Mr. Mark Haywood reports

CLINE EXECUTES FORBEARANCE AGREEMENT WITH TRUSTEE

Cline Mining Corp. has entered into a forbearance agreement with Computershare Trust Company of Canada.

The company's executive chairman, Mark Haywood, stated, "Cline was unable to make its June 17 interest payment of approximately $3.2-million and has agreed with the trustee to forbear from taking action under the trust indenture until the end of this month whilst an alternative financing arrangement is negotiated with Marret Asset Management Inc."

Due to Cline's present financial situation, a semi-annual interest payment in the amount of approximately $3.2-million could not be made on its outstanding $65.5-million 10-per-cent senior secured bonds. Cline has consequently entered into a forbearance agreement with Computershare Trust Company of Canada, the trustee under the 10-per-cent senior secured bond trust indenture dated Dec. 13, 2013, as supplemented, pursuant to which the trustee has agreed to forbear from taking any action to enforce certain of its rights under the trust indenture until June 30, 2013, provided that Cline continues to proceed with an alternative financing with Marret Asset Management, on behalf of certain bondholders.

A copy of the forbearance agreement will be made available on the company's reference page at the System for Electronic Document Access and Retrieval.