Mr. Dave O'Brien reports

STUHINI EXPLORATION COMPLETES ACQUISITION OF RUBY CREEK MOLYBDENUM PROPERTY

Stuhini Exploration Ltd. has completed the exercise of its option and now owns a 100-per-cent interest in the Ruby Creek project located in northwestern British Columbia, Canada.

Pursuant to an option agreement dated July 29, 2019, as amended Oct. 28, 2019, between the company and Global Drilling Solutions Inc., Global Drilling granted the company an option to acquire a 100-per-cent interest in the property by issuing an aggregate total of 7.3 million common shares of the company and making aggregate cash payments of $1.06-million to Global Drilling over a four-year term, subject to acceleration at the sole discretion of the company, on such terms and conditions provided for in the option agreement (see news releases dated July 30, 2019, and Nov. 20, 2019).

In accordance with the option agreement, prior to the date hereof, the company had issued to Global Drilling an aggregate total of 5.55 million common shares and has made cash payments to Global Drilling in an aggregate total amount of $420,000. The board of directors of the company has unanimously determined that it is in the best interests of the company to accelerate the final option payment consisting of the issuance of 1.75 million common shares and the payment of $640,000 to Global Drilling pursuant to the terms of the option agreement. The company fulfilled the final option payment and exercised its option to acquire the property on June 5, 2023.

Dave O'Brien, president and chief executive officer of Stuhini, stated: "This is a milestone event for Stuhini given the potential of the property and the leverage we believe it provides on the molybdenum space. The board voted unanimously to complete the exercise of the option for the property early in order to attain 100-per-cent ownership because we believe that it positions the company more favourably to search for a potential suitor or strategic partner. The price of molybdenum, based on the LME Platts Molybdenum futures prices, has more than doubled since we first optioned the property. The board also considers that the remaining of 26,989 hectares of the property outside of the 2,466-hectare lease associated with the molybdenum deposit is prospective for base and precious metals and provides additional potential value to the property beyond the molybdenum resource."

Early warning disclosure

Global Drilling is beneficially owned by Barry Hanslit, a co-founder of the company and the vendor of the property. Immediately prior to the final option payment, Mr. Hanslit beneficially owned or controlled 6.8 million common shares, representing approximately 15.2 per cent of the outstanding common shares on an undiluted basis. Immediately after the completion of the final option payment, Mr. Hanslit beneficially owned or controlled 8.55 million common shares, representing approximately 18.4 per cent of the outstanding common shares on an undiluted basis, representing an increase in holdings of approximately 3.2 per cent.

Mr. Hanslit has advised the company that the common shares are being held for investment purposes. Mr. Hanslit has a long-term view of the investment and may acquire additional securities of the company, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Hanslit considers relevant from time to time.

A copy of the applicable early warning report will be filed on behalf of Mr. Hanslit on the company's profile on SEDAR and may also be obtained by contacting Mr. Hanslit at 604-639-2278, 8621 Forest Ridge Dr., Whistler, B.C., V8E 0G1.

Ruby Creek project: The 29,479-hectare Ruby Creek project is road accessible and located 14 kilometres (km) east of Atlin, B.C. There are 48 different documented mineral occurrences on the property, of which 16 are gold-related, with seven significant gold placer creeks. The property also hosts the Ruby Creek molybdenum deposit, which hosts a measured and indicated pit-constrained resource of 433 million pounds molybdenum using $15 (U.S.) per lb molybdenum prices and a cut-off grade of 0.02 per cent. Stuhini owns 100 per cent of the Ruby Creek project.

About Stuhini Exploration Ltd.

Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties in Western Canada and southwestern United States. The company's portfolio of exploration properties includes: its flagship the Ruby Creek project located approximately 14 km east of Atlin, B.C.; the Que project located approximately 70 km north of Johnson's Crossing in Yukon; the South Thompson project located approximately 35 km northwest of Grand Rapids, Man.; the Big Ledge property located approximately 57 km south of Revelstoke, B.C.; and a portfolio of properties in southeast Arizona.

Ehsan Salmabadi, PGeo, vice-president, exploration, is the qualified person for the company and has also validated and approved the technical and scientific content of this news release.

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