Salazar Reports Trench and Drill Results from Los Santos

Vancouver, British Columbia--(Newsfile Corp. - May 31, 2022) - SALAZAR RESOURCES LIMITED (TSXV: SRL) (OTCQX: SRLZF) (FSE: CCG) ("Salazar" or the "Company") is pleased to announce sampling results and an update on the Los Santos drill program.

Phase 1 drilling is complete at Los Santos, El Oro Province, with thirteen holes completed for a total of 2,575 meters ("m"). Results from four holes have been received, with assays pending for nine holes. Results from channel sampling and trenches are also reported. Final assays from all holes are anticipated in the coming weeks.

Highlights:

• Brecha Sur trench #5 returned 14.5 m @ 19.5 g/t Au and 274 g/t Ag
• Esperanza - drillhole SAN-002 returned 1.2 m @ 1.9 g/t Au from 142.9 m
• Leon - drillhole SAN-003A returned 15.8 m @ 0.43 g/t Au from 57 m, and 32.7 m @ 0.2 g/t Au from 292.7 m
• Rayo - drillhole SAN-004 returned 52.4 m @ 0.2 g/t Au from 78.1 m

Fredy E. Salazar, CEO, commented: "Results from Brecha Sur include spectacular grades in trenches. We drilled a series of short holes to test the continuation of this surface mineralisation at depth. Elsewhere, the final two holes in the program intersected strong alteration and mineralization in a hydrothermal breccia at Fortuna. Assay results from both Brecha Sur and Fortuna are pending.

At Leon and Rayo, broad intersections of anomalous gold mineralization were intersected. The gold-bearing structures identified at surface were confirmed at depth at Esperanza."

Los Santos
Background information to Los Santos is available at the Salazar Resources website: https://salazarresources.com/projects/100-salazar-owned/los-santos/

Exploration at Los Santos has comprised mapping, sampling, and drilling. Many of the targets shown in Figure 1, below, have been drill-tested. Drilling is completed, and consisted of 2,575 m in thirteen separate holes. Results from four holes have been received, with assays pending for nine holes.

The drill rigs have been demobilized from Los Santos. Next steps for the project will be established once the remaining assays are included into a final report.

New Drill Results, Los Santos

Results have been returned from the first four holes completed in Phase 1 Drilling at Los Santos. A further nine holes have been drilled, comprising seven holes at the Brecha Sur target and two holes at the Fortuna target. A map showing the location of the drill holes is shown in Figure 1, below.

Figure 1. Los Santos exploration targets and drill plan

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The collar locations of all thirteen holes are shown in Table 1, below.

The results from the first four holes are shown in Table 2, below. Assays from the remaining holes are pending.

At Esperanza, two drill holes were collared in weakly sheared, partially metamorphized tonalites, oriented almost due west, with a dip of 60^o. The holes targeted depth extensions of mineralization identified through surface sampling. Both holes intersected sheared zones of veining and veinlets, with visible gold reported at a depth of 132 m in SAN-001. Although the zone of shearing and sulphide mineralization in SAN-001 was 10 m in thickness, the intersection carrying gold values was 1.2 m @ 1.9 g/t Au from a depth of 142.9 m. The core was assayed with conventional fire assay atomic absorption spectroscopy and metallic screen fire assay methods. The downhole intersection is lower grade and narrower than the channel sampling reported previously from surface (21.5 m @ 3.0 g/t Au).

The grade differences are interpreted to reflect enrichment of the geology at the surface relative to the underlying geology. The narrower widths are interpreted to reflect the fact that the channel sample was taken obliquely to the structure whereas the drillholes were orthogonal to structure.

Figure 2. Esperanza cross-section

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At Leon and Rayo, two holes were drilled across the main targets established by surface mapping and sampling. At Leon, previously reported mineralization at surface included 7.5 m @ 0.27 g/t Au and 0.25 % Cu across one of a series of north-south sheeted vein sets, varying in intensity across approximately 180 m of east-west oriented outcrop. Additional results from the eastern section include 2 m @ 0.2 g/t Au and 0.25% Cu, and 2 m @ 2.2 g/t Au and 0.43% Cu. At Rayo, previously reported sampling in an adit across a similar orientation of vein sets returned a best intersection of 8.0 m @ 8.0 g/t Au in an adit.

The drilling in both areas intersected similar geology downhole as that seen at surface, namely mineralized structures and vein sets with oxidation in fractures and quartz-pyrite mineralization, minor chalcopyrite and trace arsenopyrite. At Leon, the results from SAN-003 indicate broad zones of gold mineralization, with several intervals between 247 m and 325 m downhole returning 0.2 g/t Au, as shown in Table 2, above. The results from the hole at Rayo, 52.4 m @ 0.2 g/t Au, are of a similar tenor and thickness to the nearby geology at Leon. The high grades previously reported in the channel at Rayo are interpreted to reflect surface enrichment due to oxidation processes.

Figure 3. Leon cross-section, SAN-003

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Figure 4. Rayo cross-section, SAN-004

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At Brecha Sur, mapping and trenching continues to reveal high grade mineralization at surface. The area appears to represent a conjugate set of structures formed in a compressive environment. Locally at Brecha Sur the host instrusive rock exhibits brittle deformation with en echelon tension cracks visible at the metric to decimetric scale. The tension cracks often contain elevated levels of sulfide mineralization. These zones are associated with intense argillic alteration (kaolinite-alunite + illite-smectite-sericite) and a mineral association of pyrite + enargite (Cu) + tenantite (As+Ag) + tetrahedrite (Sb+Ag) + Ag sulfosalts (pyrargyrite). This suite of alteration and sulfides suggests these are high sulfidation (HS) lenses of mineralization. Trenching and channel sampling was carried out over a number of zones, as shown in figure 5.

Figure 5. Brecha Sur trench and drill plan

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The sampling at Brecha Sur was carried out by chip sampling in friable rock, and using a rock saw in competent rock. Sample lengths were nominally 2 m, adjusted to lithologies.

Drilling to test the depth extent of these bodies has intersected similar alteration and mineral suites and hydrothermal breccias within core. The intensity of mineralization does, however, appear to be much less intense than that seen at surface. The altered and veined zones, and the hydrothermal breccias are thinner at depth than those intersected at surface. Results for drill holes SAN-005, SAN-006, SAN-007, SAN-007A, SAN-008, SAN-008A, and SAN-008B are pending.

Figure 6. Fortuna drill section, holes SAN-009 and SAN-010

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At Fortuna, soil sampling identified a gold and copper anomaly centred on a tourmaline breccia. The breccia outcrop shows alteration and disseminated sulfide mineralization. It is hosted within a medium-coarse grained diorite. Two drill holes, SAN-009 and SAN-010, were collared within the breccia, and intersected strongly sodic-calcic alteration, increasing with depth, characterized by actinolite, albite, and epidote. The alteration is associated with sulfide mineralization of pyrite, chalcopyrite, magnetite, and molybdenite.

Diamond drill hole SAN-009, was completed at a depth of 224.1 m. From surface it intersected hydrothermal breccias until a depth of 135.50 m. Diamond drill hole SAN-010, was drilled subvertically away from SAN-009 and it was completed at a depth of 275.0 m. From surface SAN-010 intersected hydrothermal breccias until a depth of 178.0 m. Assays for both holes are pending.

QAQC
Salazar maintains a rigorous chain-of-custody and quality assurance/quality control program that includes the insertion of certified standard control samples and blanks, and re-analysis of samples with high levels (over limit) of gold, copper and zinc. All samples were analysed by Inspectorate Services Perú S.A.C. (Bureau Veritas), a certified ISO 17025:1999 and ISO 9001:2000 laboratory. The laboratory also maintains a QAQC program that includes insertion of blanks, standards and duplicate reanalysis of selected samples. Gold was analysed by fire assay - atomic absorption spectroscopy (FA-AAS). Silver, copper, zinc and other elements were analyzed by aqua regia extraction with an Inductively Coupled Plasma (ICP-ES) finish.

Qualified Person
Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.

About Salazar Resources
Salazar Resources is focused on creating value and positive change through discovery, exploration and development in Ecuador. The team has an unrivalled understanding of the geology in-country, and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines.

Salazar Resources has a wholly-owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm-out non-core assets. The Company actively engages with Ecuadorian communities and together with the Salazar family it co-founded The Salazar Foundation, an independent non-profit organisation dedicated to sustainable progress through economic development.

The Company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25% stake fully carried through to production. A feasibility study for initial open-pit development announced in October 2021 (the "Feasibility Study") generated a base case NPV(8%) of US$259 million (for further information, please refer to the Company's news release dated October 26, 2021). At two copper-gold porphyry projects, Pijili and Santiago, the Company has a 20% stake fully carried through to a construction decision.

For further information about Salazar Resources, please contact Merlin Marr-Johnson, Executive Vice President and Corporate Secretary, at merlin@salazarresources.com or ir@salazarresources.com or at +1 604 685 9316.

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.

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking information herein includes, but is not limited to, statements that address activities, events, or developments that Salazar expects or anticipates will or may occur in the future. Although Salazar has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Salazar undertake to update any forward-looking information in accordance with applicable securities laws.

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