Stelmine completes a private placement of $1,000,208

QUÉBEC CITY, QUÉBEC--(Marketwired - June 19, 2017) - Stelmine Canada ("Stelmine" or the "Company") (TSX VENTURE:STH) announced today the closing of the second and final tranche of a non-brokered private placement. Institutional funds participated in this placement for 76% and insiders participated for 23%.

The private placement (the "Placement") consisted in the issuance of 3 572 168 units (the "Units") at a price of $0.28 per unit, for total placement of $1,000,208. Each Unit is composed of one (1) common share of Stelmine ("Share") and one half (1/2) warrant, each warrant entitling its holder to subscribe to one (1) Share at a price of $0.35 per Share during an 18-month period.

The first tranche of the Placement consisted in the issuance of 2,678,568 Units for a placement of $750,000, and the second tranche of the Placement consisted in the issuance of 893,600 Units for a placement of $250,208.

The Fonds de solidarité FTQ participated in this second tranche of the Placement for a total amount of $150,080 (or 15% of the Placement).

Three (3) insiders of the Company participated in this second tranche of the Placement for proceeds of $90,048 (36% of the second tranche of the Placement). These insiders subscribed to the Units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting Protection of Minority Holders in Special Transactions ("Regulation 61-101") in accordance with sections 5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based on the fact that the market value of such participation or the consideration paid by each such insider does not exceed 25% of the market value of the Company.

All securities issued in connection with this Placement are subject to a hold period of four months and one day. The Placement is subject to the approval of the TSX Venture Exchange.

The proceeds of this Placement will be used for the Company's operating costs and working capital.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ is a development capital fund that channels the savings of Quebecers into investments. As at November 30, 2016, the organization had $12.2 billion in net assets, and through its current portfolio of investments has helped create and protect over 187,000 jobs. Fonds is a partner in more than 2,600 companies and has nearly 618,000 shareholder-savers. For more information, visit fondsftq.com.

About Stelmine

Stelmine is a junior mining exploration company and its activities are located in the Province of Québec. Stelmine holds 754 claims spanning 383 km² on the eastern part of the Opinaca metasedimentary basin, which contains zones with a high potential for gold deposit discovery in geological contexts similar to the one leading to discovery of the Éléonore Mine. Following the closing of the second tranche of the Placement, the Company's share capital consists of 21,926,052 Shares issued and outstanding.

Forward-Looking Statements

The statements set forth in this press release, which describes Stelmine's objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of security legislation. Positive or negative verbs such as "believe", "can", "shall", "intend", "expect", "estimate", "assume" and other related expressions are used to identify such statements. Stelmine wishes to state that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Stelmine's actual results and the projections or expectations set forth in the forward-looking statement include the risk that the Company does not complete the Placement as anticipated, and such other risks as described in detail from time to time in the reports filed by Stelmine with security authorities in Canada. Unless otherwise required by applicable securities laws, Stelmine disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of the new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of this release.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.