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TORONTO, ONTARIO, July 18, 2016 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) is pleased to announce its production results for the second quarter and the six months ended June 30, 2016.

HIGHLIGHTS:

 

• Gold sales during 1H 2016 was 6.6 koz, an increase of 99.9% compared to the previous year, and gold production was 8.1 koz, a 43.9% increase y-o-y.
  Gold sales during 2Q 2016 was 5.5 koz, a 65.8% increase compared to the previous year, and gold production for 2Q 2016 was 6.3 koz, a 11.1% increase y-o-y.
• In 1H 2016, total ore mined was 453 kt (-5.3% y-o-y) with the average grade 1.01 g/t (-25.7% y-o-y). In Q2 2016, total ore mined was 274 kt (-4.6% y-o-y) with the average grade 0.94 g/t (-33.8% y-o-y).
• The average stripping ratio in 1H 2016 increased by 23.7% compared to the previous year.
• In 1H 2016, total ore stacked was 537 kt (+14.4% y-o-y) with the average grade 1.32 g/t (-0.6% y-o-y). In Q2 2016, total ore stacked was 528 kt (+13.2% y-o-y) with the average grade 1.33 (the same level as in Q2 2015).

	Q2 2016	Q2 2015	Y-o-Y change	H1 2016	H1 2015	Y-o-Y change
Total rock moved, ‘000 m3	1,209	992	21.9%	2,285	1,993	14.7%
Stripping, ‘000 m3	1,082	859	26.0%	2,076	1,772	17.2%
Ore mined, kt	274	288	-4.6%	453	478	-5.3%
Stripping ratio, m3/t	3.9	3.0	32.1%	4.6	3.7	23.7%
Average grade in ore mined, g/t	0.94	1.41	-33.8%	1.01	1.36	-25.7%
Gold in ore mined, kg	257	406	-36.8%	456	648	-29.6%
Ore stacked, kt	528	467	13.2%	537	469	14.4%
Average grade in ore stacked, g/t	1.33	1.33	0%	1.32	1.33	-0.6%
Gold in ore stacked, kg	701	620	13.1%	709	623	13.8%
Gold production, koz	6.3	5.6	11.1%	8.1	5.6	43.9%
Gold sold, koz	5.5	3.3	65.8%	6.6	3.3	99.9%

In the beginning of 2016 the Company has to exploit a new area of the second priority with lower grade due to temporary flooding of a particular pit area. As a result, the stripping ratio increased and average grade decreased.

Roman Kashuba, CEO of Mangazeya, stated: “We are in line with our annual production plan. The Company is on a stable production phase and we are looking forward another strong production year.”

ABOUT MANGAZEYA MINING LTD.

Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Roman Kashuba
Chief Executive Officer
Mangazeya Mining Ltd.