Mr. Steve Dixon reports

RED EAGLE MINING COMPLETES $19,000,000 FINANCING

Red Eagle Mining Corp. has completed a private placement for gross proceeds of approximately $19.35-million, consisting of 71,677,550 common shares at a price of 27 cents per share. Liberty Metals & Mining Holdings LLC (LMM), a subsidiary of Boston-based Liberty Mutual Insurance, elected to exercise its participation right and will purchase 18.93 million shares, resulting in a 19.99-per-cent ownership interest in Red Eagle Mining.

STRACON GyM (SGyM), part of the Grana y Montero Group, has agreed to purchase 33,539,360 shares for $7-million (U.S.) in two tranches, as described below, representing 19.94 per cent of the outstanding shares of Red Eagle Mining upon completion of the offering. Under the terms of the subscription agreement, so long as SGyM owns at least 15 per cent of the issued and outstanding shares of Red Eagle Mining, SGyM shall have the right to appoint a director to the board of Red Eagle Mining and have the right to participate in any future equity financings in order to maintain SGyM's then-current equity ownership in Red Eagle Mining.

The financing will be completed in two tranches with approximately $13.7-million having been completed and the remaining approximately $5.65-million to be completed by Aug. 21, 2015.

The condition precedent of completing an additional equity financing of at least $15-million (U.S.) in order to draw down the previously announced $60-million (U.S.) credit facility (see news release dated March 25, 2015) will be met upon the completion of the second tranche of the financing. Proceeds will be used for the construction of the San Ramon gold mine and general working capital purposes. In addition, Red Eagle Mining issued Orion Mine Finance: 4,104,806 common shares pursuant to an adjustment provision in the subscription agreement previously entered into with Orion; and five million non-transferable bonus warrants pursuant to the terms of the credit facility. Each warrant is exercisable for one common share, at a price of 27.5 cents per share, for a period of five years. The warrants will not be exercisable if such exercise would result in Orion owning more than 19.9 per cent of the outstanding common shares of Red Eagle Mining at that time. All of the shares issued pursuant to the financing, all the common shares issuable to Orion as disclosed in this news release, the warrants and any common shares issuable on the exercise of the warrants are subject to a four-month hold period from the date hereof.

Credit facility syndication

Orion has also completed the syndication of the previously announced $60-million (U.S.) credit facility with LMM. Orion has retained 51 per cent ($30.6-million (U.S.)) with LMM assuming the remaining 49 per cent ($29.4-million (U.S.)). Orion and LMM are severally liable for their respective commitments under the credit facility. Orion will remain the administrative agent.

Mining Services Alliance with STRACON GyM Red Eagle Mining is pleased to announce that SGyM has been awarded the mine construction and operations contract for Red Eagle Mining's 100-per-cent-owned San Ramon gold mine, located in Antioquia, Colombia.

"We are pleased to have engaged SGyM as mining contractor for the San Ramon mine. SGyM is very familiar with the region through their similar joint venture style alliance with Rio Alto Mining and specifically their underground works with Buenaventura," commented Bob Bell, chief operating officer, Red Eagle Mining. "We have engaged the best possible partners with SGyM for the construction and operation of the mine and Lycopodium for the construction of the process plant."

"We're very much looking forward to working closely with Red Eagle Mining and other project stakeholders to successfully construct, develop and commission the San Ramon gold mine, providing benefits throughout Antioquia," commented Steve Dixon, chief executive officer, SGyM.

We seek Safe Harbor.