Darnley Bay Announces Increased Size of Davidson Molybdenum-Tungsten Deposit

TORONTO, ONTARIO--(Marketwired - Oct 17, 2016) - Darnley Bay Resources Ltd. (TSX VENTURE:DBL) ("Darnley Bay" or the "Company") is pleased to announce an updated mineral resource estimate for the Davidson molybdenum and tungsten property near Smithers, British Colombia. The estimate was undertaken by independent consultants, Jim Cuttle, P.Geo. and Gary Giroux, P.Eng. Since the last resource estimate on the property in 2007 (also by Gary Giroux), a previous operator drilled 23 additional holes and these have been incorporated into the new resource estimate.

Total drilling on the property to date is 72,815 metres in 218 drill holes, dating back to the 1950s. All of the drill core has been securely stored and is available to Darnley Bay. Giroux and Cuttle estimate the following Measured and Indicated Resources ("M&I") at a 0.20% and 0.28% MoS₂ cut-off:

• 90,080,000 tonnes grading 0.286% MoS₂ and 0.034% WO₃ - 0.20% MoS₂ cut-off (340.50 million pounds Mo, 67.53 million pounds WO₃)
• 34,420,000 tonnes grading 0.374% MoS₂ and 0.036% WO₃ - 0.28% MoS₂ cut-off (170.14 million pounds Mo and 27.32 million pounds WO₃)

The mineral resource estimate represents significant increases in Measured and Indicated ("M&I") resources of molybdenum and tungsten over those of the previous mineral resource estimates for the Davidson project:

• An increase of 18 percent or 52.9 million pounds of molybdenum (Mo) to 340.5 million pounds in the measured and indicated categories using the 0.20% MoS₂ cut-off;
• An increase of 9.43 million pounds of tungsten since the 2005 estimate using the same 0.20 % MoS2 cut-off.

The report recommends that a Preliminary Economic Assessment (PEA) be commissioned to determine the cost of producing molybdenum and tungsten from the Davidson property. Two cut-offs are highlighted based on two possible underground mining scenarios. A 0.20% MoS₂ cut-off might correspond to a bulk mining approach with onsite processing facilities while a cut-off of 0.28% MoS₂ might reflect a more selective direct shipping alternative of hauling ore to another mill for processing.

The Company confirms that it will file a technical report on the Davidson Property within 45 days of this press release to support the above disclosed Davidson mineral resource estimate.

Darnley Bay entered into an agreement with Roda Holdings Inc. in March, 2016, whereby Roda granted Darnley Bay the option to earn a 100% interest in the property in exchange for: (i) Darnley Bay made a payment to Roda in the amount of $50,000 (ii) a further payment by Darnley Bay to Roda of $100,000 on each anniversary of the Definitive Agreement during the Option period which will commence on execution of the Definitive Agreement and terminate on the date Darnley Bay commences commercial production of at least 500,000 tonnes of ore in any 12 month period. Upon achieving commercial production, Darnley Bay shall be deemed to have automatically exercised the Option and have earned a 100% interest in and to the Project, subject to a three percent (3%) net smelter returns royalty in the Project in favour of Roda.

Gary Giroux, MASc., P.Eng., Giroux Consultants Ltd. and Jim Cuttle, B.Sc., P.Geo., Qualified Persons under NI 43-101, reviewed and approved the scientific and technical information presented in this press release.

Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Darnley Bay expects are forward-looking statements. Although Darnley Bay believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Darnley Bay, investors should review registered filings at www.sedar.com.

Neither the 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.

Davidson Measured Resource

Davidson Indicated Resource

Davidson Measured plus Indicated Resource

Contact

Darnley Bay Resources Ltd.
Jamie Levy
President and CEO
Telephone: (416) 567-2440
(416) 361-2515
E-mail: jlevy@darnleybay.com
Website: www.darnleybay.com