TriMetals Mining Inc. A Letter To The Shareholders

February 11, 2016

February 11, 2016, Vancouver, British Columbia—TriMetals Mining Inc. (TSX: TMI and TMI.B, US OTCQX: TMIAF and TMIBF).

To The Shareholders:

As we settle into the new year, there are signs for optimism, the gold price is going up and some of the other metals are starting to stabilize in price. Even iron ore prices in China seem to have started on an uptrend!

Our corporate focus, the Gold Springs PEA-stage gold-silver project in safe mining friendly Nevada and Utah, represents an attractive “option” on the gold price. One of the advantages of being an exploration rather than mining company over the last few years has been that our resource, held 100% by TMI, is still in the ground and has not been hurt by the need to mine-out the “high-grade” to maintain profitability during the extended period of low gold prices. This pristine resource, which the Company has expanded every year for the last four years through ongoing drill programs that have been reported in updated NI 43-101 technical reports, is shown to be a strong project with positive projected economics at today’s gold price (see PEA dated August 12, 2015).

TMI’s plan is to maintain the Gold Springs gold-silver project as a 100% owned asset with little or no royalty and no liens against it. The belief is that this high quality growing resource in safe and mining friendly Nevada and Utah is a valuable asset whose value will increase if the gold price increases and we continue to expand the resource.

Our geological team, including myself, strongly believes that the Gold Springs Project has the potential to host at least 3-5 million (*) ounces of gold and our plan is to continue to drill out the gold targets with the intent to expand the resource to the point when the project becomes a very attractive investment.

  • (*) The potential quantity of gold is conceptual in nature. It is uncertain if further exploration will result in this quantify of gold being delineated as a mineral resource.  The basis on which this potential quantity of gold has been determined as a target is based on the Company having completed resource drilling on only portions of 2 of 26 areas of outcropping gold mineralization and none of the buried geophysical targets at Gold Springs and have already reported a mineral resource within the two drilled areas.


Grey Eagle plus Jumbo***
ResourceGoldSilverGold Equivalence
Cutoff Au g/tTonnesTroy ozGrade g/tTroy ozGrade g/tTroy oz AuEq*Grade g/t AuEq*
Measured plus Indicated     
Inferred **       

Numbers have been rounded, which may lead to some numbers not adding up exactly.

* Gold equivalent (AuEq) calculations reflect gross metal content using a gold/silver ratio of 57.14 used in the most recent resource estimate (2015 Resource) and to be consistent with that used for the previously reported resource estimate (2014 Resource), and have not been adjusted for metallurgical recoveries.

** The Inferred resource is in addition to the measured and indicated resource

*** The information in the resource table was derived from the Technical Report Preliminary Economic Assessment Update on the Gold Springs Property, Utah/Nevada, USA dated August 12, 2015, authored by GRE and Kurt Katsura.

From 2010 to 2014, we conducted drill programs at Gold Springs which led to larger resource estimates each year. Last year, we again had a successful drill program, the results from which were released a few weeks ago (PR, January 28, 2016). Among those results we included one very high-grade multi-ounce gold intercept. This has sparked renewed interest in the gold bearing veins seen at surface, in drill holes and in underground workings on the property. We have 12 target areas where we have higher-grade-vein material present. These outcropping veins have the potential to add to our existing resource and enhance the economics of our already strong PEA which is based on our present two “open-pit” resource blocks, Grey Eagle in Nevada and Jumbo in Utah. Over the coming months I will be updating you on these vein target areas as well as any developments on our main resource blocks.

In 2012 Bolivia expropriated our very large PEA-stage Malku Khota silver-indium deposit without compensation and struck a major blow to the Company and its shareholders.

The Company’s wholly-owned subsidiary, South American Silver Limited, is pursuing international arbitration against Bolivia to seek fair compensation for the illegal expropriation of the Malku Khota Project. The oral hearing is scheduled for July of this year. The Company is claiming US$385.7 million in compensation for damages.

The Company also continues to retain its Escalones copper-gold porphyry in Chile where it has developed a large resource estimate reported in a NI 43-101 technical report dated July 11, 2014. Costs here have been reduced to a minimum and an 18-month deferment of option payments to acquire Escalones has been negotiated, at no additional cost (PR, December 18, 2015).

To further align corporate and investor interests the management team agreed to cut all management’s salaries by 25% to 40%. We have closed offices and made the remaining more cost efficient, and constantly review other ways to reduce the ongoing administrative costs to ensure that the Company preserves its cash as the gold price recovers.

I believe the Company is now well positioned to take advantage of the improving investment climate for gold while at the same time maintaining low overhead costs.

I thank you for your continuing support.

Ralph Fitch



About TriMetals Mining Inc.

TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A.

The Company’s approach to business combines the team’s track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.

The Company’s common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols “TMI” and “TMI.B” and the common shares and Class B shares also trade on the OTCQX market under the symbol “TMIAF” and “TMIBF”. Additional information related to TriMetals Mining Inc. is available at and on SEDAR at

Qualified Person

The Qualified Person on the Gold Springs property is Randall Moore, Executive Vice President of Exploration – North America of TriMetals Mining Inc. and he has reviewed and approved the content of this press release.

Forward Looking Statements

Certain statements contained herein constitute “forward-looking statements”. Forward looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plan”, “belief”, “will”, “continue”, “intent”, “pursuing”, “seek”, “scheduled”, “target”, “future”, “potential” and similar expressions. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, including possible variations in mineral resources, grade, recovery rates, metal prices, capital and operating costs, and the application of taxes; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters, including water requirements for operations, as plans continue to be refined; regulatory, environmental and other risks of the mining industry more fully described in the Company’s Annual Information Form and continuous disclosure documents, which are available on SEDAR at The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results, including the reliability of exploration results of previous companies; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company’s existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.

Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, TMI assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this press release describe the Company’s expectations as of February 11, 2016.

Class B Shares

The holders of the Class B Shares have contingent rights to receive a pro rata share of 85% of the net cash proceeds, if any (after deducting all costs, tax and expenses and the third party funder’s portion thereof), received pursuant to any award or settlement agreement entered into in respect of South American Silver Limited’s arbitration claim against the Government of Bolivia. The holders of Class B Shares will not realize any value if: (i) no award or settlement agreement is reached; (ii) no cash payment is included in a settlement agreement; or (iii) the costs of obtaining a cash payment on, or enforcement of, an award or settlement agreement exceeds the amount of such cash payment. South American Silver Limited has sole discretion and decision making authority over when and whether to pursue any particular course of action in respect of the arbitration proceedings, including whether to negotiate or enter into a settlement agreement and including whether to accept non-cash consideration pursuant thereto. In addition, the accrual of value on the Class B Shares may be significantly delayed. The international arbitration process can take several years before an award is rendered or settlement reached. Once an award is rendered or settlement is reached, enforcing the award or settlement agreement could take additional several years and the full amount of any award or settlement may not ultimately be received, which would reduce the amount, if any, payable to the holders of Class B Shares. The costs, fees and other expenses incurred in connection with the arbitration, including financing costs and other commitments, would be paid out of the proceeds of any such award thus potentially reducing funds received by South American Silver by as much as one-third of the amount of any award in its favor.


TriMetals Mining Inc. Contact:

Ralph Fitch
President & CEO
Matias Herrero
Chief Financial Officer
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