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Pasinex makes Quantum Jump

BASE METALS RESEARCH #3 Pasinex Resources Ltd. March 26, 2015

By Stephan Bogner (Dipl. Kfm., FH)

Article #1 “Pasinex & Akmetal drill 39% Zinc over 17 m: The Right Stuff“ can be downloaded here.

Article #2 “The Metal with the Best Outlook and the Rare Ascent of an Explorer to a Profitable

Producer“ can be downloaded here.

Pasinex makes Quantum JumpYesterday on March 25, Pasinex Resources Ltd. dis-closed the assay results of 8 drill holes from the Pinargozu Project, which is a 50/50 joint venture with the well-experienced mining company, Ak-metal AS, a private company in Turkey.

Yesterday’s drill assays are the best results Pasinex reported to date. One of the drills discovered awe-inspiring 38% zinc over a remarkable length of 36 m. Such zinc grades are downright spectacular as being around 4 times higher than the average of existing zinc mines globally. The following graph illustrates the extraordinary quantum jump that Pasinex made since finding material with more than 30% zinc on a regular basis and mining such material profitable since 2014:

Red Dog Mine: Teck Resources Ltd.Dairi Deposit: PT Dairi Prima Mineral (DPM)Rampura Agucha Mine: Hindustan Zinc Ltd. Dugald River Deposit: MMG Ltd. Century Mine: MMG Century / China MinmetalsCirque Deposit: Teck Resources Ltd. / Korea ZincAkie Deposit: Canada Zinc Metals Corp.Halfmile Lake Deposit: Trevali Mining Corp. Pine Point Deposit: Teck Resources Ltd.

Most importantly, Pasinex has proven with yesterday’s results that the drilling success of Sep-tember 2014 was not a “one-hit wonder”. The drill success of September was sufficient to start mi-ning immediately.

As the newly discovered zone is located only 50 m from the area, which is being mined as we speak (currently some 70 miners are working here), one can be optimistic that the new discovery will be mined shortly as well. There still does not exist an official resource as per NI43-101, however the size of the new discovery indicates enough material suitable for a multi-year mining operation.

The company must now define a first NI43-101 re-source to answer the question of how many years the mine can operate.

Gamsberg Deposit: Vedanta Resources PlcOzernoye Deposit: MBC Corp. of Russia / NFCCitronen Deposit: Ironbark Zinc Ltd.Selwyn Deposit: Selwyn Resources Ltd. Tala Hamza Deposit: Western Mediterranean Zinc Spa / Ter-ramin Australia Ltd. / ENOF / ORGMHacket River Deposit : Glencore Canada Corp. Mehdiabad Deposit: Mehdi Abad Zinc Co. / UCL Resources Ltd.Shalkiya Deposit: ShalkiyaZinc Group

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BASE METALS RESEARCH #3 March 26, 2015 Pasinex Resources Ltd. CSE: PSE Frankfurt: PNX

The extremely high-grade zinc from Pinargozu re-presents a natural concentrate, a so-called DSO (“Direct Shipping Ore”), which can be shipped/sold directly after mining and crushing. Thanks to this rare circumstance, Pasinex differentiates itself from all known zinc explorer as no costly proces-sing facility is needed. Fortunately, Pasinex does not have to go through a time consuming and costly Feasibility Study. This is a crucial advantage, which I explained in more detail in the Initiating Coverage and Update #1. Not to forget the Turkish partner, who probably wants to make money as fast as possible as well, and who does not see the need for a time-robbing study thanks to their de-cade long experience in the region. Yet Akmetal probably appreciates highly the input from Pasi-nex for a systematic mining plan.

The results of 8 drill holes totaling 710 m length were released yesterday and are as follows:

4 of the 8 drill holes discovered extremely high-grade material with more than 25% zinc, whereas it strikes the eye that a very long intercept (36 m) is enriched with 38% zinc; including 32 m @ 42% zinc (hole PPS15-004). This intercept alone means that enough material may have been found to justify a multi-year mining operation. Most interestingly, and as noted earlier, this intercept is just 50 m from hole PSS14-008, which showed 31.4% zinc over 15 m (see news release February 19, 2015). Both these high-grade zinc zones are located at same elevation, thus mining with cost-effective under-ground methods may have become practicable.

The newsflow is anticipated to increase noticea-ble in the future as Pasinex is now exploring with 3 drill rigs at Pinargozu. Currently, more holes are drilled to find out what lies in the 50 m between those high-grade sections, both of which were dis-covered in 2015. A continuity of this high-grade

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BASE METALS RESEARCH #3 March 26, 2015 Pasinex Resources Ltd. CSE: PSE Frankfurt: PNX

material is imaginable and would instantly give Pinargozu an even larger resource. Already today, Pinargozu has the potential to become a second Horzum (the near-by Horzum Mine had an output of around 4 million tonnes high-grade zinc ore).

Pasinex also announced yesterday that diamond drilling started on its Akkaya Property (some 3 km to the north of Pinargozu) on March 14. Approxi-mately 14 holes for a total of 2000 m are planned for this initial phase of drilling at Akkaya.

The Pinargozu and Akkaya zinc projects, in Adana province, are managed within a joint venture with Akmetal. The region is known for high-grade zinc deposits. Akmetal’s past producing Horzum Mine operated between 1974-1996 producing up to 4 million tonnes of oxide zinc ore grading from 20% to 30% according to Akmetal’s former mine manager.

Pasinex has currently small-scale but high-grade zinc mining (>30% Zn DSO) from the Pinargozu project. In December 2014, a firm commitment to sell was valued at over US$1 million. Another 5,000 tonnes of high-grade zinc material (~30%) is in the process of being prepared for sale in Q2. After the announcement of yesterday’s news, Pasinex’s stock increased by 30% in Canada and is currently trading at 0.13 CAD giving the company a market valuation of 9 million CAD.

In respect to yesterday’s news and the fact that Pasinex is already producing zinc DSO for imme-diate sale, the mid- to long-term future appears bright for Pasinex, and me as a shareholder.

Despite spectacular drill results and an already commenced mining operation, Pasinex’s stock is still rather unknown on a global scale – and for such reason, short-term oriented investors should ref-rain from such a stock as it is still trading only spo-radically; a circumstance that may change any time since Pasinex is calling for attention with such for-midable results and progress on an ongoing basis.

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BASE METALS RESEARCH #3 March 26, 2015 Pasinex Resources Ltd. CSE: PSE Frankfurt: PNX

Disclaimer and Information on Forward Looking Statements:

All statements in this report, other than statements of historical fact should be considered forward-look-ing statements. Much of this report is comprised of statements of projection.

Statements in this report that are forward looking include that zinc prices are expected to rebound; that Pasinex Resources Ltd. can and will start devel-oping its projects into a mine; that historic or on-going exploration has or will discover a mineable deposit. These statements involve known and un-known risks, uncertainties and other factors that may cause actual results or events to differ materi-ally from those anticipated in these forward-looking statements. Risks and uncertainties respecting min-eral exploration companies are generally disclosed in the annual financial or other filing documents of Pasinex Resources Ltd. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report.

In addition, with respect to Pasinex Resources Ltd., a number of risks relate to any statement of projec-tion or forward statements, including among other risks: the receipt of all necessary financings, sales revenues, approvals and licences; the ability to con-clude a transaction, e.g. to sell mined material, build or expand a mine or fund further exploration, devel-opment and mining; uncertainty of future produc-tion, capital expenditures and other costs; financing and additional capital requirements for exploration, development and construction of a mine; the re-ceipt in a timely fashion of further permitting for its projects; legislative, political, social or economic developments in the jurisdictions in which Pasinex Resources Ltd. carries on business; operating or technical difficulties in connection with mining or de-velopment activities; the ability to keep key employ-ees, joint venture partners and operations financed.

There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Rockstone and the author of this report do not un-dertake any obligation to update any statements made in this report.

Disclosure of Interest and Advisory Cautions:

Nothing in this report should be construed as a solic-itation to buy or sell any securities mentioned. Rock-stone, its owners and the author of this report are not registered broker-dealers or financial advisors.

Before investing in any securities, you should con-sult with your financial advisor and a registered bro-ker-dealer. Never make an investment based solely on what you read in an online or printed report, in-cluding Rockstone’s report, especially if the invest-ment involves a small, thinly-traded company that isn’t well known.

The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu is to research and report on companies in which Zimtu has an investment. So while the au-thor of this report is not paid directly by Pasinex Re-sources Ltd., the author’s employer Zimtu will ben-efit from appreciation of Pasinex Resources Ltd.’s stock price. In addition, the author, Stephan Bogner, owns shares of Pasinex Resources Ltd. and would also benefit from volume and price appreciation of its stock. In some cases, the companies the author features have one or more common directors with Zimtu Capital Corp. Thus, conflicts of interests exist.

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BASE METALS RESEARCH #3 March 26, 2015 Pasinex Resources Ltd. CSE: PSE Frankfurt: PNX

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Underground drilling at Pinargozu

BASE METALS RESEARCH #3 Pasinex Resources Ltd. March 26, 2015