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Kenadyr Mining (TSX-V: KEN) President Bryan Slusarchuk Moves Quickly and Commences Drilling at the South Zone of the Borubai Gold Project

May 18, 2017

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of Kenadyr Mining (TSX-V: KEN)(OTC: KNDYF), Mr. Bryan Slusarchuk. Bryan, thank you for joining me this afternoon.

Bryan Slusarchuk: Gerardo, thanks a lot for having me on.

Gerardo Del Real: It's been a busy month for you, and we got some pretty good news yesterday. You commenced drilling at the South Zone early, and I know the market received it pretty well. Can you share the details for us?

Bryan Slusarchuk: Absolutely. Alex Becker, who's the CEO of Kenadyr, established early on that he wanted to make sure that we under-promised and over-delivered. And that's really what Alex and his team have done over the past couple of days. We started to drill the high-impact South Zone well ahead of schedule, well ahead of what was promised to the market, and that's a testament to Alex and the drill contractors at QED. This South Zone, Gerardo, as your listeners will know, is the zone that has connectivity of mineralization to Zijin's PDL mine.

Gerardo Del Real: And just to provide some context, it not only has mineralization, but it has some high-grade historical results that I think should get everybody that likes catalysts over the summertime and over the course of the summer doldrums. We are expecting some high-grade results from these zones. Is that correct?

Bryan Slusarchuk: That's right, Gerardo. This is a zone that had extensive past Soviet drilling. There was a historical estimate of 900,000 ounces at 8.3 grams per tonne gold. So it's already known to be a large potential target. It's a high-grade potential target. It's wide open in every direction, strongly mineralized at the extent of all drilling. So we also believe it has the potential to get larger yet. At the same time, even though those historical estimates of grade are very high, we also believe there's very good potential to get increased grade. The reason for that is that modern drilling in the area has shown that you get superior grade by use of Fire Assays versus ICP analysis, and at the same time, the core recoveries during the Soviet era drilling were very poor, 40, 50 percent, averaging 60 percent, and preferentially poor in the softer areas of the zone associated with high-grade mineralization. With modern drilling techniques, you'll really improve those core recoveries, and therefore the propensity for higher grades yet is very much evident.

Gerardo Del Real: Excellent. Now, I understand that the target depth of the initial drill holes approximately 850 meters. Is that correct?

Bryan Slusarchuk: That's correct. 850 meters from surface. The drill is turning now. This isn't the only area of mineralization on the property, as you know. It's not the only high-grade target, but it's a very important one. Remember, Kenadyr surrounds the Zijin operation. We surround a super major's existing mine. A mine and mill that they recently invested $300 million dollars into, to put into production. That's why the South Zone is just so exciting to drill. If we were drilling this type of target anywhere in the world, it would be compelling. Drilling it right next door to a super major, makes it all the more exciting for all of our investors, Gerardo.

Gerardo Del Real: Bryan, thank you so much for the update. To provide a bit more context you mentioned the $300 million dollar investment. Can you provide the market cap right now for Kenadyr?

Bryan Slusarchuk: The market cap for Kenadyr is in the $50 to $55 million dollar range. It's very early days. You always do a great job as to bringing these stories to your listeners early, and that's what this is. We've been publicly traded on the TSX Venture, KEN is the symbol, for right around one month. And the drill just started to turn. So this is early days. And with that, you have the market cap at a discount to the peer group, quite substantially. So I think there's a real opportunity here.

Gerardo Del Real: Wonderful. And cash position, Bryan, how are we there? I remember that you don't have any debt. Cash position's still healthy?

Bryan Slusarchuk: Absolutely. We have no debt. No large payments pending. We have 100 percent of this project and we have $7 million dollars plus cash. So we're in a great position balance sheet wise, and that's where you want to be when you start a drill program.

Gerardo Del Real: Absolutely. Bryan, I want to thank you again for your time. I encourage everybody to go to Kenadyr's website and get familiar with some of those historical results, because if they come in anywhere near that, it should be a pretty exciting summer. The website is kenadyr.com. That's kenadyr.com. Bryan, thank you for your time today.

Bryan Slusarchuk: Thank you, Gerardo. 

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