DGAP-News

Gossan Announces Exclusive Supply Agreement for Dolomite

DGAP-News: Gossan Resources Limited / Key word(s): Miscellaneous
Gossan Announces Exclusive Supply Agreement for Dolomite

16.11.2016 / 18:59
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Winnipeg, Manitoba--(Newsfile Corp. - November 16, 2016) - Gossan Resources
Limited (TSXV: GSS) (FSE: GSR) has entered into an Exclusive Supply
Agreement with Sediment Research & Minerals Ltd. ('SRML') for the provision
of high-purity dolomite. SRML has identified several markets for dolomite
and also has access to a process with the potential to extract magnesium
oxide from dolomite in a green-friendly manner.

SRML intends to utilize its proprietary processes to develop a set of
high-value by-products, to be trade named SRMLstone, SRMLcrush and
SRMLslab. Markets for these innovative specialty products include
agriculture, aquaculture, human & animal healthcare, mineral development &
tailings remediation and wallboard construction.

Under the terms of the exclusive supply agreement, Gossan will receive a
production royalty on all dolomite quarried and sold of $1.00 per tonne for
products with a price of less than $70 per tonne and a royalty of 2% for
products with a price of $70 per tonne or greater. Gossan will also retain
an equity interest in the project.

The Inwood Magnesium Dolomite Property is located in south-central
Manitoba, 80-km north of Winnipeg. The Property covers 1,584 hectares
(3,914 acres) holding near or at surface beds of high-purity dolomite that
are above the water table. The Inwood Property hosts a very-large,
high-quality deposit with the NI 43-101 Report (Watts, Griffis, McOuat -
September 8, 2008) estimating the Fisher Branch resource as follows:

Formation and zone Resource Tonnage Grade Grade
Classification MgO (wt%) CaO (wt%)
Fisher Branch Measured 28,819,000 21.15% 30.91%
Fisher Branch Indicated 5,057,000 21.40% 30.66%
Fisher Branch Inferred 131,236,000 21.64% 30.51%

Hamid Mumin, P.Geo., a Gossan Director is the Company's Qualified Person
and he has reviewed and approved the technical contents of this news
release.

Sediment Research & Minerals Ltd (SRML) is a Manitoba-based 'green'
company. During the past 8 years of extensive trials, it has developed an
environmentally sensitive mineral development system with the
patent-pending name 'TSP - The SRML Process'. SRML is a privately-owned
innovator applying 'green mining methods' to the recovery of metals from
tailings and to the development of new mineral resources.

Gossan Resources Limited is engaged in mineral exploration and development
in Manitoba and northwestern Ontario. It has a well-diversified portfolio
of properties hosting gold, platinum group and base metals, as well as the
specialty and minor metals, vanadium, titanium, tantalum, lithium and
chromium. The Company also has a large deposit of high-purity,
magnesium-rich dolomite and various financial interests in a frac sand
deposit. Gossan recently acquired a new property in the zinc-rich
polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario, where
it recently completed a geochemical survey. The company trades on the TSX
Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and currently has
33,170,400 common shares outstanding.

Neither 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 news release.

For further information, please bookmark www.gossan.ca or contact:

Douglas Reeson, Chairman & CEO
Gossan Resources Limited
Tel: [phone]
E-Mail: [e-mail] [email: [e-mail]]

([e-mail])Kathy Ringland, Office Manager
Tel : [phone]


Click on, or paste the following link into your web browser, to view
the associated documents

http://www.newsfilecorp.com/release/23581

News Source: Newsfile


---------------------------------------------------------------------------

16.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de

---------------------------------------------------------------------------

Language: English
Company: Gossan Resources Limited


Canada
ISIN: CA3834151068


End of News DGAP News Service
---------------------------------------------------------------------------

521655 16.11.2016