Pershimco New Financial Model Boosts Cerro Quema Gold Project Value by 20%

ROUYN-NORANDA, Jan. 12, 2016 - Ressources Pershimco Inc. (the "Company" or "Pershimco") (TSX VENTURE:PRO) (FRANKFURT:BIZ) is pleased to announce the results of its recently completed new financial model on its Cerro Quema project in Panama. This new model incorporates the results of an optimisation engineering of the "Economic Analysis" section (Chapter 22) of the previously reported Cerro Quema Project - Pre-Feasibility Study ("PFS") on the La Pava and Quemita Oxide Gold Deposits (available on the Company's website, and filed on SEDAR on August 22, 2014).

The new cash flow model included in this Chapter 22 will be available on the Company's website as well as filed on SEDAR and will update the PFS.

ITEMS	Updated financial model			Initial PFS		Improvement
NPV (5%) ($1,275 / Oz)	US $ 121.7M = (C$ 170.0 M	)		US$ 110.0 M		20	%
IRR	41.4	%		33.7	%	7.7	%
CAPEX	US$ 94.7 M			US$ 117.1 M		19	%
AISC OPEX	US$ 652 / Oz			US$ 631 / Oz		- 3.3	%

		Exchange rate used = 1.40
		NPV = Net present value
		IRR = Internal rate of return
		Capex = Capital expenditures
		AISC OPEX = All-inclusive sustaining operating costs

Pershimco maintains a long-term gold price of $1,275/ounce ("oz") in the financial model. The increase in the NPV and IRR result from various factors including lower costs of mining equipment and services, lower fuel price and review in the construction planning and mining strategy. The US $18.7M CAPEX reduction comes mainly from:

1. Lowering total costs of mobile equipment mining fleet: US $10.1 M.
2. Reengineering of the ore transport (fleet, roads & conveyors) for savings: US $8.6 M.

The 10,000 tons per day production scenario provides strong economics through an annual production of more than 100,000 oz gold for the first full year of production generating significant cash flow to facilitate a quick payback period of 22 months. The PFS outlines gold production from the initial extraction phase from the first two open pits of the Project. The operation will have a mine life of 5.3 years and a processing capacity of 3.6 million tonnes per annum ("Mtpa") through a conventional heap leach and CIL/ADR plant with no agglomeration required. Average life of mine production is 78,546 oz per annum.

Parameter	Unit	Value
Ore mined	Mt	19.7
Average head grade mined	g/t	0.77
Waste mined (including pre-strip)	Mt	14.3
Strip ratio	waste:ore	0.72
Contained gold	oz	488,000
Average gold recovery rate	%	85.8	%
Pre-Production & Production Y1	ounces	100,744
Annual production Y2-6	ounces	317,067
Annual production over LOM	ounces	78,546
Open pit mine life	years	5
CAPEX upfront capital cost	US$ million	94.7
Capital payback period	years	1.8
Operating costs (AISC)	US$/oz	652

Project Permitting:

The Ministry of Environment of Panama has completed the review of the Environmental and Social Impact Study ("ESIA") positioning the Cerro Quema project in the final steps of permitting. Construction is expected to be initiated this quarter.

The Cerro Quema project is the largest employer in the Azuero region with production at Cerro Quema scheduled to begin at the end of this year,will represent Panama's largest single export. In a few years, the mining industry will be one of the most important contributors to Panama's Gross Domestic Product.

Project Optimization

The PFS focused on estimating the potential of only the La Pava and Quemita oxide gold deposits. Further exploration work and studies will follow to unveil the potential of the Cerro Quema property:

• There is considerable potential to find additional zones of gold oxide mineralization along the alteration trend that hosts the La Pava, Quemita-Quema and La Mesita deposits.
• Sulphide resources have been estimated beneath the oxide zones in La Pava and Quema/Quemita. The sulphidic material represents a significant opportunity for a future gold-copper mining operation and a flotation concentrator.
• There is silver in La Pava and Quema/Quemita ore. Silver revenues have not been calculated in this financial model.

Sensitivity Table:

					NPV (in USD 1,000's)
	Variation		IRR		0%	5%	10%	15%
Gold Price
	$	1,275	41.4	%	163,640	121,692	89,912	65,473
85%	$	1,084	28.4	%	105,630	73,871	49,901	31,554
90%	$	1,148	32.8	%	124,993	89,835	63,260	42,880
100%	$	1,275	41.4	%	163,640	121,692	89,912	65,473
110%	$	1,403	49.4	%	202,013	153,300	116,338	87,858
115%	$	1,466	53.2	%	221,200	169,104	129,551	99,051
Capital Cost
	$	94,712	41.4	%	163,640	121,692	89,912	65,473
85%	$	80,505	50.2	%	176,829	134,272	102,036	77,230
90%	$	85,241	47.0	%	172,432	130,079	97,995	73,311
100%	$	94,712	41.4	%	163,640	121,692	89,912	65,473
110%	$	104,183	36.6	%	154,796	113,258	81,787	57,596
115%	$	108,919	34.4	%	150,335	109,006	77,692	53,628
Operating Cost
	$	179,989	41.4	%	163,640	121,692	89,912	65,473
85%	$	164,515	44.1	%	176,690	132,426	98,874	73,056
90%	$	169,673	43.2	%	172,340	128,848	95,887	70,528
100%	$	179,989	41.4	%	163,640	121,692	89,912	65,473
110%	$	190,305	39.5	%	154,901	114,501	83,906	60,388
115%	$	195,464	38.5	%	150,492	110,870	80,870	57,816

The In-Pit Mineral Resources are summarized in the table 8.

Table 8 - Summary of the Cerro Quema In-Pit Mineral RESOURCES ^{(1,2,3,4,5,6)}

La Pava
Zone	Grade Group	Cutoff Au g/t		Tonnes		Au g/t	Cu %	AuEq g/t	Au Ounces
Oxides	Measured	0.18		7,052,600		0.82	0.04	NA	184,900
	Indicated	0.18		10,896,100		0.57	0.04	NA	201,100
	Meas & Ind	0.18		17,948,700		0.67	0.04	NA	386,000
	Inferred	0.18		331,700		0.36	0.03	NA	3,800
Zone	Grade Group	Cutoff AuEq g/t		Tonnes		Au g/t	Cu %	AuEq g/t	AuEq Ounces
Sulphides	Measured	0.31		802,000		0.44	0.22	0.80	20,600
	Indicated	0.31		7,664,900		0.39	0.38	1.00	246,100
	Meas & Ind	0.31		8,466,900		0.39	0.36	0.98	266,700
	Inferred	0.31		75,000		0.28	0.20	0.61	1,500
LA PAVA	Grade Group	Cutoff		Tonnes		Au g/t	Cu %	AuEq g/t	Au + AuEq Ounces
Total	Measured	----		7,854,600		0.78	0.06	0.81	205,500
	Indicated	----		18,561,000		0.50	0.18	0.75	447,200
	Meas & Ind	----		26,415,600		0.58	0.14	0.77	652,700
	Inferred	----		406,700		0.35	0.06	0.41	5,300
Quema / Quemita
Zone	Grade Group	Cutoff Au g/t		Tonnes		Au g/t	Cu %	AuEq g/t	Au Ounces
Oxides	Measured	0.18		0		0	0	NA	0
	Indicated	0.18		5,983,700		0.86	0.03	NA	166,400
	Meas & Ind	0.18		5,983,700		0.86	0.03	NA	166,400
	Inferred	0.18		335,300		0.38	0.03	NA	4,100
Zone	Grade Group	Cutoff AuEq g/t		Tonnes		Au g/t	Cu %	AuEq g/t	AuEq Ounces
Sulphides	Measured	0.31		0		0	0	0	0
	Indicated	0.31		2,539,000		0.49	0.15	0.73	59,600
	Meas & Ind	0.31		2,539,000		0.49	0.15	0.73	59,600
	Inferred	0.31		298,100		0.30	0.17	0.57	5,500
QQM	Grade Group	Cutoff		Tonnes		Au g/t	Cu %	AuEq g/t	Au + AuEq Ounces
Total	Measured	----		0		0	0	0	0
	Indicated	----		8,522,700		0.75	0.07	0.82	226,000
	Meas & Ind	----		8,522,700		0.75	0.07	0.82	226,000
	Inferred	----		633,400		0.34	0.10	0.47	9,600

1.	Mineral resources are reported inside an optimized pit shell. AuEq was calculated using Au + 1.6 * Cu.
2.	Numbers may not add up due to rounding.
3.	Mineral resources which are not mineral reserves do not have demonstrated economic viability.
4.	The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
5.	The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
6.	The mineral resource is based on economic parameters including US$1,500/oz gold, 86% oxide Au recovery, 90% sulphide Au recovery, US$2.20/tonne mining costs, US$6.13/tonne oxide processing cost, US$12.00/tonne sulphide processing cost and US$1.00/tonne G&A

Mineral Reserve Estimate

The Cerro Quema mining operation will consist of open-pit mining only with no underground mining component planned, hence, all of the ore reserves are deemed to be open pit reserves. No Inferred mineral resources are used in the estimation of the mineral reserve. Only oxide resources are used in the estimation of the mineral reserve.

The mineral reserves for the Cerro Quema Project will be provided by two separate pits: La Pava pit and Quema pit. Two separate block models were developed; one for each pit.

The Proven and Probable mineral reserves for the Project are summarized in the Table 9. A cut-off grade of 0.21 g/t Au is used for reporting all reserves. The mineral reserve represents a diluted ore tonnage.

Table 9 - Cerro Quema Mineral Reserves

	Ore (Mt)	Au (g/t)	Cu (%)	Gold Oz Contained
La Pava
Proven	6.82	0.80	0.04	176,000
Probable	7.40	0.67	0.04	159,000
Sub-total	14.22	0.73	0.04	335,000
Quema
Proven	-	-	-	-
Probable	5.49	0.86	0.03	153,000
Sub-total	5.49	0.86	0.03	153,000
Total
Proven	6.82	0.80	0.04	176,000
Probable	12.89	0.75	0.03	312,000
Total	19.71	0.77	0.04	488,000

Notes

1. Canadian Institute of Mining and Metallurgy and Petroleum ("CIM") definitions were used for Mineral Reserves
2. The Mineral reserve Is based on US$1,275/oz gold

Kappes, Cassiday and Associates

Mr. Mark Gorman, PE

Mark holds a BS degree in Chemistry, an MS degree in Metallurgical Engineering and an MS degree in Civil Engineering. He is a registered Professional Engineer in the State of Nevada. He has 20 years of mineral processing experience working in copper and precious metals. He worked for The Mineral Park Mine as their Chief Metallurgist and Allied Nevada as their Corporate Metallurgist prior to joining KCA.

The technical geological information contained in this press release has been reviewed and approved by Mr. John Kapetas, B.Sc. Hons, MAusIMM, MAIG, a Qualified Person under NI 43-101 rules and standards.


About Pershimco Resources Inc.

Pershimco Resources Inc. (TSX VENTURE:PRO) (FRANKFURT:BIZ) is a mineral exploration and development company with a near-term gold oxide production scenario and a copper-gold porphyry target at its 100%-owned Cerro Quema Project in Panama. Cerro Quema's concession boasts paved road access, no indigenous groups and the most favorable climate in the country. Additionally, the Cerro Quema Project has proven to have significant exploration upside with resource expansion potential in over 12 oxide targets identified along a 17km trend as well as porphyry indicators along a 12km strike length that highlights the potential for a nearby copper-gold porphyry system. With strong shareholder support, Pershimco aims to achieve cash flowing status in the near term to continue uncovering the value of Cerro Quema. Please refer to the Cerro Quema Project - Pre-Feasibility Study on the La Pava and Quemita Oxide Gold Deposits, available on the Company's website, and filed on SEDAR on August 22, 2014 as well as to the press release of July 8, 2014.

The Company's documents are available on www.sedar.com.

Please visit the Company's website at www.pershimco.ca.


This press release contains forward-looking statements that reflect, as of the date of this press release, Pershimco's expectations, estimates and projections about its operations, the mining industry and the economic environment in which it operates. Statements in this press release that are not supported by historical fact are forward-looking statements, meaning they involve risk, uncertainty and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Although Pershimco believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which apply only at the time of writing of this press release. Pershimco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by securities legislation.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statement.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.



Contact

Alain Bureau, P. Eng., President and Chief Executive Officer
+1 (819) 797-2180
ressources@pershimco.ca

Elina Chow, Investor Relations
+1 (416) 845-8495
info@pershimco.ca