Buchans Resources Limited (the “Company” or “Buchans”), a Canadian mineral exploration and development company, reports its financial results and results of operations for the year ended December 31, 2021.

This news release should be read in conjunction with the Company’s audited financial statements and the associated management’s discussion and analysis (MD&A) for the year ended December 31, 2021 which are available on the Company’s website at www.BuchansResources.com or under the Company’s profile at www.sedar.com.

COMPANY OVERVIEW

Buchans’ flagship project is the historic, high-grade Buchans VMS base metal mining camp in central Newfoundland, Canada. Recognized internationally as one of the world’s richest and highest grade VMS camps, the Company is currently working to advance the project under a Collaboration Agreement with Boliden Mineral AB, a leading European mining and metals producer of zinc, copper, lead, and nickel.

Buchans is also exploring several gold properties in central Newfoundland, including three properties being explored as joint ventures funded largely by joint venture partners.

In keeping with the Company’s strategy of exploring districts and opportunities with demonstrated potential for exceptional mines, Buchans also has interests in several additional projects, including other VMS base metal properties near Buchans, gold properties in central Newfoundland and northern Labrador, and nickel-copper-cobalt properties near Voisey’s Bay in Labrador.

In addition to its project portfolio, Buchans holds equity interests in base metal and silver projects in Mexico through its 22.1% shareholding in Xtierra Inc. (TSXV: “XAG”), and in base metal exploration in Ireland through its 14.4% shareholding in Minco Exploration plc.

Collaboration with Boliden continues

Early in 2021, Buchans entered into a Collaboration Agreement on its Buchans Project with Boliden Mineral AB a wholly-owned subsidiary of Boliden AB (publ). Under this agreement Boliden has been granted rights to evaluate the project for possible future investment and participation. During 2021 Boliden contributed $630,000 towards evaluation programs undertaken by Buchans working collaboratively with Boliden and contributed a further $320,000 to date in 2022.

During 2021, work under the Collaboration Agreement included compilations of past work on the project, reprocessing and modeling of historic geophysical data, relogging of archived drill cores; all of which have supported creation of a digital 3D geological model that the Company and Boliden intend to use to advance exploration for new buried high-grade ore bodies at Buchans. To date, multiple targets have been generated, and the provisional 2022 budget and program includes funding for initial exploration drilling in 2022.

The evaluation period was originally for the year 2021 but has been extended by subsequent amendments (December 21, 2021 and March 21, 2022) as additional time is required to finalize the terms of the agreements and to complete due diligence investigations. In the amendments to the Collaboration Agreement Boliden and Buchans confirmed their intention to enter into an Earn in and Option Agreement under which Boliden will be granted an option to earn an interest in the Project.

The Technical Committee has established a 2022 Budget and Funding Schedule of $2,000,000 for the Buchans Project and Boliden has paid Buchans $320,000 to cover anticipated project expenditures under the approved 2022 Budget and Funding Schedule to the end of April 2022. Amounts paid by Boliden will be credited for the purposes of earning an interest in the Project if the Option Agreement is signed.  Boliden’s agreement to the 2022 Budget and Funding Schedule does not commit Boliden to fund the remainder of the 2022 Budget if the Option Agreement is not signed.

Lundberg Deposit Open Pit Project

Located within the Buchans Project, the Lundberg deposit is the largest and most advanced base metal deposit in the Buchans district and has been the subject of multiple technical evaluations undertaken by the Company to advance the deposit towards open pit mine development. These evaluations have included several campaigns of resource delineation drilling, metallurgical test work and other technical assessments.

Lundberg’s current In-pit resource estimate contains more than 1.25 billion pounds Zinc Equivalent of which 97.8% of the resource occurs in the higher confidence Indicated category. The Lundberg resource comprises Indicated In-
pit resources totalling 16,790,000 tonnes grading 1.53% Zn, 0.64% Pb, 0.42% Cu, 5.69 g/t Ag and 0.07 g/t Au (3.38% Zn Eq), as well as Inferred In-pit resources of 380,000 tonnes grading 2.03% Zn, 1.01% Pb, 0.36% Cu, 22.35 g/t Ag and 0.31 g/t Au (4.46% ZnEq) [Technical Report entitled: “NI 43-101 Technical Report and Mineral Resource Estimate on the Lundberg Deposit, Buchans Area, Newfoundland and Labrador, Canada”, dated April 15, 2019, filed on SEDAR].

Encouraged by recent increases in and positive outlook for metal prices Buchans remains optimistic that Lundberg
represents an important resource asset and intends to continue to advance its assessment of Lundberg as a potential open pit mine development.

Two Level Target (Lundberg Deposit – Supplementary Target)

The Boliden collaboration program is being undertaken as a means of identifying and evaluating additional exploration targets throughout the property that have potential for discovery of new high-grade Buchans orebodies. To date, the program has identified multiple target areas including the Two-Level (Lucky Strike) mine area, located immediately north of the Lundberg deposit, where the Company believes potential exists to discover additional high-grade resources down plunge of previous exploration drilling that might supplement an open pit mine development at Lundberg as either additional in -pit or underground resources down plunge of previous exploration drilling that might supplement an open pit mine development at Lundberg as either additional in-pit or underground resources.

The Two Level target area was last drilled in 2018 and returned drilled intercepts of 1.8 m of high-grade mineralization assaying 9.48% combined base metals (Zn+Pb+Cu) as 5.57% Zn, 3.15% Pb, 0.76% Cu, 90.5 g/t Ag & 0.37 g/t Au, including 1.0 m assaying 14.83% combined base metals as 8.70% Zn, 4.87% Pb, 1.26% Cu, 133.2 g/t Ag & 0.47 g/t Au (Buchans news release dated November 19, 2018).

Buchans believes the Two-Level target area remains underexplored for additional fault-displaced orebodies in this area where historic drilling from surface tended to be drilled either too shallow or at too wide a spacing to adequately test this concept. The Two-Level area holds potential for discovery of additional high-grade ore that may complement the open pit development of the Lundberg deposit, or perhaps extend down plunge into areas capable of hosting additional high-grade resources that may be developed as new underground mines.

Buchans has plans to undertake further exploration and pre-development activities to advance its Lundberg deposit as a potential open pit mining and milling operation. Among activities being considered for Lundberg in 2022 is diamond drilling to explore for additional high-grade resources adjacent to Lundberg that may complement Lundberg’s development as an enlarged open pit or combined open pit -underground mining project. The timing and scope of future programs at Lundberg and the Two Level area are in part subject to the outcomes of the Company’s Collaboration Agreement with Boliden.

Gold Exploration in Newfoundland

Buchans also controls several gold and as well as nickel-copper-cobalt (Ni-Cu-Co) properties in Newfoundland and Labrador. Among these are several gold projects located in the central Newfoundland gold belt, an emerging district
that continues to yield both advanced staged discoveries such as Marathon Gold’s (MOZ.TSX) Valentine Lake gold project, and high-profile, early-stage discoveries being explored by New Found Gold (NFG.TSX.V) at its Queensway Gold Project.

During 2021, Buchans entered into joint venture (“JV”) agreements on three of its central Newfoundland gold projects. Exploration on these properties is primarily being funded by Buchans’ JV partners who are earning or maintaining interests on Buchans properties. These JVs include the 11,050 ha Long Range JV with Benton Resources
Inc. (BEX.TSX.V; “Benton”), the 5,425 ha Tulks South JV with Quadro Resources Ltd. (QRO.TSX.V; “Quadro”), and the 9,100 ha Lake Douglas-South Tally JV with C2C Gold Corp. (CTOC.CSX; “C2C”). Buchans retains rights to maintain participating interests ranging between 49% and 51% on these gold JV properties as well as certain underlying royalty rights. In addition, Buchans retains preferred base metal rights on the Tulks South and Lake Douglas-South Tally joint ventures that grant Buchans rights to retain a 70% interest and operatorship, should a base metal deposit(s) be discovered on these properties.

While specific results have not yet been provided to Buchans, the Company has been informally advised by both C2C Gold Corp. and Quadro Resources Ltd., that these companies have met their expenditure commitments for 2021 under their respective joint venture agreements and that both partners intend to undertake additional exploration programs on their respective Lake Douglas-South Tally and Tulks South joint venture properties in 2022.

Benton Resources, operator of the 2021 exploration program on the Long Range joint venture, has also advised Buchans that results of the 2021 program are still being evaluated and that they intend to discuss recommendations for a 2022 program on the Long Range joint venture project in the near future.

FINANCIAL RESULTS

For the year ended December 31, 2021, the Company recorded a loss of $1,409,121. The loss included a non-cash expense in the amount of $1,170,013 representing the Company’s proportionate share of prior period losses of Associate Xtierra Inc, a non-cash expense of $199,817 in the fair value of 2021 Xtierra warrants between the date of issue of April 27, 2021 and December 31, 2021, a non-cash expense of $103,847 in the fair value of the 2020 Xtierra warrants, and non-cash income of $273,648 representing the fair value of the 2021 Xtierra warrants received.

At December 31, 2021, Buchans held $1,070,738 (December 31, 2020- $780,219) in cash and cash equivalents and had a working capital surplus of $1,118,934, compared to a working capital surplus of $1,463,756 at December 31, 2020.

Qualified Person:

Paul Moore, M.Sc., P.Geo., (NL), Buchans Resources’ Vice President of Exploration, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release and has reviewed the technical contents for accuracy.