Silver Phoenix Resources, Inc. Alaska Mineral Property

Tolstoi—A Promising Silver-Gold-Copper Polymetallic Project Ready for Exploration and Drill-Testing in 2016

Introduction, Prospect History and Access Precious metal-enriched, polymetallic deposits associated with Late Cretaceous-to-early Tertiary igneous complexes form an important metallogenic region in western and southwestern Alaska. This region is known as the Kuskokwim Mineral Belt (KMB). The KMB is the western-most extension of the Tintina Gold Province, where Drill-indicated reserves and resources amount to at least 65 million ounces (2,020 tonnes) gold in 20 evaluated deposits. The KMB contains the giant Donlin Creek gold deposit, Alaska’s largest primary lode gold deposit, with measured and inferred reserves totaling about 33.7 million ounces (1,050 tonnes) gold. The Silver Phoenix Resources Tolstoi Claim Group in the Beaver Mountains occupies an important mineralized center a within the Central KMB. Mineralization in the Beaver Mountains area has been poorly explored. After government agencies publicly released geologic mapping and anomalous geochemical data, Anaconda Minerals conducted exploration work there in the Beaver Mountains in 1980-82 but reduced their programs throughout Alaska in early 1983; the firm was dissolved in 1984. Battle Mountain Gold Mining Company explored in the late 1980s but that firm also abruptly terminated their Alaska exploration program and left the 49th State in 1990. No drill programs have been initiated for metallic prospects in the Beaver Mountains project area. From 2007 to 2015, Pacific Rim Geological Consulting, Inc. (PRGCI), contractor for Alaska Ventures, Inc., conducted claim assessment level sampling in the Tolstoi Claim Group The Beaver Mountains is about 60 km (40 mi) west of McGrath, and 280 km (175 miles) southwest of Fairbanks, the transportation hub for Interior Alaska. Nearly 80 miles of secondary roads connect the Ophir mining district, just 10 miles east of the Beaver Mountains, with Candle Landing on the Kuskokwim River near McGrath. There are RS2477 transportation corridors and access roads extending from Ruby on the Yukon River to Crooked Creek on the Kuskokwim River, which are maintained by the State Department of Transportation as part of the Interior Alaska secondary road network. A paved 5,500-foot-long runway at McGrath routinely services large aircraft up to Boeing 737 size; private businesses in McGrath provide for fuel, lodging and services for many exploration companies over the years, including the nearby Nixon Fork Mine. McGrath is one of Alaska’s historic mining towns and has been very supportive of mineral exploration. Ownership, and Land Status Silver Phoenix Resources owns State of Alaska mining claims in the north-central Beaver Mountains that include most of the known, high grade, copper-silver-gold (tin) bearing prospects and occurrences. The claims as recorded are the Tolstoi Claim Group after exposures of copper-silver-gold mineralization exposed at the head of Tolstoi Creek in the northern portion of the claim group. The entire Beaver Mountains upland is owned and managed by the State of Alaska. Geology, Deposit Classification, and Mineralization The Late Cretaceous Beaver Mountains volcanic-plutonic complex constitutes one of the largest igneous complexes in the KMB. Precious metal lodes with significant assay data include: 1) structurally controlled, copper-silver-gold deposits; tourmaline-copper-silver breccias pipes; and 3) stockwork style copper-silver deposits. The Tolstoi Claim Group constitutes a district play. Ore minerals include chalcopyrite, galena, scheelite, and tetrahedrite are accompanied by gangue minerals tourmaline, quartz, white mica, fluorite, and topaz. Lodes in the Tolstoi Claim Group represent a intrusion-hosted, copper-silver-gold mineral deposit type that can be associated with porphyry copper systems.

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Location Map showing Locations of Tolstoi Claim Group in Kuskokwim Mountains, the Lichen Prospect South of Denali Highway, and Principle Communities and Existing Transportation Infrastructure; from Series E Map of Alaska

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The Tintina Gold Belt TGB) in Yukon Territory and Alaska. has been the focus of systematic mineral exploration and development for nearly 20 years. Drill-indicated reserves and resources in the TGB amount to at least 65 million ounces (2,020 tonnes) gold in 20 evaluated deposits. The Tolstoi Claim Group (location indicated by arrow) occurs in the western portion of the belt, which is known as the Kuskokwim Mineral Belt.

Geologic map of the Beaver Mountains area, from Miller and Bundtzen, 1994;Showing locations of high-grade silver-gold-copper prospects

TolstoiSyenite Porphyry

Ganes CreekCirque

North Billy Goat Beaver Creek

West Lincoln Creek

Geologic map of the Beaver Mountains area showing the Kuskokwm Group sedimentary rocks in green, the Beaver Mountains Volcanic Rocks in purple, the Beaver Mountains intrusive complex in red, and Quaternary glacial and fluvial sediments in yellow Historic metallic prospects of note are Installing State of Alaska Group Claim Post.

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Stakes prepared for deployment in Tolstoi Claim Group

Historically Known Significant Metallic Lodes in Tolstoi Claim Group The U.S. Geological Survey Alaska Resource Data File (ARDF) for the Iditarod Quadrangle describes a number of copper, silver and gold prospects mineralization from the Tolstoi Claim Group. Selected assay information is summarized below, which show values of up to 1,108 grams/tonne silver, 52.4 g/tonne gold, 21.00 percent copper, 2,000 ppm bismuth, and 5.0 percent tungsten—mainly from shear zones, veins and vein disseminate zones in the intrusive suite.

Published selected assay data for selected prospects and occurrences in Tolstoi Claim Group Prospect Gold (g/t) Silver (g/t) Copper (percent)

Tolstoi West 12.9 317.8 0.14 Tolstoi East 1.4 500.0 10.0

Syenite Porphyry 1.9 3.9 NA Beaver Creek 10.7 110.0 0.29

Ganes 52.4 332.0 8.0 Cirque 1.4 1,108.0 21.0

West Lincoln 1.6 194.0 0.27 Billy Goat 1.7 81.0 0.5

Summary of 2007-2015 Mineral Exploration Work Conducted on Behalf of Silver Phoenix Resources From 2007 to 2015, nearly 400 rock chip and about 100 soil and stream sediment samples have been collected during annual claim assessment activities. Principle lode systems that have been mapped and sampled include: 1) Four (4) copper-silver-gold-bearing vein-fault systems within the Cirque structural zone; 2) gold-silver-arsenic-copper-lead mineralization within the Billy Goat structural zone; 3) gold-silver-copper mineralization within the Beaver Creek structural zone; 4) polymetallic mineralization in the Tolstoi Breccia pipe; 5) sampling of a low grade quartz-stockwork zone in an aureole surrounding the Tolstoi pipe, and 6) chip sampling in the West Lincoln Creek volcanic cap area. The map below illustrates the distribution of the zones identified and sampled.

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Generalized Distribution of lode mineral zones within Tolstoi Claim Group general area investigated

and sampled, 2007-2015

Cirque Structural Zone The most important zone of mineralization thus far identified in the Tolstoi Claim Group is the Cirque structural zone, which contains at least four (4) high angle fault structures striking north 70-75 degrees east and dipping vertically to steeply northwest. All four, sampled mineralized vein-faults are offset right laterally by a north 35 degrees east trending, high angle fault just west of the head of Ganes Creek The Cirque structural zone, which was first discovered in 1981, can now be traced for 6.5 km (4.2 mi) of strike length over a width of about 1.1 km (3,500 ft). Assay information from the four fault structures are shown in abbreviated tables below. The most prominent is the Cirque-Main zone, which contains semi-massive chalcopyrite-bornite with lesser amounts of galena, arsenopyrite and sulfosalts in a quartz vein-fault structure that can traced continuously for a strike length of 6 km (4 mi) across the claim group. The central and southwestern segments of the 84

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State of Alaska Cirque-Main zone is hosted in intrusive syenite; the zone is traced to the northeast into altered andesite of the Beaver Mountains volcanic field. Conspicuous zones of massive brown carbonate occur in portions of the vein. Assay data from twenty eight (28) chip samples indicate maximum values of 11.11 grams/tonne gold, 1,106 grams/tonne silver, and 21.5 percent copper, with average values of 2.18 grams/tonne gold, 340.6 grams/tonne silver, and 5.38 percent copper. Up to 83.8 g/t tellurium has been identified in vein samples. Vein-fault widths range from 1.0 to 5.0 meters. Surface vertical range is at least 450 m. en During 2012, PRGCI geologists revisited the cirque mineralizing system and traversed perpendicular to the strike of the known vein zones in several transects. The result was the recognition of three new copper-enriched vein-fault deposits that are parallel to but in-between the Cirque-Main ad the Cirque-Lake copper-silver-gold vein-fault deposits. Thus a total of five (5) vein-fault deposits are now know proximal to the main Cirque discovery made many years ago. Additional mineralized zones were also sampled at the main Cirque discovery area and along strike to both the northeast and o the southwest. be or at least 1,400 feet (427 m) Analytical Results Summary, Cirque-Main Zone

Type Au (g/t) Ag (g/t)

As (%)

Bi (g/t)

Cu (%)

Pb (%)

Sb (%)

Te (g/t)

Maximum Values 11. 110 1,105.7 8.74 2,000.0 21.50 3.66 1.00 83.80 Average Values

(Number of sample stations)

2.180 (N=28)

340.6 (N=28)

1.51 (N=28)

342.3 (N=28)

5.38 (N=28)

0.78 (N=28)

0.27 (N=17)

8.66 (N=20)

The Cirque-Lake zone was discovered by PRGCI geologists in 2008. It consists of semi-massive chalcopyrite, and disseminated bornite, galena, and sulfosalts enclosed within a tourmaline-quartz gangue for a distance of 2.9 km (1.8 mi). The Cirque-Lake zone is hosted in intrusive rocks along it’s central and southwestern locations but cuts altered andesite and basalt in Ganes Creek to the northeast. Assay data from eighteen (18) chip sample sites indicate maximum values of 5.03 grams/tonne gold, 400.0 grams/tonne silver, and 20.4 percent copper, with average values of 0.81 grams/tonne gold, 117.9 grams/tonne silver and 3.68 percent copper. Copper values in the Cirque-Lake zone are comparable to those in the Cirque-Main zone, although silver and gold values are lower. Sampled vein-fault widths, where measured, range from 0.75 to 2.70 meters. Mineralization can be traced for 366 m vertically. Analytical Results Summary, Cirque-Lake Zone

Type Au (g/t)

Ag (g/t)

As (%)

Bi (g/t)

Cu (%)

Pb (%)

Sb (%)

Te (g/t)

Maximum Values

5.030 400.0 1.07 797.0 20.40 0.96 1.00 2.04

Average Values (Number of

sample stations)

0.810 (N=18)

117.9 (N=18)

0.32 (N=18)

107.9 (N=18)

3.68 (N=18)

0.25 (N=18)

0.15 (N=18)

0.41 (N=18)

Two subsidiary, lower grade, metallic prospects, the Cirque-North Stockwork and Cirque-South Stockwork zones, were identified during the 2009 mapping efforts. Both occur in north-east striking fractures that parallel the Cirque-Main and Cirque Lake vein-faults, and are characterized by stockwork quartz-sulfide veinlet zones with disseminated rather than semi-massive sulfides. Both zones are about 2.2 km long and of unknown width, and documented by fewer sample sites than the Cirque-Main and Cirque-Lake deposits.

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PRGCI Contractor Larry Nichols samples a new, as yet-unnamed chalcopyrite-bornite-bearing vein-fault zone between and sub-parallel to the Lake and Main zones of the Cirque Mineralized system, Tolstoi Claim Group. Sample collected on August 12th, 2012.

Analytical Results Summary, Cirque North Stockwork Veinlet Zone

Type Au (g/t)

Ag (g/t)

As (%)

Bi (g/t)

Cu (%)

Pb (%)

Sb (%)

Te (g/t)

Maximum Values 0.114 39.9 0.059 64.0 1.62 0.41 0.01 0.13 Average Values

(Number of sample stations)

0.053 (N=6)

24.2 (N=6)

0.034 (N=6)

21.7 (N=6)

0.49 (N=6

0.15 (N=6

0.003 (N=6)

0.05 (N=6)

Analytical Results Summary, Cirque South Stockwork Veinlet Zone Type Au

(g/t) Ag

(g/t) As

(%) Bi

(g/t) Cu

(%) Pb

(%) Sb

(ppm) Te

(g/t) Maximum

Values 0.343 47.8 0.040 464.0 0.99 0.026 92 88.10

Average Values (Number of

sample stations)

0.065 (N=9)

11.7 (N=9)

0.013 (N=8)

84.2 (N=8)

0.25 (N=8)

0.011 (N=9)

35 (N=8)

11.08 (N=8)

Beaver Creek Structural Zone The Beaver Creek structural zone parallels the Cirque structural zone in the northern part of the claim group, and is marked by a fault zone striking north 70 degrees east and dipping essentially vertically for a minimum distance of 5.0 km (3.0 mi) most of which is exposed in upper Beaver Creek. The primary focus of the 2010 assessment work in the Tolstoi Claim Group was to follow up with additional sampling work. In 2010 thirty one (31) samples were taken along 255 meters (836 feet) of strike length, and true widths of the vein structure zone were measured. The Beaver Creek vein-fault structure trends north 70 degrees east and dips essentially vertically in the two locations where it could be measured. PRGCI now has more data

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control in the Beaver Creek structure than at the Cirque Main deposit. The very high precious metal values of up to 142 g/t gold and 295 g/t silver found at 2009 station # 204583 were verified with the 2010 sample program. High grade sulfide mineralization at a 2010 station (#204911) contained 86.5 g/t gold and 242 g/t silver, and 8.46 percent copper. Another zone (#204968) contained 15.9 g/t gold, 3.83 percent copper, and 66 g/t silver. The Beaver Creek structural zone was also found approximately 800 meters to the northeast across a wide glacial valley of upper Beaver Creek—thus extending mineralized strike length. PRGCI now believes that the Beaver Creek structural zone is linked to the Tolstoi breccia pipe to the north. Tourmaline-charged breccias identical to those found at the latter locality exist in the Beaver Creek zone. During 2011, PRGCI undertook a test sampling program in a three square kilometer aureole surrounding the Tolstoi Breccia pipe area, characterized by secondary biotite alteration, boron metasomatism, and quartz-sulfide stockwork. More than seventy-five (75) rock chip samples were collected within the sampling area. Values of up to 1.32 percent copper, 316 grams/tonne silver, and 1.50 grams/tonne gold were identified in these low grade stockwork zones, which contrast with the higher grade, structurally controlled vein-faults summarized at the Cirque, Beaver Creek and in other areas. A thin section study of the hydrothermal alteration from the Tolstoi aureole was completed during the spring of 2012. Analytical Results Summary, Beaver Creek Structural Zone Type Au

(g/t) Ag

(g/t) As

(%) Bi

(g/t) Cu

(%) Pb

(ppm) Sb

(ppm) Te

(g/t) Maximum Values 142.00 295.0 4.56 2,170.0 8.46 859 1,510 14.50 Average Values

(Number of Sample Intervals)

6.34 (N=55)

39.1 N=55)

0.16 (N=55)

126.4 (N=53)

0.95 (N=55)

276 (N=55)

129 (N=55)

1.46 (N=24)

Tolstoi Breccia Pipe

A funnel-shaped mass of tourmaline-charged, hydrothermal intrusive breccia covers nearly one square kilometer at the head of Tolstoi Creek in the northernmost portion of the claim group. The zone is projected vertically for at least 300 meters. Known since 1979, the Tolstoi prospect consists of pockets of sulfide-tourmaline quartz veins, sulfide coated fractures, and disseminations within various parts of the ‘Tolstoi Breccia Pipe’. Metal grades are patchy and not uniformly distributed; yet the size potential of the target is judged to be significant. During 2012-2013, the northeast corner of the Tolstoi Claim Group was investigated in an area of monzonite intrusive center. The brief reconnaissance resulted in the discovery of a new copper-rich tourmaline greisens zone at the head of a steep cirque headwall. Despite several previous traverses in this area, this new zone has never been sampled. Analytical Results Summary, Tolstoi Breccia Pipe System Sample # Au

(g/t) Ag

(g/t) As

(%) Bi

(g/t) Cu

(%) Pb

(%) Sb

(ppm) Te

(g/t) Maximum Values 1.400 1,105.0 2.00 87.3 10.00 2.00 38.8 7.16 Average Values

(Number of Sample intervals)

0.143 (N=29)

95.8 (N=31)

0.20 (N=31)

9.0 (N=31)

0.73 (N=31)

0.19 (N=31)

13.9 (N=31)

0.76 (N=31)

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Exposure of new, copper-enriched zone at the northeast corner of Tolstoi Claim Group as found on August 11, 2012. Note that the mineralization is covered by a red-orange lichen species similar to what occurs at the company’s properties in the Northern Talkeetna Mountains.

Massive tourmaline-sulfide replacements (in black) in joints and fractures in syenite porphyry @ Station #290383, Tolstoi-North Claim Group, Beaver Mountains; along eastern edge of Tolstoi Breccia pipe—Sampled August 22nd, 2015.

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Molybdenum-Gold-Rhenium-Bearing, Quartz Stockwork Mineralization in Upper Beaver Creek

During 2015, PRGCI discovered a zone of molybdenum-bearing, quartz stockwork just outside the southeast boundary of the Tolstoi Breccia pipe; within the Beaver Creek structural zone. The most prominent quartz veins strike north 10-20 east and dip nearly vertically. A secondary quartz vein set strikes north 50 west and dips vertically. Three stations with visible molybdenum-bearing mineralization (in the field) occur in a 175 meter diameter area. This is a new discovery and results, which are preliminary, are summarized below. The molybdenum-bearing zone contains elevated gold and rhenium, which was not expected.

Quartz vein with 1.0 percent molybdenite cuts monzonite porphyry @ station 290384, Tolstoi-North Claim Group, Beaver Mountains. Contains 1,730 ppm Mo, 7.7 ppm Re, and 41 ppb Au. Sampled August 22nd, 2015

Molybdenite-bearing quartz stockwork in syenite porphyry at station #290385 Tolstoi-North Claim Group, Beaver Mountains. Contains 883 ppm Mo, 6.76 ppm Au and 3.01 ppm Re. Sampled August 22nd, 2015 Analytical Results Summary, molybdenum-bearing quartz stockwork chip samples in syenite porphyry

(maximum values bolded) Sample # Au

(ppb) Ag

(ppm) As

(ppm) Bi

(ppm) Cu

(ppm) Mo

(ppm) Re

(ppm) W

(ppm) 290384 43 0.31 16.5 1.93 10.6 1,730 7.70 1.36 290385 6,760 0.57 19.2 0.60 50.2 883 3.01 3.08 290386 1,585 0.49 23.6 0.08 225.0 11.4 0.02 6.23

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Discussion and Recommendations Much of the mineralization is intrusion-hosted veins along structural conduits; i.e., high angle faults. Important contributions during 2007-to-2015 include:

• Doubling the strike length of the Cirque structural zone;

• Documentation of additional mineralized, parallel veins in the Cirque structural zone;

• Verification of high grades of gold and silver values in the Beaver Creek structural zone;

• Identification of a pervasive potassic alteration over several square miles of the Tolstoi Claim Group;

• Identification molybdenite-bearing quartz stockwork with elevated gold and rhenium values just

beyond the Tolstoi Breccia pipe. The principle metals of economic interest are copper, silver, and gold for most of the zones although the recently discovered, gold-bearing molybdenum stockwork mineralization needs to be examined in more detail. The high rhenium values also are very interesting. Data analysis indicates high (>0.85) correlation coefficients between copper, silver, and bismuth for the cuprious deposits. High gold values generally correlate with high arsenic and bismuth values, and possibly high tellurium. The silver telluride hessite and the silver selenide weibullite have been identified during microprobe work, suggesting that tellurides and sulfosalt suites may be the source of some of the precious metal values found within much of the Tolstoi Claim Group. PRGCI suggests that Induced Polarization (IP) lines should test chargeability responses in both the Cirque and Tolstoi Breccia pipe areas. For the former, there are now a minimum of five (5) spatially separated zones of high grade mineralization that need to be drill-tested for a strike length of at least 2.4 kilometers. Drill testing should also commence on the gold-bearing Beaver Creek Structure, and mineralized zones associated with the Tolstoi Breccia Pipe, including the newly discovered Mo-stockwork zone.

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Close-up of sample site #203824, from the Cirque-Lake zone in Cirque structural zone. A 1.00 m composite chip sample across the zone contained 5.70 percent copper, 400 g/t silver, and 5.03 g/ton gold.

Photomicrographs of 07BT305/#203772 station showing, on left, silver selenide weibullite in arsenopyrite; on right, chalcopyrite in quartz-muscovite matrix. Images from Cannon Microprobe, Seattle, Washington.

Chalcopyrite

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Semi-massive chalcopyrite and quartz gangue from Cirque-Main deposit @ #203822, which contained 9.06 percent copper, 703 grams/tonne silver, and 2.048 grams/tonne gold.

Left: ‘clast’ of chalcopyrite and galena encased in brown carbonate from Cirque-Main deposit @ #203811, which contained 2.30 percent copper, 0.81 percent lead, 604 grams/tonne silver, and 3.52 grams/tonne gold. Right: Epithermal-like textures from Cirque-Lake deposit @ #203826 with clasts of chalcopyrite and malachite stain (hand specimen only--no assay data)

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Cirque-Main zone west of Ganes Creek illustrating ‘epithermal’ texture in volcanic host lithology there @ #204831, which contained 2.80 percent copper, 3.66 percent lead, 3.95 percent arsenic, 274 grams/tonne silver, and 2.93 grams/tonne gold.

Massive tourmaline replacement texture in syenite @ Tolstoi Breccia Pipe @ #203784, which contained 0.19 percent copper and 3.1 grams/tonne silver.

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For Further Information Concerning the Tolstoi Claim Group, Contact:

William Murray Silver Phoenix Resources, Inc.

4631 75th Avenue, N.E., Box 134, Canoe,

British Columbia, CANADA V0E 1K0

Phone: 250-832-0336 Email: bill@silverphoenixresources.com

This Technical Summary Was Prepared by:

Thomas K. Bundtzen, CPG 10912 Pacific Rim Geological Consulting, Inc.

P.O. Box 81906 Fairbanks, Alaska, USA, 99708

Phone: 907-458-8951 (cell-907-388-6607) Email: Bundtzen@mosquitonet.com

Website: www.pacrimgeol.com