Mr. Normand Champigny reports

SPHINX RECOVERS PRISTINE GOLD GRAINS IN TILLS ON THE CHEMIN TROILUS GOLD-COPPER PROJECT, EEYOU ISTCHEE JAMES BAY TERRITORY

Sphinx Resources Ltd. has received results of the 2016 exploration program carried out on the Chemin Troilus project. The presence of anomalous counts of morphologically pristine gold grains in till samples collected at the head of a gold-bearing boulder dispersal train suggests a proximal common source in an area of 1.2 kilometres by one kilometre up-ice of the head of a boulders dispersal train.

The discovery of the Troilus mine located 25 kilometres northeast of the project was also the result of follow-up prospecting of mineralized boulders. The mine was previously operated by Inmet Mining Corp. from 1997 to 2010 and produced more than two million ounces of gold and 70,000 tonnes of copper. The Troilus mine is currently held by Sulliden Mining Capital Inc., which has released a recent indicated mineral resource estimate of 44 million tonnes containing 1.27 grams per tonne (g/t) gold and 0.12 per cent copper (Sulliden's press release dated May 25, 2016). The mineralization hosted at the Troilus mine is not necessarily indicative of the mineralization hosted on the corporation's project.

The project is located at the southwest end of a gold-copper corridor trending northeast. This corridor is located at the northern limit of the Frotet-Evans greenstone belt in the Opatica geological subprovince of the Superior province and includes the Troilus mine. The project consists of 61 claims (33.2 square kilometres). It is located 110 kilometres north-northwest of the town of Chibougamau along existing road access to the Troilus mine, and therefore, exploration can be carried out at a low cost.

Highlights

A total of 47 till samples and 28 rock samples were taken upstream and laterally from the area identified by mineralized boulders discovered in 2015 (see press release dated June 13, 2016).

Till samples weighing about 12 kilograms were collected at a depth of about 1.2 metres. The samples are from the following areas:

• 13 samples in the immediate area of the mineralized boulders taken at a maximum distance of 300 metres northeast of the boulders and with a sample spacing of less than 100 metres;
• 16 samples on lines 500 metres and 1,200 metres northeast of the mineralized boulders with a sample spacing at approximately 300-metre intervals on lines spaced 500 metres to 800 metres apart and oriented perpendicular to the direction of glacial transport;
• 10 samples along the Troilus mine road in the northeast area of the project, three kilometres northeast of the boulder train with a spacing of approximately 300 metres;
• Eight samples in other lateral areas to the dispersion train of the mineralized boulders.

Gold grains were recovered from 47 till samples, and a total of 34 samples contain one or more grains larger than 50 microns, eight of which are described as pristine. Pristine grains are generally interpreted as derived from sources proximal to the primary source.

Prospecting has discovered a new subangular block of approximately one cubic metre in size that returned an assay of 0.62 g/t gold. It is located approximately 50 metres northeast of the head of the dispersal train identified in 2015. The boulder is slightly magnetic and contains 1 to 2 per cent pyrite. Previous prospecting conducted in 2015 by Les Ressources Tectonic Inc. identified 13 mineralized blocks in an area of 220 metres by 45 metres oriented northeast within in the corridor and returned values up to 1.57 g/t gold (June 13, 2016, press release).

The corporation believes that the results of the 2016 exploration campaign are very encouraging and define a prospective area of 1.2 kilometres by one kilometre upstream of the head of the dispersion train of mineralized boulders and till samples containing pristine gold grains. On the basis of these results, the corporation plans to carry out fieldwork in 2017, including a magnetic survey and an induced polarization survey. The objective of these surveys is to discover the primary source of the mineralized blocks through definition of targets that can be tested by drilling.

Prospecting was carried out during August and September by Tectonic under the supervision of Jean Laforest, Ing, with the collaboration of the Table jamesienne de concertation miniere of Chibougamau. Till samples were processed and examined by IOS Services Geoscientiques inc. of Chicoutimi, Que. The gold grains were extracted, and their dimensions were measured and classified as pristine, modified or reshaped to estimate the distance the gold grains travelled from their potential bedrock source. The ARTGold method was used for the detection of detrital gold grains. The analysis of the rock samples from surface blocks was carried out by ALS Chemex of Val d'Or, Que., using the ICP-21 methods for gold and ME-ICP61 for 33 elements.

Financing for the program includes funds provided by the Societe d'investissement dans la diversification de l'exploration (SIDEX) as part of its Field Action 2016 program. The technical information presented in this press release has been approved by Normand Champigny, president and chief executive officer of Sphinx, and a qualified person as defined by National Instrument 43-101.

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