Step-Out Hole Hits Large, Continuous Gold-Bearing System at Treaty Creek Property - 0.981 g/t Gold over 563.8 meters in CB-18-39

2018-11-26 / @thenewswire

(TheNewswire)

November 26, 2018 / TheNewswire / Vancouver, BC - Teuton Resources Corp. (“Teuton” or “the Company”) (“TUO”-TSX-V) ("TUC"- Frankfurt) is pleased to to pass along a report from JV partner Tudor Gold’s exploration at the Treaty Creek property located adjacent to Seabridge Gold’s KSM property in the Golden Triangle region of northwestern British Columbia. The final hole (CB-18-39) of the 2018 exploration season, a 90 m step-out to the north of the Copper Belle Zone, intersected 0.981 g/t gold over 563.8 meters and bottomed in mineralization. This is the widest and most strongly mineralized interval seen to date of the 69 holes that have been drilled within the zone, and more importantly, suggests potentially greater widths of mineralization continuing to the north and northeast. This new extension will be a prime target for follow-up drilling in 2019.

Hole CB-18-39 is one of the three holes reported here that were part of the nine-hole 2018 drill program on the Copper Belle zone of the Company’s Treaty Creek property, in the “Golden Triangle” area of north-western BC (see map below). Results of core sampling have now been received for all of the nine holes completed. The first six holes were reported in the August 24 and October 30 news releases.

Walter Storm, President and CEO, stated: “This very positive intersection in the final hole of the year at Treaty Creek exhibits particularly strong gold values for a porphyry-style deposit. It is certainly the best result to date at Copper Belle - in terms of grade x length - being some 50% longer than the previous longest intersection. We drilled 9 deep holes in 2018, testing a large area with a wide-spaced drill pattern, a program which has expanded the Copper Belle zone to the north and northwest; discovering broad intercepts of gold mineralization adjacent to similar wide intercepts reported in 2017. The target next year will be more drilling north and northeast of Hole CB-18-39, expanding on the significant grade and scale of the gold mineralization encountered.”

Copper Belle Drill Hole CB-18-39 Mineralized Intervals

------------------------------------------------------------ |Hole ID | |From |To |Interval|Au |Ag |Cu | | | |(m) |(m) |(m) |(g/t)|(g/t)|(ppm) | |----------------------------------------------------------| |CB-18-39 | |141.5|705.3|563.8 |0.981|4.4 |352.2 | |----------------------------------------------------------| | |includes|141.5|185 |43.5 |1.21 | 2.8 |171.7 | |----------------------------------------------------------| | |and |194 |428 |234 |1.147| 6.1 |501.6 | |----------------------------------------------------------| | |and |437 |474.5|37.5 |0.352|2.8 |84 | |----------------------------------------------------------| | |and |483.5|519.5|36 |0.641|2.1 |282.4 | |----------------------------------------------------------| | |and |530 |549.5|19.5 |1.071|1.8 | 407.7| |----------------------------------------------------------| | |and |560 |563 |3 |1.243|1 |167.5 | |----------------------------------------------------------| | |and |569 |624.5|55.5 |1.719|10.4 |348.3 | |----------------------------------------------------------| | |and |632 |660.5|28.5 |1.521|2.4 |330.9 | |----------------------------------------------------------| | |and |666.5|705.3|38.8 |0.673|1.5 |305.1 | |----------------------------------------------------------| |EOH 705.3| | | | | | | | ------------------------------------------------------------

* All assay values are uncut and intervals reflect drilled intercept lengths.

* True widths of the mineralization have not been determined.

CB-18-39 intersected mineralization from a depth of 141.5m to the end of the hole at 705.3m, averaging 0.981 g/t Au over 563.8m. The hole also contained higher grade sections, such as 1.719 g/t Au, with 10.4 g/t Ag, over 55.5m and, significantly, the hole ended in mineralization, grading 0.673 g/t Au over 38.8m, indicating potential for continuing mineralization at depth.

CB-18-39 was drilled northwesterly at an angle of -72 degrees. The host volcaniclastic rocks are typically chlorite, sericite and locally potassically altered, however the more strongly mineralized intervals exhibit increased pyrite and stronger silicification than surrounding rocks. This hole also displayed more chalcopyrite than was observed in previous holes. This may indicate that copper grades could be increasing to the north. Silver values were also higher on average in hole CB-18-39, with sections such as 10.4 g/t Ag over 55.5m from 569.0m to 624.5m.

Hole CB-18-39 is the northernmost hole drilled to date and has extended the length of the Copper Belle Zone approximately 90m northeast from CB-18-37B, to a total known length of 1200m. Hole CB-18-38; a fill-in hole in the east part of the drill grid, returned wide intercepts of gold mineralization similar to nearby previously drilled holes. Hole CB-18-36 was drilled at the west edge of the drill grid and gold-bearing intervals in this hole indicate that the zone continues at depth in that direction. Gold, silver and copper results for holes CB-18-38 and CB-18-36 are summarized in the table below.

Copper Belle Drill Holes CB-18-38 and CB-18-36 Mineralized Intervals

----------------------------------------------------------- |Hole ID | |From |To |Interval|Au |Ag |Cu | | | |(m) |(m) |(m) |(g/t)|(g/t)|(ppm)| |---------------------------------------------------------| |CB-18-38 | |20.5 |40 |19.5 |0.561|0.6 |56.7 | |---------------------------------------------------------| | | |49 |52 |3 |0.446|1.6 |37.5 | |---------------------------------------------------------| | | |59.5 |134.5|75 |0.514|1.2 |187.8| |---------------------------------------------------------| | | |161.5|164.5|3 |1.114|1.4 |192 | |---------------------------------------------------------| | | |185.5|200.5|15 |0.22 |1.5 |118.6| |---------------------------------------------------------| | | |215.5|362 |146.5 |0.545|2.8 |298.7| |---------------------------------------------------------| | | |468.5|638 |169.5 |0.659|1.1 |76.4 | |---------------------------------------------------------| | |includes|504.5|572 |67.5 |1.049|1.3 |98.1 | |---------------------------------------------------------| | | |686 |698 |12 |0.54 |0.8 |133.4| |---------------------------------------------------------| |EOH 698.0| | | | | | | | |---------------------------------------------------------| | | | | | | | | | |---------------------------------------------------------| |CB-18-36 | |658 |704.5|46.5 |0.76 |2.7 |93.2 | |---------------------------------------------------------| | | |736 |752.5|16.5 |0.276|1.6 |73.8 | |---------------------------------------------------------| | | |758.5|778 |19.5 |0.361|1.6 |51.6 | |---------------------------------------------------------| |EOH 805.0| | | | | | | | -----------------------------------------------------------

* All assay values are uncut and intervals reflect drilled intercept lengths.

* True widths of the mineralization have not been determined.

CB-18-38 was a fill-in hole located approximately 60m and 140m from the adjacent holes (see map below), providing important information about the width, grade and continuity of the Copper Belle Zone in this area. It

was drilled to the northwest at an angle of -72 degrees, parallel to the adjacent holes, and returned three broad intervals of gold mineralization; 0.514 g/t Au over 75.0m, 0.545 g/t Au over 146.5m and 0.659 g/t Au over 169.5m. Additional narrower intervals included 0.561 g/t Au over 19.5m, as well as 0.540 g/t Au over 12.0m, which extended to the end of the hole indicating that mineralization probably continues at depth.

The gold mineralized intervals in CB-18-38 are primarily hosted by andesitic tuff and fragmental rocks that are moderately silicified, with chloritic, sericitic and potassic alteration, and are cut by abundant fine pyrite veins and later quartz-carbonate veins. Pyrite content averages about 5%, occurring as fine veins, disseminations and local coarse masses in the host rocks. Gold occurs primarily within the pyritic intervals, as well as within later quartz veins, along with rare chalcopyrite, galena and sphalerite.

CB-18-36 was located at the west edge of the drill grid, and oriented to the northwest at an angle of -72 degrees. It intersected a wide zone of faulting and brecciation that has undergone sericite alteration, with overprinted strong silicification and abundant pyrite. This fault zone, plus underlying brecciated volcanic rocks, is mineralized over a drilled length of more than 140m, and contains a more strongly mineralized gold zone averaging 0.760 g/t Au over a thickness of 46.5m. Later quartz-carbonate veins containing pyrite, with lesser galena and sphalerite may also contribute to the gold grades.

The nine holes drilled in 2018 covered an area measuring approximately 370 meters by 250 meters, to depths ranging from 600 to 900 meters. This area is located to the north and west of the area for which the company reported a range of 1.8 to 1.9 million ounces contained within 50 to 45 million tonnes grading 1.12 to 1.35 g/t Au determined from the drill results prior to 2018.

For locations of the 2018 and other holes in the Copper Belle area please view the map below. The Copper Belle zone has an elongate north-northeast trend, dipping at a relatively flat angle to the northwest. Mineralization appears to be related to an extensive north-northeast trending tectonic zone that may be part of the extensive Sulphurets Thrust Fault structure that also traverses the KSM property to the south.

The objective of the 2018 drill program was to better define the extent of the Copper Belle zone. The results from the 2018 holes have provided additional information about continuity and grade of mineralization that, along with the previous drill results, will be integral for a resource calculation.

D. Cremonese, P.Eng., President of Teuton, commented as follows: “Hole #CB-18-39 is by far the best hole, in terms of length x grade, ever drilled at Treaty Creek. Its gold equivalent grade1 of 1.08 g/t (over its 563.8m length) is 27% higher than the average gold equivalent grade of the probable reserve2 at the neighbouring Iron Cap deposit -- 0.85 g/t -- on Seabridge Gold’s KSM property. Access to the Treaty Creek property is relatively straightforward: unlike the KSM property, there is no formidable wall of ice preventing direct passage to the property (indeed plans call for an expensive 16km long tunnel to provide entry into Seabridge’s KSM property). Roads could be built directly into Treaty Creek, following either the Teigen or Treaty Creek valleys, or northwest connecting to the Eskay Mine road along the Iskut River, all routes eventually linking with Highway 37 to the east. Such road construction would only occur after consultations with local Indigenous groups and satisfaction of certain environmental and governmental regulations but there are no known, physiographic impediments such as icefields.”

1Prices used to calculate gold equivalents are: Copper: $2.81/lb, Gold: $1,222.30/oz, Silver: $14.26/oz. All values reported in USD and do not consider metal recoveries.

2February 2018 published reserve grades of Iron Cap Deposit (by Seabridge Gold): 224 million tonnes grading 0.49 g/t gold, 3.6 g/t silver and 0.20% copper.

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QP--The Qualified Person for the analytical information in this new release is Tudor Gold geologist, James A. McCrea, P.Geo. for the purposes of National Instrument 43-101. The Qualified Person for this news release is Dino Cremonese, P.Eng., who as President of Teuton is not independent of the Company. Mr. Cremonese has not verified the accuracy of the technical data but believes that it is reliable.

QAQC --Drill core samples were prepared at ALS Global’s Preparation Laboratory in Terrace, BC and assayed at ALS Global’s Geochemical Laboratory in North Vancouver, BC. Analytical accuracy and precision are monitored by the submission of blanks, certified standards and duplicate samples inserted at regular intervals into the sample stream by Tudor Gold personnel. ALS Global Laboratories quality system complies with the requirements for the International Standards ISO 17025: 2005.

About Teuton

Teuton owns interests in more than thirty properties in the prolific “Golden Triangle” area of northwestern British Columbia and was one of the first companies to adopt what has since become known as the “prospect generator” model. Ten of its properties are currently under option and cash proceeds from these options are just under $2 million since 2015, not including the value of shares received from the optioning companies. Shareholders and other interested parties can access information about Teuton at the Company’s website, www.teuton.com.

Teuton owns a 20% carried interest in the Treaty Creek property. American Creek also owns a 20% carried interest and Tudor Gold, the operator, owns a 60% interest and is responsible for all costs up to the time of a production decision.

Respectfully:

“Dino Cremonese, P.Eng.”

President, Teuton Resources Corp.

For more information contact Investor Relations at 778-430-5680 or barry@teuton.com

If you would like to be added to Teuton’s news distribution list, please send your email address to dino@teuton.com

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.

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