Auxico Announces Encouraging Metallurgical Results for the Campanillas Mine

Auxico Announces Encouraging Metallurgical Results for the Campanillas Mine

MONTREAL, Oct.  31, 2017  (GLOBE  NEWSWIRE) --  Auxico Resources  Canada  Inc. 
(CSE:AUAG) is pleased  to announce  encouraging metallurgical  results from  a 
2.095 kg sample (2,095 g) taken from the volcanic breccia hostrock material in
the footwall  of the  Campanillas Mine,  which is  located in  the  north-east 
corner of the Zamora Property. The sample contains 1.98 kg/t of silver  (1,980 
g/t) and 2.01 g/t of gold. This  sample was treated by the Centre for  Mineral 
Technology  and  Plastics  in  Thetford   Mines  in  order  to  optimize   the 
metallurgical extraction of  both gold and  silver. The recovery  of gold  was 
71.60% and  92.9% for  silver, as  a  result of  processing this  material  by 
gravity and flotation methods. Please refer to the table below:

Metallurgical results – Campanillas
 Process              Gold      Silver 
Gravity feed          2.01 g/t  1,980 g/t 
Gravity concentrate   8.12 g/t  5,000 g/t 
Flotation concentrate 11.9 g/t  6,854 g/t 
Recovery by gravity   13.8 %    8.6% 
Recovery by flotation 67.8%      89.1% 
Total Recovery        71.60%    92.9% 

The gravity concentrate represents 3.41% of  the overall weight of the  sample 
while the  flotation  concentrate represented  12.2%  of the  overall  weight. 
Therefore, 92.9% of the silver and 71.6% of the gold were recovered from  less 
than 13%  of  the  overall  weight of  the  feed  material.  The  concentrates 
represent a concentration  ratio of 8:1  with concentrates having  a value  of 
over USD 4,000 per tonne.

The sample was selected by  the QP in the Campanillas  Mine at the far end  of 
the main  drift  represented  by  an  intensely  silicified  volcanic  breccia 
containing native  silver and  silver sulphides.  The silver  appears to  have 
replaced the highly  altered fragments within  the host rock.  The sample  was 
taken from the footwall  of a 3m  wide highly mineralized  quartz vein in  the 
stoped area of the  mine.  The high-grade potential  of Campanillas was  first 
identified by a  grab sample  taken from a  small stockpile  outside the  main 
portal, which returned an assay of 14.56 kg/t (14,560 g) silver and 15.53  g/t 
gold. The  Company  is  currently  putting  a  plan  together  for  dewatering 
Campanillas in order to  reach the second and  possibly third level, which  is 
accessed by a ramp and decline shaft. Once a better understanding of the  mine 
can be developed,  a drill plan  will be  proposed. There are  almost 500m  of 
historical workings  on surface  and  along strike  of the  Campanillas  Vein, 
represented by ventilation raises, trenches, and prospect pits, which indicate
the minimum strike length of the structure.

Additional information  on  Auxico  can  be found  on  the  Company’s  website 
(www.auxicoresources.com) or on SEDAR (www.sedar.com) under “Auxico  Resources 
Canada Inc.”

Technical information on  the Zamora Property  can be found  in the  Company’s 
Technical Report,  dated  August  16,  2017  (amended)  and  written  by  Joel 
Scodnick, P.Geo, an independent consultant to the Company.

Qualified Person

This news  release was  reviewed and  approved by  Joel Scodnick,  P.Geo.,  an 
independent consultant to Auxico,  in his capacity as  a Qualified Person,  as 
defined by National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

« signed »

Mark Billings
President, Auxico Resources Canada Inc.
mb@auxicoresources.com
Cell: +1 514 296 1641

About Auxico Resources Canada Inc.

Auxico Resources Canada Inc. (“Auxico”) is a Canadian company that was founded
in 2014  and  based  in  Montreal.  Auxico  is  engaged  in  the  acquisition, 
exploration and development of mineral properties in Mexico. The Company has a
100% interest in the  Zamora Silver-Gold Property  in Sinaloa, Mexico.  Auxico 
will  continue  to  identify  and  potentially  acquire  additional   property 
interests and conduct exploration and evaluation of these properties to assess
their potential.

The Canadian Securities Exchange  (CSE) has not reviewed  and does not  accept 
responsibility for  the adequacy  or  the accuracy  of  the contents  of  this 
release.
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