SOURCE: Medallion Resources Ltd.

Medallion Resources Ltd.

September 25, 2015 14:10 ET

Medallion Clarifies Previously Announced Private Placement

VANCOUVER, BC--(Marketwired - September 25, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Medallion Resources Ltd. (TSX VENTURE: MDL) (OTC PINK: MLLOF) ("Medallion" or the "Company") announces that, due to regulatory requirements and depending upon demand, a portion of the private placement previously announced by the Company on September 17, 2015 (the "Offering") will be made available to existing shareholders. This offer is being made in accordance with the provisions of the existing shareholder exemption (the "Existing Shareholder Exemption") contained in Multilateral CSA Notice 45-313.

The Company has set September 16, 2015 as the record date for determining existing shareholders entitled to purchase Units pursuant to the Existing Shareholder Exemption. The Offering is being conducted pursuant to available prospectus exemptions, including the accredited investor exemption. Any existing shareholder of Medallion interested in participating in the Offering should contact Donald Lay using the contact details below.

The maximum Offering is 7,500,000 units (each a "Unit") at $0.03 per Unit for maximum gross proceeds of $225,000. The Offering is not subject to any minimum aggregate subscription. Each Unit will be comprised of one common share of the Company and one transferable common share purchase warrant (a "Warrant"). Each Warrant will be exercisable to purchase one common share of the Company at an exercise price of $0.20 until May 1, 2018. If subscriptions received for the Offering based on all available exemptions exceed $225,000, Medallion may seek to increase the size of the Offering and obtain TSX Venture Exchange approval for such an increase. In the alternative, should Medallion not seek to increase the size of the Offering, where subscriptions exceed the maximum, the Units will be allocated pro rata amongst all subscribers qualifying under all available exemptions.

Assuming the Offering is fully subscribed, the gross proceeds of the Offering will be used as follows: metallurgical studies and site selection regarding monazite processing (approximately $75,000); feedstock sourcing work (approximately $50,000); feedstock analysis and logistics approximately ($25,000); general and administrative expenses (approximately $50,000); and the balance to working capital . Although the Company intends to use the proceeds of the Offering as described above, the actual allocation of proceeds may vary depending on unforeseen events. If the Offering is not fully subscribed, the Company will apply the proceeds of the Offering to the above uses in such amounts as management of Medallion determines is in the best interests of the Company. As previously announced, a finder's fee of cash or Units, at the election of the finder, and finders' options may be paid or granted to finders in respect of the Offering.

All securities issued to purchasers and finders under the Offering will be subject to a four month hold period from the closing date of the Offering, pursuant to securities legislation and the policies of the TSX Venture Exchange. The securities offered have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.

About Medallion Resources

Medallion Resources is focused on the opportunity for low-cost, near-term, rare-earth production by exploiting the mineral monazite. Monazite is a rare-earth phosphate that is available as a by-product from existing mining and mineral-sands sources, principally in the Indian Ocean basin. Rare earths are used in critical components for virtually all computing and mobile electronic products, as well as wind turbines, electric and hybrid vehicles, and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral processing and the safe management of waste materials. More about Medallion (TSX-V: MDL; OTCPK: MLLOF; Frankfurt: MRD) can be found at medallionresources.com.

Medallion management takes full responsibility for content and has prepared this news release. 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. Some of the statements contained in this release are forward-looking statements, such as statements relating to the completion of the Offering, the anticipated use of gross proceeds of the Offering, estimates and statements that describe Medallion's future production and financing plans, objectives or goals, including words to the effect that Medallion or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks inherent in completing laboratory-scale processing tests and applying the results to full-scale production and other risks outlined in the Company's management discussions and analysis of financial results. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include not obtaining required regulatory approvals in respect of the Offering, expectations that may be raised by discussing potential business, acquisitions or development plans. Also, in order to proceed with Medallion's plans, additional funding will be necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion's plans. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future anticipated events.

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