News

November 12, 2015

Para Resources Announces Revised Sampling Methods at El Limon

Assays Over 100 Grams of Gold per Tonne

November 12, 2015 – Vancouver, British Columbia.  Para Resources Inc. (the “Company” or “Para”) (TSXV – “PBR”) (WKN – “A14YF1”) reports that sample preparation methods have been updated due to very high grade assays (over 100 grams gold per tonne) at the El Limon mine in Zaragoza Colombia.

A summary of recent grades from mining at the El Limon mine, as reported by three different laboratories, are summarized in the table below:

Data

As a result of the high grade assays and variability encountered (due to nugget effect) between the various laboratories, El Limon has adopted the following procedure for sampling and assay analysis of high grade material:

  • All of the mineralized rock is pulverized to -1” , maintaining a moisture content at a minimum of 3%.
  • From each 60 kg sample, a 600 gram sample (1%) is taken and loaded into a cement mixer with a capacity of 0.2 cubic meters or approximately 150 kilograms. This process is repeated until the mixer has reached its maximum rated weight or approximately 150 kilograms. The quantity of material to be sampled will be limited to 10 tonnes. Ideally, the resultant sample size will be approximately 100 kilograms
  • The sum of these individual samples will be then mixed together, for a period of 20+ minutes.
  • The total sample is then fed through a riffle box (or rotary splitter if required), to reduce the total sample size to approximately 15 kilograms.
  • The 15 kilos will be coned and flattened and then quartered into 3 samples of approximately 5 kilograms.
    • 1st 5kg sample will be assayed in company’s laboratory
    • 2nd 5kg sample will be assayed by a certified independent laboratory
    • 3rd 5kg sample will be retained for arbitration
  • The 1st sample is dried and the weight precisely recorded. It is then further pulverized to 95% -150 microns or 100 mesh.
  • The 1st sample is screened and the –150 micron fraction segregated.
  • The + 150 micron fraction (approximately 250 grams) is weighed and then completely fused in crucibles followed by cupellation in cupels.
  • The –150 micron fraction is homogenized and then coned and quartered, 4 x 35 gram samples are extracted and analyzed.
  • The resultant prills or beads are flattened and treated with nitric acid to remove the silver.
  • The weight used for the –150 micron fraction is the weight of the complete sample less the weight of the +150 micron fraction. This is due to possible losses, in the handling of the fines fraction.

The assay results obtained for both fractions and their respective weights will be then used to determine a final value for the grade of the material.

Geoff Hampson, Chairman and CEO of Para Resources, commented:

“We are very pleased to be seeing grades that are considerably greater than our projections. The new sampling techniques ensure that Para is accurately recording and reporting the grades of the material mined at El Limon but are also in a position to quickly and accurately determine the grade of the material being sold to the Mill by the local artisanal miners. The grade analyses from October indicate that there is great variability in the material being mined but that on average the grades are considerably higher than projected. If this trend continues it will have a very positive effect on the cash flow generated by the El Limon Mine.”

El Limon Overview

The El Limon property is located in the northwest part of Colombia near the town of Zaragoza, Antioquia, Colombia and is accessible via both paved highways and gravel roads.  The Mine is situated in the wide Zaragoza Gold District which extends south from El Bagre to Segovia and Remedios, all towns with considerable historical alluvium mining and large underground gold mines that have operated for generations.  The El Limon claims cover a total area of approximately 277.5 hectares, including 86.4 hectares in RPP No. 12011 and 191.1 hectares in the concession contract No. 620 which is located west of the currently exploited zone.  Gold grade at the El Limon mine ranges from 5 grams of gold per tonne to more than 100 grams of gold per tonne; the expected diluted average gold grade is 7-10 grams per tonne. Extremely high-grade mineralization is common in the narrow-vein underground mines in the region.

It is CML’s intention to utilize a portion of any cash generated from mining to drill the El Limon property to expand the number of targeted areas for mining.

Mr. David Bikerman, a Member of the Australian Institute of Geoscientists (MAIG #3558), Mining Engineer, a CP/QP under NI-43-101, has reviewed and approved the scientific and technical information in this press release.

ABOUT PARA RESOURCES:

Para Resources is an exploration-stage gold mining and toll milling company.  In addition to its existing properties, Para will continue to take advantage of current market conditions to acquire and develop additional assets that have strong exploration and development potential.

ON BEHALF OF THE BOARD OF DIRECTORS

“C. Geoffrey Hampson”

C. Geoffrey Hampson, Chief Executive Officer and Director

For further information, please contact Andrea Laird: Telephone: 604-398-3227

Neither TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.