Kerr Mines Commences Resource Expansion Program and Receives Air Permit

TORONTO, Feb. 05, 2019 - Kerr Mines Inc. (TSX: KER, OTC: KERMF, FRA: 7AZ1) (“Kerr” or the “Company”) is pleased to announce that the Phase II resource expansion program has commenced at the Copperstone Mine located in Arizona, USA. In addition, Kerr has received a key environmental permit modification and is continuing with advanced metallurgical testing.

2019 Phase II Resource Expansion Program:

• The primary objective of the underground resource expansion program is to increase mine life by 3-4 years to total of 8 years at a rate of 38,000-40,000 ounces of gold per year;
• Up to 15,000 meter (“m”) underground program focused on the D and C zones of the Copperstone zone.
• The Copperstone zone is the underground extension of the same orebody that was historically mined as an open pit. The open pit mined nearly 150 vertical meters of the Copperstone zone and produced in excess of 500,000 gold ounces. The Copperstone orebody currently has a horizontal strike length of over 1,500 m and extends 110 m beneath the historical open pit. Within this area there are Measured and Indicated resources of 276,100 gold ounces and Inferred resources of 145,700 gold ounces.
• Drilling is being accomplished entirely from existing underground access and will affect an area of 500 m of strike length and 200 m of elevation – 1/3 of current resource strike length.
• Future drilling programs, with the objective of further mine life extension, will target areas beyond the current 2019 Phase II affected area of 500 m of strike length. The ultimate goal would be the addition of resources along all zones encompassing the entire current resource strike length of over 1,500 m.
  
  Please refer to our Kerr Mines Corporate Presentation located on our home page at https:\\kerrmines.com for further details regarding our 2019 Program.

Permit Modifications:

• Received approval of the modification to the existing State of Arizona environmental permit governing air.
• Provides permission for the construction of the whole ore leach and Sulfidization-Acidification-Recycle-Thickening (“SART”) gold processing systems.
• Modifications to the federal operating permit and the state permit governing water are well underway.
• All other permits required for mine operations and gold production are in hand and do not require modification.

Metallurgical Testing:

• The primary purpose is to validate prior results of average 95% recovery of gold and to refine reagent consumption and leach times.
• The secondary purpose is to perform testing to evaluate the economic viability of incorporating a SART circuit to the planned gold processing plant. A SART circuit can reduce operating costs by reducing reagent consumption and can add revenue from the recovery of copper from the gold ore.
• Current testing is nearly complete and aimed at providing information for detailed gold processing plant design.

“We are excited to have reached two important milestones this early in the year – the initiation of the resource expansion program and the approval of the state air permit which allows Kerr to construct the new additions to the existing gold processing plant for purposes of whole ore leach processing and a SART circuit which will improve recoveries while reducing operating cost.” said Martin Kostuik, President. “Additional catalysts will be the receipt of the two remaining permits and the conclusion of the metallurgical test work by Q1 2019. As we further de-risk and advance the Copperstone Mine we look forward to continuing to meet each of our near term goals and objectives, all of which contribute towards placing the mine into production and creating returns for shareholders. ”

About Kerr Mines Inc.
Kerr Mines is an Emerging American Gold Producer currently advancing the 100% owned, fully permitted past-producing Copperstone Mine project to production. Copperstone is a high-grade gold project located along a detachment fault mineral belt in mining-friendly Arizona. This gold project in Arizona demonstrates tremendous exploration potential targeting multi-million ounce prospects within a 4,775 hectare (11,800 acres) land package.

PDF Version of 43-101 technical report available:
http://kerrmines.com/wp-content/uploads/KerrCopperstone_PFS_43-101.pdf

YouTube: Copperstone Gold Mine KER:TSX 3 min. Investor Tour Video

For further information contact:
Claudio Ciavarella
Chief Executive Officer
cciavarella@kerrmines.com
416-855-9305

Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Kerr Mines’ business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release and no stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.