Mr. David Taplin reports

MACARTHUR MINERALS CLOSES PRE-ASX IPO FUND RAISING FOR MACARTHUR AUSTRALIA LIMITED 42% OVERSUBSCRIBED

Macarthur Minerals Ltd. has closed its fundraising for Macarthur Australia Ltd., oversubscribed for $1.4-million (Australian) prior to Macarthur Australia's intended initial public offering (IPO) on the Australian Securities Exchange.

David Taplin, president, chief executive officer and director of Macarthur Minerals, commented:

"Closing of the pre-IPO fundraising for Macarthur Australia, oversubscribed, demonstrates strong interest for the upcoming IPO of our Australian iron ore and lithium projects. Demand for the pre-IPO fundraising was so strong, we had to close early, declining and scaling back subscription applications. We believe that an ASX IPO of Macarthur Australia will provide improved price realization for our Australian iron ore and lithium projects more consistent with ASX-listed peers. Funds raised in an IPO will allow Macarthur Australia to significantly advance the Australian iron ore and lithium projects."

ASX IPO of Macarthur Australia

The previously announced intended ASX IPO of the company's Australian iron ore and lithium projects is well advanced, targeted for opening in March/April, 2017.

Prior to the intended IPO, Macarthur Minerals will be issued approximately 125 million shares, or 91 per cent, of Macarthur Australia for consideration for sale of its subsidiaries, Macarthur Iron Ore Pty. Ltd. and Macarthur Lithium Pty. Ltd. (MLi) to Macarthur Australia. MIO and MLi, respectively, own the Australian iron ore and hard-rock lithium projects. The sale of MIO and MLi to Macarthur Australia has received conditional acceptance of the TSX Venture Exchange.

Pre-IPO investors will be issued approximately 12.7 million shares, or 9 per cent, of Macarthur Australia, prior to the intended IPO. Pre-IPO subscription proceeds will be held in escrow until Macarthur Minerals has affected transfer of its subsidiaries to Macarthur Australia.

The board of Macarthur Minerals believes that an ASX IPO of its Australian subsidiaries, which hold its Australian iron ore and lithium projects, will provide improved price realization for those projects more consistent with its ASX-listed peers. Macarthur Australia intends to raise between approximately $5-million (Australian) and $14-million (Australian) in an ASX IPO, with Macarthur Minerals retaining between approximately 60 per cent and 77 per cent of Macarthur Australia. In accordance with ASX listing rules, the minimum IPO issue price is 20 Australian cents per share.

Proceeds raised in the intended IPO will allow Macarthur Australia to significantly advance the Australian iron ore and lithium projects.

Macarthur Minerals' wholly owned subsidiary, Macarthur Lithium Nevada Ltd., will continue to advance the Stonewall lithium project, located in Nevada.

About Macarthur Minerals Ltd.

Macarthur Minerals is an exploration and development company that is focused on identifying and developing its iron ore projects and its lithium exploration interests in Australia and Nevada. Macarthur has two advanced iron ore projects in Western Australia: the Ularring hematite project and the Moonshine magnetite project.

Upcoming events

Macarthur will be attending the 2017 Prospectors and Developers Association of Canada international convention and investors exchange in Toronto from March 5 to March 8 at the Metro Toronto Convention Centre.

The compay invites you to meet the Macarthur team at booth No. 2344. The conference will provide current and prospective shareholders an opportunity to speak with management about the company's recent developments.

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