ST. PAUL, MINNESOTA--(Marketwired - Sept. 20, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
PolyMet Mining Corp. ("PolyMet" or the "Company") (TSX:POM)(NYSE MKT:PLM) is pleased to announce a $10 million private
placement. The private placement shall be 13,333,333 Units (the "Units"), at a price of US$0.75 per Unit for gross proceeds
of US$10,000,000 (the "Offering"). Each Unit will consist of one common share (a "Common Share") and one half of one Common Share
purchase warrant (each whole warrant a "Warrant"), exercisable for one Common Share (a "Warrant Share") for US$1.00 per Warrant
Share for a period beginning 6 months following the issue date and ending 60 months after the issue date, subject to acceleration
in certain circumstances.
Paradigm Capital Inc. (the "Underwriter") has agreed to purchase 10,000,000 Units for US$7,500,000 on a bought deal basis and
PolyMet has received additional direct interest for 3,333,333 Units for US$2,500,000.
Paradigm and the Company may sell additional Units on the same terms. As agreed under previous financing
arrangements, one shareholder of PolyMet has the right to maintain its pro rata share of the total number of Units sold.
The Offering is expected to close on or about October 18, 2016 and is subject to PolyMet receiving all necessary regulatory
approvals. All securities issued in connection with the Offering will be subject to a four month hold period in Canada.
The Company intends to use the net proceeds from the Offering primarily to advance its NorthMet Project, for working capital,
and general corporate purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any applicable state
securities laws and may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as
amended, and any applicable state securities laws, or compliance with an exemption therefrom. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in
which such offer, solicitation or sale would be unlawful.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded
mine development company that owns 100 percent of Poly Met Mining, Inc., a Minnesota corporation that controls 100 percent of the
NorthMet copper-nickel-precious metals ore body through a long-term lease and owns 100 percent of the Erie Plant, a large
processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Iron Range
in northeastern Minnesota. Poly Met Mining, Inc. has completed its Definitive Feasibility Study. The NorthMet Final EIS
was published in November 2015, preparing the way for decisions on permit applications. NorthMet is expected to require
approximately two million hours of construction labor, creating approximately 360 long-term jobs, a level of activity that will
have a significant multiplier effect in the local economy.
PolyMet Disclosures
This news release contains certain forward-looking statements concerning anticipated developments in PolyMet's
operations in the future. Forward-looking statements are frequently, but not always, identified by words such
as "expects," "anticipates," "believes," "intends," "estimates," "potential," "possible," "projects," "plans," and similar
expressions, or statements that events, conditions or results "will," "may," "could," or "should" occur or be achieved or their
negatives or other comparable words. These forward-looking statements may include statements regarding the ability to
receive environmental and operating permits, job creation, and the effect on the local economy, placement of additional Units,
the closing date of the Offering, the use of proceeds of the Offering, or other statements that are not a statement of
fact. Forward-looking statements address future events and conditions and therefore involve inherent known and unknown risks
and uncertainties. Actual results may differ materially from those in the forward-looking statements due to risks facing PolyMet
or due to actual facts differing from the assumptions underlying its predictions.
PolyMet's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the
statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or
management's beliefs, expectations and opinions should change.
Specific reference is made to PolyMet's most recent Annual Report on Form 20-F for the fiscal year ended January 31, 2016
and in our other filings with Canadian securities authorities and the U.S. Securities and Exchange Commission, including our
Report on Form 6-K providing information with respect to our operations for the three and six months ended July 31, 2016, for a
discussion of some of the risk factors and other considerations underlying forward-looking statements.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this
release.