[www.ferro-alloys.com]June 27, 2016 / TheNewswire / Vancouver, British Columbia. (TSXV: HPY) (the "Company") is providing an update on exploration results and plans for 2016 from its 100% owned Fox tungsten property.

Between May 23-26th and May 30th-June 1st 2016 a reconnaissance and initial geological survey of the road accessible South Grid target was performed. The South Grid target was identified in late 2015 and is approximately 1.25 km by 500 metres in dimension defined by continuous and positive tungsten values in soil similar to those found at the high grade BN and Ridley Creek zones. Within the target area, the recent work located 38 sites where positive tungsten was indicated by ultra violet lamping. Twenty rock samples were collected for assay from outcrop, sub-crop and boulders throughout the target area. Four samples contain from 1.75-5.89% WO3, five samples contain from 0.35-0.76% WO3 and five samples contain from 0.12-0.26% WO3. As outcrops are poorly exposed, widths of mineralized zones are unknown. The results confirm the South Grid target is an at-surface tungsten skarn with considerable size potential. Location of trench and drill sites for this target have been identified.

David Blann, P.Eng., President, C.E.O. of Happy Creek states: "With limited funds over the past three years, we have strived to improve the geological picture and build confidence in the targets that are large in size with high grades at surface and in drill core. With our first resource announced at Ridley Creek returning top-tier grades near surface, we have an exciting opportunity for value-creation with our other targets, and to position the Fox as an important new tungsten development project in the western world".

In addition to the South Grid, other exploration targets on the property are thought to hold potential for high-grade resources which have not been drilled since 2013, or at all. The Company has developed a plan for a sequenced exploration program of geology, up to 600 metres of trenching and approximately 2,500 metres of drilling in 25-35 holes. The objective of this work is to increase the project resource base of near-surface, high grade deposits that allow greater flexibility for planning their potential development. Results would be included in a revised resource estimate along with engineering and other studies. The following targets are identified for further exploration:

The Ridley Creek (RC) zone (refer to News Release dated March 15th 2016), has a pit constrained 505,000 tonnes indicated at 0.468% WO3 and 280,000 tonnes inferred at 0.456% WO3 at a 0.10% WO3 cut-off with a 4.1: 1 strip ratio. Within this are 240,000 tonnes indicated at 0.74% W03 and 129,000 tonnes at 0.67% W03 inferred at a cut-off of 0.40% W03. The deposit, and drill holes such as F13-19 with 26.3m of 1.19% WO3, including 3.66m of 4.60% WO3, remain open to further expansion. Analyses of the geological and resource model indicates the opportunity to expand the zone further in several directions. Geotechnical aspects related to pit slope design, collection of environmental data as well as drill-core for additional mineral process tests are also planned.

The BN target is over 1.0 km long and 250 metres wide defined by continuous and positive tungsten in soil at the contact between a monzogranite and calc silicate rocks that are favorable to host tungsten mineralization. At the northeast edge of this area, dill hole F12-27 returned 4.1m of 1.78% WO3 starting at surface, and further down-hole 14.8m of 4.0% WO3 and 24.0m of 0.79% WO3. This drill hole is believed to be among the best tungsten drill result known and the zone is open to further expansion. Outcrop approximately one km to the southwest of the BN showing have returned samples containing up to 3.0% WO3.

The BK target is an outcropping zone similar to the Ridley Creek zone. F12-20 returned 5.0m of 0.68% WO3 starting approximately 25.0m below surface and 35m from a trench containing 7.3m of 1.25% WO3 and 3.0m of 2.11% WO3. Geological work in 2015 traced the favorable tungsten-bearing calc silicate host rock one km south to connect with the RC zone and a partially exposed outcrop sample returned 3.57% W03 and 0.34 g/t gold, which remains open in width.

In conjunction with initiating more advanced studies later this year, the Company has created a new position for Mr. Paul Berndt, FAusIMM, as Director, Development. Mr. Berndt has a great depth of experience in mineral processing aspects of global tungsten projects as well as managing preliminary economic assessments, feasibility studies and mine production. He has spent the past year gaining experience with the Fox project and directed the mineralogy and metallurgical programs at SGS laboratories. Paul will oversee the future engineering and development-related studies of the Fox project.

The Company is also pleased to announce that it has recently become a member of ITIA (International Tungsten Industry Association). The Company has also posted the updated NI43-101 report on the Fox tungsten property on SEDAR which includes the recent metallurgy results as announced on May 26, 2016.

• [Editor:Jiang Li Juan ]