Definitive Purchase and Sale Agreement to Acquire Interest in Certain Mineral Titles

TORONTO, Nov.01, 2017(GLOBE NEWSWIRE) -- McChip Resources Inc. ("McChip" or the "Company") (TSX-V:MCS) is pleased to announce that, subject to the approval of the TSX Venture Exchange, the Company has entered into a definitive purchase and sale agreement executed on the date hereof with respect to certain of its mineral rights in the Rocanville area of Saskatchewan (the "Agreement"), as described more fully below. The purchaser, Altius Royalty Corporation (the "Purchaser"), is a wholly owned subsidiary of Altius Minerals Corporation (TSX:ALS).

The Company is the legal and beneficial owner of certain lands in the Rocanville area of Saskatchewan, and pursuant to certain contractual rights, McChip receives rent and royalty payments from the operator of those properties. The Company has agreed to sell all of its right, title and ownership interest in and to the mines and minerals located within the properties to the Purchaser.

Pursuant to the terms of the Agreement, the Purchaser has agreed to pay $3,000,000 on closing and in addition, an annual royalty of $500,000 for a term of ten years, conditional on certain potash production levels and grades of potash ore being maintained on an annual basis during the term of the Agreement.

As stated by the President and CEO of the Company, Richard McCloskey, the sale contemplated hereby provides McChip with immediate inflow of cash and the opportunity to generate guaranteed cash flow on a term basis.

About McChip

McChip celebrates eighty two years of continual business operations in 2017. Prior to a name change in 1981, the Company operated as Madsen Red Lake Gold Mines Limited.The Company is listed on the TSX Venture Exchange and has 5,660,096 common shares issued and outstanding.

For further information contact:

Edward G. Dumond
Corporate Secretary
McChip Resources Inc.
416 364-2173

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Certain statements in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information contained in forward-looking statements can be identified by the use of words such as "are expected", "is forecast", "is targeted", "approximately", "plans", "anticipates", "projects", "continue", "estimate", "believe" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. This news release contains forward-looking information regarding: (i) the expectations relating to whether a transaction will be consummated, including, without limitation, whether conditions to the consummation of the transaction will be satisfied, or the timing for completing the transaction; and (ii) expectations for the effects of the transaction or the ability of the Company to successfully achieve business objectives, including the effects of unexpected costs, liabilities or delays, and if the transaction is completed, the ability of the Company to allocate the net proceeds as stated above. Forward-looking information involves a number of known and unknown risks and uncertainties, which, if incorrect, may cause actual results to differ materially from those anticipated by the Company, including, without limitation, the risks that the transaction as described in the Agreement may not be completed and the parties may be unable to realize on the anticipated benefits of the transaction. Accordingly, readers should not place undue reliance on forward-looking information.

For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company's most recent management's discussion and analysis, as well as other public disclosure documents that can be accessed under the issuer profile of "McChip Resources Inc." on SEDAR at www.sedar.com. The forward-looking information set forth herein reflects the Company's reasonable expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.