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Pine Point Mining Closes $2-million Private Placement

Mr. Jamie Levy reports

PINE POINT COMPLETES $2 MILLION PRIVATE PLACEMENT LED BY ZEBRA HOLDINGS

Pine Point Mining Ltd. has closed its previously announced non-brokered private placement through the issuance of eight million units at a price of 25 cents per unit for gross proceeds of $2-million. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional common share at a price of 35 cents per common share for a period of two years from the closing of the offering.

The company is pleased to announce that Zebra Holdings and Investments SARL, a company controlled by a trust settled by the late Adolf H. Lundin, subscribed for $1-million, comprising of four million units of the offering. Upon closing of the $2-million private placement, Zebra, as an insider of the company, would own approximately 16.27 per cent of the company's outstanding shares on a partially diluted basis, assuming the exercise of all warrants held and currently acquired. The financing also had participation by the PowerOne Group as well as directors and management of the company.

In connection with the completion of the offering, certain eligible persons, including the finders, were paid a cash commission equal to 7 per cent of the proceeds raised from subscribers introduced to the company by such finders and issued finder warrants equal to 7 per cent of the securities purchased by such subscribers. Each finder warrant entitles the holder thereof to purchase one common share for a period of two years from the closing of the offering at a price of 30 cents per common share.

Closing of the offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The net proceeds of the offering will be used for general working capital and to finance the continued evaluation of the company's zinc-lead deposits.

The offering constituted a related party transaction within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 as certain insiders of the company subscribed for an aggregate of 4.9 million units pursuant to the offering. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the first tranche of the offering, which the company deems reasonable in the circumstances in order to complete the offering in an expeditious manner.

About Pine Point Mining Ltd.

Pine Point Mining acquired a 100-per-cent interest in the Pine Point lead-zinc project in December, 2016. Since that time, a positive preliminary economic assessment on the project has shown a robust mining operation that, over a 13-year mine life, would have an after-tax net present value of $210.5-million and internal rate of return of 34.5 per cent, with a payback of 1.8 years. Stanley Clemmer, a qualified person under National Instrument 43-101, reviewed and approved the scientific and technical information presented in this press release.

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