Mr. Tom MacNeill reports

OMINECA'S MINING PARTNER PSI SUBMITS APPLICATION TO DEWATER THE FRASER CANYON PLACER GOLD RECOVERY PROJECT

Omineca Mining and Metals Ltd.'s mining partner PSI Group has submitted the application for initial dewatering at the Fraser Canyon underground paleoplacer gold recovery project, located 12 kilometres northwest of Quesnel, B.C. PSI is currently preparing a notice of work submission inclusive of a long-term mine plan and engineered ground support management program. Further updates will be announced as progress is made toward reinitiating underground paleoplacer gold recovery aimed to start later this year. Once all preparation and permitting are in place, PSI plans to re-enter the underground workings and immediately begin mining the unrecovered placer gold-bearing material remaining between the herringbone patterned historic crosscuts within the paleochannel.

PSI and Omineca are also pleased to announce that, following joint consultations and site visits, both the Lhtako and Nazko first nations have addressed letters of full support for the Fraser Canyon project to the Province of British Columbia. Additionally, the leadership of the City of Quesnel has voiced its full support for the Fraser Canyon project. PSI and Omineca are deeply committed to responsible development of the project to create meaningful, continuing benefits for the Lhtako and Nazko first nations, the City of Quesnel, and the Province of British Columbia.

PSI Group readies Fraser Canyon paleoplacer gold project

PSI has begun preparatory work, including mine engineering, planning and equipment procurement, to reinitiate placer gold recovery at the Fraser Canyon project. The project will benefit from the use of modern mining methods, technologies and machinery, which will dramatically increase output from the operations when compared with drill and blast technology used previously. Specifically, PSI will be using multiple self-propelled roadheaders designed for rock cutting and tunnelling, which will allow for continuous excavation and loading. Additionally, a presorting and gold recovery operation underground is also planned to further expedite processing time and facilitate continuous mining and processing all-year-round.

PSI's activities and work completed and in process to date include the following:

• Completed a mechanistic structural design and full 3-D stress strain model of the Fraser Canyon underground workings and established the mechanical mining systems and procedures required to enhance safety, for material-handling efficiency, to reduce environmental impact and to ensure cost-effective mining;
• Once dewatering is complete, PSI will be conducting a 3-D laser survey of the existing underground workings to gain information required for accurate ground support design and analysis;
• Along with ground support material supply partner HMI Company, PSI has developed advanced ground support material systems specifically designed for the underground conditions at the Fraser Canyon project; these systems will enable 100-per-cent extraction and real-time backfilling using mine tailings underground for a more productive, safer reduced surface impact and lower carbon footprint mining method;
• Completed an archeological assessment in conjunction with Tracker GPS Survey Mapping Ltd. at the Fraser Canyon project site and developed a go-forward plan for continued archeological assessment as the project proceeds;
• The archeological assessment protocol has been shared with and well received by first nations as appropriate measures to ensure respect and consultation.

Historic paleoplacer mining at the Fraser Canyon project area

The Fraser Canyon property claims extend 11 kilometres along the Fraser River encompassing a known buried paleochannel that trends south-southeast. Historically, up to 1986, the Canyon and Tertiary Mines collectively produced 1,482 ounces of raw placer gold. In 1986, underground development was conducted at the Canyon mine using conventional drill-and-blast methods. A 772-foot main drift was advanced along the centre of the gold-enriched paleochannel, with 13 alternating left and right crosscuts each 50 to 100 feet long. That operation produced 10,804 loose cubic yards of pay gravel over a 100-day period. The surface wash plant operated for 51 of 100 total mining days, processing 9,932 loose cubic yards of pay gravel recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver.

As Omineca's mining partner, PSI will fully finance all costs associated with the exploration, development, engineering, mining and operating capital and expenses of the Fraser Canyon project in return for a 75-per-cent share of recovered metals from placer operations, with Omineca retaining a 25-per-cent zero-cost carried interest.

Qualified person

All scientific and technical information in this news release has been prepared by, or approved by, Stephen Kocsis, PGeo. Mr. Kocsis is an independent qualified person for the purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Omineca Mining and Metals Ltd.

Wingdam, British Columbia

Omineca's flagship Wingdam hardrock exploration and placer gold recovery projects are located along the Barkerville Highway 45 kilometres east of the city of Quesnel. The Wingdam property includes mineral tenures totalling 61,392 hectares (613 square kilometres) and in excess of 15 linear kilometres of placer claims, both encompassing the Lightning Creek valley, where topographic conditions created thick layers of overburden, which preserved a large portion of a buried paleochannel containing placer gold-bearing gravels. Omineca also has a program exploring for the potential multiple hardrock sources of the placer gold at Wingdam.

Fraser Canyon, British Columbia

Part of Omineca's original acquisitions in the Cariboo mining district, the Fraser Canyon project located 12 kilometres northwest of Quesnel, B.C., is slated to reinitiate the development of the underground paleochannel for the recovery of placer gold. Historically, two mines north and south of the Fraser River collectively produced 1,482 ounces of raw placer gold.

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