IDM Mining Closes Private Placement for $10,848,898

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 27, 2016) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

IDM Mining Ltd. (TSX VENTURE:IDM) ("IDM" or the "Company") is pleased to announce that it is has closed its previously announced brokered and non-brokered private placement financings (collectively, the "Financing") for aggregate gross proceeds of $10,848,898.

The Financing consisted of 74,992,059 non-flow-through common units (the "Common Units") at a price of $0.09 per Common Unit raising gross proceeds of $6,749,285, as well as 37,269,208 flow-through common units (the "Flow-Through Units") at a price of $0.11 per Flow-Through Unit raising gross proceeds of $4,099,613. The brokered portion of the Financing was completed by a syndicate of agents including Haywood Securities Inc., Red Cloud Klondike Strike Inc. and Medalist Capital Ltd.

Rob McLeod, President & CEO of IDM, commented: "IDM is very pleased to welcome the support of significant new institutional and corporate shareholders alongside the participation of our strong existing shareholder network. The proceeds of this financing will be used for resource expansion and infill drilling, project permitting, engineering and a feasibility study. The Company's goal is to make a final investment decision for a potential high-grade, underground gold-silver mine at Red Mountain in 2017."

Each Common Unit consists of one common share of the Company (a "Common Share") and one-half of one non-transferable share purchase warrant (each whole share purchase warrant, a "Warrant"), with each Warrant entitling the holder thereof to acquire one Common Share at a price of $0.15 per Common Share for a period of twenty-four (24) months. Each Flow-Through Unit consists of one flow-through Common Share and one-half of one Warrant.

The Company intends to use the net proceeds of the Financing for the following:

	•	A 5,000 meter underground core drilling program to expand and upgrade the high-grade underground gold resource at the Red Mountain project (the "Project"), located near Stewart, BC;
	•	Advance the permitting, field studies and environmental assessment of the Project with the goal of submitting a project application report to the BC Environmental Assessment Office (BCEAO) and the Canadian Environmental Assessment Agency (CEAA) in the fourth quarter of 2016. This would potentially allow for a project approval to be secured in 2017;
	•	Completion of engineering, field studies and a feasibility study on the Project; and
	•	General working capital purposes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable securities laws of any state of the United States and may not be offered or sold in the United States, or to, or for the account or benefit of a U.S. person (as defined in Regulation S 2 under the 1933 Act) unless registered or pursuant to an available exemption from such registration requirements.

The Company will pay to the Agents and certain finders a total of $611,625 and 6,372,730 non-transferrable warrants. Each such warrant entitles the holder to purchase one Common Share at a price of $0.15 for a period of twelve months.

The securities issued in the Financing are subject to a four month hold period that will expire on August 28, 2016.

Certain insiders of the Company participated in the private placement, therefore the Financing is considered a related party transaction and is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 in reliance on the exemptions set forth in sections 5.5(a) and (b) and 5.7(1)(a) of MI 61-101. The Company did not file a material change report more than 21 days before the expected closing of the Financing as the details of the Financing and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.

ABOUT RED MOUNTAIN

IDM Mining is currently earning an option to acquire a 100% interest in the 17,125 hectare Red Mountain property, located 15 kilometers northeast of Stewart, BC. Numerous precious and base metal targets have been identified by IDM and previous operators over a 15 km by 4 km trend of strong alteration and mineralized prospects. Since discovery in 1989, in excess of $45 million has been spent on the Red Mountain property including a production sized underground ramp.

ABOUT IDM MINING LTD.

IDM Mining Ltd. is mineral exploration and development company (TSX-V:IDM) based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia and Yukon. Further information can be found on the Company's website at www.IDMmining.com.

ON BEHALF OF THE BOARD
of IDM Mining Ltd.

Robert McLeod, President, CEO and Director

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

Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the Financing and the use of proceeds from the Financing, proposed exploration and development activities and their timing, and other plans and objectives of IDM. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: the proposed exploration and development will proceed as planned; with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company 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 otherwise required by applicable securities legislation.