Lakewood, Colorado / TheNewswire / January 19, 2017Taranis Resources Inc.
(“Taranis”) [TSX.V:
TRO] is pleased to provide an update on exploration
related to its Thor project in southeast British Columbia. Being able
to develop a solid exploration model serves as a roadmap to future
exploration around the Thor deposit, and is one of the ways Taranis can
add value to the existing Resource.

Taranis has given highest priority to understanding an aerially
extensive rock unit called the ‘Green Tuff’ that forms a
volcanic-sedimentary dome complex (“VDC”) at Thor. The VDC shows a close
spatial relationship to precious and base metal mineralization, and is
believed to be the hydrothermal center responsible for the deposition of
the Thor Ag-Au-Pb-Zn-Cu deposit.

Potassium-Argon Age Dating

Initial potassium-argon age dating of the VDC rocks at Thor has been
completed. Two age dates from drill holes (Thor-158 and Thor-179) fell
within the Upper Mississippian / Lower Pennsylvanian age and another
sample from the Broadview area yielded a Middle Silurian age. The
Broadview Formation that hosts the Thor deposit has no fossils, but is
widely acknowledged to be “Lower Paleozoic” in age.

These findings are consistent with the concept that Thor is a Lower
Paleozoic (Ordovician/Cambrian?) sediment-dominated VMS deposit that
underwent intense structural deformation in the Upper Paleozoic (320
mya). During this time, the intense pressure partially reset the
radiometric clock, and some of the gold may have been remobilized from
the main sulphide deposit into high-grade gold deposits such as SIF. If
this interpretation is correct, then high-grade gold portions of the
deposit are associated with Mississippian-age cross-cutting faults as
documented in the SIF Zone.

Borehole and Surface Magnetic Modeling

The surface and borehole magnetic data was subjected to geophysical
inversion modeling to provide additional information pertaining to the
source of the large magnetic anomaly found at surface. In addition, the
borehole deviation surveys were reprocessed and three component magnetic
data was extracted for each of the holes that was then examined in
conjunction with the inverted ground magnetic data and the drill hole
geology. More information can be found on Taranis’s website at
www.taranisresources.com

The surface and boreholes magnetics show many positive magnetic
anomalies that are related to the Green Tuff unit at Thor. The Green
Tuff unit forms a large positive magnetic anomaly in the center of the
property that flanks the east side of the Ag-Au-Pb-Zn-Cu deposit. The
potential importance of this anomaly was understood early in the
exploration history, but the target was not adequately explored owing to
the priority of drilling-out the near surface Thor deposit and
completing the 2013 Resource estimate at Thor.

Two drill holes yielded important information about this positive
magnetic anomaly. Drill Hole Thor-74 completed in 2008 tested the
anomaly and was drilled to a depth of 346 m (1,466 m ASL). This hole
intersected Green Tuff for the full 346 m and did not penetrate the
lower contact of the formation, although magnetic modeling indicates it
came very close. This drill hole shows that there is a magnetic body
located further downdip (east) of the end of the hole that remains
untested and could represent the down-dip extension of the Thor deposit.

Drill hole Thor-121 was completed 240 m southwest of Thor-74 and this is
the only known drill hole that penetrated into the formation below the
VDC at a depth of 215 m (1,480 m ASL). The contact at the base of the
VDC hosts extensive chlorite and sericite alteration that suggests that
the lower contact of the VDC is highly prospective for a VMS deposit
that could be the source of the known Thor deposit. Similar to Thor-74,
Thor-121 also shows a large magnetic anomaly located further down-dip
(east) of the drill hole that is potentially an undiscovered sulphide
body.

Drill Hole Geology Review

The drill hole geology at Thor was simplified into several major rock
types that were then colour coded in the 3D model with the inverted
magnetics and 3 component borehole magnetics. The major rock units
include the volcanic/tuffaceous rocks, argillite, carbonaceous
argillites and the mineralized zones themselves. This simplification of
the geology shows that the carbonaceous alteration in the sedimentary
rocks at Thor occurs as an envelope around the VDC. This is consistent
with thermal alteration around a VMS deposit. It may also explain the
lack of any fossils in the sedimentary rocks as they have been destroyed
by thermal alteration.

Conclusions

John Gardiner, President and CEO adds “In addition to the short-term
exploration goals at Thor and expanding the near-surface resource, we
continue to examine the extensive data to identify targets outside of
the existing deposit. The hydrothermal system that formed Thor is very
large (over 2,000 m long and at least 350 m thick), and is capable of
supporting additional deposits to what is currently known. One of the
revelations to come out of this study is that the entire Thor deposit
may be the west side of a much larger deposit buried 300-400 m below
surface at the base of the VDC. In addition to the core drilling and
geophysical evidence, there are also structural footprints that
corroborate this interpretation and we are excited to drill this concept
in the near future.”

Qualified Persons

John Gardiner (P.Geol.) and Jim Helgeson (P.Geo.) are the Qualified
Persons on the Thor Project, and supervised the preparation and
scientific and technical disclosure in this News Release.

About Taranis Resources Inc.

Taranis is an exploration company focused on the development of its
100%-owned Thor project in southeast British Columbia. The company’s
mandate is to recognize mineral deposits early in the exploration cycle
that can be developed through intelligent exploration and business
alliances. For additional information on Taranis or its Thor project,
please visit our website at www.taranisresources.com.

Taranis currently has 54,451,716 shares issued and outstanding (62,151,716 shares on a fully-diluted basis).

TARANIS RESOURCES INC.

Per: John J. Gardiner (P. Geol.),

President and CEO

For further information contact:

John J. Gardiner

14247 West Iliff Avenue
Lakewood, Colorado

Phone: (303) 716-5922

Cell: (720) 209-3049

[email protected]

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This News Release may contain forward
looking statements based on assumptions and judgments of management
regarding future events or results that may prove to be inaccurate as a
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materially from expected results.

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