Mr. Mark Haywood reports

CLINE MINING ANNOUNCES RIGHTS OFFERING WILL NOT PROCEED

Cline Mining Corp.'s rights offering contemplated pursuant to the recapitalization agreement with Marret Asset Management Inc., as agent for the bondholders and standby purchasers party thereto, will not be proceeding.

The company's executive chairman, Mark Haywood, stated, "Cline is focused on reducing its operating costs and maintaining the New Elk mine in statutory compliance whilst it discusses an alternative recapitalization proposal with Marret."

Pursuant to the recapitalization agreement, the company filed a preliminary short form prospectus dated April 25, 2013, with respect to the rights offering and issuance of warrants to its shareholders, as described in greater detail in the preliminary prospectus. The company will be withdrawing the preliminary prospectus.

Both the recapitalization agreement and the preliminary prospectus are available on the company's reference page at SEDAR.