Ore Sorting Increases Grade of a Bulk Sample by 55% at Dalradian's Curraghinalt Project

TORONTO, ONTARIO--(Marketwired - Sept. 18, 2017) - Dalradian Resources Inc. (TSX:DNA)(AIM:DALR) ("Dalradian" or the "Company") announces positive ore sorting test results based on a bulk sample of mineralized development material from several of the veins at the Curraghinalt Gold Project in Northern Ireland. Testing was carried out by Outotec at their TOMRA sorting test facility in Wedel, Germany on approximately 5 tonnes of material grading 9.52 g/t Au. Using x-ray and laser technology, plus additional screening prior to processing, the amount of non-mineralized (waste) material that would be sent to the mill in an operating mine was reduced by 35.8% and the grade increased by 54.6% to 14.72 g/t Au with a gold recovery of 99.3% (see Figure 1 available at http://www.dalradian.com/investor-centre/news-releases/news-releases-details/September-18-2017-News-Release-Figures/). Similar results would be expected if implemented into a mine scale situation.

Ore sorting technology has been used in diamond processing operations for many years and is now used with a variety of other commodities including tungsten and gold. The ore sorting process has become increasingly efficient with advancements in x-ray, laser and computer technology. It was anticipated that ore sorting would be a good fit at Curraghinalt because of the large contrast in density and colour between the high-grade quartz-sulphide veins and the surrounding country rock.

Throughout the testing, the ability to effectively sort the ore from Curraghinalt was clearly demonstrated. Using only x-ray technology with rougher stage material, waste removal of 50.5% with a gold recovery of 97.8% was achieved. When the laser scavenger step was added, which is used to recover additional mineralized material from the x-ray waste material, total gold recovery increased to 99.3% at the expense of a decrease in total waste removal to 35.8%. Optimisation of the proposed process, including a cost benefit analysis of the secondary scavenger circuit, will be needed prior to implementation of the technology.

Eric Tremblay, Dalradian's Chief Operating Officer commented: "These are very good results. Independent testing proves our high-grade gold is easily sorted from waste. We can now show that a modest capital investment in this technology will improve Curraghinalt's already robust grades and project economics. We plan to investigate it further by visiting operations using the technology prior to designing our own ore sorting infrastructure for inclusion in an updated feasibility study."

Ore sorting has the potential to considerably reduce costs at the mill by decreasing the amount of ore processed to produce the same number of ounces. Applying the results of the testing to the Curraghinalt deposit Mineral Reserve Estimate, would potentially eliminate approximately 1.87 million tonnes of non-mineralized material prior to processing (see Figure 2 available at http://www.dalradian.com/investor-centre/news-releases/news-releases-details/September-18-2017-News-Release-Figures/). Using the base case feasibility cost estimate of US$27.8/tonne for milling, this could result in savings of US$52 million against a revenue loss of approximately US$12.6 million (at 1,250 US$/oz) due to recovery being reduced by 0.7%. Further cost savings are expected from the replacement of cut and fill mining previously adopted for dilution control with mechanized long hole mining. Application of ore sorting also has the potential to decrease the cut-off grade, which would result in more mineable ounces and increase the throughput of the mine.

Table 1: Curraghinalt Mineral Reserve Estimate

Note: All figures have been rounded to reflect the relative accuracy of the estimates. Discrepancies in sums may be due to rounding.

Details of the Mineral Reserve Estimate can be found in the Company's technical report titled "NI 43-101 Feasibility Study Technical Report on the Curraghinalt Gold Project Northern Ireland" (the "Technical Report"), dated January 25, 2017 and prepared by Garett Macdonald, P.Eng., Michael Makarenko, P.Eng., Indi Gopinathan, P.Eng. and Stacy Freudigmann, P.Eng., all of JDS Energy & Mining Inc., and Jean-Fran??ois Couture, P.Geo., Bruce Murphy, P.Eng., Cam Scott, P.Eng., all of SRK Consulting (Canada) Inc., and William Harding, C.Geol., of SRK Consulting (UK) Ltd., all of whom are independent Qualified Persons as defined by NI 43-101. The Technical Report is available on the Company's website and on SEDAR at www.sedar.com.

Qualified Person and QA/QC

Eric Tremblay, P.Eng., Dalradian Chief Operating Officer, is the Qualified Person who supervised the preparation of the technical data in this news release.

Sample preparation was performed by SGS Minerals England. Assays were carried out by Wheal Jane Laboratory of Cornwall, England under supervision of SGS Minerals England. The analysis methods are ISO17025 accredited and the laboratory is ISO 14001 and ISO 9001 certified. Gold assays were performed in triplicates, and the average of these three results were used for each sample.

About Dalradian Resources Inc.

Dalradian Resources Inc. is a mineral exploration and development company that is focused on advancing its high-grade Curraghinalt Gold Project located in Northern Ireland, United Kingdom.

About Outotec

Outotec is a minerals and metals processing technology company providing services to the mining industry. Their head office is located in Helsinki.

www.outotec.com

FORWARD-LOOKING STATEMENTS

This press release contains "forward looking information" which may include, but is not limited to, statements with respect to future financial or operating performance of the Company and its subsidiary and its mineral project, the future price of metals, test work and confirming results from work performed to date, the estimation of mineral resources and mineral reserves, the realization of mineral resource and mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage, the timing and possible outcome of pending regulatory matters and the realization of the expected production, economics and mine life of the Curraghinalt gold deposit. Often, but not always, forward looking statements can be identified by the use of words and phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative 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.

Forward looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions such as the continued political stability in Northern Ireland, that permits required for Dalradian's operations will be obtained on a timely basis in order to permit Dalradian to proceed on schedule with its planned exploration and mine development, construction and production programs, that skilled personnel and contractors will be available as Dalradian's operations commence and continue to grow towards production and mining operations, that the price of gold will be at levels that render Dalradian's mineral project economic, that the Company will be able to continue raising the necessary capital to finance its operations and realize on mineral resource and mineral reserve estimates and current mine plans, that the assumptions contained in the Company's Technical Report dated January 25, 2017 are accurate and complete, that the results of the ESIA will be positive and that a permitting application for mine construction will be approved.

Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Dalradian to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current and future exploration activities; the actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; the risk that actual costs may exceed estimated costs; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2016 dated March 23, 2017 (the "AIF").

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.