Northern Vertex Files Third Quarter Fiscal 2016 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2016) - Northern Vertex Mining Corp. (the "Company") (TSX VENTURE:NEE) announces that the Company's unaudited interim consolidated financial results for the third quarter fiscal 2016 ended March 31, 2016 have been filed on SEDAR. The full version of the Financial Statements and Management's Discussion & Analysis can be viewed on the Company's website at www.northernvertex.com or on SEDAR at www.sedar.com.

Financial and Corporate Highlights for the Quarter Ended March 31, 2016

• For the quarter, net loss was $0.63 million (2015: $0.43 million), excluding a non-cash, unrealized foreign exchange loss of $3.14 million (2015: profit of $3.27 million);
  • Net loss for the quarter was $3.77 million ($0.04 per share) due to a $3.14 million non-cash, unrealized foreign exchange loss compared to a net profit of $2.85 million ($0.04 per share), after a $3.27 million non-cash, unrealized foreign exchange gain, for the same period last year;

• Year-to-date net loss, excluding a non-cash, unrealized foreign exchange gain, was $2.57 million compared to a net loss of $1.09 million for the comparative period last year;
  • Year-to-date net loss was $1.16 million ($0.01 per share), primarily due to a $1.42 million non-cash, unrealized foreign exchange gain compared to a net profit of $4.99 million ($0.07 per share) that included an unrealized foreign exchange gain of $6.08 million for the same period last year;

• Cash and cash equivalents was $3.52 million at March 31, 2016, compared to $3.18 million at March 31, 2015. The variance was primarily due to cash received from financing activities reduced by legal fees regarding the recent arbitration, consulting fees pertaining to the Macquarie debt financing due diligence, and exploration and evaluation spend at the Moss Mine Project;

• Total costs incurred to March 31, 2016 regarding the Moss Mine Project, including the Silver Creek Project, was $32.59 million, compared to $29.92 million for the same period in the prior year; and
• Working capital increased to $3.24 million at March 31, 2016, compared to $2.83 million for the previous year.

Dick Whittington, President & CEO, states, "The Company is entering a transformational phase in its history. Acquiring 100% of the Moss Gold Mine Property (see May 26^th News Release) is a significant milestone toward commercial production which, coupled with the recently announced $7.5 Million Convertible Debenture Private Placement (see May 25^th News Release), will enable us to advance permitting, mine construction planning and property-wide exploration activities as well as further evaluate the additional 200,000 M&I resource ounces not included in the Feasibility Study. The economics of the Moss Mine project are exceptionally robust as demonstrated by our 2015 Feasibility Study. Our focus remains on finalizing our funding requirements to maintain momentum as we look to build on recent developments and transition the company from a development company to a production company."

Cost Management

• The Company has improved its working capital position with the recent non-brokered private placement closings however, the Company continues to be focused on taking substantial measures to reduce its monthly cash burn by eliminating non-essential expenditures and preserving its cash position as it continues to adapt to the difficult market conditions.

Operating Results

Operations

• Phase I - Pilot Plant Operations continues to be on a scheduled care and maintenance program. Company staff maintain the site Monday to Friday on day shifts, while Mohave Security monitors the site on night shifts, weekends and holidays. The Company continues to safeguard the facilities on site in preparation of a future construction decision relating to Phase II - Commercial Operations.

Exploration

• The Company has completed a field geological mapping and sampling program on areas outside of the main Moss vein system, indicating the property wide potential. Exploration potential is considered to be excellent both adjacent to the main Moss vein system, both on strike and to depth, as well as property wide.

Feasibility Study

• The economic highlights of the Feasibility Study ("FS"), at prices of US$1,250/oz Gold and US$20/oz Silver, 100% Project basis using a discount factor of 5% in arriving at the Project Net Present Value ("NPV") and recoveries to doré for gold and silver of 82% and 65%, respectively, are summarized in the following table:

	Pre-Tax	After-Tax
NPV@ 5%	US$75.30 M	US$55.30 M
IRR%	54.6%	44.3%
Payback (yrs)	2.3	2.4

• The FS is the basis by which the Company is progressing its efforts to transition the Company from a development company to a production company.

Debt Financing

• On September 15, 2015, the Company signed an Engagement Letter with indicative terms for Macquarie Bank Limited to provide project finance facilities of up to US$20 million (the "Macquarie Facility") to be used to fund the majority of the projected development costs of the Moss Mine Project. The Company has also received indicative terms for a US$6.5 million Equipment Finance Facility (the "Equipment Facility") from a major US bank. The Macquarie Facility and the Equipment Facility are complementary and together would provide up to US$26.5 million towards the estimated pre-production capital of US$33.0 million required to construct the planned gold-silver mine at the Moss Mine site.

Corporate

• On May 25, 2016, the Company announced a non-brokered private placement of unsecured convertible debentures for gross proceeds of up to $7,500,000. Each debenture will have an issue price of $100, a term of five years from the date of issue and bear interest at 5% per annum, payable semi-annually and convertible into common shares of the Company at the price of $0.50 per share. The Company has the option to repay the principal amount of the debentures in common shares in certain circumstances. The funds will be used to advance the Moss Mine to final design and construction planning along with required permitting, additional exploration work to test the potential for further discoveries on the Moss and Silver Creek claims and general corporate purposes.

• On April 4, 2016, the Company closed the final tranche of its oversubscribed February 26, 2016 announced non-brokered private placement. The Company issued a further 500,000 units bringing the aggregate total units issued to 8,474,875 at a price of $0.32 per unit for total gross proceeds of $2,711,960. Each unit consists of one common share of the Company and one transferable share purchase warrant, with each whole warrant entitling the holder to acquire one common share at an exercise price of $0.50 until April 4, 2019. The funds will be used for the advancement of the Moss Gold/Silver Mine along with general corporate purposes.

Tax Pools

• As of March 31, 2016, the Company has approximately US$34.3 million in tax deduction pools that can be applied directly to the Company's taxable income from the Moss Mine, to off-set future tax liabilities. Utilizing these tax deduction pools will significantly enhance the Company's economics of the Moss Mine over and above the analysis of the FS.

Consolidation of Moss Mine with 100% Ownership

• On May 26, 2016, the Company and Patriot Gold announced the completion of a previously announced agreement, whereby the Company would purchase Patriot Gold's remaining interest in the Moss Gold/Silver Mine for $1,500,000 plus the retention by Patriot Gold of a 3% net smelter returns royalty. The consideration of $1,200,000 cash and $300,000 in the Company's common shares valued at $0.35 per share (857,140 shares) has been paid and the transaction is complete with the Company now owning 100% of the Moss Mine.

Strategic Priorities

• The key strategic priorities for the Company are to secure financing and advancing the Moss Mine to the development and construction stage.

• Additional priorities involve the continued exploration of the Moss and Silver Creek properties where the potential exists to make new discoveries and to continue to support the various community related initiatives that the Company has started in both the educational and community development areas.

• Now owning 100% of one of the strongest development projects in the market, the Company is committed to advancing its efforts in moving the mine towards commercial production as expeditiously as possible. The Company's directors and management believe that this priority will provide a solid foundation for Northern Vertex Mining Corp., and its shareholders, as it continues working towards building a prosperous, well-respected and long-term, production mining company.

About Northern Vertex

Northern Vertex Mining Corp. is a Canadian exploration and mining company focused on the reactivation of its 100% owned Moss Mine Gold/Silver Project located in NW Arizona, USA. The Moss Mine Gold-Silver Project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 370 meters vertically. It is a potential heap leach, open pit project that has been advanced to the Feasibility Study stage to ensure that technical, economic, permitting and funding requirements are met prior to proceeding with the development of the mine. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.

Qualified Persons:

The foregoing technical information contained in this news release has been approved by Mr. L.J. Bardswich, P. Eng., General Manager Moss Project, and a Qualified Person ("QP") for the purpose of National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President & CEO

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

Cautionary Note About Forward Looking Information

This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

Cautionary Note to US Investors:

This news release uses the terms "Measured", "Indicated", and "Inferred" resources. US investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. US investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. US Investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

2016 number 09