Bunker receives permit for Bunker Hill mine

Jun 21, 2018

2018-06-21 09:15 ET – Shareholders Letter

Mr. Bruce Reid reports

LETTER FROM THE CEO: BUNKER HILL GEARS UP FOR SIGNIFICANT DEVELOPMENT

Bunker Hill Mining Corp. has issued a letter to investors from president and chief executive officer, Bruce Reid, to update investors on recent developments and future plans.

Dear investor,

I would like to take this opportunity to provide you with an update on recent developments at the Bunker Hill mine, and on our exciting plans going forward.

Fully Permitted: Patented Ground and signed EPA Agreement

The Company is now fully permitted to proceed with mining operations at the Bunker Hill mine. The entirety of the Bunker Hill Mine land package lies on patented ground, which allows for underground mining activity, provided emissions permitting is obtained. The agreement reached with the EPA (see press release dated March 7, 2018) essentially provides the Company with the only emissions permit required – a water discharge permit which allows for the EPA to continue managing the processing of the mine effluent from the Bunker Hill Mine, for at least 5 years, with an opportunity to continue this arrangement thereafter. This agreement was met with significant support from municipal and county level governments.

Technical Report: TSX listing, Continuity and Grade demonstration

The Company has initiated a NI 43-101 technical report on the Bunker Hill property, and this report is expected to be released in Q3 2018. Bunker Hill hopes to use this report to apply for a listing on the TSX. As part of the exercise, data from approximately 1,000 historic diamond drill holes will be input into a wire frame software package, which will generate suitably constrained solids that may demonstrate 3D continuity and economically interesting grades. This information may be included in the report. These holes are part of over 3,400 holes historically drilled on the property, for which the Company has the drill logs. Many high grade intercepts from these holes have never been followed up on, and these represent significant exploration targets for future exploration programs.

Development Plans {A } Internal Mine Plan

Bunker Hill has spent considerable time and resources outlining an internal mine plan. As part of this exercise, an estimate of mineable material, including tons and grade, which is based on non NI 43-101 compliant historical reserves and resources, provided a basis around which a conceptual mine was designed. Subsequently, an external consultant (SRK Consulting (Canada) Inc.’s underground mine team based in Sudbury, Ontario) was used to review the Company’s analysis. The resultant mine plan indicates good economic returns at current commodity prices. Bunker Hill has built a very experienced mine operations team at the mine site, with most individuals possessing decades of local experience. This team includes a mining engineer, chief mine geologist, mine superintendent, logistics manager, and mine maintenance manager. The design parameters and costs utilized in the mine plan therefore reflect very specific locally relevant knowledge of mining operations brought by the Bunker Hill mine design team, in addition to SRK’s broad industry perspective and underground mining experience. The main capital cost components of the mine plan include rehabilitation/repair of underground access (Kellogg and Russell tunnels, number 1 and 2 hoists), additional underground development (inter-level ramps, etc.), civil engineering/construction (surface buildings, roads), and process plant and tailings facility construction. The total cost of these items, pre-production, are estimated at approximately US$75M.

Processing Plant: Proven Metallurgy

90 years of processing history has provided an extensive metallurgical database, which shows that excellent recoveries and good concentrates can be produced from a simple flowsheet. Recoveries averaged 93% for zinc, and 92% for lead. Concentrates were of high grade (56% zinc, 64% lead) and were clean with no deleterious elements. These results were obtained with over 50-year-old technology, as the plant was last upgraded in the 1940’s (producing up to the 1980’s). The Company will tender for an engineering study (bulk sample, metallurgical testing, flowsheet design, feasibility study, engineering design, EPC contract) to be completed for an on-site 1,500 tpd modular processing facility, which would allow for a potential future doubling of throughput rate. This tender process is expected to conclude during H2 2018.

Financing Activities: Ongoing discussions

The Company has been very active in searching out and engaging potential financing partners for funding the re-start of the Bunker Hill mine. These include both financial groups, and mining companies. Bunker Hill is currently in discussions with sophisticated potential investors with deep knowledge of mining risk and an understanding of the significant value that the Bunker Hill mine represents. The key value drivers include:

Fully permitted
Extensively developed
Good metallurgy proven by 90 years of past production
Exploration potential of an underexplored intensely mineralized system
Infrastructure rich, low cost (power rates of $0.045-0.05/kWh), first world setting.

The Bunker Hill management team has worked tirelessly over the last year to advance and de-risk the Bunker Hill mine on many different levels. In 2018 we completed an agreement with the EPA, completed an internal mine plan, initiated a NI 43-101 property report as a pre-condition to TSX listing, started planning for a process plant technical study, and worked endlessly on arranging financing for the pre-production costs of a Bunker Hill mine re-start. We are pleased to have this opportunity to update you on all these activities to-date and look forward to providing you with further news as we continue to advance the project. Thank you for your patience and support.

We invite you to contact us anytime with questions and thank you for your support. Our key initiatives will provide ample catalysts in the market and we plan to move forward quickly.

Regards,

Bruce Reid

President and CEO, Bunker Hill Mining Corp.

About Bunker Hill Mining Corp.

Bunker Hill Mining Corp. has an option to acquire 100% of the Bunker Hill Mine. The Bunker Hill Mine was the largest producing mine in the Coeur D’Alene zinc, lead and silver mining district in northern Idaho. Historically, the mine produced over 35M tons of ore grading on average 8.76% lead, 3.67% zinc, and 155 g/t silver (Bunker Hill Mines Annual Report 1980).

Qualified Person

The technical information in this press release has been reviewed and approved by Peter Karelse P.Geo., a consultant to the Company, who is a Qualified Person as defined by NI 43-101. Mr. Karelse has more than 30 years of experience in exploration and development.

We seek Safe Harbor.

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