Karmin Exploration Inc. provided a development update on its 30% owned Aripuanã Zinc Lead Copper Silver Project (“Aripuanã”) which is a main near-term growth project of its partner Nexa Resources S.A. Recent progress at Aripuanã includes: 2017 expenditures by Nexa totaling USD 12.2 million with; USD 5.7 million spent on approximately 26,600 metres of infill drilling plus 2,371 metres of exploration drilling in surrounding areas and USD 6.5 million on engineering, environmental and geo-mechanical studies. Karmin understands that an update to the mineral resource dated December 23, 2016 is expected in the second quarter of 2018. The PEA detailed the development of a 5,000 tonne per day mining operation with a mine life of 24 years based, in part, on inferred resources producing approximately: 2.3 billion lbs. payable zinc, 1.0 billion lbs. payable lead, 223,000,000 lbs. payable copper 23,600,000 oz. payable silver and 529,000 oz. payable gold. Estimated 2018 expenditures to advance Aripuanã total USD 25.5 million and include: Exploration; USD 5.5 million and Capital expenditures: USD 20 million. Financing & Strategic Review; Karmin is advancing discussions with several mining capital groups to arrange the financing for its participation in the development of Aripuanã. Karmin is also reviewing strategic alternatives aimed at enhancing shareholder value through a corporate sale or the sale of all or a material portion of Karmin’s assets. Karmin has a 30% carried interest in Aripuanã and is not required to contribute to the project costs until one year after the completion of a feasibility study and notification from Nexa that the development of Aripuanã will proceed. Karmin has commercial rights proportional to its 30% interest in Aripuanã’s lead, copper silver and gold production. Nexa has rights of first refusal on Karmin’s 30% of the zinc production. As part of its strategic alternatives Karmin would consider the use of its participation rights on the silver and gold production to provide flexibility to potentially raise capital in the form of stream financing for future funding requirements and/or maximizing Karmin shareholder’s value. Outlook: Mineral exploration activities continue to identify mineralized deposits in the Aripuanã project. The results from these activities indicate there is the potential to increase the mineral resources in the Aripuanã project, supporting continued investment in mineral exploration activities in the project. In particular, the large resource base in the project indicates the potential for a long mine life of up to 24 years. Exploration has identified the potential for incremental resource expansion at Arex, Link, Ambrex and Babaçu. In order to execute this expansion, a 26,600 meter infill drill program was completed in 2017 focused on resource growth and 2,371 meters of exploration drilling was completed in surrounding areas. Geological mapping and preliminary exploration activities have helped identify additional, potentially mineralized bodies at Massaranduba, Boroca, Mocoto and Arpa. It may also be possible to selectively mine areas containing high-grade ore during the early years of the life of mine to improve capital returns. It is intended that trade-off studies will be carried out related to the mineral process in order to better identify the potential of the Aripuanã project.