SOURCE: Golden Dawn Minerals Inc.

Golden Dawn Minerals Inc.

January 26, 2017 03:00 ET

Golden Dawn Completes National Instrument 43-101 Report for Kettle River Resources Land Package

VANCOUVER, BC--(Marketwired - January 26, 2017) - Wolf Wiese, CEO of Golden Dawn Minerals Inc., (TSX VENTURE: GOM) (FRANKFURT: 3G8A) (OTC PINK: GMFRD) (the "Company" or "Golden Dawn ") announces completion of a National Instrument 43-101 Report on the Greenwood Area Property compiled from the extensive library of exploration data assembled by Kettle River on the Greenwood Mining District, plus site visits to the properties. The mineral claims total 11,000 ha., covering 78 mineral showings including 29 historic metal mines.

Golden Dawn is acquiring this property through the acquisition of Kettle River Resources Ltd., a wholly owned subsidiary of New Nadina Explorations Limited. Golden Dawn and New Nadina Explorations Limited signed a Letter of Intent regarding this transaction which includes the mineral property assets (See news release Oct. 18, 2016). The binding letter of intent "LOI" allows the Company through a share acquisition to own Kettle River 100% which, on closure, will include the Greenwood Area Properties (GAP) and all related assets. Consideration for the acquisition consists of a non-refundable deposit of $80,000 on signing the LOI, $15,000 by November 26, 2016, and on closure cash payments totaling CAD$1,000,000 (inclusive of deposits) and $600,000 in shares of the Company (issuance price will be based on the 20 days closing average prior to signing of LOI). The properties will be subject to a 1% NSR where the Company can purchase a ½% for $1,000,000 up to five years and thereafter $1,200,000 up to 10 years leaving a ½% NSR payable to New Nadina. This is a non fundamental acquisition and remains subject to TSX.V approval.

The Greenwood Area Property lies in southern B.C. near Provincial Highway 3 between Rock Creek to the west and Grand Forks to the east. It lies in the Boundary Falls area, of the Greenwood Mining Division, to the South, East and West of the City of Greenwood. The Property is comprised of 57 Crown Granted claims with sub-surface mineral rights covering 814.3 hectares, 24 Crown Granted claims with surface and sub-surface rights covering 277.4 hectares, and 51 mineral tenure claims with subsurface rights covering 10,263 hectares. The area covered by the various claim types exceeds 11,000 hectares.

The property map may be viewed at: http://www.goldendawnminerals.com/wp- content/uploads/2017/01/GOM-Property-Map.jpg

This land package has an abundance of mineral prospects, encompassing 29 historical past producing mines and 49 documented mineral showings. Included is the historic Phoenix mine which produced nearly 1 million ounces of gold and 235,700 tonnes of copper from a total of 21 million tonnes mined from 1900-1919 and 1956-1978.

Mine production records from 1959 through 1967 show that 4.19 million tonnes of tailings at an average grade of 0.15% Cu, 0.38 g/t Au and 3.8 g/t Ag, were discharged to the Tremblay site, as reported in a previous technical report prepared for Kettle River, effective date July 9, 2012 and titled "National Instrument 43-101 Technical Report on the Phoenix Tailings Property, Boundary District".

Note: This historical estimate is not a mineral resource or mineral reserve and the issuers are not treating this as a current mineral resource. This estimate is relevant to the current property because the tailings deposit is still present and warrants further investigation. The estimate cannot be considered accurate, given the age of the original records and uncertainties in the key assumptions, parameters, and methods used to prepare the historical estimate. The historical estimate uses categories other than the ones set out in sections 1.2 and 1.3 of NI 43-101 because it is an estimate of tailings produced and is not a mineral resource estimate. More recent sampling was documented in a 1985 report titled "Report on Drill Testing of the Tremblay Tailings, Noranda Exploration". This report describes a vibra-core drill program in which 18 vertical holes were drilled for a total of 191.7 metres. The holes were spaced on a 100 metre grid. The drilling was performed with a vibra-core drill with NQ rod size, with samples taken every 1.5 metres (5 feet) vertically. Only a few of the holes penetrated entirely through the deposit. The resulting samples were analyzed at Rossbacher Labs of 2225 S. Springer Rd. Burnaby B.C. The samples were screened to a -80 mesh with the +80 mesh being discarded; the -80 mesh fraction was analyzed and found to contain gold, silver, copper, zinc, and lead contents at reasonably consistent grades. The total number of samples collected and analyzed was 137. The arithmetic means of analytical results were 304.8 ppb Au (0.30 g/t Au), 1088.5 ppm Cu (0.11% Cu), 2.4 ppm Ag, 83.6 ppm Zn and 6.7 ppm Pb. These results are comparable but slightly lower in Au and Cu than indicated from the production records. In order to upgrade or verify this historical estimate as a current mineral resource, an accurate survey to determine the volume of tailings, as well as a representative sample suite with density measurements and accurate metal analyses, and mineralogical characterization would be required. Metallurgical testing would also be required. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.

All of the historic mines are less than 150 meters in depth with the majority being less than 50 meters deep. In addition to potential extensions to known deposits, large areas of the Greenwood Area Property remain under-explored. Early exploration was focused on copper and little exploration work has been conducted in the last 20 years.

The Kettle River acquisition also includes an extensive catalogued library of records from over 100 years of exploration and development. The data, much of it proprietary, is invaluable for assessing the mineral showings in light of new structural and metallogenic models.

All showings and historic mines are within a 15 km radius from the company's Greenwood mill. These historic copper-gold deposits are clustered in two areas: Phoenix and Summit camps.

This localized grouping of occurrences suggests the two areas may overlie porphyry-copper gold source intrusions, and were generated by metal-rich hydrothermal fluids that ascended from the intrusions.

The majority of mineralization in the Greenwood Camp can be classified as copper-gold skarns or skarn -- related. Early pre-1919 exploration in the Greenwood camp focussed on such massive sulphide/oxide ores that were self-fluxing and could be shipped directly to smelters. Lower grade footwall stringer mineralization was largely ignored, as the mines wished only to ship high grade ore. As such there is excellent potential to discover large tonnage deposits of low to moderate grade copper-gold skarn material peripheral to the historic mines. In addition, since most of the historic mines were focussed on copper, iron-rich skarn zones of mineralization were largely ignored. It will be important to re-evaluate all of the skarn deposits for gold.

Summary of Past Producing Mines

Property  Minfile  Northing  Easting Model  Commodity  Tonnes Produced
Phoenix  082ESE020  5438785  383228 Skarn  Cu-Au-Ag  21,552,283
Rawhide  082ESE026  5438732  384281 Skarn  Cu-Au-Ag  855,634
Snowshoe  082ESE025  5439164  384331 Skarn  Cu-Au-Ag  545,129
Brooklyn  082ESE013  5440016  383093 Skarn  Ag-Au-Cu  292,834
Emma  082ESE062  5443063  386967 Skarn  Cu-Au-Ag-Gr-Mo-Co  241,538
Oro Denoro  082ESE063  5442630  387019 Skarn  Cu-Au-Ag-Co  123,782
Stemwinder  082ESE014  5439926  383333 Skarn  Cu-Au  105,336
B.C. Mine  082ESE060  5443204  389159 Skarn  Cu-Au-Ag  93,874
Grey Eagle  082ESE018  5438536  383324 Skarn  Fe-Cu  45,360
Skylark  082ESE011  5438910  380288 Poly Vein  Ag-Pb-Zn+-Au  38,761
Last Chance  082ESE216  5439276  379099 Vein  Au-Ag-Pb-Zn  704
Bay  082ESE005  5438408  379202 Poly Vein  Ag-Pb-Zn+-Au  447
Marshall  082ESE031  5441016  382930 Skarn  Au-Cu-Pb,Zn  370
Bluebell  082ESE188  5443134  388063 Skarn  Cu-Au-Ag  353

Summary of Past Producing Mines (cont'd)

Property  Minfile  Northing  Easting Model  Commodity  Tonnes Produced
R.Bell  082ESE064  5441827  388523 Skarn/Vein  Cu-Ag-Au  287
Cyclops  082ESE122  5442111  386724 Skarn(strat)  Zn-Pb-Ag-Cu  259
Crescent  082ESE012  5440073  379360 Vein Meso  Ag-Pb-Zn+-Au  250
Mavis  082ESE027  5438129  379277 Vein  Ag-Au  29
Prince Henry  082ESE250  5438915  378625 Vein  Ag-Au-Pb-Zn  19
Gold Drop  082ESE028  5439105  384168 Skarn  Cu-Au  12
Aetna  082ESE022  5439027  384476 Skarn  Cu-Au-Ag  Part of Phoenix
Curlew  082ESE024  5438913  384508 Skarn  Cu-Au-Ag  Part of Phoenix
Monarch  082ESE027  5438619  383812 Skarn  Cu-Au-Ag  Part of Phoenix
Old Ironsides  082ESE021  5439494  383324 Skarn  Cu-Au-Ag  Part of Phoenix
Victoria  082ESE023  5439333  383625 Skarn  Cu-Au-Ag  Part of Phoenix
War Eagle  082ESE019  5438625  383324 Skarn  Fe-Cu  Part of Phoenix
Gilt Edge  082ESE015  5440225  383826 Skarn  Cu  N/A
Lake  082ESE003  5439330  379425 Poly Vein  Ag-Pb-Zn+-Au  N/A
May Alice  082ESE197  5441175  371596 Skarn  Cu  N/A
Niagara  082ESE065  5440546  392391 unknown  unknown  N/A
Pac  082ESE194  5441826  388341 Vein  Au  N/A
Rathmullen  082ESE059  5443710  390122 Vein  Cu-Ag-Au-Zn  N/A
Stan  082ESE132  5442576  383673 Skarn  Cu-Mo  N/A
Sylvester K  082ESE046  5440524  382798 Skarn(hornfels)  Au  N/A
Tokyo  082ESE257  5442636  389776 Vein  Cu-Ag-Au-Zn  N/A
Yellow Jacket  082ESE030  5438878  384711 Skarn  Cu-Au  N/A

Concurrently the company will explore the areas evidencing indications of intrusive porphyry deposits which may be sources for the numerous historic Mines and mineral showings. See National Instrument 43-101 Report on website or SEDAR (www.sedar.com).

Technical disclosure in this news release has been approved by Dr. Mathew Ball, P.Geo., a Qualified Person as defined by National Instrument 43-101, and Chief Operating Officer of the Company.

For more details, please see the National Instrument 43-101 Technical Reports on the Company's website at www.goldendawnminerals.com.

On behalf of the Board of Directors:

GOLDEN DAWN MINERALS INC.

"Wolf Wiese"______

Wolf Wiese

Chief Executive Officer

This Press Release Was Prepared By Management Who Takes Full Responsibility For Its Contents. Neither 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 Release. This Document Contains Certain Forward Looking Statements Which Involve Known And Unknown Risks, Delays, And Uncertainties Not Under The Company's Control Which May Cause Actual Results, Performance Or Achievements Of The Company To Be Materially Different From The Results, Performance, Or Achievements Implied By These Forward Looking Statements. We Seek Safe Harbor.

Image Available: http://www.marketwire.com/library/MwGo/2017/1/26/11G128485/Images/Golden_Dawn_Area_Property_Map-ff3d60b74256a8b88604406e59e2c63f.jpg

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