Mr. Robert McLeod reports

IDM MINING GRANTED PROVINCIAL ENVIRONMENTAL ASSESSMENT CERTIFICATE FOR THE RED MOUNTAIN GOLD PROJECT

On Friday, Oct. 5, 2018, British Columbia provincial government ministers George Heyman, Minister of Environment and Climate Change Strategy, and Michelle Mungall, Minister of Energy, Mines and Petroleum Resources, issued an environmental assessment (EA) certificate to IDM Mining Ltd. for the Red Mountain underground gold project.

The company proposes a year-round, high-grade underground gold-silver operation using bulk mining methods, primarily longhole stoping. Mineralized material will be trucked to a mill located within the adjacent Bitter Creek Valley that is producing gold-silver dore bars. Tailings will be stored within a lined storage facility, with water treated prior to discharge. Mining crews will be locally based, with road access via Highway 37A and power access via the BC Hydro grid located just north of Stewart, B.C.

In addition to the 38 conditions that are part of the Red Mountain EA certificate, design requirements are specified in the certified project description, which are legally binding requirements that IDM must meet to maintain compliance with the certificate. The conditions were developed following consultation and input from indigenous groups, government agencies, communities and the public. IDM is required to obtain other federal, provincial and local government permits to proceed with construction of the project.

"Nisga'a Treaty lands are rich with natural resources. We are confident that this decision and conditions will provide significant opportunities for our citizens, with strong protection of the land, water and wildlife," commented Eva Clayton, president of Nisga'a Lisims government (NLG). "Over 50 years ago, IDM's president and CEO [chief executive officer] Rob McLeod's father and former mayor of Stewart, Ian McLeod, campaigned for Nisga'a politician Frank Calder, helping to elect the first native to any legislature in Canada. The Nisga'a Nation looks forward to working together with Rob and IDM Mining for the benefit of all northerners," commented Brian Tait, chairperson of NLG.

"I am happy with this decision, which will see significant jobs and business opportunities, along with appropriate safeguards to protect and support our community," commented Gina McKay, mayor-elect of Stewart, B.C. "Stewart is a mining town supported by deep family roots; Rob's dad is looking down on us and smiling, knowing that underground miners and their families will be back in town and going to work every day at Red Mountain."

"Responsible natural resource development is an important part of our government's plan to develop sustainable economies in rural B.C., with mining a cornerstone industry in the Northwest. We applaud the hard work by IDM and all stakeholders that contributed to this decision to advance the Red Mountain gold project," commented Hon. Doug Donaldson, MLA for Stikine.

"This is a significant step for the company and the realization of the potential of the Red Mountain gold project. With the successful completion of a rigorous process in a timely way, we have demonstrated the value and validity of our approach to project permitting, community engagement and project development," commented Michael McPhie, chair of IDM's board of directors. "We value our relationships with the people and officials of the district of Stewart, the Nisga'a Nation and the other communities of Northern British Columbia. Their support made this possible and we look forward to moving ahead with the development of the project in the near term."

"We are grateful for our shareholders, particularly those who have supported and invested for several years through difficult markets and have shared our vision of a high-margin gold mine with significant exploration upside. Also, we are grateful for the effort of regulators and stakeholders, particularly the community of Stewart and the Nisga'a Nation, that has led to this decision," commented Robert McLeod, president and chief executive officer of IDM Mining. "Finally, I am grateful for the inspiration of my late father Ian and late uncle Don, two dropouts turned underground miners, then eventual elders and leaders in the Golden Triangle and for whom IDM is named."

This decision concludes a process initiated in 2016 and provides a defined set of conditions and commitments that will allow for the commercial development and operation of the project. With this important step now complete, the company is focused on completion of the requisite operations permitting and final stage of the Canadian Environmental Assessment (CEA) process.

Canadian Environmental Assessment Act review

The project is also subject to a co-ordinated review by the CEA Agency under the Canadian Environmental Assessment Act of 2012 (CEAA 2012). The project is currently in the final stage of the public comment period of the CEAA process, which is scheduled to complete on Oct. 18, 2018. The federal review timeline is currently at day 262 of 365.

With the provincial environmental assessment now complete and the federal environmental assessment advancing toward its final stage, IDM anticipates receiving federal approval in late 2018 or early 2019. Information pertaining to the federal environmental assessment for the Red Mountain underground gold project can be viewed on the Canadian Environmental Assessment Agencies website.

IDM acknowledges all of the individuals, groups and consulting companies that contributed to fieldwork as well as the EA, including: Falkirk Resource Consultants, Brownhill Consulting, Catana Consulting, Odyssey Geoservices, Ecologic, SRK, Knight Piesold, Onsite Engineering, Allnorth Engineering, Basemet Labs, Yellowhead Helicopters, Morecore Drilling, Matrix Camp Services, Ausenco, Soucie Construction, Palmer Environmental, EDI environmental, Greenwood Environmental, WSP, CARO Analytical Services, Triton Environmental Consultants, Avison Management, Core6 Environmental, Ecofish Research, Northlink Consultants, Paul Hughes Consulting, Borealis Environmental, Hatfield Consultants, JDS Energy and Mining, and Wayne Corso.

About IDM Mining Ltd.

IDM Mining is an exploration and development company based in Vancouver, B.C., Canada, focused on advancing the Red Mountain gold project toward production. The 17,125-hectare Red Mountain gold project is located in northwestern British Columbia, 15 kilometres northeast of the mining town of Stewart.

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