Kerr Mines Inc. ("Kerr" or the "Company") (TSX: KER, OTC: KERMF, FRA: 7AZ1) is pleased to announce that it has commenced with the underground exploration and development drilling campaign for the 2017 Copperstone Mine pre-feasibility study and exploration program. Approximately 4,600 meters (15,000 feet) of drilling is allocated to the first phase with the goals of increasing the confidence levels and ounces of the existing resource in the Copperstone Zone, and further defining the parallel Footwall Zone.

The Copperstone Zone produced over 500,000 ounces of gold between 1987 and 1993 when the pit reached economic limits at the time and when gold prices averaged under $400/troy ounce. The down-dip extension of the Copperstone Zone, located primarily east of and below the bottom of the open pit, has a mineral resource of 313,000 ounces at 0.302 ounce per ton (measured + indicated), estimated in 2010*. The first phase of the underground drilling program will test targets along approximately 520 meters (1,700 feet) of this resource which has a total strike length of 1,250 meters (4,100 feet).

First phase targets in the Copperstone Zone total 4,600 meters (15,000 feet) of drilling and are designed to enhance the existing resource and add more ounces. The exploration drilling strategy includes testing the down dip extensions of the resource and untested areas within the resource, along strike. Many untested areas will be made accessible by the new 365 meter (1,200 feet) exploration drift. The new underground drift will be accessed from existing underground workings and will extend the overall extents of mine access by approximately 365 meters (1,200 feet) to the South East, along the strike of the Copperstone Zone. This access is placed in between the Copperstone Zone and the parallel Footwall Zone, giving simultaneous exploration drilling access to both zones. The drift is also strategically placed to provide access to the Copperstone Zone for potential future mining purposes.

"The underground portion of the 2017 Copperstone exploration program allows for fast access to drilling targets in the Copperstone Zone. We are very excited to commence the first phase of this program. This underground program, combined with the previously announced surface program, is the cornerstone for the forthcoming pre-feasibility study and is a key component to the strategy of advancing the Copperstone Mine project towards a production decision, " said Martin Kostuik, President Kerr Mines.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Michael R. Smith, Registered Geologist., a "Qualified Person" as defined by NI 43-101 for this project.

*Mineral Resource Tabulation - Model capped at 5.0 oz Au/t with a 0.15 oz Au/t cutoff grade, 1,038,000 tons (measured + indicated) - NI 43-101 Technical Feasibility Report, Copperstone Project, February 2, 2010. Limited mining of this resource occurred in the period between Q4 2012 and Q3 2013 and will be tabulated when a new resource is estimated in early 2018.

About Kerr Mines Inc. Kerr Mines is a North American gold development and exploration company currently advancing the 100% owned, fully permitted past-producing Copperstone Mine project. Copperstone is a high-grade gold project located along the Walker Lane mineral belt in mining-friendly Arizona. The project demonstrates significant upside exploration potential within a 3,600 hectare (12,000 acre) land package that includes a production history of over 500,000 ounces of gold. The Company's current focus is on maximizing Copperstone's potential by defining and expanding current resources and strengthening the mine's economics leading to a production decision.

Cautionary Note Regarding Forward Looking Statements

This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about K err Mines' business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release and no stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

SOURCE Kerr Mines Inc.

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