Reichert. “These new and evolving zones are contained within or near the proposed Eskay Creek open-pit. A Mineral Resource update will be completed following the 2022 drill program with the aim of upgrading at least a portion of the mineralization discovered in the 23 and 21A West Zones to the Indicated category for use in an updated mine plan.”

Southern Expansion Drilling Extends 21A West Zone Beyond Resource Limits
Situated 250 metres along strike to the south of the new in-pit discoveries, 2022 drill hole SK-22-1028 intersected 1.74 g/t Au, 1.7 g/t Ag (1.76 g/t AuEq) over 46.77 m in the same Rhyolite-hosted synvolcanic structure that hosts 21AW mineralization. This discovery occurs 100 metres vertically below surface and beyond the limits of the currently defined Eskay Creek resource. Additional drilling is planned for this area to potentially expand the mineralization up-dip to surface. Analytical results are pending for three other drillholes that were drilled in this 250-metre untested gap of the 21AW.

Company Conference Call for Release of 2022 Eskay Creek Feasibility Study
The Company will be hosting a conference call at 8:00 AM PT/11:00 AM ET on Thursday, September 8th, 2022 after the release of the Eskay Creek Feasibility Study. A presentation by management will be followed by Q&A.

Webcast URL with Audio – https://services.choruscall.ca/links/skeenaresources202209feas.html
Participant Telephone Numbers – Canada/US 1-800-319-4610, International Toll +1-604-638-5340

If you’d like to ask a question, please dial in. All callers should dial in 5-10 minutes prior to the schedule start time and simply ask to join the call.

About Skeena
Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a Prefeasibility Study for Eskay Creek in July 2021 which highlights an open-pit average grade of 4.57 g/t AuEq, an after-tax NPV5% of C$1.4B, 56% IRR, and a 1.4-year payback at US$1,550/oz Au. Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to a full Feasibility Study, which will be released on Thursday, September 8th, 2022.

On behalf of the Board of Directors of Skeena Resources Limited,

Walter Coles Jr.
CEO & Director

Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com

Qualified Persons
Exploration activities at the Eskay Creek Project are administered on site by the Company’s Exploration Managers, Raegan Markel, P.Geo. and Director of Exploration, Adrian Newton P.Geo. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Senior Vice President Exploration and Resource Development, is the Qualified Person for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting the exploration activities on its projects.

Quality Assurance – Quality Control
Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently securely stored on site. Numbered security tags are applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC) samples at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance. The QAQC program was designed and approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company’s Qualified Person, Paul Geddes, P.Geo, Vice President Exploration and Resource Development.

Drill core samples are submitted to ALS Geochemistry’s analytical facility in North Vancouver, British Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed and 1 kg is pulverized. Analysis for gold is by 50 g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are re-analyzed using a 50 g fire assay fusion with gravimetric finish. Analysis for silver is by 50 g fire assay fusion with gravimetric finish with a lower limit of 5ppm and upper limit of 10,000 ppm. Samples with silver assays greater than 10,000 ppm are re-analyzed using a gravimetric silver concentrate method. A selected number of samples are also analyzed using a 48 multi-element geochemical package by a 4-acid digestion, followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) and also for mercury using an aqua regia digest with Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) finish. Samples with sulfur reporting greater than 10% from the multi-element analysis are re-analyzed for total sulfur by Leco furnace and infrared spectroscopy.

For these reasons, the mineral reserve and mineral resource estimates and related information presented herein may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.

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