Millstream Executes MOU Regarding Potter Mine Tailings Remediation Project - "Clarification"

TORONTO, ON / ACCESSWIRE / July 11, 2017 / Millstream Mines Ltd. (the "Company" or "MLM") (TSX-V: MLM, FRA: NJD1) reports that at the request of IIROC, the Company wishes to clarify certain disclosure in its Press Release dated July 4, 2017.

In the Press Release, a valuation was attributed to the tailings based on Gross Metal content; this disclosure is prohibited under NI 43-101, 2.3, 1 (c). The valuation has been retracted and must not be relied upon.

A Mineral Resource estimate was quoted in the Press Release, including Mineral Resources in the Indicated Category of 3,028,767 tonnes at 1.45% copper, 1.19% zinc, 389.7 ppm cobalt, 11.1 ppm silver, and 127.5 ppb gold, and Mineral Resources in the Inferred Category of 2,071,101 tonnes at 1.08 % copper, 1.05 % zinc, 301.4 ppm cobalt, 8.7 ppm silver, and 81.7 ppb gold.

The Resource Estimate is detailed in the NI 43-101 Technical Report dated May 21, 2008, with an effective date of May 29, 2008, and entitled, "Technical Report NI 43-101 on the Resources at Potter Mine Property, Munro Township, Larder Lake Mining Division," prepared by Mr. A. P. David Gamble, P.Geo, and Mr. Edward I. Bettiol P.Eng., the Qualified Persons for the Property.

Resource Estimation Method and Assumptions

To date, a total of seventy-one (71) diamond drill holes have been drilled on the Potter Project property of which a total of forty-six (46) diamond drill holes including wedged holes have been drilled specifically for exploration in the Potter Mine area. A total of seven (7) massive to semi massivesulphide mineralized zones are geometrically arranged in a parallel to sub parallel stacked arrangement. A series of vertical cross sections and horizontal level plans were used showing the model of the 3D wire framed zones. A series of horizontal plans were then produced with a narrow horizontal clipping for each of the mineralized zones showing all diamond drill holes that transect each of the zones. The exact azimuth orientation for each zone was then determined. All vertical longitudinal sections were then cut for each zone. Using the "compositor tool" in Datamine Down Hole Explorer (DHEX), each mineralized drill hole intersection within each zone was automatically computer calculated for the horizontal thickness, which is the same as true thickness for -90 degree dips used for all the seven zones, and also automatically calculates the corresponding weighted averages for copper %, zinc %, cobalt ppm, silver ppm, and gold ppb values for each intersection utilized.

The midpoint location of each diamond drill hole intersection is determined for both mineralized and non-mineralized holes in vertical section. The location of the mid-point of each intersection is then the pierce point to be utilized for the longitudinal sections. All pierce points for all hole intersections are located and plotted on the appropriate longitudinal section. Once all pierce points for each longitudinal section are located, polygons are developed using the nearest neighbour (bisection) method. For the indicated resource category polygons a maximum radius of 50 meters was applied, and for the inferred resource polygons a maximum radius of 100 meters was applied. All polygons for each zone are assigned an identification letter and number. All the polygons were measured with a digital Planix 7 planimeter. Tab sheet databases were set up for each longitudinal section in Microsoft Excel. The polygons identification number with corresponding drill hole identification number, grades, true thickness for each intersection (defined by the pierce point), and measured area were entered into a tab sheets for each resource category for each zone. The volumes were then computed, summed up and converted to tonnage. There was no assumed gradual change in thickness from pierce point center of polygon towards the edge of each polygon.

No geostatistical analysis was completed on the data. The additional parameters controlling the calculation of the resource estimate are outlined following.

Cut-Off Grade and Width

A cut off grade of 0.37% copper equivalent was initially applied and used to screen out all diamond drill hole intersections below this factor. The copper equivalency is based on a historical price relationship between copper and zinc of 1:0.42 such that copper equivalent = copper (wt%) + 0.42 zinc (wt%). A minimum of 2.0 meters true width was also applied to all resource estimates for both the indicated and inferred categories. Cobalt, silver, and gold values were not incorporated into the cut-off grade criteria. All final indicated and inferred resource estimations for each zone are reported with the individual grades for copper (wt%), zinc (wt%), cobalt (ppm), silver (ppm), and gold (ppb).

True Thickness

The dip of the mineralized zones, A, B, C, D, E, F, and Y is -90 degrees or near vertical throughout. Using Datamine's Downhole Explorer software and a tool called the "compositor tool," the core lengths of the intersections used are then automatically calculated in the program to produce, a true horizontal width. The true horizontal width of each intersection equates to, and is the same as true thickness.

Survey

All drill hole collar locations are located on a cut and surveyed grid system that has been tied into UTM NAD 83 Zone 17 survey points established during the air photography survey conducted in 1999. Diamond drill collars from previous drill programs were surveyed on surface. All the drill holes within the mineralized zone used for this resource estimate either occur at common drill site setups, i.e. holes S97-09 from 1997 had been previously surveyed and also has 11 holes from the current drill program that occur on the same set up drill pad, (S07-06,-07,- 08,-09,-10,-11,-12,-13,-14,-15,-19). These additional holes are set up on the same set up pad but as a set of fanned holes at various azimuths and dips.

Similarly, hole S98-05 was previously surveyed in, and also has common collar set up for a similar fan of holes, (S06-01, S07-01, -02, -03, and -04). Other holes in the current program have been measured from known proximal surveyed control points such as hole casings and surveyed hubs.

All drill holes used in this resource estimate have been located down hole using Sperry Sun Services of Canada gyroscopic directional survey instruments for continuous down hole survey readings for holes drilled in the earlier programs from 1997 to 2000. All drill holes drilled in the current drill program Dec 2006 - Jan 2008 have been down hole located at 100 m intervals (or less) using a Reflex E-Z SHOT directional borehole survey instrument.

All of the hole collar, x, y, z, locations, and down hole orientation survey measurements were entered as Excel database files. These files were then entered into Datamine Studio 2 for all future use.

Specific Gravity

The rock specific gravity formation historically used during past mining operations at the Potter Mine was 3.50 for the sulphide mineralization. This specific gravity value was applied to all volumes (cubic meters) for the current indicated and inferred resource estimate to convert the volumes to tonnes.

At this time the Company is not aware of any legal, political, environmental or other risks that could materially affect the potential development of the mineral resources.

The wording in the July 4 Press Release that the resource was prepared "in compliance with NI 43-101 guidelines" has been retracted, as NI 43-101 is legislation and not a "guideline."

David Gamble, P. Geo, Millstream Consultant Geologist, is the Qualified Person for The Potter Mine Property and has prepared, supervised the preparation, or approved the scientific and technical disclosure in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release. Millstream seeks safe harbour with regard to forward-looking statements.

For further information, contact:

Mr. Ernest Harrison
EM, Chairman & CEO
Phone: 705-474-7282

Mr. Robert Chase
CFA, President & CFO
Phone:416-368-9595

Email: info@millstreammines.com
Web: www.millstreammines.com

SOURCE: Millstream Mines Ltd.