Strongbow To Acquire Mactung And Cantung Royalties

Strongbow Exploration Inc. (TSX-V: SBW) ("Strongbow" or the "Company") is pleased to announce that it has reached an agreement with Teck Resources Limited ("Teck") to purchase Teck's royalty interest on the Mactung and Cantung projects located in the Yukon and Northwest Territories.

Highlights

• The Mactung Royalty is a 4% Net Smelter Returns Royalty on the Mactung tungsten project, which is located approximately 390km northeast of Whitehorse, Yukon, and approximately 790km west northwest of Yellowknife, NWT. The Mactung project straddles the border between Yukon and NWT. One half of the Mactung Royalty may be purchased by the property owner (to reduce the royalty to 2%) at any time for $2,500,000.
• The Cantung Royalty is a 1% Net Smelter Returns Royalty related to the Cantung tungsten project, which is located in western NWT, approximately 390km east northeast of Whitehorse, Yukon, and approximately 720km west of Yellowknife, NWT.

Subject to the TSX Venture Exchange's approval of the transaction, Strongbow will pay $1,500,000 to Teck on closing of the acquisition, and make a further $1,500,000 payment to Teck on the earlier of a development decision at Mactung or re-commencement of commercial production at Cantung.

Richard Williams, President and CEO of Strongbow states, "We are extremely pleased with this transaction, which represents the first step in our plan to build a strategic metals company, with a focus on high quality assets located in supportive mining jurisdictions."

About Mactung

The most recent historic technical report for the Mactung Project was a feasibility study commissioned by North American Tungsten Corporation Ltd. titled "Amended Technical Report on the Mactung Property", dated April 3, 2009, and amended April 30, 2010, the report was authored by eleven Qualified Persons, with Mr. Honorio Narciso, P. Eng (Wardrop Engineering Inc) as lead QP, and Mr. Peter Lacroix P. Eng (Scott Wilson Roscoe Postle Associates) responsible for the mineral resource estimate.

The historic mineral resource estimate contained in the most recent historic technical report used the Kriging method and a block cut-off grade of 0.5% WO₃, and reported an Indicated Resource of 33Mt grading 0.88% WO₃, plus an Inferred Resource of 11.9Mt grading 0.78% WO₃. The resource estimation procedures are considered appropriate for this type of deposit. Additional drilling is required to advance the resources from Inferred to Indicated and Measured, and a new feasibility study is required to demonstrate the project's economic viability.

Strongbow has not conducted sufficient work to classify the historic mineral resource estimate as a current mineral resource estimate and Strongbow is not treating the historic resource estimate as a current mineral resource estimate.

The deposit is currently owned by the Government of NWT, whose intention is to sell the asset in order for project development to proceed.

About Cantung

Cantung was an operating tungsten mine until 2015, when the owner of the mine, North American Tungsten Corp (NATC), entered CCAA proceedings.

The most recent historic technical report for the Cantung Project was commissioned by North American Tungsten Corporation Ltd when Cantung was still an operating mine. Titled "Technical Report on the Cantung Mine, Northwest Territories, Canada", dated September 19, 2014, the report was authored by Mr Brian Delaney, P. Eng, and Mr. Finley Bakker P. Geo, Mine Manager and Technical Services Superintendent at the Cantung Mine, respectively.

In the historic technical report, historic Probable Mineral Reserves were reported as 1,818,000 tons grading 0.81% WO₃. The historic Probable Mineral Reserves were calculated using a 0.5% WO₃ cut-off grade, and a minimum mining width of 15 feet.

The historic Probable Mineral Reserves were a sub set of the historic Indicated Mineral Resource which reported 3,839,000 tons grading 0.97% WO₃, using the same 0.5% WO₃ cut-off grade. An additional historic Inferred Mineral Resource estimate reported 1,370,000 tons grading 0.8% WO₃ using the same 0.5% WO₃ cut-off grade.

Additional drilling is required to expand the resource prior to a decision to restart mining operations at Cantung.

Strongbow has not conducted sufficient work to classify the historic mineral resource estimate as a current mineral resource estimate and Strongbow is not treating the historic resource estimate as a current mineral resource estimate.

Line of Credit

Osisko Gold Royalties ("Osisko"), a significant shareholder of Strongbow, has agreed to provide Strongbow with a $1,500,000 non-interest bearing line of credit to complete the royalty acquisition. Repayment of the loan is due upon any sale of the Mactung project by the Government of the Northwest Territories and is secured by the Royalties.

Repayment of the loan is by conveyance of the Royalties to Osisko at Osisko's election at any time after the sale of the Mactung project by the Government of the Northwest Territories, or in cash under certain other circumstances.

The line of credit agreement and the completion of the royalty acquisition are both subject to receipt of TSX Venture Exchange approval.

The loan from Osisko will be a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") as a result of Osisko holding 27.3% of the Company's outstanding common shares. Related party transactions require a formal valuation and minority shareholder approval unless exemptions from these requirements are available. Strongbow is relying on the exemption from the formal valuation requirement in section 5.5(b) of MI 61-101 (as a result of its shares being listed on the TSX Venture Exchange) and the exemption from the minority approval requirement in section 5.7(f) of MI 61-101 (as a result of the transaction involving a loan without any equity component).

Qualified Person

Richard Williams, P.Geo. (BC), President & CEO of Strongbow and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.

For additional information please contact Richard Williams at 604 638 8005.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams"
Richard D. Williams, P.Geo

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking statements" including but not limited to statements with respect to Strongbow's plans, the estimation of a mineral resource and the success of exploration activities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, the successful integration of acquisitions; risks related to general economic and market conditions; closing of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations. Although Strongbow has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Strongbow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.