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MANGAZEYA MINING IS PLEASED TO ANNOUNCE THAT IT HAS SIGNED A US$ 118.5 MILLION CREDIT FACILITY WITH VTB BANK FOR THE NASEDKINO PROJECT

Tortola, British Virgin Islands (July, 27, 2018) – Mangazeya Mining Ltd (NEX: MGZ.H) (togetherwith its subsidiaries “Mangazeya” or the “Company”) announces that its fully-owned Russian subsidiary Dalsvetmet LLC (the “Borrower”) has signed a senior secured term loan facility of up to US$118.5 million (the “Facility Agreement”) with VTB Bank (PJSC) to fund the remaining capital expenditures of the Nasedkino project. The loan has a tenor of 7 years, with the repayment starting in March 2020.

Nasedkino is the main development project of the Company with total P&P reserves of over 19 tons at 2.17g/t of gold suitable for open pit mining. The plant capacity is 1.0 Mtpa and production is expected to start in 2019.

“We are glad to broaden our cooperation with VTB Bank to the financing of the Nasedkino project.

Nasedkino is currently our key project and the support form one of the largest banks in the country is an additional confirmation of the quality of the project and a sign of trust in our operational team” – said Sergey Yanchukov, CEO of Mangazeya Mining.

About Mangazeya Mining Ltd.

Mangazeya Mining Ltd is a gold mining and exploration company with its assets based in eastern Russia.

The common shares of Mangazeya Mining Ltd are listed and posted for trading on the Toronto Stock

Exchange (NEX) with the “MGZ.H” ticker.

Contact Information

Georgy Kandelaki

Corporate Secretary

Mangazeya Mining Ltd.

g.kandelaki@mangazeya.ru

+7 499 277 1111