Cyprium Mining Corporation Announces Closing of First Tranche of US$4.5 Million in Debt Financing

MONTREAL, QUEBEC--(Marketwired - April 17, 2015) -

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Cyprium Mining Corporation (TSX VENTURE:CUG) ("Cyprium" or the "Corporation"), a Canadian-based mining company with operations located in the state of Chihuahua, Mexico, is pleased to announce that the Corporation has completed the initial closing (the "First Tranche") of its previously announced non-brokered private placement (the "Bond Financing") of bonds in the aggregate amount of US$4,500,000. Pursuant to closing the First Tranche the Corporation has received a disbursement in the amount of US$1,000,000 (the "First Tranche Disbursement") from the subscriber of the Bond Financing.

In connection with the First Tranche Disbursement the Corporation will issue three year bonds (the "Bonds") in the aggregate amount of US$1,000,000. The Bonds will bear interest at a rate of 12.5% per annum, calculated and payable quarterly in arrears commencing on September 30, 2015.

Andre St Michel, President and CEO of Cyprium commented: "The closing of the first tranche of our US $4.5 million financing is a significant milestone for our company. This first disbursement is closely linked to the upcoming start of our milling operations at the 100 tons per day flotation processing plant we operate in Aldama, Mexico. With this capital, we will purchase mineralized material to be processed at the plant, invest in doubling the capacity of the plant before the end of the year and set aside sufficient working capital for our toll milling business."

It is anticipated that the second tranche (the "Second Tranche") of the Bond Financing will close on or about June 1, 2015. Pursuant to closing the Second Tranche the Corporation will receive a disbursement in the amount of US$2,000,000 (the "Second Tranche Disbursement") from the subscriber of the Bond Financing. Subject to closing the Second Tranche the Corporation will pay the Finder a finder's fee of 8% of the Second Tranche Disbursement in cash and the Corporation will also issue to the Finder 1,039,423 share purchase warrants with an exercise price of $0.13 per share for a period of three years.

Alain Lambert, Chairman of the Company stated: "While we have a planned date for the second disbursement of US $2 million, we will continue to closely work with our investors and align further disbursements with corporate developments in order to minimize the interest we pay on each disbursement." He concluded: "We continue to evaluate growth opportunities in Northern Mexico which are consistent with our business plan. Northern Mexico's mining sector is characterized by a large number of small mines and a small number of operating processing facilities. We intent to play a leading role in capitalizing on this market opportunity."

A finder's fee of 8% of the gross proceeds of the First Tranche Disbursement is payable in cash by the Corporation to SC Strategy Consult AG (the "Finder"). The Corporation will also issue to the Finder 2,422,115 share purchase warrants with an exercise price of $0.13 per share for a period of three years. Pursuant to applicable securities laws, all securities issued pursuant to the Bond Financing will be subject to a hold period of four months plus one day following the date of issuance of such securities.

For further details on the Bond Financing, please refer to the Company March 3^rd, 2015 news release available on www.sedar.com.

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

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. Investors should note that the Las Cristinas property has no established mineral resources or mineral reserves as defined by NI 43-101. Although Cyprium Mining has made an initial production decision based on historical production records and the results of the recent sampling, a feasibility study of its projects has not been completed and there is no certainty that the proposed operations will be economically or technically viable.

The securities of Cyprium being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties, including without limitation, statements pertaining to the closing of the Bond Financing and the Offering including Cyprium's ability to obtain necessary approvals from the TSX Venture Exchange. Actual results may differ materially. Cyprium will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Cyprium.