July 6, 2016

Research #13Gold Mining in BrazilNickel Exploration in Canada

Trenching Discovers High-Grade Gold at Surface – Assays from 31 Holes PendingToday, Equitas Resources Corp. released assay results from trenching activities at its 100% owned Cajueiro Gold Project in the Brazilian states Para and Mato Grosso. The results revealed high-grade gold mineralization at surface: 24 g/t, 19 g/t and 5.5 g/t over 2 m each in 3 separate trenches. Most of the assays from 9 trenches have been received, ranging from 1.16 to 24.26 g/t gold, including a broader near-surface interval of 1.42 g/t over 12 m. This is significant when considering that most gold open pits worldwide operate with average grades between 0.7 and 2 g/t. The significance of today’s results are perfectly summed up by VP Exploration, Everett Makela: “All eight of the intersections achieved to date are worthy of follow-up, as the saprolite can be directly excavated on surface and trucked to a processing plant, without the need for drilling and blasting.” The Baldo Zone is already in moderate sluice-box production, set to expand significantly with plans for a new gravity and CIL processing plant. The current exploration program has been designed to increase resources and provide further information to support open-pit development. If today’s results are any indication, the best could be yet to come: 31 HQ holes have been recently drilled with assays pending. As a result of today’s assays, management has announced that they intend to expand the current drilling program.

Company Details

Equitas Resources Corp.1450 - 789 W Pender StreetVancouver, BC, Canada V6C 1H2Phone: +1 604 681 1568 Email: skingsley@equitasresources.comwww.equitasresources.com

Shares Issued & Outstanding: 213,819,243

Canadian Symbol (TSX.V): EQTCurrent Price: $0.085 CAD (July 5, 2016)Market Capitalization: $18 million CAD

German Symbol / WN: T6UN / A12CWKCurrent Price: €0.046 EUR (July 5, 2016)Market Capitalization: €10 million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

2

oday’s initial results from Equitas’ exploration program on its newly acquired Cajueiro

Property are surprisingly high-grade, or as Equitas put it: “The program has significantly changed the interpretation of prospective altered and mineralized structures in the target area, as shown in Figure 2 below.”

To date, 1,680 m of trenching in 9 trenches and 31 HQ diamond drill holes totaling 1,585 m (51 m per hole on average) have been completed in the Baldo target area. Assays from 24 trench samples are still pending. Assays from all 31 drill holes are pending. More work, including diamond drilling, auger drilling and trenching, is set to commence. Thus, an increased flow of updates from the activities, including assays, is expected over the short-term, potentially hand in hand with a further appreciation of gold prices.

Chris Harris, President and CEO of Equitas, said today: “We are very encouraged by the strong trenching results from the Baldo area, with results ranging from 1.16 g/t Au up to 24.26 g/t Au. This provides good support for the Company’s focus on fast track gold production and potential for further upgrading of the resource. The team has completed the initial exploration programme on time, and on budget, and with these exciting results we have decided to extend our drilling programme. We are well positioned for further news with all of our drilling results yet to come in.”

Everett Makela, VP Exploration, added: “Results so far have confirmed our expectation that the oxidized saprolite component of the bedrock mineralization at Baldo is host to significant gold concentrations. All eight of the intersections achieved to date are worthy of follow-up, as the saprolite can be directly excavated on surface and trucked to a processing plant, without the need for drilling and blasting. The high grade intervals in trenches TCBL_0003 and TCBL_0004 appear to represent a corresponding increase in structural complexity that adds an exciting new element to

the Baldo environment. I would also emphasize that a majority of the assay results have yet to be received, so there is considerable new information still to come from this exploration program.”

Interestingly, the goal of the initial exploration program was to prove the oxide potential of the Baldo deposit as, until now, only the alluvium has been

mined sporadically. Previous mapping and surface sampling has revealed the Baldo area as host to widespread gold mineralization in the saprolite.

To date, 3 additional target signatures similar to the current focus area have been identified. Targets will be reviewed in detail and ranked in preparation for upcoming exploration programs.

Research #13 | Equitas Resources Corp.

T

Figure 1: Baldo Target at the Cajueiro Project

Prospecting for alluvials at the Baldo Zone in June 2016

3

The trenching program targeted gold mineralization in the near-surface saprolite (the oxidized equivalent of hydrothermally altered bedrock structures hosting gold mineralization with associated pyrite and quartz veining).

Assays received to date (for trenches #1 to #5 inclusive a portion of #6 and #7)have identified 8 discrete intervals of interest, as listed in the table below:

Observations of the high grade areas in trenches #3 and #4 indicate that this mineralization and associated alteration may have been focused by a combination of NE and EW deformation events. Further delineation of the high-grade intervals is in progress with diamond drilling, auger drilling and

trench sampling. Final results and an updated structural interpretation will be announced when completed. It is anticipated that a follow-up program of resource definition and further exploration will commence once all results have been received and incorporated into the model.

Fast Track to Gold Production

Last month, Equitas signed a long-term funding term sheet for $6 million USD ($5 million a revolving gold prepay and a $1 million equity financing) from the well-reputed private equity fund Car-tesian Capital Group (founders of AIG Capital). Cartesian showed great long-term support as their equity portion is locked up for 18 months. Hence, this funding partnership gives Equitas the ability to grow their gold production as rapidly as they choose to. With the re-volving factor in place, this could give Equitas the opportunity of possibly ac-quiring other near-term gold projects nearby.

This year Equitas plans on constructing a gravity and CIL plant, and sometime next year they plan to mutiply these plants on

other zones of the Cajueiro Project. The processing plants should increase gold output significantly and could lift the company to a strong/positive cash-flow position. In Equitas’ corporate presenta-tion they state that the first gravity plant will put the company at a self-sustaining position. The production from the CIL plant is projected to put the company into a cash-flow position from where they can then grow organically.

With assays from 31 drill holes pending, metallurgical results from a 100 kg sam-ple of gold-mineralized saprolite; addi-tional drilling and trenching, the exciting times are just getting started for Equitas and its shareholders.

As noted in “Ready to make money as an incrementally growing gold miner” (April 27, 2016):

The gravity plant is expected to cost $300,000 USD and has a general produc-tion capacity of roughly 3,000 ounces (“oz”) of gold annually. Hence with gold selling for $1,200 USD, Equitas could generate $300,000 USD monthly. The annual production capacity of a CIL plant (~$2 million USD) is roughly between

Research #13 | Equitas Resources Corp.

Trench From (m)

To (m)

Interval (m)

Gold (g/t)

#1 47 49 2 1.16incl. 60 72 12 1.4#3 23 28 5 1.26

incl. 167 171 4 2.12incl. 197 199 2 24.26#4 146 148 2 5.54

incl. 173 175 2 18.86#6 31 38 7 1.57

Initial assays as released July 6, 2016

> 1g/t gold intervals achieved to date in saprolite @ Baldo Zone (Cajueiro Property)

Figure 2: Plan view of Baldo target area with new geological interpretation, trenches, drill hole traces and current intersections of interest

4

10,000 and 12,000 oz of gold.Potentially, 1 CIL plant and 1-2 gravity plants could be added each year for the next 4 years, resulting in an annual out-put of >60,000 oz.

This significant production growth po-tential over the next few years is provid-ing shareholders with an exciting oppor-tunity.

According to an interview between Chris Parry and Equitas’ CEO Chris Harris, Bra-zil now offers tremendous opportunities, especially for such low-cost, close to sur-face, open pit gold deposits amenable for rapid development and expansion.

For example, Equitas’ drilling costs cur-rently stand at less than $100 USD per meter (a fraction of the costs a few years ago or when compared to North Amer-ica), whereas the capital costs for the gravity plant are said to have fallen by more than 50% over the last year.

Such cost compressions in Brazil will re-sult in much faster payback periods and higher profitability.

Water is readily available from a nearby river, whereas a new hydro dam will sup-ply the area with cheap electricity within the next 2 years, which may drive down the mine’s operating costs significantly and potentially make this area a world-class mining district, in which Equitas now controls major land holdings.

The recently secured funding could part-ly be used for new acquisition opportun-ities in Brazil.

Equitas’ team in Brazil is highly experi-enced in gold exploration, development and mining, with a strong track-record in South America including Brazil.

Major milestones ahead

First, Equitas will acquire and install a gravity plant to process the saprolite mineralization from the Baldo Zone. Once permits and the necessary supply agreements are in hand, the second phase of the plan envisions the construction of a CIL plant between the Baldo and Crente Zones. These 2 zones

are less than 1 km apart. Initial metallurgical test work indicates that in excess of 85% gold recovery can be achieved through gravity separation and cyanide leaching.

The 3rd phase would be to increase production Cajueiro under a full production licence. Rockstone expects that this could be funded through

Research #14 | Equitas Resources Corp.

Above: Core from sulphide-oxide transition zone, Baldo June 2016Below left: Richard Crew and VP Exploration Everett Makela at Layne drill rig, Baldo June 2016Below right: Everett Makela reviews Baldo core, June 2016

5

operating cash-flows. This could mean that no further equity dilution is targeted. To achieve this, the plan is to put the Baldo and Crente Zones into dual production through CIL and gravity plants.

While Baldo already produces gold with a “modest” rate, Crente is set to be tied into the Baldo production.

Other target areas on Cajueiro are also highly prospective, with previous artisanal mining activity across the property.

The Juruena gold belt has historic artisanal regional gold production of 7-10 million oz and its considered a recognized mining friendly jurisdiction.

Several major miners have an active presence (e.g. Vale, Anglo, BHP Billiton, Anglogold, Kinross).

Brazil owns the 7th largest gold reserves globally. The country produced >$6.5 billion worth of gold in 2012, yet a large proportion of the country is under-explored and as such is offering a distinguished opportunity through the use of modern exploration and mining technologies.

Brazil is ranked 3/12 of its regional countries for doing good business. Brazil is the world’s 6th largest economy and 5th largest by population. It is rated investment grade by both S&P and Moody’s.

Net inflows of foreign investment have increased by a factor of >5 (from $12 billion in 2003 to $67 billion in 2011). Brazilian mining law includes a 1% royalty fee on gold, transparent title and highly competitive tax rates. Brazil’s economy has been on a downtrend for a handful of years.

Rockstone believes this all makes for a very rare and exceptional opportunity to rapidly develop, grow and acquire additional projects within Central Brazil.

Research #14 | Equitas Resources Corp.

Above: Trench reclamation at the Baldo Zone in June 2016Below: Drilling on the Cajueiro Property

6

Above left and right: Trenching and trench sampling at the Baldo Zone in June 2016

Below: Everett Makela examining trench excavation in June 2016

Research #14 | Equitas Resources Corp.

7

About Equitas Resources Corp.

Equitas Resources Corp.’s objective is to create shareholder value through new mineral discoveries and through expansion of current gold mining operations.

Previous Coverage:

Research #12 “Equitas secures innovative funding for an unique opportunity“ (June 7, 2016)

Research #11 “Equitas starts drilling to prove up more gold for production“ (May 26, 2016)

Research #10 “Ready to make money as an incrementally growing gold miner“ (April 27, 2016)

Research #9 “Equitas Acquires Turnkey Gold Mine For Near-Term Cash Flow Growth Whi-le Getting Ready For Garland Nickel Explora-tion“ (January 15, 2016)

Research #8 “The Pathway To Discovery“ (December 16, 2015)

Research #7 “Voisey‘s Bay 2.0“ (October 21, 2015)

Research #6 “Equitas Starts Drilling and Triggers Buying Rush“ (September 24, 2015)

Research #5 “Kingsley Arrives at Equitas‘ Garland Base Camp“ (September 10, 2015)

Research #4 “Early Warning Report on Equitas Resources“ (September 2, 2015)

Research #3 “Beyond Our Wildest Dreams (Revisited)“ (June 26, 2015)

Research #2 “King & Makela Identify 9 Knock-Your-Socks-Off-Targets near Voisey`s Bay Nickel Mine“ (May 13, 2015)

Research #1 “Vale Vale! Ex-Vale‘s Principal Geologist and Chief Geophysicist on the Case to Answer the Multi-Billion-Dollar-Question“ (April 20, 2015)

Research #13 | Equitas Resources Corp.

Source: Equitas Resources Corp. corporate presentation (June 2016)

8

Disclaimer and Information on Forward Looking Statements:All statements in this report, other than statements of historical fact should be con-sidered forward-looking statements. Much of this report is comprised of statements of projection. Statements in this report that are forward looking include that base and precious metal prices are expected to rebound; that Equitas Resources Corp. or its partner(s) can and will start exploring further; that exploration has or will discov-er a mineable deposit; that the company can raise sufficient funds; that any of the mentioned mineralization indications or estimates are valid or economic. Such state-ments involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ ma-terially from those anticipated in these for-ward-looking statements. Risks and uncer-tainties respecting mineral exploration and mining companies are generally disclosed in the annual financial or other filing docu-ments of Equitas Resources Corp. and similar companies as filed with the relevant secur-ities commissions, and should be reviewed by any reader of this report. In addition, with respect to Equitas Resources Corp., a number of risks relate to any statement of projection or forward statements, including among other risks: closing of the proposed transaction with Alta Floresta Gold Ltd.; the receipt of all necessary approvals and per-mits; the ability to conclude a transaction to start or continue exploration; uncertainty of future base and precious metal prices, cap-ital expenditures and other costs; financings and additional capital requirements for ex-ploration, development, construction, and operating of a mine; the receipt in a timely fashion of further permitting for its legisla-tive, political, social or economic develop-ments in the jurisdictions in which Equitas Resources Corp. carries on business; oper-ating or technical difficulties in connection with mining or development activities; the ability to keep key employees, joint-venture partner(s), 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 infor-mation. Rockstone and the author of this report do not undertake 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 solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are not registered broker-dealers or financial advisors. Be-fore investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an in-vestment based solely on what you read in an online or printed report, including Rock-stone’s report, especially if the investment 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 Equitas Resources Corp., the author’s em-ployer Zimtu will benefit from appreciation of Equitas Resources Corp.’s stock price. The author does NOT own any shares or other kinds of interests or securities of Equitas Resources Corp., however he owns shares of Zimtu Capital Corp. and thus would also benefit from volume and price apprecia-tion of its stocks (Zimtu owns ~6.4 million common shares and ~10.9 million share purchase warrants of Equitas Resources Corp.). The company may have one or more common directors with Zimtu Capital Corp. Thus, multiple conflicts of interests exist. Therefore, the information provided here-within should not be construed as a finan-cial analysis but rather as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Equitas Resources Corp. has not reviewed this content prior to publication. Rockstone and the author of this report do not guarantee the accuracy, complete-ness, or usefulness of any content of this report, nor its fitness for any particular pur-pose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other compan-ies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaim-er, do not access this website or any of its pages including this report in form of a PDF.

Analyst Profile and Contact:

Stephan Bogner (Dipl. Kfm., FH)Mining Analyst Rockstone Research 8050 Zurich, Switzerland+41-44-5862323sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London)

and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller („Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual research reports receive a background in order for the reader to be inspired to conduct further due diligence. All research from our house is being made accessible to private and institutional investors free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

For more information and sign-up for free newsletter, please visit: www.rockstone-research.com

Research #13 | Equitas Resources Corp.