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VANCOUVER, BRITISH COLUMBIA- Kenadyr Mining (Holdings) Corp. (TSX VENTURE:KEN)(OTCQB:KNDYF)(FRANKFURT:KM0) (the “Corporation” or “Kenadyr”) is pleased to announce that the second drill hole of the 2017 season, collared at the East Zone on Kenadyr’s 100% owned Borubai License, Kyrgyz Republic, has intersected 50 meters at 8.15 g/t Au, from a downhole depth of 151 m to 201m.

The East Zone, as is the case with the previously drilled South Zone (40m @ 6.17 g/t Au in drill hole SZ-1-17), is directly adjacent to Zijin Mining Group Co Ltd.’s (“Zijin”) Taldy Bulak Levoberejnyi (TBL) Mine, currently in production. The East Zone intersection, from drill hole EZ-1-17, is approximately 1 km from drill hole SZ-1-17, which was drilled in the

South Zone. Zijin’s TBL Deposit occurs directly between these two drill holes. Both drill holes encountered identical mineralization consisting of pervasive quartz-tourmaline-pyrite stockwork veining. This mineralization is consistent with the mineralization being mined at the TBL Deposit.

Kenadyr’s initial drilling was designed to intersect the various areas surrounding the TBL Mining Lease, which were previously drilled by the Soviets between 1970 and 1990, and where significant gold mineralization was reported. Subject to additional drilling results, Kenadyr’s initial drill holes SZ-1-17 and EZ-1-17 confirm the presence of highly significant widespread gold mineralization reported historically by the Soviets, however these drill holes also encountered stronger and thicker mineralization than was previously reported from both the South Zone and the East Zone. These intersections confirm that significant widespread gold mineralization exists on Kenadyr’s license directly adjacent to the TBL Mine, and that this mineralization continues in both directions along strike from the TBL Deposit.

The East Zone is open in two directions and to depth, and appears to directly connect to the TBL deposit. Core recovery for drill hole EZ-1-17 is > 99% and all intervals have been assayed using fire assay methods at an internationally accredited laboratory (ALS Global).

Drill Hole EZ-1-17 Assay Results are listed in the table below:

FromToIntervals (meters)Grade Au g/t
151 m201 m50 meters8.15 g/t Au
including
161 m179 m18 meters12.8 g/t Au

The Corporation is confident that these intersections are approximate ‘true widths’.

Kenadyr is in a strong position having a robust balance sheet, no debt nor significant payments owing, and a supportive institutional shareholder base. The management team has extensive in-country operational experience, and merger and acquisition expertise.

Dr. Alexander Becker, Kenadyr Chief Executive Officer, states, “These results from our second 2017 drill hole at Borubai have again exceeded our expectations. This latest drill hole, located on Kenadyr’s license and drilled at the East Zone, demonstrates that highly significant gold mineralization also continues strongly to the East of the TBL Deposit, onto Kenadyr’s License. Technical staff believe, based on the strength of the mineralization encountered in our first two 2017 drill holes that the mineralization being mined at the adjacent TBL Mine continues strongly in two directions along strike onto Kenadyr’s Borubai License. As well, based on the geometry of the TBL deposit, the Corporation is confident that these intersections are approximate ‘true widths’.”

Kenadyr’s Borubai project comprises a 100-per-cent-owned exploration license covering a contiguous 164-square-kilometre land package that encircles the Zijin/Kyrgyzaltyn newly constructed and operational TBL mine, in northern Kyrgyz Republic.

Zijin, the majority owner of the TBL mine, is one of China’s largest gold producers, second-largest copper and zinc producer, as well as a major producer of tungsten and iron ore (source: Zijin website). According to a news release published by Zijin on Aug. 15, 2011, the national resources table of Kyrgyz Republic stated that the TBL field contains (C1 plus C2) 8,906,100 tonnes of gold ore (the average grade is 7.23 grams per tonne). The TBL mine is designed to produce 125,000 ounces of gold per annum. The TBL mine deposit is directly adjacent to Kenadyr’s initial drill targets, the South Zone and East Zone, which were previously drilled by the Soviets, with drilling on the Borubai License exceeding 98,000 meters.

Readers are cautioned that the historical resource and reserve estimates relating to the TBL mine do not extend to the Borubai project. Kenadyr has not independently verified the information with respect to the TBL mine provided in this news release and it is not necessarily indicative of the mineralization on the Borubai project. Kenadyr is not aware of the resource and reserve categories, or the key assumptions, parameters and methods used to prepare the estimates on Zijin’s TBL mine. The historical estimates on the TBL mine are not current mineral resources or mineral reserves as defined in National Instrument 43-101. Kenadyr considers the historical estimates on the TBL mine disclosed in this news release to be relevant to investors for the purpose of understanding Kenadyr’s current drill program and exploration strategy.

Kenadyr’s Borubai project, which surrounds the TBL mine, has been the subject of extensive historic exploration including drilling (98,200 metres in 184 diamond drill holes), trenching (13,800 cumulative metres), bulldozer cuts (33,400 cumulative metres), geologic mapping at 1:25,000 and 1:50,000 scales, ridge, spur and grid soil geochemistry for multi-elements (14,200 samples), rock geochemical sampling (2,320 samples), pan concentrate sampling (790 samples), 100 metres of adits, and 184 metres of underground raises. Additionally, the entire area has been subject to airborne magnetic, radiometric and gravity surveys, as well as ground-based resistivity and induced polarization surveys. Additional high grade gold targets exist throughout the Borubai license. The entire license has been subject to extensive geochemical and geophysical surveys, with follow up trenching and drilling on only a few of the identified anomalies.

Additional information in respect of the Corporation’s business and the Borubai project is available in the Corporation’s Annual Information Form dated April 28, 2017, available under the Corporation’s profile on SEDAR.

Kenadyr has an expert team of mine developers with considerable local and regulatory knowledge, led by Chief Executive Officer Dr. Alex Becker, who has operated successfully in the country for much of the past 20 years. The board and management team includes; R. Stuart (Tookie) Angus (Chairman), Alexander Becker (Chief Executive Officer), Bryan Slusarchuk (President), Douglas J. Kirwin (Director), Brian Lueck (Director) and Kevin Ma (Chief Financial Officer). Mark Eaton will act as an adviser to the Corporation.

Brian Lueck, P. Geo, a director of Kenadyr and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information in this news release.

On behalf of Kenadyr Mining (Holdings) Corp.

Dr. Alexander Becker, Chief Executive Officer and Director

For more information, visit www.kenadyr.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Corporation are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation’s expectations include the success for failure of the Corporation’s proposed exploration activities on the Borubai Project or its resource potential relative to the TBL Mine and other risks detailed from time to time in the filings made by the Corporation with securities regulations.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Corporation. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Corporation will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

Appendix: Assay intervals for drill holes SZ-1-17 and EZ-1-17

Hole SZ-1-17 (Significant Intervals)

No.No.
Sample
fromtolengthweightAu,
ppm
Rock
code
3661736to639.01.03.1302.418BER
3671737639.0640.01.03.67010.575BER
3681738640.0641.01.04.10028.643BER
3691739641.0642.01.03.0104.759BER
3701740642.0642.0Blank3.0600.057
3711741642.0643.01.03.27012.777BER
3721742643.0644.01.03.5203.716BER
3731743644.0645.01.03.1500.951BER
3741744645.0646.01.03.6300.584BER
3751745646.0647.01.03.4801.984BER
3761746647.0648.01.03.5704.725BER
3771747648.0649.01.03.1500.57BER
3781748649.0650.01.03.7500.66BER
3791749650.0651.01.04.1509.21BER
3801750651.0652.01.03.8006.61BER
3811751652.0653.01.03.90028.75BER
3821752653.0654.01.04.1504.78BER
3831753654.0655.01.04.0000.44BER
3841754655.0656.01.03.2500.90BER
3851755656.0657.01.04.1506.69Q-TUR
3861756657.0658.01.03.8002.59Q-TUR
3871757658.0659.01.04.1001.63Q-TUR
3881758659.0660.01.04.1003.55Q-TUR
3891759660.0661.01.03.8001.75Q-TUR
3901760661.0662.01.03.9003.60Q-TUR
3911761662.0663.01.03.1500.38Q-TUR
3921762663.0664.01.03.2504.99Q-TUR
3931763664.0665.01.03.6004.56Q-TUR
3941764665.0666.01.03.1503.18Q-TUR
3951765666.0667.01.04.2007.52Q-TUR
3961766667.0668.01.04.10012.40Q-TUR
3971767668.0669.01.03.2502.89Q-TUR
3981768669.0670.01.04.00010.94Q-TUR
3991769670.0671.01.03.2509.24Q-TUR
4001770671.0672.01.04.0004.58Q-TUR
4011771672.0673.01.03.10020.92Q-TUR
4021772673.0674.01.03.2505.68Q-TUR
4031773674.0675.01.03.6003.65Q-TUR
4041774675.0676.01.04.1000.62Q-TUR
4051775676.0677.01.04.0007.08Q-TUR
4061776677.0678.01.03.1005.24Q-TUR
4071777678.0679.01.02.3000.27Q
4081778679.0680.01.03.0000.19Q
4091779680.0681.01.02.2000.27LIS
4101780681.0681.0Blank3.000<0.050
4111781681.0682.01.02.5001.19LIS
4121782682.0683.01.03.0000.24LIS
4131783683.0684.01.03.5000.13LIS
4141784684.0685.01.03.0000.27LIS
4151785685.0686.01.03.100<0.050LIS
4161786686.0687.01.02.700<0.050Q
4171787687.0688.01.03.4000.87DR
4181788688.0689.01.03.5000.06DR
4191789689.0690.01.02.500<0.050DR
4201790690.0691.01.02.200<0.050DR
4211791691.0692.01.03.100<0.050DR
4221792692.0693.01.03.0000.06DR
4231793693.0694.01.03.2000.33Q-TUR
4241794694.0695.01.04.0000.41Q-TUR
4251795695.0696.01.03.1001.86Q-TUR
4261796696.0697.01.03.2500.24Q-TUR
4271797697.0698.01.03.1000.05Q-TUR
4281798698.0699.01.04.000<0.050MG
4291799699.0700.01.03.600<0.050MG
4301800700.0701.01.03.500<0.050MG
4311801701.0702.01.04.000<0.050MG
4321802702.0703.01.03.600<0.050MG
4331803703.0704.01.04.000<0.050MG
4341804704.0705.01.04.000<0.050MG
4351805705.0706.01.04.120<0.050MG
4361806706.0707.01.04.2500.10Q-SER
4371807707.0708.01.03.5002.23Q-SER
4381808708.0709.01.04.2500.94Q-SER
4391809709.0710.01.04.200<0.050Q-SER
4401810710.0711.01.04.1000.06Q-SER
4411811711.0712.01.03.7800.06LIS
4421812712.0713.01.04.250<0.050LIS
4431813713.0714.01.04.0000.70Q-SER
4441814714.0715.01.04.0001.64Q-TUR
4451815715.0716.01.03.5001.52Q-TUR
4461816716.0717.01.04.00014.94Q-TUR
4471817717.0718.01.04.2507.47Q-TUR
4481818718.0719.01.04.2503.49Q-TUR
4491819719.0720.01.03.635Q-TUR

Hole EZ-1-17 (significant intervals)

No.No.
Sample
fromtolengthAu,
ppm
Au,
ppm
Au,
ppm
Rock
code
11955140.0141.01.0<0.050MG
21956141.0142.01.0<0.050Q-SER
31957142.0143.01.0<0.050LIS
41958143.0144.01.0<0.050LIS
51959144.0145.01.0<0.050LIS
61960145.0146.01.0<0.050LIS
71961146.0147.01.00.061LIS
81962147.0148.01.00.087LIS
91963148.0149.01.00.1400.140BER
101964149.0150.01.00.723BER
111965150.0151.01.00.611BER
121966151.0152.01.018.818.814.1BER
131967152.0153.01.010.310.79.6Q-TUR
151968153.0154.01.07.96.47.1Q-TUR
161969154.0155.01.07.16.16.9Q-TUR
171970155.0156.01.03.42.42.6Q-TUR
181971156.0157.01.02.272.27Q-TUR
191972157.0158.01.04.714.254.48Q-TUR
201973158.0159.01.03.463.122.28Q-TUR
211974159.0160.01.02.951.982.31Q-TUR
221975160.0161.01.05.204.494.33Q-TUR
231976161.0162.01.013.020.319.7Q-TUR
241977162.0163.01.09.067.927.94Q-TUR
251978163.0164.01.02.283.713.05Q-TUR
261979164.0165.01.04.946.636.74Q-TUR
271980165.0166.01.07.608.8411.13Q-TUR
281981166.0167.01.017.117.814.2Q-TUR
291982167.0168.01.023.724.523.8Q-TUR
301983168.0169.01.034.539.139.1Q-TUR
311984169.0170.01.017.514.614.5Q-TUR
321985170.0171.01.04.663.933.54Q-TUR
331986171.0172.01.04.534.41Q-TUR
341987172.0173.01.012.011.710.9Q-TUR
351988173.0174.01.04.464.054.05Q-TUR
361989174.0175.01.03.073.513.50Q-TUR
371990175.0176.01.016.617.516.4Q-TUR
381991176.0177.01.015.216.915.4Q-TUR
391992177.0178.01.07.507.736.81Q-TUR
401993178.0179.01.019.017.116.7Q-TUR
411994179.0180.01.05.374.954.76Q-TUR
421995180.0180.0BLANK<0.050blank
431996180.0181.01.05.154.626.32Q-TUR
441997181.0182.01.03.783.764.94Q-TUR
451998182.0183.01.02.002.262.21Q-TUR
461999183.0184.01.010.09.169.71Q-TUR
472000184.0185.01.016.315.216.9Q-TUR
482001185.0186.01.05.255.49Q-TUR
492002186.0187.01.06.787.49Q-TUR
502003187.0188.01.03.51Q-TUR
512004188.0189.01.06.476.996.17Q-TUR
522005189.0190.01.022.623.223.7Q-TUR
532006190.0191.01.06.165.94Q-TUR
542007191.0192.01.02.522.512.82Q-TUR
552008192.0193.01.02.222.162.02Q-TUR
562009193.0194.01.01.71Q-TUR
572010194.0195.01.01.44Q-TUR
582011195.0196.01.02.832.552.49Q-TUR
592012196.0197.01.01.05Q-TUR
602013197.0198.01.02.071.972.14Q-TUR
612014198.0199.01.04.404.273.96Q-TUR
622015199.0200.01.010.312.89.74Q-TUR
632016200.0201.01.01.34Q-TUR
642017201.0202.01.01.08Q-TUR
652018202.0203.01.00.625Q-TUR
662019203.0204.01.00.506Q-TUR
672020204.0205.01.00.469BER
682021205.0206.01.00.298BER
692022206.0207.01.00.388BER
702023207.0208.01.00.3230.333Q-TUR
712024208.0209.01.00.364Q-TUR
722025209.0210.01.00.616Q-TUR
732026210.0211.01.00.073AMF
742027211.0212.01.0<0.050<0.050blankAMF
752028212.0213.01.05.855.595.86BER
762029213.0214.01.02.672.512.53BER
772030214.0215.01.00.603BER
782031215.0216.01.00.646BER

Please note that the three “Au, ppm” columns show the initial assay values in the first column from the left, and check or repeat assays of the same sample in the second and third columns.

To view the appendix associated with this release, please visit the following link: http://media3.marketwire.com/docs/ken0619appendix.pdf.