October Operations Update

Rizal Resources Corporation

(TSXV:RZL) (“Rizal” or the “Company”)

During October, Rizal continued to advance the T’boli project with gold sales more than doubling September sales at 361oz for the month.  The project was very close to breaking even, with a result of CAD 36k loss for the month, a significant improvement on the September quarter.

Results from the mine were very encouraging with the average grade increasing to 4g/t for the month.  Mine development continued to advance on several levels, the south Access, 525 and 505. The main objective over the next few months is to achieve a cashflow positive position.

Operational highlights for October 2017

• Gold production for October totalled 765oz, Bullion sold totalled 361oz for total revenue of CAD 559k (PHP 23.1m) more than double September sales, and Gold in Circuit (GIC) totalled 404oz.  
• The project achieved an operating loss of CAD 36k (PHP 1.4m) versus a loss in September CAD 115k (PHP 4.7m). 
• Gross revenue increased by 56% from September  
• Operating costs rose by 61%, mainly due to the move to owner mining.

• Total capex for October was CAD 438k (PHP 18.2m) of which Mine capex was 97%

• Total of 116 meters of horizontal advance was achieved in October, 63 metres capital drive and 52 metres of development drive - a significant improvement on development metres during September.

• Mill availability was 98%, less than planned mill feed resulted in utilisation of only 62%.

• Mill throughput was 3760 tonnes, a marginal increase over September’s 3,561 tonnes.

Operations Financial Summary

Summary		September	October	Variance %
Gold in Circuit	oz	212	404	91	%
Gold Produced	oz	172	361	110	%
Silver Produced	oz	341	489	43	%
Total Gold	oz	383	765	100	%
Total Silver	oz	341	411	21	%
Gold Revenue	CAD	261,430	552,269	111	%
Silver Revenue	CAD	5,624	6,781	21	%
TOTAL REVENUE	CAD	267,054	559,050	109	%
Mining Costs	CAD	63,973	172,828	170	%
Milling Costs	CAD	271,291	368,155	36	%
TOTAL OPERATING COSTS	CAD	335,264	540,982	61	%
General & Admin Cost	CAD	38,368	52,557	37	%
Social Dev and Environment	CAD	7,924	1,452	-82	%
TOTAL COSTS	CAD	381,555	594,991	56	%
OPERATING PROFIT/LOSS	CAD	-114,501	-35,941	69	%
Capital Expenditure
Mill Capex	CAD	0	10,378	N/A
Mine Capex	CAD	380,225	426,842	12	%
Admin Capex	CAD	0	1,180	N/A
Total Capital	CAD	380,225	438,400	15	%

Processing Facility

Processing		September		October		Variance %
Tonnes Milled	t	3,561		3,760		6	%
Grade Au	g/t	3.52		4.04		15	%
Recovery Au	%	95.2	%	94.1	%	-1	%
Gold in Circuit	oz	212		404		91	%
Gold Produced	oz	172		361		110	%
Silver Produced	oz	341		411		21	%
Total Gold	oz	383		765		100	%

Mining Operation

Mining		September	October	Variance %
Decline advance	m	55.80	63.50	14	%
Development advance	m	12.00	52.50	338	%
Stoping	t	336	232	-31	%
ROM Stockpile	t	3,201	2,297	-28	%
Tonnes Sent to Mill	t	3,986	2,589	-35	%

Mr Dirk Richards, BSc (Met/Chem), MAusIMM (CP Met), RPEQ, MRACI is nominated as a "Qualified Person" as such term defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43- 101"), has reviewed and verified the validity of the scientific and technical disclosure in this news release.

Peter Main President and [e-mail]

For further information  please visit  our   website at www.rizalresources.com, email us at [e-mail]: 778-370-1372 Fax: [phone]

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