Detailed Ore-sorting Analysis Confirms Substantial Grade Improvement for CuMo Project Results Indicate US$ Value of Direct Processing Feed Increasing up to 270%

Vancouver, British Columbia--(Newsfile Corp. - January 24, 2017) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") announces excellent positive results utilizing Ore-Sorting technology on samples from its CuMo deposit located in Idaho. Results reported by Sacre-Davey Engineering on a set of 400 representative samples confirm that mineralization at the CuMo deposit is amenable to significant upgrading through Ore-Sorting technology. Further analysis shows that an increase of up to 270% in the US$ value of direct processing feed is possible. The drill core intervals defined by the samples were deliberately selected to match the grade and volume distribution of the various metals zones within the CuMo deposit as defined in the November 2015 43-101 resource calculation.

The CuMo deposit has long been recognized as a stockwork vein deposit, consisting of narrow veins containing molybdenum and/or copper mineralization, surrounded by discard/waste material. With this vein mineralization structure, excellent metallurgical recoveries can be achieved with the latest Ore-Sorting technology, even at lower-grade levels.

New Ore-Sorting technology uses sophisticated X-ray technology (XRF) to identify rocks that contain processing grade minerals and separates them from those that do not. Previous methods of visual Ore-Sorting can now be performed with much greater accuracy and efficiency. Rock is placed on a conveyor belt following primary crushing (10 to 200 mm). It is then scanned, and based on a grade/value cutoff, either accepted for processing or rejected. The results show excellent correlations between the XRF scanning results and the actual assay values of the material.

"As stated previously, Ore-Sorting marks the first of several optimizations for the CuMo deposit in preparation for its Feasibility Study. The key to the development of CuMo has always been maximizing profits and being able to produce metals at low cost levels. The updated resource calculation and our most recent Preliminary Economic Assessment combined with these excellent Ore-Sorting results confirm again that CuMo is able to compete on a cost-to-produce basis with not only primary molybdenum producers, but also with copper projects producing molybdenum as a by-product," stated Shaun Dykes, President and CEO of CuMoCo. "The substantial results also allow us to add Ore-Sorting to our updated economic models to determine the most optimized path and provide support for CuMo's potential as a large-scale, low-cost producer of molybdenum with significant copper, silver and rhenium by-products," Dykes added.

Overall detailed results indicate that by incorporating modern Ore-Sorting technology, the CuMo Project can be mined at large tonnages of 200K to 300K per day, while requiring only smaller tonnages of 50K to 100K per day to recover most of its metals. The overall objective is to have 25 to 50% of the material recovering 85 to 95% of the value, substantially increasing profitability and reducing capital and operating costs. Using the values in the Preliminary Economic Assessment (PEA) (November 8, 2015), a reduction in processing size from 150K to 50K per day could achieve a CAPEX savings for the CuMo Project of between US$800 million and US$1 billion, substantially reducing the cost per pound of molybdenum, net of by-products copper, silver and rhenium.

Table 1 below shows the results of the testing for various Ore-Sorting scenarios, based on the amount of rock accepted for processing.

Note:

1.   all tons are short tons as per the USA system

2.  Table based on an initial sort of 65% of the material above a mine cutoff. Increasing or decreasing the percentages only changes the potential years of feed available, not the grade distribution.

3. Sorting based on an initial sort of 65% of material. This is fed to a second sort to separate mill feed and stockpile.

4.  Mill size is based on the 150,000 tons per day case in the PEA, where 150,000 tons of mill feed and 150,00 tons of stockpile were proposed to be mined. Both the feed and stockpile would be run though the sorters.

Due to the multi-element nature of the mineralization, a recovered metal value is used to separate the accepted material from the rejected. It is also important to note that under non-sorting conditions, all the material would be sent for processing. Low metal prices of US$5 moly oxide (US$7.5 moly metal Mo), and US$2.50 copper from the PEA were used as they are close to current prices. Silver is not included in the calculation as only copper and molybdenum are used in the sorting process.

The formula for calculating recovered metal value is:

RCV= ((Cu/10000) *20*$(Cu)* Cu recv) + ((Mo/10000) *20*$(Mo)* Mo recv). Copper recovery (Cu recv) is 75% and moly recovery (Mo recv) is 90%.

For example, following removal of 35% on the internal waste by the initial sort, at a $14.10 per ton assay grade cutoff, 22.75% of the rock was accepted for mill feed (42.25% went to stockpile), representing a recovery of 34.25% of the value, 21.54% of the copper and 60.92% of the molybdenum with the value of the processing feed increasing by 244.25% from $16.92 to $39.19/ ton. Copper grade reduced to 94.68% of original, while Molybdenum grade increased by 267.77%.

A total of fifty-nine (59) intervals (each 1.5 to 3 meters in length) from the measured and indicated mineralized zone were delivered to the University of British Columbia. The intervals represent material that was classified as mill feed within the original and recently updated PEA. Intervals were broken into four hundred (400) rock samples of between 25 and 125 mm in size and were randomly selected and tested at the University using X-ray and electromagnetic scanners. After scanning, the samples were then assayed to determine the copper and molybdenum grade.

The Company intends to use these new results to produce an updated PEA, adding the substantial benefits of Ore-Sorting to the already robust economics of the deposit. The final stage will be to create a series of large bulk (5 ton) samples for testing that will also be used in feasibility-level metallurgical testing. The combined results of Ore-Sorting and metallurgical test work will then be used in a feasibility-level economic study.

The Company also wishes to announce the following:

All interest payments due in 2016 to IEMR (HK) for the US and Canadian denominated debentures have been made.

The Company's new Chinese partners continue to organize and establish all necessary information and paperwork required to deliver the initial payment funding to Poly Resources within 90 days, as per the terms of the joint-venture agreement. (see News Release dated November 21, 2017). Upon receipt of the payment, CuMoCo plans to terminate the sale of its silver streaming units (announced August 20, 2014) that give investors the right to purchase 375,000 ounces of silver at US$5 per ounce for every US$250,000 invested and pay 8.5% interest up until a production decision is made. Investors will have until the end of February 2017 to determine how many units they want to purchase.

Forty-five claims have been added to the Calida gold project and a permit application is being produced for filing to allow for work to proceed during the coming field season. The target for the program is to verify the historic resource on the property of 8,059,304 tons grading 0.168 ounces' gold/ton, 6.12 ounces' silver/ton and 2.86 percent copper (see News Release dated November 14, 2016).

Preparation has begun for the 2017 CuMo Project work program, consisting of drilling, engineering and environmental baseline studies and completing the permitting process. During 2017, the Company plans to further analyze additional optimizations designed to lower operating and capital cost estimates for the project with the concept of completing a pre-feasibility or an initial feasibility level economic study as soon as possible. The target for these optimizations is to confirm potential cash operating cost reductions per pound molybdenum to under US$1 per pound.

The targets and the potential optimizations are conceptual in nature as there has been insufficient work done to confirm the target values as defined by NI 43-101 and it is uncertain that further work would result in establishing these targets.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company is the designated qualified person for the CuMo Project, and prepared the technical information contained in this news release.

About CuMoCo

CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com

For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.

Forward-looking information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company's ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company's proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company's publicly filed documents, including the Company's Management's Discussion and Analysis for the period ended September 30, 2016. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.