July 15, 2016


15 July 2016

Aureus Mining Inc.




Aureus Mining Inc. (TSX: AUE / AIM: AUE) (“Aureus” or the “Company”) is pleased to announce that it has closed Tranche 2 of the equity financing (the “Offering”) with MNG Gold Jersey Limited (“MNG Gold”), as previously announced in the Company’s news release dated 15 June 2016, pursuant to which the Company has issued 331,111,209 new common shares in the Company (“Shares”) at a price of 3.21p per Share (US$0.045302) to MNG Gold, raising gross proceeds of US$15.0 million.

This follows the clearance by the Toronto Stock Exchange (“TSX”) of the required personal information forms and receipt of the required AIM approvals as detailed in the Company’s news release dated 21 June 2016. Further, the promissory note in the aggregate principal amount of US$12,303,006 (“the Promissory Note”) issued by the Company to MNG Gold pursuant to Tranche 1 of the Offering automatically converted into 271,577,546 Shares (also at a price of 3.21p per Share) concurrently with the closing of Tranche 2 of the Offering. An aggregate of 662,222,429 Shares have been issued pursuant to the two tranches of the Offering and the automatic conversion of the Promissory Note.

Application has been made for the 602,688,755 new Shares to be admitted to trading on AIM with admission to take place on or around 19 July at 8.00am (London time). The new Shares will rank pari passu with the Company’s existing Shares. Following the issue of the new Shares the Company’s issued share capital will comprise 1,204,039,001 Shares. Accordingly, the figure of 1,204,039,001 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA’s Disclosure and Transparency Rules.

Board changes

As previously announced, following the completion of the transaction, the following changes to the Board and management of the Company have become effective:

  • CEO – David Reading has resigned his position of Chief Executive Officer and is replaced by Serhan Umurhan, General Manager of MNG Gold;
  • CFO – Paul Thomson has resigned his position as Chief Financial Officer. He is replaced by Geoff Eyre, CFO of MNG Gold; and
  • Board of Directors – Mehmet Nazif Gűnal has joined the Board as Non-Executive Chairman. Serhan Umurhan and Geoff Eyre have also joined the board as Directors. David Reading, Karin Ireton and Adrian Reynolds have resigned as Directors of the Company, whilst David Netherway, Loudon Owen and Jean-Guy Martin will continue as Non-Executive Directors of the Company.

In relation to the appointment of Mehmet Nazif Gűnal, Serhan Umurhan and Geoff Eyre to the Board of Directors, Aureus confirms that there is nothing further to disclose in relation to their appointment under AIM Rule 17 or Schedule Two, paragraph (g) of the AIM Rules for Companies, save as disclosed in this announcement:

Full name: Mehmet Nazif Gűnal
Age: 68 years old
Current directorships: Animar Eglence ve Spor Tesisleri i§letme Turizm Ticaret A.$., Antma in§aat, Sanayi ve Ticaret A.$., Arhavi Elektrik Oretimi ve Tic. A.$, Atmaca Mining Services Limited, Aziz – Mapa Corporation, Balsu Elektrik Oretimi ve Ticaret A.$., Berkmen Gaynmenkul Tic. A.$., Berkmen Limited, Bgt Elektrik Oretimi ve Ticaret A.$., Burkina Mining Company SA, Company Burkina Faso, camyurt Otelcilik ve Turizm A.$., Can Investments Limited Dubai, Cayman Burkina Mine Limited, Cengiz Mapa zaltm Adi Ortakhg, Cmbe – Cengiz – Limak – Mapa – Kolin i§ Ortakhg, CSR – MNG Rayl Sistem Aralan Sanayi ve Ticaret, Doruk Limited, Company United Arab Emirates, Elazg Baskil Madencilik A.$., Company Turkey, Epidote Fze Limited, ER Burkina Exploration Sari, Esma§ Arabistan, Esmas Abu Dhabi, Etruscan Resources Burkina Faso SA, FC Wil 1900 AG, Gi.inal Dubai Jumeirah Santiyesi, Gi.inal Elektrik Oretimi ve Ticaret A.$., Gi.inal in§aat Ticaret ve Sanayi A.$., Gi.inal in§aat Ticaret ve Sanayi A.$. Antalya Subesi (Topkap Pa), Guinal – Mapa Adi Ortakligi, Gulf Trading & Investment Limited, Gunal – Ferpa Adi Ortakhgi, Gunal – Mapa Dubai JV (Jumeirah-Seyh Zayed), Gunal Abu Dabi Ofis, Gunal Construction Trading & Industry Co. (Dubai Br) Main Offi, iGA Havaliman i letmesi A.$., iGA Havalimanlan in§aatl Adi Ortakhg Ticari i§letmesi, Jme Trading & Investments Limited, Kiana Sondaj Sanayi ve Ticaret A.$., Kle Kle Mining Inc., Kolin Cengiz Limak Mapa Adi Ortakhg, Kuyab Kundu Turizm Yatnme lan A.$., arimar Fze Limited, Makon Makina ve Konstructksiyon Sanayi Ticaret A.S., Mapa – Cengiz Adi Ortaklığı, Mapa Azerbaycan Havalimanı Şantiyeleri, Mapa Azerbaycan Naftalan Otel Inşaat, Mapa Cengiz Jv Bulgaristan, Mapa Cezayir Cheliff (Baraj) Şantiyesi, Mapa Cezayir Jijel Otoyolu (Djen Djen – E Eulma), Mapa Cezayir Khemis Milliana Otoyolu, Mapa Cezayir Mostagenem Su Arıtma Istasyonu, Mapa Cezayir Pk Tünel, Mapa Cezayir Setif Isale Hattı Şantiyesi, Mapa Cezayir Stadyum (Tizi Ouzou), Mapa Cezayir Tlemcen/ Akkid Abbas Demiryolu, Mapa Günal Construction and Trade LLC – Katar, Mapa Günal Construction Co, Foreign Llc (Rta) – Dubai Jv, Mapa Günal Construction Co. Foreign Llc (Clinic) – SaudiArabia, Mapa Günal Oman LLC, Mapa Gürcistan Ofis, Mapa İnşaat Abu Dabi Bae, Mapa Inşaat ve Ticaret A.Ş,(Suudi Arabistan Şubesi),Mapa İnşaat ve Ticaret A.Ş., Mapa İnşaat ve Ticaret A.Ş. Antalya Şubesi (Kremlin Palace Ott), Mapa Inşaat ve Ticaret A.Ş. Bodrum Şubesi (Wow Bodrum), Mapa Inşaat ve Ticaret A.Ş. Istanbul Şubesi (Wow istanbul Air), Mapa Inşaat ve Ticaret A.Ş.(Dubai Şubesi), Mapa Libya Ofis, Mapa Limak MNG Co. (Hufar Al Batın), Mapa Limak MNG Jv (Ras Al Zaur) Mlm, Mcag Limited, Mceg Limited, Mdg Limited, Mega Au Turizm A.Ş., Mehmet Limited, Mehmet Nazif Günal Inşaat Taahhüt Ithalat Ihracat ve Mümess, Mepaş Maden Endüstrive Pazarlama A.Ş., Merve Limited, Metropol Gulf Landscaping And Construction L.L.C, Mng Airlines Gmbh, MNG Baraj Inşaat ve Sanayi A.Ş., MNG Dekim Dekorasyon, Iç Mimarlık, Mobilya, Tasarım, Taahh, MNG Esmaş Elektro Sistemler Mühendislik Sanayi ve Ticaret A., MNG Esmosh Electrosystems Engıneerıng (Dubai Branch), MNG Faktoring A.Ş., MNG Gold Burkina Sari, MNG Gold Exploration Inc., MNG Gold Jersey, MNG Gold Liberia, MNG Havayollan ve Ta macjhk A .$., MNG Holding A.$., MNG Jet Havachk A.’$., MNG Kargo Kbns ubesi, MNG Kargo Yurt ive Yurt D1 1 Ta machk A.’$., MNG Mipa MUmessillik MU avirlik ithalat ihracat Pazarlama Sa, MNG Orko Madencilik A.$., MNG Radyo Tv ve Medya Hizmetleri A.’$., MNG Sanal OrUn Pazarlama Sanayi ve D1 Ticaret A.$., MNG Sigorta AraCJhk Hizmetleri A.’$., MNG Sulama In aat ve Sanayi A.$., MNG Targem Ara trma Teknoloji Geli tirme MU avirlik Proje in, MNG Tesisat Klima Havalandrma Istma Sanayi ve Ticaret A.’$., MNG Turizm ve Ticaret A.’$, MNG Zemta Soil & Foundation Engmeering Construction Co In, MNG Zemta Zemin ve Temel MUhendisligi in aat A.$., Murathan Limited, Nazif Investments Limited, Palm Point, Pombero Limited, Rivercess Mining Inc., Sari Mapa Algerie Construction et Commerce, Sportscom AG, Techtrans Limited, Wow Investments Limited, Wow Real Estate Development, Zbg Investments Limited, Zemtas Abu Dhabi, Zeynep Limited, Zincirli Elektrik Oretimi ve Ticaret A.$., Zwedru Mining Inc.
Directorships in the last 5 years: Ben Turizm Vet|Caret A.Ş., Hit Havayollari lkram Tesisleri A.Ş., Kizilagaç Enternasyonal otelciı-ix rurizıııı inşmt A.ş., lŞ|K Elektrik Üretimi vr rlcanrı a.ş., MNG Gaz Dagitim VE T|Careta.Ş., MNG Haber Ajans| Ve T|Caret A.ş., MNG Kompozit Üret|M Yap| Ve T|Caret A.Ş., MNG Net A.Ş., MNG Savsan Savunma Sanayi, Ticaret Mümessill|K VE Mü ş av|RLiK A.Ş., MNG Uydu Telev|Zyon Yay|Nclilgi A.Ş., Murathan Turizm Ve Ticaret A.Ş., Sedef Elektrik üretimi Vet|Caret A.Ş., Sema Elektr|K üretimi Ve T|Caret A.Ş.
Number of Ordinary Shares held in the Company: Mr Gűnal holds no shares in his own name, however he is the beneficial owner of MNG Gold Jersey Limited which following completion will own 662,222,429 Shares, representing approximately 55% of the issued Shares of the Company
Full name: Serhan Umurhan
Age: 43 years old
Current directorships: Atmaca Mining Services Limited (fka Amlib Jersey Limited), Caymen Burkina Mines Limited, ER Burkina Exploration SARL, Etruscan Resources Burkina Faso SA, Jersey Netania Mining Limited, Kle Kle Mining Inc., MNG Gold Burkina SARL, MNG Gold Exploration Limited, MNG Gold Jersey Limited, MNG Gold Liberia Inc., MNG Orko Madencilik AŞ, Rivercess Mining Inc., Zwedru Mining Inc.
Directorships in the last 5 years: None to disclose.
Number of Ordinary Shares held in the Company: Nil*
Full name: Geoffrey Peter Eyre
Age: 42 years old
Current directorships: Armada Minerals Limited, Atmaca Mining Services Limited, Caymen Burkina Mines Limited, Environminerals East Africa Limited, Explora One Limited, GPE Consulting Limited, Jersey Netania Mining Limited, MNG Gold Exploration Limited, MNG Gold Jersey Limited, NurtureEx B.V., NurtureEx Services Limited.
Directorships in the last 5 years: 51 Buckland Crescent (Freehold) Limited, Amlib Drilling Services (Liberia) Inc. (fka Amlib North (Liberia), Amlib Holdings Plc, Amlib Services Limited, Amlib United Minerals Inc., Amlib United Minerals Jersey, Kokoya Iron Inc, Kokoya Iron Limited, Kokoya Jersey Limited, Kokoya Mining Inc (fka Amlib Kokoya Inc).
Number of Ordinary Shares held in the Company: 10,000 shares held in own name*

*Note: Mr Umurhan and Mr Eyre are both directors of MNG Gold Jersey Limited which following admission will hold 662,222,429 Shares representing 55% of the Company’s issued and outstanding Shares.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States or any other jurisdiction in which such an offer or solicitation is unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state laws. No public offering of securities will be made in the United States.

Contact Information

Aureus Mining Inc.

David Netherway / Geoff Eyre

Tel: +44(0) 20 7010 7690


Bobby Morse / Anna Michniewicz

Tel: +44(0) 20 7466 5000

Numis Securities Limited

(Aureus Nominated Adviser and Broker)

James Black / John Prior / Paul Gillam

Tel: +44(0) 20 7260 1000

RBC Capital Markets

(Aureus Financial Advisor)

Richard Horrocks-Taylor / Richard Hughes

Tel: +44(0) 20 7653 4000

Forward Looking Statements

Certain information contained in this Announcement constitutes forward looking information. This information may relate to future events or the Company’s future performance. All information other than information of historical fact is forward looking information. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward looking information. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking information. No assurance can be given that this information will prove to be correct and such forward looking information included in this Announcement should not be unduly relied upon. This information speaks only as of the date of this Announcement. Such forward looking information includes, among other things, statements or information relating to: the Admission and commencement of dealing in the Shares.

With respect to forward looking information contained in this Announcement, assumptions have been made regarding, among other things: the approval of the TSX in connection with the Offering, and the Admission of the Shares on AIM.

Actual results could differ materially from those anticipated in the forward looking information contained in this news release as a result of the risk factors, including: the risk that the waiver and standstill agreement will terminate; risks normally incidental to exploration and development of mineral properties; the inability to obtain required waivers and amendments from the Company’s creditors in respect of its debt repayment obligations and consequential risks of default thereon; risks related to operating in West Africa; health risks associated with the mining workforce in West Africa; risks related to the Company’s title to its mineral properties; adverse changes in commodity prices; risks related to current global financial conditions; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in Liberia, including adverse changes in applicable laws; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company’s operations; risks related to environmental regulations; uncertainties in the interpretation of results from drilling; risks related to the legal systems in Liberia; risks related to the tax residency of the Company; changes in exchange and interest rates; risks related to the activities of artisanal miners; actions of third parties that the Company is reliant upon; lack of availability at a reasonable cost or at all, of plants, equipment or labour, including required equipment, explosives and other necessary material not being delivered in the expected time frame, or at all; the inability to attract and retain key management and personnel; political risks; and future unforeseen liabilities and other factors.

The forward looking information included in this Announcement is expressly qualified by this cautionary statement and is made as of the date of this Announcement. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.