Montana Gold Mining Company Inc.
CNSX : MGM

Montana Gold Mining Company Inc.

February 28, 2014 08:30 ET

Montana Gold Closes First Tranche of Private Placement Financing

LONDON, ONTARIO--(Marketwired - Feb. 28, 2014) - Montana Gold Mining Company Inc. (CSE:MGM) ("MGM" or the "Company") has closed the first tranche of a private placement financing in the amount of $100,000. IBK Capital Corp. has been engaged to raise up to $400,000 on a best-efforts basis for the Company and acted as an advisor for this first tranche on a non-brokered basis.

The private placement financing consists of units priced at $0.05 each, with each unit comprising one common share and one common share purchase warrant exercisable for three years at $0.10. The purpose of the financing is to enable exploration of the Company's Golden Trail Project in Nevada as well as to provide working capital.

The Company recently completed a Cultural Resource Survey of the Golden Trail Project as part of an application for an exploration drilling permit that has been initiated and is in process with the Bureau of Land Management.

In addition, the Company completed the field portion of a surface sampling and geochemistry program during late 2013. That data is being processed and the Company is anticipating receipt of a report in the near term. This program was conducted by Richard C. Capps, PhD, author of a NI 43-101 report filed on this property and available on SEDAR or the Company website at www.montanagoldmining.com.

The Golden Trail is situated on the Pequop Trend (also called the Eastern Nevada Gold Trend), a recently identified gold trend in north-eastern Nevada that in 2011 saw Newmont Mining Company ("Newmont") take over the former owner of the Long Canyon property, 52 miles south of Golden Trail for a reported $US2.3 Billion. Subsequent to Newmont's acquisition of Long Canyon, Newmont staked 211 mineral claims totaling some 4,300 acres that completely surround the Company's Golden Trail Project, which consists of 16 contiguous mining claims that total about 320 acres.

Montana Gold Mining Company Inc. is a reporting issuer in good standing in the Province of Ontario whose common shares are listed on CSE (Symbol: MGM). There are 37,281,007 common shares issued and outstanding in the capital of the Company, prior to any issuances from the private placement discussed herein.

CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's ability to raise capital, complete exploration programs, complete a diamond drilling permit, and receive a report on recent surface exploration work.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding its ability to initiate and complete future exploration work as expected. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company's future exploration work, technical, safety or regulatory issues.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

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