Vancouver, British Columbia--(Newsfile Corp. - August 13, 2021) - SALAZAR RESOURCES LIMITED (TSXV: SRL) (OTCQX: SRLZF) (FSE: CCG) ("Salazar" or the "Company") is pleased to announce that it has completed Phase 1 drilling at its wholly-owned Los Osos project in El Oro, Ecuador ("Los Osos"), and to report the results from the final three holes drilled. In total, six holes were completed, comprising 3,785 metres ("m"), during the Phase 1 program.

Highlights:

• OSO-05 returned mineralized intervals to a depth of 796 m downhole, with end of hole at 864 m
  • 30 m @ 0.4 g/t Au, 0.1% Cu, and 1.0 g/t Ag from 44 m, including:
    • 15 m @ 0.6 g/t Au, 0.1% Cu, and 1.1 g/t Ag from 54 m
  • 18 m @ 0.3 g/t Au, 0.1% Cu, and 1.4 g/t Ag from 223 m
• OSO-06 returned mineralized intervals to a depth of 514 m downhole, with end of hole at 516 m
  • 87 m @ 0.2 g/t Au, 0.1% Cu, and 0.8 g/t Ag from 160 m
  • 133 m @ 0.2 g/t Au, 0.1% Cu, and 0.6 g/t Ag from 282 m
  • 17 m @ 0.4 g/t Au, 0.1% Cu, and 0.9 g/t Ag from 451 m

Fredy E. Salazar, CEO and President, commented: "Salazar Resources successfully encountered abundant sulphide mineralization in holes five and six prior to completing Phase 1 drilling at Los Osos. While we review all the data from Los Osos to decide our next steps, the rigs are being redeployed across Salazar's portfolio of assets; exploration crews are busy exploring at Los Santos and preparing for drilling at Rumiñahui, in line with our strategy to rapidly conduct exploration and make Ecuador's next commercial copper-gold discovery. With newly inaugurated President Lasso intent on attracting investment into businesses in Ecuador, and a strong metal price environment, the Company is well-placed to deliver results from its portfolio of projects during 2021."

Los Osos

Background information to Los Oso is available at the Salazar Resources website:
https://salazarresources.com/projects/100-salazar-owned/los-osos/

Drilling Update

Salazar Resources has completed 3,785 m of drilling in six holes at Los Osos to date. Today, The Company reports the results from the last 112 m of OSO-04, and full hole results from OSO-05 and OSO-06. Locations for all holes are shown in Figure 1 and significant drill intersections are shown in Table 1. The drill rigs have been redeployed across the Salazar Resources portfolio, in preparation for exploration drilling in conjunction with Adventus Mining and also on Salazar's wholly-owned properties.

Figure 1. Phase 1 drill plan, Los Osos, El Oro, Ecuador

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/4631/93017_70a6eebc8497397f_003full.jpg

Source: Salazar Resources

Results

Holes OSO-04, OSO-05 and OSO-06 were designed to be angled holes 500-600 m long, or longer if still intersecting abundant sulphide mineralization at depth. Hole OSO-04 did not intersect significant amounts of sulphide and was stopped at a down hole depth of 430 m. Hole OSO-05 intersected abundant sulphide mineralization throughout its length and was eventually finished at a depth of 864 m. Although the hole was visually similar to OSO-03 and encouraged the continuation of the hole to its final depth, the results were lower grade than encountered in OSO-03.

Hole OSO-06 was collared from the same pad as OSO-01, but oriented to the west, rather than to the southeast. Whereas OSO-01 encountered an enriched zone from surface to the southeast, OSO-06 only entered elevated mineralization at a downhole depth of 87 m to the west. Throughout the length of the hole, the sulphide content was estimated to be lower than in holes OSO-01, OSO-03, and OSO-05 and a decision to end the hole at 516 m was taken.

All three holes were collared in metamorphic host rock before entering a suite of hydrothermal breccias, porphyritic andesites, dikes, and diorites. Sulphides were present throughout hole OSO-05 and OSO-06, in particular, predominantly pyrrhotite and pyrite with lesser chalcopyrite and arsenopyrite. The rocks are silicified and exhibit moderate phyllic alteration, with gold, copper, silver and trace molybdenum present in core. Significant intersections are shown in Table 1, below.

Work Plan

The high-grade vein structures in the northeast of the licence area remain undrilled. Salazar Resources is reviewing the data from Los Osos and will continue to evaluate the options for the project within the broader portfolio of exploration licences.

QAQC

Salazar maintains a rigorous chain-of-custody and quality assurance/control program which includes the insertion of certified standard control samples and blanks, and re-analysis of samples with high levels (over limit) of gold, copper and zinc. All samples were analysed by Inspectorate Services Perú S.A.C. (Bureau Veritas), a certified ISO 17025:1999 and ISO 9001:2000 laboratory. The laboratory also maintains a QAQC program that includes insertion of blanks, standards and duplicate reanalysis of selected samples. Gold was analysed by fire assay - atomic absorption spectroscopy (FA-AAS). Silver, copper, zinc and other elements were analyzed by aqua regia extraction with an Inductively Coupled Plasma (ICP-ES) finish.

Qualified Person

Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.

About Salazar

Salazar Resources is focused on creating value and positive change through discovery, exploration and development in Ecuador. The team has an unrivalled understanding of the geology in-country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines.

Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm-out non-core assets. The Company actively engages with Ecuadorian communities and together with the Salazar family it co-founded The Salazar Foundation, an independent non-profit organisation dedicated to sustainable progress through economic development.

The Company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25% stake fully carried through to production. A feasibility study is underway and a 2019 PEA generated a base case NPV(8%) of US$288 million. At two copper-gold porphyry projects, Pijili and Santiago, the Company has a 20% stake fully carried through to a construction decision.

For further information from Salazar please contact Merlin Marr-Johnson, Executive Vice President and Corporate Secretary at merlin@salazarresources.com or ir@salazarresources.com.

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.

This press release contains "forward -looking information" within the meaning of applicable securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "seeks", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking information herein includes, but is not limited to, statements that address activities, events, or developments that Salazar expects or anticipates will or may occur in the future. Although Salazar has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Salazar undertake to update any forward-looking information in accordance with applicable securities laws.

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