May 28, 2024 – Vancouver - Sun Peak Metals Corp. (the “Company” or “Sun Peak”) (TSXV:PEAK | OTCQB:SUNPF) is pleased to report final drill assay results from the suspended drill program from October and November 2020.

Exploration work, including drilling with two diamond drills, had begun in October 2020 and was abruptly suspended when the Tigray regional conflict in Ethiopia began on November 4, 2020. During this time, 11 drill holes for 1,534 meters were drilled at the Meli Main Target, 2 drill holes for 108 meters were drilled at the Meli Far-West Target, and 10 drill holes for 730 meters were drilled at the Anguda Southern Limb Target, located on the Terer License. See Figure 1: Shire Project License Area

In early 2024, the exploration team was able to recover the drill core and resume work, including logging and sampling the core from 2020.

Highlights

ML-013 intercepted 8.89 meters averaging 2.22 % copper, 2.76 g/t gold, and 31.8 g/t silver, extending the Meli Main VMS zone down dip.
ML-014 intercepted 11.48 meters averaging 2.38 % copper, 3.57 g/t gold, and 31.2 g/t silver.
ML-018 intercepted 9.61 meters averaging 2.21 % copper, 3.18 g/t gold, and 32.3 g/t silver.
MW-001 intercepted 15.84 meters averaging 1.90 g/t gold, including 7.55 meters of 2.94 g/t gold, the first drill hole targeting the Far-West target, located approximately 3 km west of Meli Main and potentially along strike.

"While drilled in 2020, the drill core had not been fully logged or sampled before the unexpected halting of work." stated CEO and President, Greg Davis, "We were very pleased to discover that the drill core had been retrieved mostly intact with the integrity of the storage preserved." Mr. Davis goes on to say, Results at both Meli and Anguda Southern Limb targets help confirm the presence of the large scale VMS systems we set out to discover in 2019 and continue to pursue now that we are back in the field."

VP of Exploration, David Daoud stated, "Overall these results continue to support our geological model that these targets share the characteristics of large VMS deposits in the Arabian-Nubian shield similar to both the Bisha and Emba Derho deposits. At Meli, we continue to see high-grade copper and gold mineralization over significant intercepts. Combining these results with the results at the Far-West target and the large, still untested, gravity anomaly that was found in-between the two targets continue to create excitement for the emerging trend. We have just started our work on the Far West target, but we are very excited about the potential of the central and the western portions of the Meli target."

Regarding the Anguda Southern Limb targets, Mr. Daoud stated, "The consistent copper, gold, silver, and zinc content in the southern limb combined with observations of the greater Anguda VMS system area, are very encouraging. They point to the existence of a large and strong VMS system encompassing the entire Terer/Anguda trend, an area of more than 10km strike length. We are hopeful the current drilling will help reveal more of what could potentially be a massive VMS deposit."
Figure 1: Shire Project License Area
Current Drill Program Update

The current drill program, which was announced April 5, 2024, is further testing various targets within the Anguda VMS System area including the Hamlo and Terer VMS Targets. The first assays from the current program are expected around the end of June.

2020 Drill Program Results

Meli Main Target

At the Meli Main Target 11 drill holes for 1,534 meters were drilled in October and November 2020. This is in addition to the seven drill holes for 746.4 meters drilled earlier that same year. The Meli primary sulfide zones are copper and gold rich VMS style mineralization. The higher gold and copper grades could imply the mineralization is near a VMS vent (or vents) with potential for massive sulfide mineralized layers near to these vents.

The drilling from October and November 2020 successfully extended the copper-gold rich VMS mineralization to depth and the zone remains open for expansion to the west and to depth. The drilling defined the eastern contact of the Meli Main zone which appears to be truncated by a normal fault (down dropped by a block fault). See Figure 2: Drill Plan Map and Figure 3: Drill Cross Section.

The VTEM geophysical data and detailed ground gravity combined with the geological mapping show the potential of the trend extending to Meli Central and Far-West target. This VMS trend is approximately 3 km between drilling at Meli Main and where drilling at the Far-West target intercepted near surface VMS gold rich gossan. See Figure 4: Plan Map of Meli VMS Trend to Far-West Target.
Figure 2: Meli Main Drill Plan Map
Figure 3: Meli Main Cross Section
Figure 4: Plan Map of Meli VMS Trend to Far-West Target with Gravity Background
Table 1: Meli Main Drill Results from November and October 2020
Note: ML-011, ML-012, ML-015, ML-016, and ML-017 did not intercept the zone
Table 2: Meli Main Drill Results from February and March 2020 (*previously reported)
Far-West Target

The Far-West Target is located approximately 3 km west of Meli Main along the Meli VMS trend. In November 2020, 2 shallow drill holes for 108 meters were drilled at the target which were designed to test the gold oxide gossan.

Drilling confirms the presence of significant gold mineralization in the gossan and demonstrate the potential for the Meli West Target to host gold and copper VMS sulphide to depth. The Meli VMS mineralized trend has now successfully been extended for over 3km along strike. The mineralization still open to depth and along strike, and future drilling at the Far-West target will test the massive sulfide potential beneath the gossan.

Table 3: Far-West Target Results
Note: MW-002 did not drill any significant intercepts.
Anguda Southern Limb Target

The Company completed 10 drill holes for 730 meters at the Anguda Southern Limb Target in October and November 2020. The Anguda southern limb VMS prospect consists of over 1km long VMS gossan. The immediate area around this target is referred to as the Anguda VMS System area (see Figure 5: Anguda VMS System Area), which is part of large defined VMS cluster that trends southwest-northeast for over 20km by over 10km wide. The drilling successfully tested the VMS mineralized system at Anguda southern limb which is located only about 300m south of the large gravity high Anguda North VMS anomaly and represents its hanging wall rocks. See Figure 6: Anguda Southern Limb Drill Plan Map and Figure 7: Anguda Southern Limb Cross Section.
Figure 5: Anguda VMS System Area, with Gravity
Figure 6: Anguda Southern Limb Drill Plan Map, with Contoured Gravity
Table 4: Anguda Southern Limb Drill Results
Figure 7: Anguda Southern Limb Cross Section

QUALIFIED PERSON’S STATEMENT

David K. Daoud, P. Geo, Vice President Exploration is the Qualified Person overseeing Sun Peak’s exploration projects in Ethiopia and has reviewed and approved this press release.

All drill holes reported are diamond drill core holes.

A Quality Assurance/Quality Control program was part of the sampling program on the Meli Main, Meli West and Angoda Southern Limb prospects. This program includes the systematic submittals of standards, duplicates, and blank samples into the flow of samples produced by the sampling.

Samples were prepared at ALS Laboratory in Addis Ababa, Ethiopia and analyzed at ALS Laboratory in Dublin, Ireland. Gold is assayed using a 50-gram of -75 micron-size pulp is fire assayed and finished by ICP-AES analysis to detect content between 0.01 and 10.0 ppm. Gold returning over limit values are re-assayed with higher detection limits using a gravimetric finish. As well, a 0.5 gram cut from the pulp of each rock sample is dissolved by aqua regia acid digestion and analyzed by mass spectrometry for a suite of 51 additional elements. Analytical values for silver, copper, zinc, and lead over detection limits are re-assayed with higher detection limits, using aqua regia digestion. Drilling intercept lengths and estimated true thicknesses are reported in the tabulations.

ABOUT SUN PEAK METALS CORP.

Sun Peak is exploring the district-scale Shire VMS Project in the Tigray Region of northern Ethiopia. The Shire Project is comprised of six exploration licenses and covers approximately 1,450 square kilometers in the prospective Arabian Nubian Shield. The licenses are in the same geological environment as both the Bisha Mine and the Asmara Projects. The Meli and Terer Licenses are part of a joint-venture agreement with Ezana Mining, a private Ethiopian Company and the other four are 100% owned by Sun Peak. The Sun Peak team have worked in East Africa for more than two decades and the Company’s strategy is to apply exploration techniques that have worked successfully in the region before, to build assets through major copper-gold VMS discoveries.

ON BEHALF OF THE BOARD OF DIRECTORS OF SUN PEAK METALS CORP.

Greg Davis
President, CEO & Director

FOR FURTHER INFORMATION, PLEASE CONTACT:

Greg Davis
(T): +1 (604) 999 1099
(E): info@sunpeakmetals.com

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