Euromax Announces Ilovitza Pre-Feasibility Study Results & Maiden Mineral Reserve

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 5, 2014) - Euromax Resources Ltd. (TSX VENTURE:EOX) ("Euromax" or the "Company") is pleased to announce the results of the Pre-Feasibility Study ("PFS"), including a maiden Mineral Reserve, for its 100% owned Ilovitza gold-copper porphyry project in Macedonia. With an NPV of US$675 million the PFS demonstrates the economic robustness of the Ilovitza Project (the "Project"), building upon the significantly increased Mineral Resource announced 3 December 2013, as well as incorporating costs based on supplier quotes and engineering studies carried out to at least pre-feasibility industry standards.

A detailed breakdown and discussion of the PFS results can be found in the Appendix and an independent NI 43-101 compliant technical report will be filed on SEDAR and the Company's website within 45 days of this announcement.

Project Advancement & Financing

The Company has established a Technical Advisory Committee ("TAC") of leading experts in their fields who will form the core of the owner's team to ensure efficient project execution and who will oversee the progression of the Project through full Feasibility Study/Front End Engineering Design ("FS/FEED") and into construction.

The recently announced sale of the Company's Bulgarian assets, the establishment of a Balkan focused exploration services company and corporate streamlining, has freed up management and financial resources to be wholly dedicated to the development of Ilovitza.

The Company is implementing its finance plan in two phases: Phase 1 to cover the FS/FEED costs and Phase 2 for the financing of the construction capex. Confidentiality agreements have been executed and due diligence is underway with several potential financing partners, contemplating an asset-based financing for Phase 1 to the start of construction.

Financing structures being considered include metal streaming and royalty arrangements. The agreed structure will be designed to ensure minimal shareholder dilution, whilst at the same time leveraging the asset value, so as to neatly dovetail into the Phase 2 financing of construction scheduled to commence in 2016. Further, with the completion of the PFS, the Company is now able to engage with certain banking counterparties to initiate due diligence for a Project Financing to fund Phase 2, the construction.

Commenting on the results of the PFS, Pat Forward, Chief Operating Officer, said: "Following the work carried out in 2013 to define the expanded Mineral Resource, we are pleased that our PFS on the Ilovitza Project has defined a financially attractive operation based on a robust study, more than justifying the next steps in project development. We are now in an excellent position to build on this as we continue with our full feasibility work and then the front end engineering and continue to establish our owner's team to fulfil our ambition to build and operate the first major modern mine in Macedonia."

Commenting on the results of the PFS, Steve Sharpe, President & CEO, said: "Despite incredibly challenging mining equity markets that have seen a decline in the market value of our Company despite the significant increase in the asset value of Ilovitza, it is particularly rewarding to be able to now publicly demonstrate the exceptionally robust economics of the Ilovitza Project. This is a massively important project for Macedonia, and as one of the few permitted mining projects in Europe, will dramatically enhance the economic profile of the country. The overwhelming local, national, and indeed supranational support for the project places us in the enviable position of certainty of development. Our immediate task is for the management team to deliver the implementation of a minimally dilutive financing package and the management of the DFS/FEED process to ensure the start of construction in 2016 and first production in 2017. These areas are exactly where our strongest skill sets and track records lie."

Conference Call

The Company will be hosting a conference call and question and answer session to discuss the results of the PFS on Friday 6th June, 2014 at 10 am EST / 3pm BST. A new presentation will be uploaded to the Company's website in advance of the call. To participate in the call, please dial:

Notes:

* Adjusted Operating Cash Costs and All-In Costs as defined by the World Gold Council which assumes copper as a by-product and includes US$1.8M corporate G&A.

Qualified Person

Mr Patrick Forward, FIMMM, a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and COO of the Company, reviewed and approved the scientific or technical disclosure in this release and has verified the data included.

About Euromax Resources Ltd.

Euromax is a Canadian exploration and development Company with gold and base metal assets in Macedonia and Serbia and an exploration services company in Bulgaria. We are focused on developing mineral resources in Southeastern Europe, with the objective of becoming a world-class mining company in the region. Our strength lies in our corporate and local management and technical expertise in Macedonia, Bulgaria and Serbia.

This news release contains forward-looking statements including but not limited to statements regarding a maiden reserve estimate; the completion of a Pre-Feasibility Study; completion of a Definitive Feasibility Study, and securing of finance for its Ilovitza project, including in respect of either Phase 1 or Phase 2. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on information currently available to the Company as well as the Company's current beliefs and assumptions made by the Company, including with respect to mineral resource estimates, that the key assumptions and parameters on which such geological interpretations are based are reasonable, that the Company will be able to obtain the necessary supplies, equipment, personnel and any financing required to carry out its planned activities, that the Company's objectives concerning the Ilovitza project can be achieved and that the Company's activities will proceed as expected. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, that that mineral resources are not as estimated, unexpected variations in mineral resources, grade or recovery rates, actual results of exploration activities will be different than anticipated, data and assumptions underlying the geological interpretations may prove to be inaccurate, incomplete or to have been incorrectly interpreted, that the Company will not be able to obtain the necessary supplies, equipment, personnel and any financing required to carry out its planned activities. Readers are also encouraged to review all Company documents filed with the securities authorities in Canada, including the Management Discussion and Analysis in respect of the Company's recent financial statements under the heading "Operational and Other Business Risks", which documents describe material factors and assumptions and risks that apply to the forward looking statements in this release. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

For more information, please visit www.euromaxresources.com.

APPENDIX A

Geology & Resources – The Ilovitza porphyry system is located in southeast Macedonia, within the tertiary belt associated with the Carpathian arc. The intrusive is about 1.5 km in diameter and comprises a dacite-granodiorite plug, emplaced along the northeastern border of the Strumica graben. Mineralisation is typical porphyry style veining, most intense within the potassic zone. The mineralisation shows good continuity and homogeneity that lends itself well to bulk-mining methods. The current pit-constrained Mineral Resources for the property, details of which were announced on the 3 December 2013 can be summarised as follows:

Mining & Reserves – Mining is planned via conventional open pit methods using a large scale mining fleet that enables bulk-mining at a rate of 10 million tonnes a year. The good continuity of grade in the main mineralised areas enables mining to be carried out at a low average strip-ratio of 0.7:1. Ore will be crushed with a gyratory crusher at the pit exit before being transported to the mill by conveyor. With the completion of the PFS, the Company is pleased to announce a new Mineral Reserve for the project which is summarised in the table below:

Processing – Ore will be milled by SAG and Ball mills and then processed by a concentrator using conventional flotation to produce a copper-gold concentrate with the flotation tailings being re-treated to recover further gold doré on site. Test work conducted by SGS Mineral Services in the UK has confirmed an overall process recovery of 86.5% for gold and 84% for copper and the PFS study is based on shipping concentrate to the Pirdop smelter in Bulgaria.

Tailings – Waste rock from the open pit will be used to construct the tailings embankment. Whilst the mining operation does not require significant pre-stripping, some 10Mt of inert waste rock mining has been brought forward in schedule to the construction period for a starter dam. The dam will then be raised over the mine life using the down-stream construction approach. A crusher will be located at the embankment site in order to allow engineered fill to be placed on the upstream face, which will also be lined. The plant site is situated above the tailings facility and thickeners will be utilised to produce a thickened tailings to be pumped to the facility below.

Infrastructure – A site plan has been developed covering haul roads, workshops, access roads from the National Highway, water balance pumping scheme and power infrastructure from the main 110kV supply some 7 kilometres from the plant have been developed for the project using Macedonian and European rates.

Capital Costs – Capital Cost estimates were developed using quotations for mobile and plant equipment and engineering studies carried out to at least pre-feasibility industry standards. The Capital Cost Summary is include in the table below:

Operating Costs – Operating costs were derived from quotations for fuel, power, consumables and reagents from suppliers in Macedonia and internationally where local costs were not verifiable and local and international labour costs as appropriate. The Operating Costs estimate is included in the table below:

Financial Analysis – The PFS demonstrates a robust NPV at a 5% discount of US$675 million with an IRR of 19% before tax and an after tax NPV at a 5% discount of US$558 million and after tax IRR 16%. The following table illustrates the sensitivity to changes to the calculated IRR and NPV at 0%, 5% and 7.5% discount rates at various gold and copper prices. No assurance or guarantee is provided that the calculated IRR or NPV values will be achieved.