– Preliminary data suggests the addition of HS-110 to Nivolumab may restore responsiveness to treatment after tumor progression on prior checkpoint inhibitor therapy

– Median overall survival not yet reached with median follow up of 14.4 months in Cohort A

– Improved survival observed in patients with low CD8+ “cold” tumor at baseline compared to high CD8+ patients

– Occurrence of injection site reactions correlates with improved overall survival

SAN FRANCISCO, CA / ACCESSWIRE / February 28, 2019 / Heat Biologics, Inc. (NASDAQ: HTBX), a biopharmaceutical company developing immunotherapies designed to activate a patient’s immune system against cancer, today announced updated interim results from its ongoing Phase 2 study investigating HS-110 in combination with Bristol-Myers Squibb’s anti-PD-1 checkpoint inhibitor, nivolumab (Opdivo®), in patients with advanced non-small cell lung cancer (NSCLC). The results were presented today at the ASCO-SITC Clinical Immuno-Oncology Symposium by Daniel Morgensztern, M.D., Associate Professor of Medicine and Director of Thoracic Oncology, Washington University School of Medicine, and Lead Investigator in the trial. Data were presented on both Cohort A and Cohort B of the trial. Cohort A enrolls only previously treated patients who have never received a checkpoint inhibitor (CPI), while Cohort B enrolls patients who received a minimum of 4 months of treatment with a CPI as part of their prior therapy, but subsequently had documented progressive disease.

“The treatment landscape for NSCLC has fundamentally changed as the number of patients who receive first line checkpoint inhibitor therapy is rapidly increasing,” said COL(ret) George E Peoples, MD, FACS, Heat’s Chief Medical Advisor. “The preliminary data from our Cohort B is increasingly relevant and potentially exciting as it suggests that the addition of HS-110 to nivolumab may restore anti-tumor activity in patients whose disease has progressed after treatment with a CPI.”

Jeff Hutchins, Ph.D., Chief Scientific and Operating Officer of Heat said, “The observed response rates and durability of disease stabilization support our mechanistic hypothesis that the broad, T-cell mediated immune response activated by HS-110 may improve patient survival when administered in combination with a CPI. The Cohort B data suggest that HS-110 may improve clinical outcomes for patients who have lost the benefit of treatment with a checkpoint inhibitor. We look forward to completing enrollment in this trial in Q2 and releasing additional results later this year as the data matures.”

Highlights for both cohorts are presented below:

Cohort B (patients who progressed after ≥ 4 months of prior treatment with a checkpoint inhibitor)

Of first 20 patients enrolled in this cohort:

Partial response (PR) in 3 patients (15%) per RECIST 1.1 and 4 patients (20%) per investigator assessment
Disease control rate (DCR) of 55%

The 3 RECIST 1.1 PR patients had documented progression on CPI monotherapy immediately preceding study entry
Median progression free survival (mPFS) was 2.7 months (95% CI; 1.8 – 4.0 months)

Cohort A (patients who have never received a CPI prior to study entry)

Of 42 patients enrolled by the cutoff date:

PR in 9 patients (21%) per RECIST 1.1
DCR of 50%
Median overall survival not yet reached (60% still alive with a median follow-up of 14.4 months)

Responses and disease stabilization are durable and long-lasting
Subgroup analyses, predefined in the clinical protocol, were performed for levels of tumor-infiltrating lymphocytes (CD8+ TILs) present in tumors at baseline. A survival benefit [hazard ratio (HR) = 0.39] was observed in patients with levels CD8+ TIL <10% (i.e. “cold” tumors), a population that typically responds poorly to checkpoint inhibitors. The treatment benefit appeared to be independent of PD-L1 status (HR = 0.85)
Immune reactivity to HS-110 was measured via ELISPOT assay (high vs. low compared to median) on patient peripheral blood mononuclear cells obtained before and during treatment with a median overall survival benefit of 6.2 months in the high ELISPOT group
Overall survival was significantly higher in patients that experienced at least one dermal injection site reaction to HS-110 at any time during study treatment, supporting HS-110’s mechanism of action (HR = 0.15 [95% CI: 0.05-0.45], p=0.0001)

For both cohorts, treatment with HS-110 in combination with nivolumab was well tolerated, with no additional toxicities beyond those observed with single agent CPI therapy.

Importantly, data from Cohort B suggest that HS-110 in combination with nivolumab reduced tumor burden in patients whose disease progressed after treatment with a checkpoint inhibitor at any time prior to study entry. Additionally, the deepest responses were observed in three patients whose last treatment immediately preceding enrollment was checkpoint inhibitor monotherapy.

Also of interest is the data regarding overall survival (OS) in patients with low CD8+ TIL (tumor infiltrating lymphocytes) at baseline. Protocol-defined subgroup analysis of patients categorized as ‘high’ or low’ TIL, based on levels of CD8+ cells present in the stroma of their tumor tissue at baseline, demonstrate a survival advantage for the ‘low TIL’ group as compared to the ‘high TIL’ group (not reached vs. 13.8 months; HR = 0.39 [95% CI; 0.06-2.31]. These data are very encouraging as prior studies with nivolumab alone suggest that “cold” tumor patients with lower levels of baseline CD8+ TILs have lower response rates compared to “hot” tumor patients with high levels of CD8+ TILs.

Trial results are summarized in the company’s updated corporate presentation, along with the official ASCO-SITC poster.

Trial Design

The Phase 2 trial is designed to evaluate the safety and efficacy of HS-110 combined with an immune checkpoint inhibitor for the treatment of advanced non-small cell lung cancer. Patients receive weekly HS-110 (1 x 107 cells) administered as 5 intradermal 0.1 mL injections for 18 weeks in combination with bi-weekly nivolumab 240 mg IV administered until confirmed disease progression or unacceptable toxicity, whichever occurs first. The primary endpoint is objective response rate (ORR); secondary endpoints include overall survival (OS), progression-free survival (PFS), disease control rate (DCR) and duration of response (DOR). Exploratory endpoints include correlation of clinical outcomes to baseline CD8+ TILs, PD-L1 expression, peripheral blood tumor mutation burden and ELISPOT analysis.

For further details about the trial and the results presented at ASCO-SITC, refer to Heat Bio’s updated corporate presentation, which can be found on the Investors tab of the corporate website https://ir.heatbio.com/.

About Heat Biologics, Inc.

Heat Biologics is a biopharmaceutical company developing immunotherapies designed to activate a patient’s immune system against cancer using of CD8+ “Killer” T-cells. Our T-Cell Activation Platform (“TCAP”) produces therapies designed to turn “cold” tumors “hot” and be administered in combination with checkpoint therapies and other immuno-modulators to increase their effectiveness. HS-110 is our first biologic product candidate in a series of proprietary immunotherapies designed to stimulate a patient’s own T-cells to attack cancer. Our ComPACT technology is the first potential, dual-acting immunotherapy designed to deliver T-cell activation and co-stimulation in a single product. We are currently enrolling patients in our Phase 2 clinical trial for advanced non-small cell lung cancer, in combination with Bristol-Myers Squibb’s nivolumab (Opdivo®) and with Merck’s pembrolizumab (Keytruda®). Pelican Therapeutics, a subsidiary of Heat, is focused on the development of co-stimulatory monoclonal antibody and fusion protein-based therapies designed to activate the immune system. For more information, please visit www.heatbio.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 on our current expectations and projections about future events. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These statements are based upon current beliefs, expectation, and assumptions and include statements regarding the suggestion that the addition of HS-110 to Nivolumab may restore responsiveness to treatment after tumor progression on prior checkpoint inhibitor and the suggestion that HS-110 may improve clinical outcomes for patients who have lost the benefit of treatment with a checkpoint inhibitor. These statements are subject to a number of risks and uncertainties, many of which are difficult to predict, including the ability of Heat’s therapies to perform as designed, to demonstrate safety and efficacy, as well as results that are consistent with prior results, the ability to enroll patients and complete the clinical trials on time and achieve desired results and benefits, Heat’s ability to obtain regulatory approvals for commercialization of product candidates or to comply with ongoing regulatory requirements, regulatory limitations relating to Heat’s ability to promote or commercialize its product candidates for specific indications, acceptance of its product candidates in the marketplace and the successful development, marketing or sale of products, Heat’s ability to maintain its license agreements, the continued maintenance and growth of its patent estate, its ability to establish and maintain collaborations, its ability to obtain or maintain the capital or grants necessary to fund its research and development activities, and its ability to retain its key scientists or management personnel, and the other factors described in Heat’s filings with the SEC. The information in this release is provided only as of the date of this release, and Heat undertakes no obligation to update any forward-looking statements contained in this release based on new information, future events, or otherwise, except as required by law.

1S Sahba A-L. Niemeijer J. De Langen E. Thunnissen, Annals of Oncology, Volume 28, Issue suppl 5, September 1, 2017

Media and Investor Relations Contact

David Waldman
+1 919 289 4017
investorrelations@heatbio.com

SOURCE: Heat Biologics, Inc.

ReleaseID: 537416

BALTIMORE, MD / ACCESSWIRE / February 28, 2019 / BV Financial, Inc. (the “Company”) (OTC PINK: BVFL), announced today that its wholly owned subsidiary, BayVanguard Bank, a Maryland chartered stock savings bank, acquired Kopernik Bank, a Maryland chartered mutual savings bank located in Baltimore, Maryland. In connection with the merger, the Company issued 4,099,822 shares of its common stock to Bay-Vanguard, M.H.C., its parent mutual holding company. Based on December 31, 2018 financial information, the combined institution has approximately $307 million in assets, $233 million in deposits and $60 million in stockholders’ equity and operates from seven banking offices located in the Baltimore metropolitan area.

The conversion and consolidation of data processing platforms, systems and customer files is expected to occur in the third quarter of 2019.

In connection with the transaction, each of the Company and Bay-Vanguard, M.H.C. became a Maryland chartered bank holding company. As such, Bay-Vanguard, M.H.C. is expected to lose its ability to waive cash dividends paid by the Company. Accordingly, the Company expects to suspend the payment of cash dividends for the foreseeable future.

Upon the closing of the transaction, David M. Flair and Timothy L. Prindle became co-President and Chief Executive Officers. The Boards of Directors of each of Bay-Vanguard, M.H.C., the Company and the Bank now consists of six former directors of BayVanguard Bank and six former directors of Kopernik Bank. Additionally, the Company’s fiscal year end has been changed to December 31.

About BayVanguard

BV Financial, Inc. is the parent company of BayVanguard Savings Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with six other branches in the Baltimore metropolitan area. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses within its market area.

CONTACT:

David M. Flair
Co-President and Chief Executive Officer
(410) 477-5000

Timothy L. Prindle
Co-President and Chief Executive Officer
(410) 477-5000

SOURCE: BV Financial, Inc.

ReleaseID: 537441

WALNUT CREEK, CA / ACCESSWIRE / February 28, 2019 / Owens Realty Mortgage, Inc. (NYSE American: ORM) announced today a revision to the tax treatment for ORM’s dividends on its common stock (CUSIP #690828108) for calendar year 2018.

The Federal income tax classification of the 2018 distributions on the Company’s common stock as reported on Form 1099-DIV (as corrected) is set forth in the following table:

Record Date

Payment Date

Distribution Allocable to 2018

Ordinary Dividends Per Share

Capital Gain Dividends Per Share

Nondividend Distributions Per Share

Sec 199A
Dividends
Per Share(1)

Unrecaputred 1250 Gain
Per Share(2)

3/31/2018

4/13/2018

$0.16000

$0.14735

$0.01265

$0.00000

$0.14735

$0.01265

6/29/2018

7/13/2018

$0.20000

$0.18688

$0.01312

$0.00000

$0.18688

$0.01312

9/28/2018

10/12/2018

$0.20000

$0.18649

$0.01351

$0.00000

$0.18649

$0.01351

12/31/2018

1/14/2019

$0.04065

$0.02715

$0.01350

$0.00000

$0.02715

$0.01350

Total

$0.60065

$0.54787

$0.05278

$0.00000

$0.54787

$0.05278

These amounts are a subset of, and included in, the 2018 Ordinary Dividends amounts.
These amounts are a subset of, and included in, the 2018 Capital Gain Dividends amounts.

Pursuant to IRC Section 857(b)(9), cash distributions made on January 14, 2019 with a record date of December 31, 2018 are treated as received by shareholders on December 31, 2018, to the extent of the Company’s tax earnings and profits for 2018. Therefore, the portion of the January 14, 2019 cash distribution reported above is included in the 2018 Form 1099 while the remainder in the amount of $0.15935 per share will be treated as a 2019 distribution for U.S. federal income tax purposes and is not included on the 2018 Form 1099.

Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of ORM’s dividends.

About Owens Realty Mortgage, Inc.

Owens Realty Mortgage, Inc., a Maryland corporation, is a specialty finance mortgage company organized to qualify as a real estate investment trust (“REIT”) that focuses on the origination, investment, and management of commercial real estate loans. We provide customized, short-term capital to small and middle-market investors that require speed and flexibility. Our primary objective is to provide investors with attractive current income and long-term shareholder value. Owens Realty Mortgage, Inc., is headquartered in Walnut Creek, California, and is externally managed and advised by Owens Financial Group, Inc.

Additional information can be found on the Company’s website at www.owensmortgage.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives which are subject to risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ from expectations, estimates and projections. Consequently, readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements.

The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in the Company’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning the Company or matters attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

Contact:

Investor Relations
Owens Realty Mortgage, Inc.
(925) 239-7001

SOURCE: Owens Realty Mortgage, Inc.

ReleaseID: 537415

2018 Total Revenue Increases 13% while Platform and Technology Revenue Increases 21% Year Over Year to 60% of Total Revenue

MORRISVILLE, NC / ACCESSWIRE / February 28, 2019 / Issuer Direct Corporation (NYSE American: ISDR) (the “Company”), an industry-leading communications and compliance company, today reported its operating results for the three months and full year ended December 31, 2018. The Company will host an investor conference call today at 4:30 PM Eastern Time to discuss its operating results.

Fourth Quarter 2018 Highlights:

Total revenue was $3,648,000, a 7% increase from $3,399,000 in Q4 2017 and a 12% increase from $3,255,000 in Q3 2018.
Platform and Technology revenue increased 24% from Q4 2017 and 7% from Q3 2018.
Overall gross margin was 71%, compared to 73% in Q4 2017 and 70% in Q3 2018.
Platform and Technology gross margin was 78%, down from 83% in Q4 2017 and an increase from 77% in Q3 2018.
GAAP earnings per diluted share was $0.02 compared to $0.24 in Q4 2017 and $0.02 in Q3 2018.
The Company generated cash flows from operations of $716,000 compared to $417,000 in Q4 2017 and $564,000 in Q3 2018.

Full Year 2018 and Recent Highlights:

Total revenue was $14,232,000, a 13% increase from $12,628,000 in 2017.
Platform and Technology revenue increased 21% from 2017.
Overall gross margin was 71%, compared to 73% in 2017.
Platform and Technology gross margin was 79%, down from 84% in 2017.
GAAP earnings per diluted share was $0.24 compared to $0.62 in 2017.
The Company generated cash flows from operations of $2,869,000 compared to $2,512,000 in 2017.
On July 3, 2018, the Company completed the acquisition of Filing Services Canada Inc.
On January 3, 2019, the Company completed the acquisition of the VisualWebcaster platform from Onstream Media Corporation.

Customer Count Metrics:

The Company had 2,412 Platform and Technology customers during Q4 2018, compared to 1,819 during Q4 2017 and 2,143 during Q3 2018.
The Company had 687 Services customers during Q4 2018, compared to 579 during Q4 2017 and 679 during Q3 2018.
Included in the numbers above, the Company had 504 customers using both our platform and service offerings during Q4 2018, compared to 289 during Q4 2017 and 490 during Q3 2018.

Brian Balbirnie, CEO of Issuer Direct, commented, “We ended the year with a strong fourth quarter. During the quarter, platform customers grew 33% to 2,412, ARPU on new subscriptions of Platform id. increased to $11,300 and Platform and Technology revenue increased 24% from the same period of 2017.”

Mr. Balbirnie continued, “We are an organization that is investing for growth. During the fourth quarter we added new leadership to our sales organization and we expect to expand our sales force further in 2019. We have also continued to invest heavily in development, which has resulted in two new modules added to our platform. One of these was released in late 2018 and the other will be released in Q1 2019, with further enhancements targeted for release throughout the year. Furthermore, our plans to increase our news distribution reach are on track for 2019.”

Mr. Balbirnie concluded, “Looking ahead, we remain focused on integrating our recent acquisitions and growing our platform customers. We believe the combination of increased investment and increased client count will help accelerate growth in revenue and ultimately drive our long-term earnings growth.”

Financial Results for the Fourth Quarter Ended December 31, 2018:

Total revenue for the fourth quarter of 2018 was $3,648,000, compared to $3,399,000 for the same period of 2017, an increase of $249,000, or 7%. Revenue from customers obtained from our recent acquisition of Filing Services Canada Inc. (“FSCwire”) was $157,000 during the fourth quarter of 2018.

Platform and Technology revenue increased $432,000 or 24%, during the fourth quarter of 2018, as compared to the fourth quarter of 2017. The increase in Platform and Technology revenue is due primarily to an increase in revenue from our ACCESSWIRE news distribution offering, which increased 30% over the prior year. This increase is due partly to the acquisition of FSCwire and partly due to new customers during the period. We also generated increased revenue from licenses of our Platform id. subscription. This quarter we entered into 20 net new licenses with new or existing customers totaling an annual contract value of $226,000. As a percentage of overall revenue, Platform & Technology revenue increased to 61% of total revenue for the three months ended December 31, 2018, compared to 53% for the same period of 2017. It is important to note, due to a newly adopted accounting principle, $133,000 of revenue related to the electronic dissemination of a customer’s annual report that was previously reported as Service revenue has been reclassified as Platform and Technology revenue for the three months ended December 31, 2017.

Services revenue decreased $183,000, or 11%, during the fourth quarter of 2018, as compared to the same period of 2017. This decrease was primarily due to continued customer attrition in our legacy ARS business as companies elected to leave the service or transitioned to our electronic delivery alternative (reflected as Platform and Technology revenue). Additionally, revenue from our compliance services decreased as we continue to face pricing pressure in the market and due to a shift of some of this revenue to the Platform and Technology stream.

Gross margin for the fourth quarter of 2018 was $2,577,000, or 71% of revenue, compared to $2,480,000, or 73% of revenue, in the fourth quarter of 2017. It is noted that a majority of the increase in cost of revenues was due to an increase of $141,000 during the quarter in amortization of capitalized software associated with Platform id.

Operating income was $134,000 for the three months ended December 31, 2018, as compared to operating income of $440,000 during the same period of the prior year. Despite the increase in gross margin dollars noted above, the decrease in operating income is primarily attributable to increases in general and administrative expenses and sales and marketing expenses due to investments the Company is making to grow its business. General and administrative expenses increased due to an increase in acquisition related expenses as well as increase in corporate headcount to position the Company for growth. We also experienced an increase in bad debt expense over the same period of the prior year. Sales and marketing expenses increased as we added new leadership to the sales department and continued to expand our news distribution capabilities. Depreciation and amortization expense also increased due to higher amortization associated with intangible assets acquired in the FSCwire acquisition. During the fourth quarter of 2018, we recorded tax expense of $127,000, compared to a benefit of $307,000 in the same period of the prior year. The benefit during the fourth quarter of 2017 related to the passage of the Tax Cuts and Jobs Act of 2017 (the “2017 Act”) as well as a benefit related to the adoption of a new accounting principle related to equity compensation.

On a GAAP basis, we generated net income of $65,000, or $0.02 per diluted share, during the three months ended December 31, 2018, compared to $745,000, or $0.24 per diluted share, during the same period of 2017. The decrease in earnings per share was primarily due to the increase in operating expenses and income tax expense noted above.

Fourth quarter EBITDA was $497,000, or 14% of revenue, compared to $646,000, or 19% of revenue during the fourth quarter of 2017. Non-GAAP net income was $437,000, or $0.10 per diluted share, compared to $546,000, or $0.18 per diluted share, during the fourth quarter of 2017. The Non-GAAP results exclude amortization of intangible assets, stock-based compensation, integration and acquisition costs, unusual, non-recurring gains and losses, the impact of discrete items impacting income tax expense and tax impact of adjustments. Please refer to the tables below for the calculation of EBITDA and the reconciliation of GAAP income and earnings per share to Non-GAAP income and earnings per share.

Financial Results for the Full Year Ended December 31, 2018:

Total revenue was $14,232,000 for the year ended December 31, 2018, compared to $12,628,000 for the same period of 2017, an increase of $1,604,000, or 13%. Customers obtained from our acquisitions of Interwest Transfer Company (October 2017) and FSCwire (July 2018) contributed an additional $1,497,000 of revenue during the year ended December 31, 2018 compared to 2017. Of this additional revenue, $243,000 came from additional subscriptions to Platform id. and services cross sold to those acquired customers.

Platform and Technology revenue increased $1,512,000 or 21%, during the year ended December 31, 2018, as compared to the same period of the prior year. The increase is due to an increase in revenue from our ACCESSWIRE offering, the addition of Interwest and FSCwire customers as well as increased subscriptions of Platform id. During the year ended December 31, 2018, we entered into 109 net new Platform id. subscriptions with new or existing customers with an annual contract value of $1,134,000. As a percentage of overall revenue, Platform & Technology revenue increased to 60% of total revenue for the year ended December 31, 2018, compared to 56% for the same period of 2017. It is important to note, due to a newly adopted accounting principle, $683,000 of revenue related to the electronic dissemination of a customer’s annual report that was previously reported as Service revenue has been reclassified as Platform and Technology revenue for the year ended December 31, 2017.

Services revenue increased $92,000, or 2% during the year ended December 31, 2018, as compared to the same period of 2017. The increase is due to an increase in revenue of our transfer agent services due to the acquisition of Interwest as well as an increase in corporate directives and actions of our longer-term Issuer Direct transfer agent customers. These increases were partially offset by declining revenue of our legacy ARS business as well as a decline in revenue from our compliance services as the market for these services commoditizes and we continue to experience pricing pressure and or customers elect to utilize our cloud-based platform.

Gross margin for the year ended December 31, 2018 was $10,129,000, or 71% of total revenue, compared to $9,233,000, or 73% of revenue, in the same period of 2017. It is noted that a majority of the increase in cost of revenues was due to an increase of $514,000 for the year ended December 31, 2018, in amortization of capitalized software associated with Platform id.

Operating income was $1,163,000 for the year ended December 31, 2018, as compared to operating income of $2,028,000 during the same period of the prior year. The decrease in operating income is due to the increase in general and administrative expenses, sales and marketing expenses, product development and depreciation and amortization expenses explained for the three months ended December 31, 2018. During 2018 we recorded income tax expense of $373,000 compared to $131,000 for the same period of the prior year. Tax expense for 2018 included additional tax expense associated with an adjustment to the Company’s original provisional charges recorded in connection with the one-time transition tax and the current year impact of taxes associated with the 2017 Act. During the year ended December 31, 2017, the Company recognized an income tax benefit of $351,000 related to the passage of the 2017 Act as well as a benefit of $156,000 related to the adoption of a new accounting principle related to equity compensation.

On a GAAP basis, we generated net income of $837,000, or $0.24 per diluted share, during the year ended December 31, 2018, compared to $1,871,000, or $0.62 per diluted share, during the same period of 2017. The decrease in earnings per share was primarily due to the increase in operating expenses and income tax expense noted above.

EBITDA for the year ended December 31, 2018 was $2,560,000, or 18% of revenue, compared to $2,739,000, or 22% of revenue during the same period of 2017. Non-GAAP net income was $1,969,000, or $0.57 per diluted share, compared to $1,987,000, or $0.65 per diluted share, during the same period of the prior year. The decrease in Non-GAAP net income per diluted share despite similar Non-GAAP net income is the result of more shares outstanding as a result of our secondary offering completed in August 2018. The Non-GAAP results exclude amortization of intangible assets, stock-based compensation, integration and acquisition costs, unusual, non-recurring gains and losses, the impact of discrete items impacting income tax expense and tax impact of adjustments. Please refer to the tables below for the calculation of EBITDA and the reconciliation of GAAP income and earnings per share to Non-GAAP income and earnings per share.

Non-GAAP Information

Certain Non-GAAP financial measures are included in this press release. In the calculation of these measures, the Company generally excludes certain items, such as amortization of intangible assets, stock-based compensation, integration and acquisition costs, unusual, non-recurring gains and losses, the impact of discrete items impacting income tax expense and tax impact of adjustments. The Company believes that excluding such items provides investors and management with a representation of the Company’s core operating performance and with information useful in assessing its prospects for the future and underlying trends in the Company’s operating expenditures and continuing operations. Management uses such Non-GAAP measures to evaluate financial results and manage operations. The release and the attachments to this release provide a reconciliation of each of the Non-GAAP measures referred to in this release to the most directly comparable GAAP measure. The Non-GAAP financial measures are not meant to be considered a substitute for the corresponding GAAP financial statements and investors should evaluate them carefully. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies.

CALCULATION OF EBITDA
($ in ‘000’s)

Three Months ended
December 31,

2018

2017

Amount

Amount

Net income:

$
65

$
745

Adjustments:

Depreciation and amortization

363

203

Interest expense (income)

(58
)

(5
)

Income tax expense

127

(307
)

EBITDA:

$
497

$
646

Year ended December 31,

2018

2017

Amount

Amount

Net income:

$
837

$
1,871

Adjustments:

Depreciation and amortization

1,397

735

Interest expense (income)

(47
)

2

Income tax expense

373

131

EBITDA:

$
2,560

$
2,739

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
($ in ‘000’s, except per share amounts)

Three Months ended December 31,

2018

2017

Amount

Per diluted share

Amount

Per diluted share

Net income:

$
65

$
0.02

$
745

$
0.24

Adjustments:

Amortization of intangible assets (1)

130

0.03

126

0.04

Stock-based compensation (2)

140

0.05

151

0.05

Integration and acquisition costs (3)

66

0.01

44

0.01

Tax impact of adjustments (5)

(71
)

(0.02
)

(109
)

(0.03
)

Impact of discrete items impacting income tax expense (6)

107

0.01

(411
)

(0.13
)

Non-GAAP net income (7)

$
437

$
0.10

$
546

$
0.18

Year ended December 31,

2018

2017

Amount

Per diluted share

Amount

Per diluted share

Net income:

$
837

$
0.24

$
1,871

$
0.62

Adjustments:

Amortization of intangible assets (1)

520

0.15

375

0.12

Stock-based compensation (2)

629

0.18

516

0.17

Integration and acquisition costs (3)

114

0.03

64

0.02

Unusual, non-recurring loss (4)

–

–

28

0.01

Tax impact of adjustments (5)

(265
)

(0.07
)

(334
)

(0.11
)

Impact of discrete items impacting income tax expense (6)

134

0.04

(533
)

(0.18
)

Non-GAAP net income(7)

$
1,969

$
0.57

$
1,987

$
0.65

1) The adjustments represent the amortization of intangible assets related to acquired assets and companies.

2) The adjustments represent stock-based compensation expense related to awards of stock options, restricted stock units or common stock in exchange for services. Although the Company expects to continue to award stock to employees or in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects.

3) The adjustments represent legal and accounting fees and other non-recurring costs in connection with the acquisition of Filing Services Canada Inc. and the VisualWebcaster platform during the three months and year ended December 31, 2018 and Interwest Transfer Company during the three months and year ended December 31, 2017.

4) The adjustment removes gains or losses during the period that are unusual, non-recurring or infrequent in nature and don’t relate to the core business of the Company. For the year ended December 31, 2017, these losses include a loss on the change in fair value of stock received, in lieu of cash, related to the settlement of a receivable.

5) This adjustment gives effect to the tax impact of all non-GAAP adjustments at the current Federal rate of 21% for the three months and year ended December 31, 2018 and 34% for the three months and year ended December 31, 2017.

6) The adjustments eliminate discrete items impacting income tax expense. For the three months and year ended December 31, 2018, the discrete items are primarily related to additional expense recognized as a result of finalizing the impact of the Tax Cuts and Jobs Act of 2017 (the “2017 Act”) and return to provision and other adjustments made to income tax expense during the periods. For the three months and year ended December 31, 2017, the discrete items relate to the re-measurement of deferred tax liabilities related to the 2017 Act and the excess stock-based compensation tax benefit recognized in income tax expense during the periods.

7) Non-GAAP net income for the three months and year ended December 31, 2018, reflects the calculation of income tax computed using the current federal statutory rate of 21%. Had the federal statutory rate remained at 34% for 2018, non-GAAP net income for the three months and year ended December 31, 2018, would have been lower by approximately $44,000, or $0.01 per diluted share, and $164,000, or $0.05 per diluted share, respectively.

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Date: February 28, 2019
Time: 4:30 PM ET
Participant: 877.407.8133 | 201.689.8040

Live Webcast is also available via Investor Network https://www.investornetwork.com/event/presentation/44332

Conference Call Replay Information

The replay will be available beginning approximately 1 hour after the completion of the live event at https://www.issuerdirect.com/company/earnings-calls-transcripts

Reply Toll-free: 877.481.4010
International: 919.882.2331
Reference ID: 44332

About Issuer Direct Corporation

Issuer Direct® is an industry-leading communications and compliance company focusing on the needs of corporate issuers. Issuer Direct’s principal platform, Platform id., empowers users by thoughtfully integrating the most relevant tools, technologies, and services, thus eliminating the complexity associated with producing and distributing financial and business communications. Headquartered in RTP, NC, Issuer Direct serves more than 4,000 public and private companies in more than 18 countries on an annual basis. For more information, please visit www.issuerdirect.com.

Learn more about Issuer Direct today: Investor Tear Sheet.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs, such as “will,” “should,” “would,” “may,” and “could,” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance, or achievements to be materially different from any anticipated results, performance, or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, including but not limited to the discussion under “Risk Factors” therein, which the Company will file with the SEC and which may be viewed at http://www.sec.gov/.

For Further Information:

Issuer Direct Corporation
Brian R. Balbirnie
(919)-481-4000
brian.balbirnie@issuerdirect.com

Hayden IR
Brett Maas
(646)-536-7331
brett@haydenir.com

Hayden IR
James Carbonara
(646)-755-7412
james@haydenir.com

ISSUER DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2018 AND 2017
(in thousands, except share and per share amounts)

December 31,

2018

2017

ASSETS

Current assets:

Cash and cash equivalents

$
17,222

$
4,917

Accounts receivable (net of allowance for doubtful accounts of $534 and $425, respectively)

1,593

1,275

Income tax receivable

90

725

Other current assets

89

193

Total current assets

18,994

7,110

Capitalized software (net of accumulated amortization of $1,310 and $497, respectively)

1,957

2,749

Fixed assets (net of accumulated depreciation of $452 and $388, respectively)

132

145

Other long-term assets

35

18

Goodwill

5,032

4,070

Intangible assets (net of accumulated amortization of $4,219 and $3,699, respectively)

2,802

2,858

Total assets

$
28,952

$
16,950

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$
371

$
666

Accrued expenses

577

613

Current portion of note payable (See Note 4)

320

288

Income taxes payable

83

65

Deferred revenue

1,249

887

Total current liabilities

2,600

2,519

Note payable – long-term (net of discount of $45 and $70, respectively) (See Note 4)

276

570

Deferred income tax liability

413

573

Other long-term liabilities

–

77

Total liabilities

3,289

3,739

Commitments and contingencies (see Note 9)

Stockholders’ equity:

Preferred stock, $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding as of December 31, 2018 and 2017, respectively.

–

–

Common stock $0.001 par value, 20,000,000 shares authorized, 3,829,572 and 3,014,494 shares issued and outstanding as of December 31, 2018 and 2017, respectively.

4

3

Additional paid-in capital

22,525

10,400

Other accumulated comprehensive income (loss)

(17
)

34

Retained earnings

3,151

2,774

Total stockholders’ equity

25,663

13,211

Total liabilities and stockholders’ equity

$
28,952

$
16,950

ISSUER DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

For the three months ended

For the year ended

December 31,
2018

December 31,
2017

December 31,
2018

December 31,
2017

(unaudited)

(unaudited)

Revenues

$
3,648

$
3,399

$
14,232

$
$12,628

Cost of revenue

1,071

919

4,103

3,395

Gross profit

2,577

2,480

10,129

9,233

Operating costs and expenses:

General and administrative

1,189

859

4,085

3,384

Sales and marketing

730

684

3,002

2,604

Product Development

360

353

1,276

763

Depreciation and amortization

164

144

603

454

Total operating costs and expenses

2,463

2,040

8,966

7,205

Operating income

134

440

1,163

2,028

Other income (expense):

Other income (expense), net

–

4

–

(24

Interest income (expense), net

58

(6

47

(2

Total other income (expense)

58

(2

47

(26

Income before taxes

192

438

1,210

2,002

Income tax (benefit) expense

127

(307

373

131

Net income

$
65

$
745

$
837

$
$1,871

Income per share – basic

$
0.02

$
0.25

$
0.25

$
$0.63

Income per share – fully diluted

$
0.02

$
0.24

$
0.24

$
$0.62

Weighted average number of common shares outstanding – basic

3,984

2,993

3,415

2,947

Weighted average number of common shares outstanding – fully diluted

4,017

3,094

3,463

3,033

ISSUER DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share and per share amounts)

Years Ended December 31,

2018

2017

Cash flows from operating activities

Net income

$
837

$
1,871

Adjustments to reconcile net income to net cash provided by operating activities:

Bad debt expense

359

181

Depreciation and amortization

1,397

735

Deferred income taxes

(336
)

(50
)

Non-cash interest expense

25

6

Stock-based compensation expense

629

516

Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable

(645
)

(66
)

Decrease (increase) in deposits and prepaid assets

743

(711
)

Increase (decrease) in accounts payable

(322
)

309

Increase (decrease) in deferred revenue

296

12

Increase (decrease) in accrued expenses

(114
)

(291
)

Net cash provided by operating activities

2,869

2,512

Cash flows from investing activities

Purchase of acquired businesses, net of cash received (See Note 4)

(1,123
)

(1,872
)

Capitalized software

(21
)

(934
)

Purchase of fixed assets

(51
)

(11
)

Net cash used in investing activities

(1,195
)

(2,817
)

Cash flows from financing activities

Proceeds from secondary stock offering (see Note 7)

13,323

–

Proceeds from exercise of stock options, net of income taxes

747

389

Payment for stock repurchase and retirement (see Note 7)

(2,635
)

–

Payment on notes payable (See Note 4)

(288
)

–

Payment of dividend

(460
)

(588
)

Net cash provided by (used in) financing activities

10,687

(199
)

Net change in cash

12,361

(504
)

Cash- beginning

4,917

5,339

Currency translation adjustment

(56
)

82

Cash- ending

$
17,222

$
4,917

Supplemental disclosures:

Cash paid for income taxes

$
66

$
943

Non-cash activities:

Stock-based compensation – capitalized software

$
–

$
57

Purchase of Interwest in exchange of note payable

$
–

$
851

SOURCE: Issuer Direct Corporation

ReleaseID: 536840

VANCOUVER, BC / ACCESSWIRE / February 28, 2019 / Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF) (“Skeena” or the “Company”) is pleased to announce an updated Mineral Resource Estimate (MRE), for the Eskay Creek Project (“Eskay Creek”), which has been reviewed and validated by SRK Consulting (Canada) Inc (“SRK”). The updated 2019 MRE has a larger component of pit constrained resources than the 2018 MRE which was principally reported as underground resources. Remaining mineralization below the optimized resource reporting pit shell with reasonable prospects of economic extraction by underground mining methods is reported accordingly. The effective date of this MRE is February 28, 2019 and a new technical report will be filed on the Company’s website and SEDAR within 45 days of this disclosure.

Updated 2019 Pit Constrained Resource Estimate
The pit constrained Indicated resource includes 2.46 million gold equivalent ounces within 12.7 million tonnes at an average gold equivalent grade of 6.0 g/t. The pit constrained Inferred resource includes 1.23 million gold equivalent ounces within 13.6 million tonnes at an average gold equivalent grade of 2.8 g/t.

Table 1: Indicated and Inferred pit constrained resources reported at a 0.7 g/t AuEQ cut-off grade.

GRADE

CONTAINED OUNCES

TONNES

AUEQ

AU

AG

AUEQ

AU

AG

(000)

G/T

G/T

G/T

OZ (000)

OZ (000)

OZ (000)

TOTAL INDICATED

12,711

6.0

4.5

117

2,455

1,818

47,791

TOTAL INFERRED

13,557

2.8

2.2

42

1,230

984

18,455

Updated 2019 Underground Resource Estimate
The underground Indicated resource estimate includes 218,000 gold equivalent ounces within 819,000 tonnes at an average gold equivalent grade of 8.2 g/t. The underground Inferred resource estimate includes 78,000 gold equivalent ounces within 295,000 tonnes at an average gold equivalent grade of 8.2 g/t.

Table 2: Indicated and Inferred underground resources reported at a 5.0 g/t AuEQ cut-off grade.

GRADE

CONTAINED OUNCES

TONNES

AUEQ

AU

AG

AUEQ

AU

AG

(000)

G/T

G/T

G/T

OZ (000)

OZ (000)

OZ (000)

TOTAL INDICATED

819

8.2

6.4

139

218

169

3,657

TOTAL INFERRED

295

8.2

7.1

82

78

68

778

2019 Resource Estimate – Additional Considerations
To constrain the pit optimization, the Company requested the application of a Mining Cost Adjustment Factor (MCAF) to certain blocks in the resource model to limit the ultimate depth of the resource reporting pit. The applied MCAF resulted in a tightly constrained resource reporting pit shell with a maximum depth of only 230 meters below surface. Due to the resource being advantageously located below a topographic ridge, the average maximum depth below surface of the pit constrained resources is only 180 meters resulting in a modest strip ratio of 7.5:1.

Table 3: Combined pit constrained and underground resources.

GRADE

CONTAINED OUNCES

TONNES

AUEQ

AU

AG

AUEQ

AU

AG

(000)

G/T

G/T

G/T

OZ (000)

OZ (000)

OZ (000)

INDICATED

PIT CONSTRAINED

12,711

6.0

4.5

117

2,455

1,818

47,791

UNDERGROUND

819

8.2

6.4

139

218

169

3,657

INFERRED

PIT CONSTRAINED

13,557

2.8

2.2

42

1,230

984

18,455

UNDERGROUND

295

8.2

7.1

82

78

68

778

TOTAL INDICATED

13,530

6.1

4.6

118

2,673

1,987

51,448

TOTAL INFERRED

13,852

2.9

2.3

43

1,308

1,052

19,233

The majority of remaining mineralization at Eskay Creek is hosted in the rhyolite facies feeder structures which are not enriched in the exhalative epithermal suite of elements (Hg-As-Sb). Preferential historical development and mining of the bonanza grade mineralization hosted in the
mudstone has resulted in extensive depletion of resources in this rock type. The 2019 pit constrained MRE indicates that on a tonnage weighted basis, 70% of the contained gold equivalent ounces are hosted within the rhyolite facies with only 30% hosted in the remaining unmined mudstone.

The metallurgical process recovery assumptions which were applied to the pit optimizations and to the calculations to determine cut-off grades for reasonable prospects of economic extraction are well founded from historical Eskay Creek mill recoveries. Averaged across all rock types, gold recovery was 80% and silver recovery was 92%. It is noteworthy that liberation of free milling gold is excellent as demonstrated by the historical gravity gold recoveries which ranged from 10-30%.

The 2019 MRE was derived from 7,583 historical surface and underground diamond drill holes totalling 651,332 meters, with an additional 46 surface diamond drill holes completed by Skeena in 2018 totalling 7,738 meters.

Eskay Creek Deposit Mineral Resource Estimate Notes:
The mineral resources disclosed in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) standards on mineral resources and reserves definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
As defined by NI 43‑101, the Independent and Qualified Person for the Eskay Creek MRE is Sheila Ulansky P.Geo., of SRK Consulting (Canada) Inc. who has reviewed and validated the Eskay Creek MRE. The effective date of the MRE is February 28, 2019.
Resources are reported in-situ and diluted for the pit constrained scenario and undiluted for the underground scenario; both are considered to have reasonable prospects for economic extraction.
In accordance with NI 43-101 recommendations, the number of metric tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects.
Metal prices used for the AuEQ calculation are US$1,275 per ounce of gold, and US$17.00 per ounce of silver. AuEQ = Au (g/t) + [Ag (g/t)/75].
Historical metallurgical recoveries of 80% AuEQ were utilized in the determination of cut-off grades for underground resources.
The calculated pit constrained cut-off grade was determined to be 0.7 g/t AuEQ and the underground cut-off grade was determined to be 4.5 g/t AuEQ. Cut-off grades must be re-evaluated considering prevailing market conditions (including gold prices, exchange rates and costs).
At the request of the Company, the underground resources are reported at a higher cut-off grade of 5.0 g/t AuEQ as opposed to the calculated 4.5 g/t AuEQ.
Block tonnage was estimated from volumes using a bulk density formula that was applied using interpolated lead, zinc, copper and antimony grades. This density formula was derived from the historic operator based on comparisons between actual measurements and analyses at the Eskay Creek Mine. SG = (Pb + Zn + Cu + Sb) x 0.03491 + 2.67 (where all metals are reported in percent).
Two models were constructed in a two-stage process: a pit constrained model using a 9 x 9 x 4 meter block size using 2 meter capped composites was estimated in stage one, and an underground model using a 3 x 3 x 2 meter block size using 1 meter capped composites was estimated in stage two.
All ten mineralization domains were estimated in stage one and that proportion of mineralization captured in the optimized pit were reported as pit constrained resources. The mineralization domains below the level of the optimized pit were estimated in stage two and reported as resources amenable for underground extraction.
Mineralization domains were created in Leapfrog GeoTM (Seequent) using Indicator RBF Interpolants and utilizing a cut-off grade of 0.5 g/t AuEQ and a probability of 50%. The domains were split according to two primary lithology types: (1) rhyolite and (2) mudstone and andesite combined. Domains were further refined by means of separating into major fault block and historical mining zones. Each domain was modified or reassessed individually to consider presiding mineralization features.
A 3.0 meter hard boundary around all underground working was constructed so that high grade composites from within mined out areas had limited influence. The 3.0 meter limiting domain was utilized in both the pit constrained and underground estimation models.
Grade capping was performed on each lithology-split domain using 1.0 meter down the hole composites that honoured mineralized domain boundaries. Small composites less than 0.5 meters were merged with the previous sample.
Gold capping values ranged from 10 to 900 g/t and silver capping values ranged from 600 to 30,000 g/t. A total of 190 and 418 samples were capped for gold and silver, respectively. Preliminary Ordinary Kriged (OK) block models were run using (1) capped and (2) uncapped 1.0 meter composites to determine the percent metal lost per estimation domain. Capping values were subsequently readjusted to ensure that capping was neither too severe nor too lenient. The 2.0 meter composites utilized for the pit constrained model inherited the capped values established from the 1.0 meter composites.
Gold and silver variograms were used to determine the spatial relationship of composites over distance. One-meter composites established the primary orientation, nugget, sills and ranges per domain, and were used to estimate the mineralization domains in the underground model. Variograms for 2.0 meter composites were updated for nugget and first sill and were used to estimate the domains in the pit constrained model.
Ordinary Kriging was used for the estimation of gold and silver in all domains. Resources were estimated using Maptek VulcanTM 11.0.1 using sub-blocking capabilities of 3 x 3 x 2 meter cell sizes for the pit constrained model, and 1 x 1 x 1 meter cell sizes for the underground model.
Search orientations were modified with Dynamic Anisotropy using a surface which mimicked the local lithological units. Dynamic Anisotropy was used for all domains except for Zone 22, Pumphouse and Zone 109 where the variogram model was appropriate.
The mineral resources were estimated using two passes with increasing search radii based on variogram ranges. Pass 1 approximated 90% of the range of the variogram; Pass 2 equalled two times the range of the variogram.
In the pit constrained model, Pass 1 used a minimum of 5 composites and a maximum of 15 composites. Pass 2 used a minimum of 3 composites and a maximum of 15 composites. In the underground model Pass 1 used a minimum of 5 composites and a maximum of 10 composites. Pass 2 used a minimum of 3 composites and a maximum of 10 composites. For both models, a maximum of 2 composites per hole were specified.
Hard boundary interpolations were honoured except for domains having the same orientation and structure but split by lithology; between these zones soft boundary estimation was applied.
A waste model was estimated using Inverse Distance Squared (ID2) methodology using 2 meter capped composites. Five waste domains were partitioned and anisotropy and ranges within each waste domain were inherited from the nearest mineralization domain. One estimation pass using 100% of the range was allocated using a minimum of 3 composites and a maximum of 10 composites. A maximum of 2 composites per hole were specified. Only coherent waste zone blocks were included into the Inferred category.

Indicated and Inferred resources were classified according to interpolation Passes 1 and 2, respectively.

The Indicated category is defined by blocks interpolated from Pass 1 for gold using a minimum of 3 holes and a maximum distance of 43 meters to a drill hole showing reasonable geological and grade continuity. In areas where blocks were interpolated during Pass 1 where continuity is lacking, or blocks were isolated, the blocks were reclassified to Inferred on a visual basis.
The Inferred category is defined by blocks interpolated from Pass 2 for gold using a minimum of 2 holes and a maximum distance to a drill hole composite of 95 meters.

In consultation with SRK’s geotechnical team who reviewed the documentation on fill-type used previously at the Eskay Creek Mine, an exclusion buffer of 3.0 meters surrounding the underground workings for the underground model was specified, whereas a buffer of 1.0 meters surround the underground workings in the proposed pit constrained model was adopted. Estimated mineralization that occurs within these buffers is not included in this MRE.
Estimates use metric units (meters, tonnes and g/t). Metal contents are presented in troy ounces (metric tonne x grade / 31.10348).
Neither the Company, nor SRK, is aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect this mineral resource estimate.
The abundance and significance of As, Hg and Sb are unknown but currently under evaluation.
The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to re-define the Inferred mineral resources as Indicated mineral resources. It is uncertain if further exploration will result in upgrading them to the Indicated mineral resources category.

Table 4: Pit constrained scenario assumptions for determining cut-off grades with reasonable prospects of economic extraction.

INPUT PARAMETERS

VALUE

UNIT

PIT WALL ANGLES

45

DEGREES

REFERENCE MINING COST

$ 2.00

US DOLLARS PER TONNE MINED

MINING RECOVERY

95

PERCENT

MINING DILUTION

5

PERCENT

PROCESSING COST

$ 15.00

US DOLLARS PER TONNE PROCESSED

GENERAL AND ADMINISTRATION

$ 5.75

US DOLLARS PER TONNE PROCESSED

PROCESS RECOVERY AU

80%

PERCENT

PROCESS RECOVERY AG

90%

PERCENT

SELL PRICE AU

$ 1,275.00 X (0.95)

US DOLLARS PER OUNCE (95% PAYABLE)

SELL PRICE AG

$ 17.00 X (0.95)

US DOLLARS PER OUNCE (95% PAYABLE)

TRANSPORTATION/REFINING COSTS

$ 25.00

US DOLLARS PER OUNCE AUEQ

COMBINED STRIP RATIO

7.5:1

UNITLESS

Table 5: Underground scenario assumptions for determining cut-off grades with reasonable prospects of economic extraction.

INPUT PARAMETERS

VALUE

UNIT

REFERENCE MINING COST

$ 79.25

US DOLLARS PER TONNE MINED

PROCESSING COST

$ 15.00

US DOLLARS PER TONNE MILLED

GENERAL AND ADMINISTRATION

$ 5.75

US DOLLARS PER TONNE MILLED

PROCESS RECOVERY AU

80%

PERCENT

PROCESS RECOVERY AG

90%

PERCENT

SELL PRICE AU

$ 1,275.00 X (0.95)

US DOLLARS PER OUNCE (95% PAYABLE)

SELL PRICE AG

$ 17.00 X (0.95)

US DOLLARS PER OUNCE (95% PAYABLE)

TRANSPORTATION/REFINING COSTS

$ 25.00

US DOLLARS PER OUNCE AUEQ

Eskay Creek Mineralization

The Eskay Creek deposits represent a shallow water, bimodal volcanic sequence hosted in a fault bounded basin with an epithermal VMS signature. Rhyolite facies volcanics are overlain by mafic volcanics with a clastic mudstone occurring at the contact between the two volcanic episodes. This mudstone represents the period of quiescence between the two volcanic events and is spatially and temporally related to the main mineralizing event at Eskay Creek. The epithermal suite of elements (Hg-Sb-As) and bonanza precious metal grades dominantly occur at this interface but are not homogenously distributed throughout the mudstone. Rather, they are spatially associated with vents fed from underlying synvolcanic feeders.

Due to the higher precious metal tenor of the mudstone-hosted mineralization, the vast majority of historical production at Eskay Creek occurred within this rock type whilst the rhyolite-hosted feeder style mineralization was less developed due to its lower Au-Ag grades. Rhyolite-hosted mineralization is not enriched in Hg-Sb-As and was often blended with mudstone-hosted zones to reduce smelter penalties for the on-site milled concentrates and Direct Shipped Ore (DSO).

Qualified Persons

The Independent and Qualified Person for the Eskay Creek MRE is Sheila Ulansky P.Geo., of SRK Consulting (Canada) Inc. (Vancouver), who has reviewed, validated and approved the Eskay Creek MRE as well as the technical disclosure in this release. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President Exploration and Resource Development, is the Qualified Person for the Company and has validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its activities on its various exploration projects.

About Skeena

Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle of northwest British Columbia, Canada. The Company’s primary activities are the exploration and development of the past-producing Snip mine and the optioned Eskay Creek mine. In addition, the Company has completed a Preliminary Economic Assessment on the GJ copper-gold porphyry project.

On behalf of the Board of Directors of Skeena Resources Limited,

Walter Coles Jr.

President & CEO

Cautionary note regarding forward-looking statements

Certain statements made, and information contained herein may constitute “forward looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management’s expectations. Forward-looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Skeena Resources Limited

ReleaseID: 537429

NEW YORK, NY / ACCESSWIRE / February 28, 2019 / On May 14-16, Informa’s IMI Division will hold the inaugural Boston Innovation Festival. The Boston Innovation Festival is a 3-day experience bringing together 6 events and hundreds of innovators to the Seaport World Trade Center in Boston.

The long-standing, industry acclaimed FEI: Front End of Innovation conference will be headlining the festival and joined by 5 additional events.

The Disruptive Technology Summit
Venture Partnerships Summit
ProjectWorld Summit
Future Trends Summit
Enterprise Design Thinking Summit

“The festival was born out of the need to bring together the entire value chain- to strengthen the connections and fuel conversation that contribute to a thriving innovation ecosystem,” said Anastasia Ioannou, the group’s General Manager.

The Keynote stage will feature corporate powerhouses, including:

Steve Wozniak, Apple Co-Founder & Technology Evangelist
Ivy Ross, VP of Design, Hardware Products, Google
Joi Ito, Director MIT Media Lab, Author, Whiplash: How to Survive Our Faster Future
Alex Dembek, Chief Technology & Sustainability Officer, Specialty Products,
DowDuPont

During the event, attendees will hear innovation strategies and best practices from over 100 corporate leaders.

“Our main goal for the Boston Innovation Festival is to enhance cross-enterprise collaboration- so that more ideas can surface, companies can strengthen their innovation capabilities, and ultimately fast-track the conversion of ideas into market-ready products or services,” said Head of Product and Innovation, Kelly Schram.

With programming for executives at all levels of their career, the Boston Innovation Festival is aiming to be the home for those charged with leading their business into the future. It will feature a selection of keynotes, workshops, immersive experiences, tech showcases, case studies, and learning labs.

Boston Innovation Festival

May 14-16, 2019

Seaport World Trade Center

1 Seaport Lane

Boston, MA

CONTACT:

For more information and to RSVP for the event click here.

SOURCE: Informa

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