Bluestone Resources Inc. announced the results of the Feasibility Study for the Cerro Blanco Gold Project. The Study demonstrates a robust, rapid pay-back, high-grade operation at a first quartile all-in sustaining cost. The Feasibility Study was prepared in accordance with National Instrument 43-101 ("NI 43-101") standards.

Unless otherwise indicated, all dollar amounts are stated in U.S dollars. The base case was completed at a gold price of $1,600/oz and a silver price of $20/oz. Life of mine production of approximately 2.6 million ounces of gold and 10.6 million ounces of silver over an initial 14-year mine life.

Peak production of 347,000 ounces and average annual production of 241,000 ounces gold over the first ten years of operation. Average life of mine AISC of $629/oz (net of credits). Average annual free cash flow of $228 million per year during the first 10 years and life of mine total free cash flow of $2.350 billion.

Net present value of $1.047 billion after-tax. After-tax internal rate of return of 30%. Initial capital of $572 million with an after-tax payback period of 2.2 years.

Proven & Probable Reserves of 2.8 million ounces of gold and 12.6 million ounces of silver (53.9 million tonnes at 1.6 g/t Au and 7.3 g/t Ag). At spot gold and silver prices ($1,897/oz & $23.94/oz), the NPV5% increases to $1.563 billion and the IRR to 40% with a payback of 1.7 years. Bluestone engaged a consortium of independent consultants, led by G Mining Services, a specialized mining consultancy firm that provides a wide range of services to mining projects from greenfield to operating mines.

The Feasibility Study was supported by additional leading consultants with expertise in various fields, including Kirkham Geosystems Ltd., NewFields, ERM, and Stantec Inc. The Feasibility Study evaluates recovery of gold and silver from an open pit operation and a 4.0 Mtpa conventional process plant that will include crushing, grinding, and agitated leaching followed by a carbon-in-pulp recovery process to produce doré bars. Cerro Blanco is a classic hot springs-related low-sulphidation epithermal gold-silver deposit comprising high-grade vein and low-grade disseminated mineralization. The high-grade mineralization is hosted mainly in Mita sedimentary and volcanic rocks as two upward-flaring vein swarms (North and South Zones) that converge downwards into basal feeder veins where drilling has demonstrated significant widths of high-grade mineralization, e.g., 15.5 meters 21.4 g/t Au and 52.0 g/t Ag (hole CB20-420).

Bonanza gold grades are associated with ginguro banding (quartz and silver sulphides) and carbonate replacement textures. Sulphide contents are low, typically <3% by volume. Low-grade disseminated and veinlet mineralization in wall rocks around the high-grade veins is well documented in drilling since discovery of the deposit, with grades typically ranging from 0.3 to 3.0 g/t Au.

The Mita rocks are overlain by the Salinas unit, a sub-horizontal sequence of volcanogenic sediments and sinter horizons approximately 100 meters thick that form the low-lying hill at the Project. The overlying Salinas cap rocks are host to low-grade disseminated mineralization associated with silicified conglomerates and rhyolite intrusion breccias. In profile, the inverted wedge-shape of the high-grade veins (upward flaring arrays) and their low-grade halos overlain by mineralized Salinas cap rocks to surface render the deposit amenable to exploitation by surface mining methods with a low strip ratio.

The mineral resource has a footprint of 800 x 400 meters between elevations of 525 meters and 200 meters above sea level. The mineral resource estimate is the result of 141,969 meters of drilling by Bluestone and previous operators (1,256 drill holes and channel samples by Bluestone) with the majority of meters drilled after the completion of the current EIA. The 3.4 kilometers of underground adits that were developed by previous owners allowed underground mapping, channel sampling, and over 30,000 meters of underground drilling that was critical to Bluestone's current understanding and validation of the Cerro Blanco geological model.

The mineral resource estimate is based on a scenario that considers open pit mining methods and therefore required improved geological models of the lithologic units. These broad mineralized lithologies are host to the high-grade veins that have been the focus of the potential underground mining scenario. The resulting domain models and estimation strategy was designed to accurately represent the grade distribution.

The mineral resource estimate for Cerro Blanco was prepared to industry standards and best practices by Garth Kirkham, P.Geo., an Independent Qualified Person for the purposes of NI 43-101. The mineral resource was estimated using commercial mine modelling and geostatistical software.