Gold. Energy & Tech Stocks a. Skeena Resources Ltd. Weekly Hotline Message (Now in our 36th Year) Dec. 1, Initial Coverage:

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1 J Taylor s D o w J o n e s / G o l d A n n u a l R e t u r n s 8 0 % Gold Percentage Gains/(Loss) 6 0 % 4 0 % 2 0 % 0 % D J IA % G o ld % % % Y e a r s Energy & Tech Stocks a Weekly Hotline Message (Now in our 36th Year) Dec. 1, 2017 Initial Coverage: Skeena Resources Ltd. Business: Exploring and developing gold, silver, and base metal projects in British Columbia. Flagship project is the Snip Mine. Key Director: Ron Netolitzky Traded Toronto: SKE USOTC: SKRED Shares Outstanding: 72.8 million Price 12/1/17: US$0.473 Market Cap: US34.4 million Mineral Resources (Spectrum & Porter Idaho only) 1 : See below Progress Rating: A2 Telephone: (604) Website: 1 Below find NI Resource at the Spectrum Project and historical silver resource from the Porter Idaho project. Skeena Resources Spectrum-GJ Copper-Gold Project alone justifies this company s current market cap, and with an April 2017 PEA completed on that project, qualifies it as a Progress A-2 company in this letter. And the company s Porter Idaho silver deposit at Stewart B.C. is an added attraction. But the main reason I m excited about this story is management s focus on the famous high-grade Snip Gold Mine in B.C. s Gold Triangle. Skeena holds a 100% interest in the Snip Mine, which produced 1.1 million ounces of gold at an average grade of 27.5 g/t from 1991 to Barrick has retained either a 1% net smelter return royalty ( NSR ) on the property, or, subject to Skeena delineating in excess of 2 million ounces of gold, Barrick may, within twelve months after notification, exercise the right to purchase a 51% interest in the

2 2 property in exchange for paying the Company three times the costs incurred by the Company in exploring the property, following which the parties would form a joint venture and Barrick would relinquish its 1% NSR. An additional 3% NSR is payable on high grade gold extracted from ore containing at least 0.3 ounces per ton. Typical is the drill core drilled by Skeena pictured on the prior page. Historical results, which this drill hole aims to duplicate, graded g/t gold over 6.2 meters. It should be noted that Skeena acquired its interest in the Snip Mine at a very opportune time, which allowed it to pick up this very attractive asset for a mere C$246,250 in stock and a $2 million work commitment that has been exceeded, thereby providing Skeena with a 100% interest in the Snip Mine. While this project does not currently have a resource outlined on it, I believe investors are going to be very surprised in the near future when a significant high-grade resource is announced at Snip. I say that because Skeena has a huge amount of drill data to work with from drilling that occurred before Skeena s involvement with the property. For example, there are some 280,000 meters of surface and underground drill data that management is currently using to construct a resource. Some of the current drilling, which will take place during the winter from underground, will be carried out to confirm gold mineralization left behind, shown in the yellow/grey blocks in the 3-D picture displayed above. Other drilling will be carried out to close the open gaps seen in the model above, especially to the east. Because such high grades were required in those days to mine profitably, drilling simply didn t take place in those gaps. The potential to add ounces to the east as well as at depth below the 300 Portal are considered highly likely. I would call your attention to the picture of underground mineralization in the illustration above that shows highgrade gold mineralization left behind in At that time, mining ceased due to low gold prices. When Barrick put the project into production in 1991, gold was selling at $400/oz., but by 1999 it had fallen to $260. Not only did a plunging gold price damage the Snip s economics, but at that time there was far less infrastructure in place. Diesel power had to be used when the mine was last in production. Now a new 287 kv power line supplies low-cost power with the Forrest Kerr & McLymont Creek Power Station within 17 km of Snip. When the mine closed in 1999, Barrick had to increase the cutoff grade to an astoundingly high 24 g/t! Given lower power costs and much higher gold prices now, Skeena believes it should be able to make money with a cut off grade of 5-6 g/t and an average grade of g/t, compared to the average of over 27 g/t when the mine was last producing. It will be very interesting to see what a much lower cutoff and average grade will mean in terms of the total number of mineable ounces. Underground Drilling While most projects in the Golden Triangle have to cease operations through the winter, with 8,435 meters of underground ramps in place Skeena can keep the news flow coming our way through the winter into the spring. Underground drilling has been implemented this year with the intention of confirming and extending gold mineralization left

3 3 behind by the previous operator in the Twin Zone and footwall vein structures, including the 150 and 130 veins, the 412 Zone, and the 200 Footwall Zone. Due to the wider nature of the Twin Zone, which varied from one to 13 metres in thickness, and historical gold prices that averaged $350 (U.S.) per ounce when the mine was in production, the former operator focused on the thicker, higher-grade portions of the Twin Zone and the easiest-to-reach portions of the footwall structures. The footwall structures (150 and 130 veins) were supplemental production accessed by the ramp system, which was mainly designed to exploit the Twin Zone. These near-ramp footwall structures were readily accessible and where continuity of their resource fit the required cut-off grade at the then current gold price, portions of these footwall structures were mined. Underground drilling this year has been focused on identifying the remaining unmined mineralized material, below the 24 g/t gold cut-off grade that existed when the mine closed, in these-near ramp footwall structures and in the Twin Zone. Historical surface sampling was reviewed in conjunction with underground drilling from the 1990s, which vectored Skeena's geologists in 2016 to test a structure located 200 metres into the footwall from the Twin Zone. This resulted in the intersection by hole S of g/t gold over 13.5 metres and the newly discovered 200 Footwall Zone. Underground drilling in 2017 will aim to expand the 200 Footwall Zone and show continuity between it and the historically defined 412 Zone. Do you see why I find the Snip Mine an exciting story? When management pulls together past data of high-grade sections of gold mineralization left behind, with ongoing drilling through the winter months, unless I miss my guess we should be looking forward to a gold resource at Snip in the not-too-distant future that catches most gold share investors off guard. Stay tuned! The Spectrum GJ Project All three of Skeena s projects are in located in the Golden Triangle of British Columbia, the locations of which are displayed on your left. The gold, silver, and copper resource of the Spectrum-GJ Project are set out on the first page of this report. The results of a PEA that was completed in April of this year are displayed below. With copper being the most significant metal in this project and with its price now somewhere between the Upside Case #1 of $3.00 per pound and Upside Case #2 at $3.25, and with gold and silver pretty much at Base Case levels, the project appears to be reasonably strong. Under the base case, an 8% discount was used to provide a pre-tax value of $ million and a $ million value after taxes. An internal rate of return of 26.6% pre-tax and 20.6% post-tax was calculated. Built into those economic metrics were preproduction capital costs of C$216 million and sustaining capital costs of $ million over a 25-year mine life. Positive factors for the economics of this open-pit project are a low stripping ratio as well as excellent proximity to power and other basic infrastructure. The project with it brings excellent exploration potential that management believes may actually

4 4 serve to improve the PEA economics. Whatever the case, the Spectrum-GJ Project appears to provide considerable value that I believe is not at all factored into the market s valuation of Skeena. The Porter Idaho Project Still another project that Skeena picked up at fire sale prices was the Porter Idaho Silver Mine, which has nearly 13 million ounces of silver at an average grade of around 27 ounces of silver per ton. This long-sought-after project had been in the hands of an oil gas family, who for personal reasons decided they no longer wished to own or lease it out. Skeena acquired this old mine for 2,653,958 shares valued at $4.1 million. What is exciting about this project is that management believes this silver mineralization extends all the way through the mountain over a 2km strike length. If so, management estimates this project could host between 100 million and 150 million ounces of high-grade silver. While this project and the Spectrum-GJ Copper-Gold Project are not the main focus of the company at this time, they are two assets and neither one is factored into the company s current market cap. But either or both could be very valuable in the future, either in the hands of Skeena with a joint venture partner earning in or by a sale at the right time. It is my understanding that one major mining company has expressed a strong interest in the Porter Idaho Project and that with the increase in copper prices some interest has also been expressed toward the Spectrum-GJ Copper-Gold Project as well. MANAGEMENT Ron Netolitzky - Mr. Netolitzky has been very successful in mining exploration with over 30 years of experience and having been directly associated with three major gold discoveries in Canada that have subsequently been put into production: Eskay Creek, Snip and Brewery Creek. He is a director of several publicly traded exploration companies. Mr. Netolitzky has been honored with the Prospector of the Year award from the PDAC, and Developer of the Year award from the BC & Yukon Chamber of Mines. In 2015, he was inducted into the Canadian Mining Hall of Fame. Walter Coles, Jr. - Mr. Coles has served as CEO and President for several Toronto Venture Stock Exchange listed junior mining exploration and development companies, throughout the past seven years. Mr. Coles entered the mining business as part of an effort to develop a mineral resource discovered on family farmland in Virginia. He was previously an analyst for Cadence Investment Partners, from 2005 through to Prior to that Mr. Coles worked for UBS Investment Bank in New York as a Senior Research Analyst in the bank s High Yield Group. Mr. Coles started at UBS Investment Bank in 1999 as an Associate reporting to the bank s Global Head of Fixed Income Strategy. Mr. Coles holds a B.A. in Economics from the University of Richmond. Peter Tredger - Mr. Tredger is a professional engineer with 45 years of mining industry experience, including executive management positions with Thompson Creek Metals Company Inc. from 2006 to 2008, Blue Pearl Mining Inc. (now Thompson Creek) from 2004 to 2006, Glencairn Gold Corp. (now B2Gold Corp.) from 2002 to 2004, and Wheaton River Minerals Ltd. (now Goldcorp Inc.) from 1992 to Previously, Mr. Tredger was an independent mining consultant, and for 11 years was employed by Amax Inc. in a variety of technical and management positions, prior to which he was an exploration geologist. Mr. Tredger has more than 25 years experience as a public company director of several Canadian and Australian listed mining companies. J. Rupert Allan - Mr. Allan is a consulting geologist with 45 years experience in base and precious metals exploration throughout Canada and internationally. He has worked extensively in northwest British Columbia and was instrumental in the permitting and development of the Brewery Creek heap leach gold mine in the Yukon.

5 5 Craig Parry - Mr. Parry is a geologist and has served as CEO and President for several Australian and Toronto Venture Stock Exchange listed mining companies. He is currently the President & CEO of IsoEnergy Ltd. and is also a co-founder and director of NexGen Energy Ltd. and a Senior Advisor and a founding-shareholder of EMR Capital. He holds an Honours Degree in Geology from the University of New South Wales and is a Member of the Australian Institute of Mining and Metallurgy. Don Siemens - Mr. Siemens is an independent financial advisor specializing in corporate finance, cross-border transactions and mergers and acquisitions with over 30 years of experience as a Chartered Accountant. Previously, he was Partner-in-Charge of Thorne Ernst & Whinney s (now KPMG) Vancouver office Financial Advisory Services Group. Mr. Siemens currently serves as Director and Audit Committee Chair for Arizona Mining Inc., Atlantic Gold Corporation, Eros Resources Corp., Epicore BioNetworks Inc. and Hansa Resources Limited. Operating Management Walter Coles, Jr. President, Chief Executive Officer & Director See above Andrew MacRitchie, CPA, CA - Chief Financial Officer & Corporate Secretary - Mr. MacRitchie is a Chartered Public Accountant who has held management roles in several TSX Venture-listed mining companies over his 16- year career. During that period, he has assisted those companies in raising more than $100 million. He began his career with PricewaterhouseCoopers and has since gathered experience working on gold, silver, diamond and basemetals projects in North America, South America, and Africa. J. Rupert Allan, B. Sc., P. Geol. - Vice President, Exploration See Above. Kelly Earle, B. Sc. Geol., CPIR - Vice President, Communications - Ms. Earle is an Investor Relations professional and a geologist. Ms. Earle spent several years in the field prior to making the transition into the corporate side of the industry, including a season in the Yukon with Northern Freegold Resources and running a step-out drill program for Hunter Dickinson at the Gibraltar copper-molybdenum mine in Northern BC. She received her Bachelor of Science in Geology from the University of British Columbia and her Certified Professional Investor Relations designation from the Ivey School of Business at Western University. Justin Himmelright, B. Sc., M. Eng. - Vice President, Sustainability - Mr. Himmelright has over 25 years of experience in environmental management and developing social licence for natural resource projects. He s a graduate of Simon Fraser University (B.Sc.) and the University of British Columbia (M. Eng.) and is a Registered Professional Biologist in BC. Mr. Himmelright previously served as Vice President responsible for sustainability matters for several publicly listed companies and has also worked as a consultant to Indigenous communities on mining proposals within their Territories and with non-profit organizations. He s a former Board member of the Yukon Mine Training Association and the Autism Society of BC and is currently an associate instructor at the Norman Keevil Institute of Mining Engineering (UBC) on the topic of Indigenous peoples and mining in Canada. Ron Nichols, B. Sc., P. Eng. - Chief Geologist - Mr. Nichols worked as a geologist for Cominco Ltd. from 1967 until During his 23 years with Cominco, Mr. Nichols led numerous advanced exploration projects throughout Canada, Greenland and South America. Mr. Nichols also has direct experience in the transitioning projects from exploration to development. Examples include the Valley Copper and the Snip mines in British Columbia, as well as the Black Angel mine in Greenland. After Cominco, Mr. Nichols became a partner in Keewatin Engineering where he managed exploration projects in Western Canada for junior exploration companies associated with Ron Netolitzky. Graham Giles, M. Sc., P. Geo. - Senior Project Geologist - Mr. Giles is a registered professional geoscientist with APEGBC. He combines experience as both an exploration geologist and a GIS/data modeler, and previously worked with Stratton Resources, Keegan Resources, Brett Resources, Redcorp and several geological consulting firms on a variety of domestic and international projects. Mr. Giles holds a B. Sc. in Earth and Environmental Science from the University of British Columbia and a M. Sc. in Mineral Economics from the Curtin Graduate School of Business.

6 The Bottom Line 6 Very quietly behind the scenes management has been acquiring valuable assets in the Golden Triangle at bargain basement prices that are benefitting now not only from higher metal prices but also from improved infrastructure. This company has kept a low profile until after it restructured its equity with a 1-for-10 rollback. Since then the stock has held up well despite massive assay delays and the tax loss selling season that is upon us. No doubt some of the solidity results from the fact that about 60% to 70% of the stock is held by institutions, and management owns around 13%. So, the public float is small. But more importantly and more lasting in terms of the value of this company is the quality of its assets, which collectively exceed the market cap of Skeena by a wide margin. The drivers for this company into 2018 will be a significant flow of assay results from 2017 and then from underground drilling aimed at verifying past drilling as well as filling in the gaps seen in the illustration on the first page of this report. Sometime in 2018, most likely during the second half of the year, we should be treated to a resource from the Snip Project. But there could also be some other catalysts for these shares, like a deal or two for the Porter Idaho Silver Project or the Spectrum-GJ Copper-Gold Project. With the promotional savvy of Ron Netolitzky behind this company, as this story becomes more widely known and as high-grade drill intercepts are reported (which I think is highly likely) into a stronger metals market in 2018 (which I also expect), anyone buying these shares should not be disappointed. J Taylor s Gold, Energy & Tech Stocks (JTGETS), is published monthly as a copyright publication of Taylor Hard Money Advisors, Inc. (THMA), Tel.: (718) Website: THMA provides investment ideas solely on a paid subscription basis. Companies are selected for presentation in JTGETS strictly on their merits as perceived by THMA. No fee is charged to the company for inclusion. The currency used in this publication is the U.S. dollar unless otherwise noted. The material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. The information contained herein is based on sources, which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available information. Any opinions expressed are subject to change without notice. The editor, his family and associates and THMA are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the company mentioned above. Under copyright law, and upon their request companies mentioned in JTGETS, from time to time pay THMA a fee of $250 to $500 per page for the right to reprint articles that are otherwise restricted solely for the benefit of paid subscribers to JTGETS. To Subscribe to J Taylor s Gold, Energy & Tech Stocks Visit: Receive J Taylor s Gold, Energy & Tech Stocks monthly newsletter and weekly messages for the period of your choice (U.S. and Canada). For foreign postal delivery contact us at below. Return to: PO Box , Maspeth, NY 11378, USA. Phone or Fax: , questions4rtaylor@gmail.com (Make check payable in US$ to Taylor Hard Money Advisors, Inc.) Please Select Subscription: delivery only (Monthly and Weekly Message): One-year US $ three-months US $69.00 U. S. Mail Delivery of monthly newsletter only (Weekly message by only): One-year US $ three-months US $84.00 Name Address City State/Prov. Zip/Postal Code Telephone Fax Primary Secondary Card Number Signature Check Visa MasterCard Discover Exp. 3-digit Code (Last 3 digits of the number found on the back of your credit card, below your signature)