Vancouver, British Columbia--(Newsfile Corp. - February 28, 2018) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink:
MLYCF) ("CuMoCo" or the "Company") announces that it has closed its private placement of convertible debentures (the
"Debentures") previously announced on November 29, December 8, and December 21, 2017, and extended on January 17, 2018. The
Company has decided to stop the sales of these debentures with to-date received subscriptions totalling $2,768,500. The Debentures
have an initial one-year term, automatically renewable annually for additional one-year terms, up to a maximum term of five years,
are secured by the assets of the Company's subsidiary, Idaho CuMo Mining, and pay interest at a rate of 8.75% interest per annum,
with interest paid in quarterly instalments. The Debentures are convertible into units of the Company (the "Units") at a
conversion price of C$0.075 per Unit at any time following four months and one day from the closing date until the first
anniversary on the closing date, and thereafter up to the maturity date (as such date may be extended) at C$0.10 per Unit. Each
Unit will consist of one common share of the Company and one common share purchase warrant (a "Warrant"), with each Warrant
entitling the holder to purchase an additional common share of the Company (a "Warrant Share") at a price of C$0.1125 per
Warrant Share for a period of five years from the closing date. Any accrued but unpaid interest under the Debentures may also be
converted, at the option of the holder, into Units at the Market Price determined at the time the interest becomes payable and is
subject to TSXV approval. Should the holder decide not to renew the Debentures, the Company has ninety days to repay the principal
owed. Proceeds from the Debenture financing, along with other financing efforts, will be used by the Company to repay the
debentures owed to International Energy & Mineral Resources Investment (Hong Kong) Company Limited, to fund a Pre-Feasibility Study
for the CuMo Project that will include the results from the Ore-Sorting process to be used by the Company and other optimizations
to improve on the results in the November 15, 2015 Preliminary Economic Analysis (PEA), and to continue analyzing the results of
the Calida Gold 2017 work program.
Sacre-Davey Engineering, a mining engineering company with considerable experience in Ore-Sorting, continues to make good
progress on providing an updated Preliminary Economic Analysis (PEA) for the Company's CuMo Project that incorporates the
substantial benefits of Ore-Sorting in the analysis. The updated PEA will be a prelude to a Pre-Feasibility Study and provides the
Company with independent verification of the benefits of Ore-Sorting to the CuMo Project in a relatively brief period.
At the Calida Gold project, Vancouver Petrographic has completed microscopic studies that confirm the assay nugget problem.
Native silver is present in the mineralized zone and is not showing up in the first-run assay procedures. Also, samples show that
the copper mineralization (Chalcopyrite) has been largely replaced by Iron-bearing minerals, with some of the copper being
converted into copper oxide minerals. This tends to give high copper values and low precious metals values. It is apparent that the
heavy fracturing in the area that provided the conduit for the mineralization has allowed surface water to percolate downward
mixing with the sulphide, creating acid and leaching metal from the rock. The Company will now proceed with more detailed testing
of the mineralized zones to determine what the actual grades are of the intersections. It should be noted that nugget effects are a
common problem in many precious metal deposits.
At the CuMo Project, the Company's Idaho CuMo Mining Corporation (ICMC) team have been working continuously to obtain support
for the project from major legislatures and to have Molybdenum classified as a critical mineral in the United States. ICMC
representatives have completed several presentations to the various legislative committees and authorities for the State of
Idaho.
Regarding the IEMR HK debentures, IEMR HK's legal team has terminated negotiations and has submitted a claim for judgment
against the Company in the British Columbia Supreme Court for CAD$1 million and US$1 million plus interest and court costs. The
Company is in the process of preparing a response, third party notice and counterclaim against IEMR HK and certain other related
entities that has the potential to more than offset the claims of IEMR HK. In the event this litigation is decided wholly or
partially in IEMR HK's favour, a monetary judgment against CuMoCo would issue and CuMoCo could then simply pay the claim. The
Company will continue to keep shareholders informed as events unfold.
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 the Calida Gold project and has prepared the technical information contained in this news release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo is also advancing its newly-acquired Calida Gold
project. For more information, please visit cumoco.com, idahocumo.com and 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.
Cautionary statement regarding forward-looking information
Certain disclosures in this release constitute "forward-looking information" within the meaning of Canadian securities
legislation. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified
by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar
expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should
occur, including, without limitation, details of the Rights Offering, the intended use of proceeds of the Rights Offering, and
expected outcomes. In making the forward-looking statements in this news release, the Company has applied certain factors and
assumptions that the Company believes are reasonable, including that the Company's permitting will proceed as expected; that the
Rights Offering will be completed and will raise the expected proceeds; that the results of exploration and development activities
are consistent with management's expectations and that the assumptions underlying mineral resource estimates are valid. However,
the forward-looking statements in this news release are subject to numerous risks, uncertainties and other factors that may cause
future results to differ materially from those expressed or implied in such forward-looking statements, including without
limitation: that the Rights Offering will otherwise not be completed or will raise less than the expected proceeds; uncertainties
as to the costs to completion of the rights offering; the results of exploration and development activities will not be consistent
with management's expectations, the risk of unexpected variations in mineral resources, grade or recovery rates, delays in
obtaining or inability to obtain required government or other regulatory approvals or financing, failure of plant, equipment or
processes to operate as anticipated, the risk of accidents, labor disputes, inclement or hazardous weather conditions, unusual or
unexpected geological conditions, ground control problems, earthquakes, flooding and all of the other risks generally associated
with the development of mining facilities and the operation of a producing mine. There can be no assurance that such statements
will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly
disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
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