Oban Mining Corporate Update

Press Release

(Toronto, April 12, 2016) Oban Mining Corporation (OBM:TSX, “Oban” or the “Corporation”) is pleased to provide the following corporate update on the progress of the Corporation and work plans for 2016.

The Corporation completed fifteen transactions in the last eight months since reorganizing the company in August 2015, which included the acquisition of five exploration/development companies, the acquisition of two 100% owned mining properties, five investments resulting in significant ownership in four exploration/development companies, and three financings. The transactions have resulted in a strong shareholder base, with over 33% of Oban’s shares held by four funds and one corporation (Osisko Gold Royalties Ltd). During the same period, the company has evaluated numerous additional potential transactions which were not pursued.

From the outset of the first transaction in August 2015, the Corporation’s principal objectives have been to grow the company to a point where critical mass was achieved in terms of owning gold resources and high-potential gold deposits; to establish a strong financial position; to attain significant market capitalization; to establish a solid shareholder base and to improve shareholder value. The Corporation has grown at a rapid rate from a position in June 2015 when Oban had no defined resources, $10 million in cash and a market capitalization of less than $10 million. Following the completion of the last transaction in March 2016, the three main deposits owned by the Corporation currently contain 3.49 million ounces of global resources in Measured and Indicated categories (see table below) and 2.27 million ounces of global resources in Inferred category (see table below), the Corporation holds approximately $74 million in cash and investments as of March 31, 2016 and Oban has a significant market capitalization of over $135 million. Management of the Corporation believes these fundamental elements provide the solid base necessary to build a mining company that will provide growing value to its shareholders over time.

Work is progressing well on Oban’s 100% owned Windfall Lake and Marban projects. At Windfall Lake, the 55,000 metre drill program commenced in October 2015 continues with four drill rigs, and there are approximately 20,000 metres left to complete in the current program. Results to date have been very encouraging, providing verification and good correlation with historic drilling performed by previous operators on the property. The deposit remains open at depth below the Red Dog intrusion, and is open at both the eastern and western ends. The results of the current program will be modeled along with historic drilling in the second half of 2016, and a resource update is anticipated in Q4 2016. A decision on extending the current drill program will be made by the end of Q2 2016.

At Marban, work is continuing on the updated resource model. Following the 72,000 metre drill program completed in 2015 and complete geological re-modelling of the deposit, the new resource estimate is nearing completion on Marban and Norlartic. The final report is expected to be available this month. Following delivery of the updated resource estimate, the Corporation expects to immediately proceed with environmental and pre-feasibility work at Marban with the intention of filing a preliminary economic assessment by year end.

The Corporation also anticipates summer exploration drilling on a number of targets on the claim groups surrounding the Marban and Windfall deposits, as well as confirmation and exploration drilling on the Garrcon-Jonpol deposits in Ontario. These work programs will be outlined towards the end of Q2.

Oban is well funded at the present time and does not anticipate any near-term need for additional financing. With current and planned exploration/development programs, the company anticipates finishing this fiscal year with a strong financial position of over $50 million in cash and equities. With over 100,000 hectares of highly prospective exploration ground containing three substantial gold deposits in Quebec and Ontario, the Corporation is not anticipating any further large, near-term acquisitions.

Commenting on the progress of the Corporation to date, President and CEO John Burzynski noted: “We have had a very productive eight months at Oban, and for every deal we’ve completed we’ve looked at four or five others along the way. I would like to congratulate the team for successfully incorporating the new companies and properties into Oban, and for quickly establishing new, active and dynamic work programs. With the recent closing of the NioGold transaction we have now completed the acquisitions we felt were necessary for adding substance and size to our strong financial position. We have been drilling at Windfall with very good results to date, and are already looking at the possibility of increasing the current drill program to determine the outer limits of the deposit, which are still undefined. We have had success in extending the deposit both at depth and on the western end, and Windfall remains open to the east, west and at depth. We are also looking forward to the release of the new resource at Marban, which we anticipate will be in our hands within the coming month. Marban and Windfall are now the main focus of Oban’s efforts, and it is the Corporation’s goal to move both projects forward in short order towards what we hope will become Quebec’s two newest gold mines.”

Read More: http://www.obanmining.com/news/index.php?&content_id=130

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