keena Resources Limited provided an update on several near-term catalysts expected to drive growth at its 100% owned Eskay Creek and Snip Projects located in the Golden Triangle of northwest British Columbia, Canada. This update is mainly focused on technical optimization of the Projects, specifically related to exploration, metallurgy, and engineering studies. Skeena published an updated Mineral Resource Update ("MRE" or "Resource") for Eskay Creek on June 20, 2023.

This update highlighted a total increase of 8%, adding over 430,000 gold equivalent1 ("AuEq") ounces to the MRE. With 73% of the Resource now being in the Measured and Indicated categories the Company expects a large percentage to convert to Reserves, potentially adding a year or more of mine life to Eskay Creek in the Fourth Quarter 2023 Definitive Feasibility Study ("DFS"). The Company recently increased its land package by acquiring five new claims surrounding Skeena's existing Eskay Creek and Eskay North claims. These new claims cover the interpreted northeastern extension of the Eskay Creek Rift system, which has the potential to host additional mineralization.

With a total land package now exceeding 100,000 hectares, the Company has one of the largest land positions held for mining in the mineral-rich Golden Triangle region of British Columbia. Following the 2022 Eskay Creek Feasibility Study ("FS"), Skeena has continued metallurgical test work using representative samples of Eskay Creek material. The focus of this work has been to simplify the process flowsheet and improve the quality of the concentrate expected to be produced from the flotation plant.

Recent testing has shown significant improvements in flotation concentrate quality due to better flotation kinetics and employing a finer re-grind particle size distribution. The Eskay Creek processing plant is now expected to be a traditional flotation plant with a single stage of rougher flotation and a simple re-grind and flotation cleaning circuit. This change represents a likely reduction in both process plant capital costs and operational costs.

Gold recovery within the modified process is expected to be comparable to the 2022 FS. Skeena plans to release an updated MRE for their Snip Project which will incorporate an additional 307 drillholes totaling 46,268 metres of drilling. The majority of the new drilling was completed by Hochschild Mining under their option agreement before Skeena regained 100% ownership of the project on April 5, 2023.

The additional drilling is expected to expand and upgrade Inferred ounces to the Indicated category. Three drills are currently operating at Eskay Creek, two of which are focused on the Eskay Deeps target in search of high-grade mineralization hosted in the Contact Mudstone at depth and along strike of the currently defined deposit. The third drill is focused on exploring for additional near mine mineralization that may be amenable to open-pit mining in proximity to the already defined resources at Eskay Creek.

Assay results are expected to be released in fall 2023. The Company is progressing towards the completion of a DFS for Eskay Creek. The updates that will be incorporated into the Study include the recently updated MRE, metallurgical optimization, refinements to the mill flowsheet, updated capital expenditure figures, and modifications to the open- pit mining method to enhance selectivity and minimize dilution.

Skeena anticipates these updates to increase confidence in successful execution and extend the life of mine, ultimately increasing the value of Eskay Creek. Following the completion of an updated MRE for Snip in Third Quarter 2023, Skeena will work to finalize an engineering study on the project. The study will highlight Snip as a potential satellite operation, providing ore to a centralized mill at Eskay Creek.

The Company expects the additional ore from Snip to further bolster the mine life at Eskay Creek and increase payabilities of the concentrate.