TORONTO, ONTARIO--(Marketwired - Jul 12, 2016) - Probe Metals Inc. (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that it has entered into an arm's length agreement with Vaaldiam Mining Inc ("Vaaldiam"), wholly owned subsidiary of Orion Resources Partners LP, to buy back a 20% net proceeds of production royalty (the "Royalty") covering certain mineral claims at the Company's Val d'Or East Project. The Royalty also covers the current mineral resources contained within the project's boundaries. Under the terms of the agreement, Probe will issue 500,000 common shares in consideration for the Royalty.

Pursuant to an agreement dated August 17, 1992 (the "Royalty Agreement") between New Pascalis Mines Limited (now known as Vaaldiam) and Cambior Inc., Vaaldiam was entitled to a 20% net proceeds of production royalty in the mineral properties subject to the Royalty Agreement. Pursuant to an agreement dated March 17, 2008, between IAMGOLD-Quebec Management Inc. (formerly Cambior Inc.) ("IAMGOLD") and Adventure Gold Inc. ("Adventure Gold"), a wholly owned subsidiary of Probe, Adventure Gold acquired the Properties and assumed all of the obligations of IAMGOLD under the Royalty Agreement.

The transaction is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

About the Val d'Or East Project

The Company owns a 100% interest in its Val-d'Or East Project containing the past-producing L.C. Beliveau Mine. The project encompasses more than 90 square kilometres of highly prospective ground and is located less than 25 kilometres along main roads from the city of Val-d'Or. The property currently hosts a NI 43-101 inferred resources of 770,000 ounces at 2.6 g/t gold calculated at a 1.0 g/t cut-off above 350 metres depth and 1.5 g/t cut-off below 350 metres depth. Drilling results to-date have demonstrated significant widths of gold (Au) mineralization ranging from 60 metres to 300 metres and typically averaging between 1.0 g/t Au and 3.0 g/t Au. Mineralized intervals also contain thick sections of high-grade gold, including impressive intercepts of 10.4 g/t Au over 10 metres, 4.8 g/t Au over 33.1 metres and 5.4 g/t Au over 20 metres.

In 2015, channel sampling to the west of the past-producing L.C. Beliveau Mine confirmed the extension of gold mineralized system at surface, returning impressive sections of high-grade gold, including:

19.7 m of 6.4 g/t Au

25.7 m of 4.6 g/t Au

13.9 m of 7.6 g/t Au

18.5 m of 3.2 g/t Au

Exploration permitting is in progress at the Val-d'Or East Project and the 2016 summer and fall program will include drilling, ground and airborne geophysical surveys and mechanical stripping in order to confirm and expand the current mineral resource and also test for new gold-mineralized structures.

The Val-d'Or East Project hosts the past-producing L.C. Beliveau Mine, which was operated by Cambior from 1989-1993. A total of 1.8 million tonnes of ore at a grade of 3.2 g/t Au were mined and milled, producing 171,725 ounces with overall metallurgical recoveries of 93%.

Jules Riopel, P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Metals Inc., visit our website at www.probemetals.com.