Mr. Ryan Weymark reports

IDM MINING ANNOUNCES CLOSING OF FIRST TRANCHE, UPSIZING OF NON-BROKERED PRIVATE PLACEMENT TO $5.23M, AND APPOINTMENT OF BELANGER AND GOWANS AS ADVISORS

IDM Mining Ltd. has closed the first tranche of its previously announced private placement, raising gross proceeds of approximately $1,921,010 and has increased the size of the offering to raise gross proceeds of up to $5.23-million. Also, the company has appointed Maryse Belanger and Jim Gowans as advisers to the company.

"I am looking forward to working with the guidance and experience of Ms. Belanger and Mr. Gowans, two highly respected executives in our industry with extensive experience in mine construction and development," commented Ryan Weymark, vice-president of project development at IDM Mining. "With the British Columbia Environmental Assessment process complete and the federal process nearing completion, the next steps in developing a high-grade, bulk-minable underground operation at Red Mountain are to update the feasibility study and complete advanced engineering required for Mines Act permitting."

Private placement -- closing of first tranche and upsizing

The company has closed the first tranche of its previously announced non-brokered private placement comprising 1,643,000 flow-through shares and 30,099,999 non-flow-through units for gross proceeds of approximately $1,921,010. The company has increased the size of the offering to raise gross proceeds of up to $5.23-million. This upsize is to potentially accommodate an investment by an engineering service provider.

Following closing of the first tranche, existing shareholder Ruffer LLP, on behalf of its clients, will have increased its holdings from approximately 9 per cent to 14 per cent (12 per cent on closing the full amount of the offering), in each case, on an undiluted basis.

As previously announced, the offering consists of a combination of flow-through shares at a price of seven cents per flow-through share and common units at a price of six cents per common unit.

Each common unit consists of one common share of the company and one-half of one non-transferable common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at a price of 8.5 cents per common share for a period of 24 months following closing of the offering.

In respect of this first tranche of the offering, finders' fees payable consist of a cash payment of $3,060 and the issuance of 51,000 non-transferrable finders' warrants. Each warrant entitles the holder to purchase one common share at a price of 8.5 cents for a period of 12 months following closing of the offering.

The securities issued in the first tranche of the offering are subject to a four-month hold period that will expire on Feb. 23, 2019.

The net proceeds of the offering will be applied to exploration, completion of an updated feasibility study and development activities on the company's Red Mountain gold project, which is located near Stewart, B.C., and for working capital purposes.

Appointment of Ms. Belanger and Mr. Gowans

Ms. Belanger and Mr. Gowans will assist and advise the company on financial, technical and project development matters.

Ms. Belanger has over 30 years of experience with senior global gold companies with strengths in studies, technical services, and operational excellence and efficiency. Ms. Belanger is currently the president, chief operating officer and a director of Atlantic Gold Corp., positions she has held since November, 2017. Before that, Ms. Belanger was chief operating officer of Atlantic Gold from July, 2016. Prior to that, Ms. Belanger was the chief executive officer and managing director of Mirabela Nickel Ltd., where she was responsible for the restructuring of that company's Santa Rita mine in Brazil during a period of extremely low metal prices. From 2011 to 2014, Ms. Belanger was a senior executive with Goldcorp, ultimately as the senior vice-president of technical services.

Ms. Belanger currently serves on the board of directors for Sherritt International Corp., Sigma Lithium Resources Corp. and Plateau Energy Metals Inc. Ms. Belanger holds a bachelor of science degree in geology from Universite du Quebec Chicoutimi, as well as a graduate certificate in geostatistics and the ICD.D certification from the Institute of Corporate Directors. Ms. Belanger is fluent in English, French, Spanish and Portuguese.

Mr. Gowans has more than 30 years of experience in exploration, feasibility studies, construction and operations, including the Red Dog and Polaris mines. He was formerly the president and chief executive officer of Arizona Mining Inc., as well as the co-president, executive vice-president and chief operating officer of Barrick Gold. Mr. Gowan's previous roles include managing director of Debswana Diamond Company Pty. Ltd., president and chief executive officer of De Beers Canada Inc., chief operating officer and senior vice-president of PT Inco Indonesia tbk, as well as executive vice-president of Placer Dome Inc.

Mr. Gowans currently serves on the board of directors of New Gold Inc., Detour Gold Corp., Cameco Ltd. and Titan Mining Corp., as well as Gedex Technologies Inc., an innovative geophysics systems company. Mr. Gowans is a professional engineer and holds a bachelor of applied science degree in mineral engineering from the University of British Columbia. Mr. Gowans attended the Banff School of Advanced Management.

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. In 2018, IDM Mining announced a 20.7-per-cent increase in high-grade, near-surface measured and indicated resources at Red Mountain. Located near a paved highway and grid power, IDM Mining envisions bulk underground mining methods, with gold-silver dore produced on site.

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