Mr. Paul Ireland reports

ARIZONA MINING TO INCREASE OWNERSHIP IN HERMOSA PROJECT TO 100%

Arizona Mining Inc. has entered into a letter of intent with a private company to acquire the 20-per-cent interest in the common shares of Arizona Minerals Inc. (AMI) that the company does not currently own. AMI owns 100 per cent of the Hermosa project, which includes the Taylor deposit, in Arizona, United States of America, subject to a 2-per-cent net smelter royalty. The company will issue 40 million common shares and five million common share purchase warrants to the seller as consideration for the acquisition. Each share purchase warrant is convertible into one common share of the company at a price of 50 cents for a period of three years from closing. The common shares to be issued represent approximately 19.8 per cent of the company's common shares on a postissuance basis or 21.7 per cent, assuming the exercise of the share purchase warrants.

Jim Gowans, Arizona Mining's president and chief executive officer, commented: "We are very excited about the prospects for the Taylor deposit and think increasing our ownership to 100 per cent of the project at this time will serve our shareholders well over the long run. Owning the project outright should also help with marketing, logistics and financing as we move the project forward."

The seller is controlled by Richard W. Warke, a director and chairman of the company. The acquisition is subject to, among other things, execution of a definitive purchase agreement, the approval of the Toronto Stock Exchange and the approval of a majority of the votes cast by the shareholders of the company, excluding votes cast by the seller, Mr. Warke, and their related parties and joint actors. Further information on the proposed acquisition will be provided to shareholders in the information circular for the shareholders meeting, which is expected to be held in the second quarter of 2016.

We seek Safe Harbor.