Mr. Martin Kepman of Sunset Cove reports

SUNSET COVE MINING ANNOUNCES APPROVAL FOR ACQUISITION OF THE HOULTON WOODSTOCK MANGANESE PROPERTY, THE FILING OF ITS TECHNICAL REPORT, TERMS OF THE OPTION AGREEMENT AND CORPORATE UPDATES

The TSX Venture Exchange has accepted the filing documentation relating to Sunset Cove Mining Inc.'s agreement to earn a 100-per-cent interest from Globex Mining Enterprises Inc. in the Houlton Woodstock manganese property located in Carleton county in the province of New Brunswick, as previously announced on Sept. 29, 2016. The company will move to close the transaction in due course, and will issue the 1.2 million common shares to the vendors and the finder's fee common shares immediately. All securities issued by the company in connection with the transaction will be subject to a statutory four-month hold period.

Terms of the option agreement

The terms of the option agreement with Globex provide the company an option to earn an undivided 100-per-cent right, title and interest in the property, subject to the gross metal royalty, by making aggregate cash payments to Globex of $200,000, issuing an aggregate of four million common shares and incurring aggregate exploration expenditures of $1-million on the property as follows:

• Paying $200,000 in cash to Globex as follows:
  • $100,000 upon signing of the option agreement, which payment has been made;
  • $100,000 on or before April 22, 2017;
• Issuing four million common shares of the company to Globex as follows:
  • One million common shares on or before the fifth business day after TSX Venture Exchange acceptance of this option agreement;
  • One million common shares on or before April 22, 2017;
  • Two million common shares on or before April 22, 2018;
• Incurring aggregate exploration expenditures of $1-million on the property as follows:
  • $500,000 in exploration expenditures to be completed on or before April 22, 2017;
  • An additional $500,000 in exploration expenditures to be completed on or before April 22, 2018.

The cash and share payments to be made by the company prior to April 22, 2017, are firm commitments and must be made even in the event that the company terminates the option agreement and chooses not to exercise the option.

Globex shall retain a 3-per-cent gross metal royalty on all recovered metals and minerals produced from the property.

In connection with signing of the option agreement, the company has entered into a finder's fee agreement which provides for a finder's fee of 400,000 common shares of the company to be issued. The payment of the finder's fee on this transaction is subject to acceptance by the TSX Venture Exchange.

National Instrument 43-101 technical report

The company is pleased to report that R. Perry MacKinnon, PGeo (APEGNB), has completed an initial National Instrument 43-101 technical report, with an effective date of Nov. 1, 2016, on its Houlton Woodstock manganese property located in Carleton county, New Brunswick.

The technical report completed for the company and Globex includes a detailed summary of historical and more recent work on the property, interpretations, conclusions, and recommendations for additional exploration. The complete NI 43-101 technical report is available on SEDAR. The technical report identified a number of points of interest as follows:

• The property consists of 55 claims totalling approximately 1,729 hectares, or over 4,300 acres.
• The property contains historic workings referred to as (north to south) Iron Ore Hill, Sharpe Farm and Moody Hill manganese-iron occurrences. Historical tonnage and grade calculations for these occurrences are reported as 22.68 million tonnes of 10 per cent manganese, 7,257,000 tonnes of 9 per cent Mn and 9,071,847 tonnes of 9.5 per cent Mn, respectively. In addition, historic and more recent sampling at showings north and south of these areas also show significant values of manganese-bearing rocks. Note: The above estimates are from Sidwell, 1957, using limited drilling and a widely spaced gravity survey. The author has not done enough work to verify these resources; therefore, the above reserves are historical in nature and the company, Sunset Cove Mining, should not treat this historical estimate as current mineral resources/reserves as defined under NI 43-101. Neither quality assurance nor quality control can be performed because the entire old drill core has been lost. Additional systematic surface drilling is required to verify the historical estimates and possibly upgrade part of the whole historical estimate into current resources.
• The technical report recommends an exploration program consisting of increased magnetometer coverage and a diamond drill program consisting of approximately 3,850 metres.

The technical information contained in this news release has been reviewed and approved by Perry MacKinnon, PGeo, who is a qualified person regarding Sunset Cove's Houlton Woodstock manganese property located in Carleton county, New Brunswick.

Debt settlement

In connection with the company's effort to restructure, the company has also negotiated debt settlement agreements with various creditors. A total of $65,000 of outstanding debt will be extinguished through the issuance of 130,000 shares at a deemed price of 50 cents per share. The common shares issued pursuant to the debt settlement will be subject to a four-month hold period. The debt settlement remains subject to approval from the TSX Venture Exchange.

Appointment of alternative director

The company is also pleased to announce the appointment of Anthony Viele as an alternative director. Mr. Viele is currently the president and director of Premier Strategic Alliance Inc., and has held these positions since the company was founded in 1996. Premier Strategic Alliance provides consulting and strategic advice to various companies in the metal and composite industries targeting specialty items for military, industrial and commercial use.

Appointment of corporate secretary

The company is also pleased to announce the appointment of Shimmy Posen as corporate secretary. Mr. Posen is a lawyer at Garfinkle Biderman LLP, where he focuses on corporate finance, mergers and acquisitions, and securities law. He acts for public and private companies, securities dealers and financial institutions on a number of public and private financings, and commercial transactions. Mr. Posen holds a JD from Osgoode Hall Law School and a BA in political science from York University.

Granting of options

In addition, the company is pleased to announce that the company has granted 200,000 incentive stock options to various directors and a consultant. The options are exercisable at 15 cents per option for a period of three years from the date of grant and have no vesting conditions. The options are being issued under the terms of the company's stock option plans, which were approved by shareholders at the company's annual general and special meeting on April 21, 2016. The option plan has been submitted in the normal course to the TSX Venture Exchange for approval, and no options can be exercised prior to the receipt of this approval.

Sunset Cove's mission is to acquire and advance high-potential mining prospects located in North America with the intent of supplying value-added materials to the lithium-ion battery and other alternative energy industries.

We seek Safe Harbor.