SOURCE: Medallion Resources Ltd.

Medallion Resources Ltd.

October 22, 2015 06:00 ET

Medallion Resources Completes Private Placement

VANCOUVER, BC--(Marketwired - October 22, 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"), today announced that it has closed its non-brokered private placement (the "Offering"), as originally announced in news releases issued September 17 and 26, 2015 for total gross proceeds of $225,000.

Pursuant to the Offering, the Company has issued an aggregate of 7,500,000 units (each a "Unit") at a price of $0.03 per Unit, each Unit consisting of one common share and one transferable common share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one common share of Medallion at an exercise price of $0.20 until May 1, 2018. Medallion directors, officers and their associates subscribed for 4,666,667 Units or $140,000 of the Offering, which included the investment of $138,975 of subscription funds received from the recent sale of 4,632,500 shares of Medallion through the facilities of the TSX Venture Exchange (the "Exchange").

All securities issued to purchasers in the Offering are subject to a hold period expiring four months and one day after issuance, pursuant to relevant securities legislation and the policies of the Exchange. The Company paid aggregate cash finders' fees of $360, representing 8% of the gross proceeds in respect of certain subscriptions, to a certain qualified finder.

It is anticipated that the net proceeds of the Offering will be used for metallurgical studies ($50,000), monazite feedstock sourcing, acquisition and analysis ($30,000), plant site selection activities ($25,000) and general and administration and working capital purposes ($105,000 inclusive of an aggregate of $53,200 to be paid to related parties of the Company for accrued but unpaid past management fees and professional fees).

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 www.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 estimates and statements that describe Medallion's planned use of proceeds of the Offering or other 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 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. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, Medallion disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.

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