Chairman's Message

ELN Chairman's Message Winter 2018

Winter 2018

Dear Shareholders: 

On behalf of the Board of Directors, I am pleased to update you on the Business Plan for El Niņo Ventures Inc., its progress to date, in 2017, and our Goals and Objectives for the balance of this year and beyond. El Niņo Ventures Inc. is an Exploration Company, recently focused on Exploration for Zinc, Lead, Copper and Silver, in New Brunswick, Canada. The Board of Directors has agreed to Management's request to look at diversifying the Company into Precious Metals and/or other Commodities.

The Company made a decision to sell, by way of option, the Company's Minority Interest, in our Option/Joint Venture, with Votorantim Metals Canada Inc., on our Murray Brook Polymetallic Project:

Harry Barr
Chairman & CEO

By mutual agreement on May 10, 2017, El Niņo Ventures Inc. and Puma Exploration Inc. ("Puma") have agreed to modify the original payment terms of their asset purchase agreement. Thus, the initial payment to El Niņo was modified to a cash payment of an aggregate of $300,000, which includes a non-refundable deposit, the issuance of five (5) million Puma shares at the deemed value of seven cents, and the issuance of two (2) million share purchase warrants. The warrants issued are exercisable until May 4, 2020 at a price of $0.07 in year one, $0.08 in year two and $0.10 in year three. To date the Company has received a cash and share value of $650,000 (which includes the non-refundable deposit).

The second payment of $400,000, is postponed to November 10, 2017, subject to Puma raising an additional one (1) million dollars within the first six (6) months. In the event Puma does not make the November 10, 2017 payment, El Niņo will receive an additional $100,000, for a total of $500,000 which will become due on May 10, 2018 with the existing third payment of one (1) million dollars, for a total payment amount of $1.5 million dollars due May 10, 2018.

The final payment due to El Niņo of one (1) million dollars will become due on May 10, 2019. Subject to the amount of the second payment, El Niņo will have received a total value of $3.05-$3.15 million dollars for the sale of its 32.14% interest in the Murray Brook Project.

El Niņo will also receive a laddered Net Smelter Return on Production (NSR), starting at 0.50%, at a Zinc price of US$1.04/lb. and increasing, in increments of 0.25%, to a maximum of 1.75% above US$1.50/lb. Zn, in relation to 32.14% of the production from the Murray Brook Property, which includes the Mining Lease and the Camel Back Claims, for the life of the Murray Brook Deposit and any new discovery made on the total project.

Votorantim Metals Canada Inc. will retain title to the Project, as security, until the assumption of the environmental liability has been completed by Puma and Votorantim Metals Canada Inc.'s and El Nino's liability is released by the Government of New Brunswick. In the event that PUMA does not meet its asset purchase agreement terms, El Nino will retain its interest in the Murray Brook Project.

The funds from the sale of ELN's Murray Brook interest will amount to a Non-Dilutive Financing for the Company and Management plans to use these funds to Acquire New Projects and will continue to search for Quality Base Metal Projects, while also looking to acquire sufficient New Assets, to form a Precious Metals Division.

El Niņo and its joint venture partner Glencore, have decided to terminate their 50/50 interest in the Bathurst Zinc Project - Bathurst Option Joint Venture (BOJV), also located in the Bathurst Mining Camp


The Junior Exploration sector, which suffered considerably, over the last six (6) years, looks like it may have reached its bottom, thus far in 2017, Metal Prices have increased considerably and demand for Metals is expected to increase over the next few years.

ELN Management and Directors continue to work diligently on acquiring financing for the Company and Our Projects. We look forward to continuing to provide you with updates for the balance of our activities in 2017 and 2018. On behalf of the Board of Directors, we thank you for your ongoing support.

For further information on your Company, please visit: www.ElNiņ

Double Opt-In, on the website, to receive continued updates on ELN.

On behalf of the Board of Directors,

Yours sincerely,

"Harry Barr'"

Harry Barr
Chairman & CEO



Aug 2013