TORONTO, ONTARIO--(Marketwired - June 16, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Lago Dourado Minerals Ltd. ("Lago" or the "Company") (TSX VENTURE:LDM) is pleased to
announce that it has closed its previously announced non-brokered private placement (the "Offering") pursuant to
which it has issued 12,000,000 subscription receipts ("Subscription Receipts") at a price of $0.10 per
Subscription Receipt to raise aggregate gross proceeds of $1,200,000, effective June 14, 2016. Each Subscription Receipt
entitles the holder to acquire one common share of the Company automatically without any additional payment upon the satisfaction
of all conditions precedent (the "Conditions Precedent") to the previously announced acquisition by the Company
of the property interests of GPM Metals Inc. located in the Sandy Lake district of Northwestern Ontario (the
"Properties"). The gross proceeds of the Offering will be held in escrow and released to the Company upon
conversion of the Subscription Receipts. In the event that the Conditions Precedent are not satisfied prior to the date which is
four months following the closing of the Offering, the Subscription Receipts shall be cancelled and the gross proceeds of the
Offering shall be returned to subscribers. Insiders of the Company subscribed for 1,140,000 Subscription Receipts in the
Offering.
The Company plans to use the proceeds of the Offering to fund exploration activities on the Properties and for general
corporate purposes. The Offering remains subject to the final approval of the TSX Venture Exchange. All securities
issued and issuable in the Offering are subject to a statutory hold period expiring on October 15, 2016.
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 and / or accuracy of this release.
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements
that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous
risks and uncertainties, certain of which are beyond the control of Lago, including, but not limited to the failure to complete
the acquisition of Properties from GPM Metals Inc. or the failure of the Subscription Receipts to be converted, either as
currently proposed or at all, the impact of general economic conditions, industry conditions, volatility of commodity prices,
currency fluctuations, dependence upon regulatory and shareholder approvals, changes in the proposed use of proceeds of the
Offering and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements.