StoneCap - High Grade Hits Extend Mineralization 500 m To The SE

Probe Mines Limited (Probe) released assay results for an additional 19 drill holes from its flagship Borden Gold Project in Ontario.

Highlights include:

• Two holes were drilled on section 1700 m SE (500 m step-out holes) to test the higher-grade zone at the Borden Gold project. Drill hole BL13-378 intersected 44 m (starting 348 m down-hole) grading 2.9 g/t gold and including 12.9 m grading 7.4 g/t gold. The second drill hole, BL13-384, intersected 10.2 m (starting 392 m down-hole) grading 12.5 g/t gold. These results significantly expand the size of the high-grade zone.

• To test mineralization towards the NW end of the deposit, two holes were drilled on section 1100 m NW (300 m step-out holes). The results show near-surface mineralization continuing towards the NW with drill hole BL13-383 intersecting 20 m grading 2.0 g/t gold, starting 85 m down-hole.

• Infill drilling of the high-grade zone continued to show impressive intercepts with drill hole BL13-375 (section 1200 m SE) returning 24.8 m grading 11.9 g/t gold (starting 340 m down-hole), including 1.1 m grading 127 g/t gold. Drill hole BL13-374 intersected 49 m (starting 265 m down-hole) grading 2.3 g/t gold, including 15 m grading 5.7 g/t. Other drill results from the infill program were in line with previous

drilling.

Valuation

We have updated our model with the latest financials and our adjusted net asset valuation for Probe is based on our DCF analysis of Borden Lake with a 0.45x multiple to get to our rounded target price of $3.75 per share.

Conclusion

With significant step-outs ending in mineralization and a growing high-grade zone towards the SE, we continue to believe the resource growth will continue from further exploration.

We reiterate our Outperform rating and $3.75 price target.