PROSPECTOR AGREES TO ACQUIRE GOLD PROSPECTS IN PERU FROM MILPO

For Immediate Release

April 11, 2017

Prospector Resources Corp.'s wholly owned subsidiary, Rio2 Exploraciones SAC, has entered into a mining assignment and option agreement with Compania Minera Milpo SAA, pursuant to which Rio2 has the right and option to acquire all rights and interests in seven gold exploration prospects totalling approximately 19,000 hectares in Peru.

Transaction highlights

• Rio2 is required to incur a total of $5-million (U.S.) in exploration expenditures on the portfolio over a 36-month period.

• To exercise the option and acquire the portfolio, Rio2 is required to complete the $5-million (U.S.) investment within the specified time period, after which it will grant Milpo a 2-per-cent net smelter return royalty over the portfolio.

• If the 36-month option is exercised, Rio2 will have an additional three years to deliver a feasibility study or express its decision to start mining a project.

Rio2 is currently in the process of conducting field visits to each of the gold prospects in the portfolio to facilitate planning for the first 12 months of exploration.

"We are pleased that Milpo, a well-established Peruvian polymetallic miner, has entrusted Rio2 to explore ways to unlock value in this gold exploration portfolio. This transaction will form the foundation for Rio2 to continue looking for opportunities to partner with Latin American and international mining groups to further surface value from operating mines and exploration assets," commented Jose Luis Martinez, executive vice-president, corporate development and strategy.

About Milpo

Compañía Minera Milpo S.A.A. (“Milpo”) is a Peruvian mining company dedicated to the exploration, extraction, processing and marketing of zinc, copper and lead concentrates, with silver and gold content, and it is currently one of the main poly-metallic producers in Peru. Milpo develops its operations with a clear social responsibility and environmental commitment. Since 2010, Milpo is part of VM Holding S.A. (VMH), the metals and mining business of Votorantim S.A., a privately owned Brazilian company with almost 100 years of history and presence in many key sectors of the economy across more than 23 countries.

About Prospector

The focus of Prospector is to compile an attractive portfolio of precious metals assets that can be developed into mines and to assemble a highly experienced technical and corporate management team with a solid experience base of developing and building mines in South America, Central America and South America. Through its strategy of evaluating and acquiring precious metals projects and through a combination of organic exploration, project development and strategic acquisitions, the new management team intends to grow the recapitalized Prospector and create long-term shareholder value through the development of high-margin, strong free-cash-flowing mining operations.

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.

CONTACT INFORMATION

Alex Black

Chief Executive Officer

alexb@rio2mining.com +1 (416) 570-3155