ExGen Resources Inc. provided an update in respect of Phoenix Copper Ltd.'s exploration and development activities at the Empire Mine Project in Custer County, Idaho, USA. ExGen owns 20% and Phoenix owns 80% of Konnex Resources Inc., which holds the leases and claims to the Empire Mine Project. ExGen further owns 1,330,000 common shares of Phoenix.

A total of 1,077 meters ('m') of a planned 1,500 m metallurgical core drilling program were completed during 2022 to provide samples and technical information for further metallurgical testing, geotechnical studies, and geological modeling. Significant drill results from holes KXD22-04 to KDX22-07 are presented on Table 1 and include the following highlights: Hole KXD22-04: 11.00 m of 1.59% copper, 45.60 grammes /tonne ('g/t') silver, and 0.37% zinc starting at the surface; Including 5.20 m of 2.00% copper and 56.30 g/t silver from the surface; And including 1.20 m of 5.19% copper, 149.00 g/t silver, and 1.61% zinc from 9.80 m; And 0.60 m of 2.55% copper and 58.80 g/t silver from 12.80 m; And 2.70 m of 0.597 g/t gold and 13.60 g/t silver from 80.30 m, Hole KXD22-05: 17.70 m of 0.59% copper, 20.10 g/t silver, and 0.39% zinc starting at a depth of 22.60 m; Including 1.20 m of 7.43 g/t gold and 10.50 g/t silver from 29.30 m; And including 3.40 m of 1.98% copper, 0.32 g/t gold, 60.30 g/t silver, and 0.90% zinc from 35.40 m, Hole KXD22-06: 56.70 meters (‘m') of 0.54% copper, 19.90 grammes /tonne (‘g/t') silver, and 0.73% zinc starting at the surface; including 17.10 m of 1.11% copper and 22.90 g/t silver from the surface; and including 5.90 m of 1.38% copper and 23.40 g/t silver from 6.60 m; and including 3.20 m of 0.49 g/t gold from 15.50 m; and including 12.50 m of 0.62% copper, 24.60 g/t silver, and 1.28% zinc from 20.70 m; and including 1.70 m of 0.75 g/t gold from 20.70 m and including 15.00 m of 0.47% copper, 27.80 g/t silver, and 1.52% zinc from 24.20 m, Hole KXD22-07: 1.50 m of 0.93% copper, 33.90 g/t silver, and 490 ppm tungsten starting at a depth of 9.80 m; 2.80 m of 2.15% copper and 125.30 g/t silver from 15.50 m; including 1.20 m of 4.49% copper and 269.10 g/t silver from 17.10 m. The 2022 metallurgical exploration program was designed to collect material from each of the metallurgical domains to evaluate their variability within the Empire Open Pit while improving the understanding of the geologic and structural controls on mineralization. The results confirmed the continuity of mineralization within the Empire Open Pit, and which appears along structures striking northeast and dipping steeply to the southeast.

Phoenix is assessing these results for inclusion in updated geologic models and is targeting additional drilling. Phoenix noted: The Phoenix team targeted specific zones within the Empire resource in order to collect samples that are representative of the geology and grade characteristics of the deposit as a whole. The samples will be used in the additional testing of ammonium thiosulfate as a recovery agent for copper, gold, and silver, which may enable us to bring forward production of gold and silver, currently scheduled as a second phase of the Empire Open Pit project.

Consistent with the copper, gold, and silver values previously reported for holes KXD22-01 through KXD22-03, holes KXD22- 04 and KXD22-05 show equally robust values including 11 meters grading 1.59% copper and 45.60 g/t silver in KXD22-04 and 17.70 meters of 0.59% copper and 20.10 g/t silver, including 1.20 meters of 7.43 g/t gold. Consistent with the copper, gold, and silver values previously reported for holes KXD22-01 through KXD22-05, hole KXD22-06 and the upper portion of KXD22-07 continues to show robust metal values including 56.70 m grading 0.54% copper, 19.90 g/t silver, and 0.73% zinc from the surface in KXD22-06, and 2.80 m of 2.15% copper and 125.30 g/t silver in KXD22-07. (KXD22-07 was terminated early, at a depth of 71 feet, after encountering historical underground workings.

Hole 7 was redrilled as KXD22-07B to a depth of 432.5 feet (132 m). Assays for KXD22-07B are pending.) Most importantly, the intercepts in the drilling program thus far are consistent with the team's expectations and meet the ore type-grade-interval length necessary for the metallurgical test work currently being undertaken. The metallurgical testing program is progressing as planned; however, as previously noted, assay results are taking longer than originally anticipated due to laboratory backlog.