Mr. Sergey Yanchukov reports

MANGAZEYA MINING LTD ANNOUNCES ITS PRODUCTION RESULTS

Mangazeya Mining Ltd. has released its production results for the fourth quarter and 12 months ended Dec. 31, 2015.

Highlights

• In 2015, Mangazeya produced 33,900 ounces of gold, an increase of 204.5 per cent compared with the previous year. Quarterly gold production in the fourth quarter was 12,900 ounces, a 235.8-per-cent increase year over year.
• Ore mined totalled 1,131,000 tonnes (up 117.6 per cent year over year) in 2015. The average grade of the ore mined for the same period was 1.63 grams per tonne (up 48.1 per cent year over year).
• In 2015, the average stripping ratio was 3.1 cubic metres per tonne, compared with 5.4 cubic metres per tonne in 2014.
• Total material stacked in ore heaps in 2015 totalled 1,046,000 tonnes (up 108.1 per cent year over year) with an average grade of 1.45 g/t (up 26.4 per cent year over year). The increase in the amount of ore stacked is attributable to operational improvements on site and the launch of the second stacker. Moreover, during the fourth quarter of 2015, total material stacked in ore heaps was 77,000 tonnes, compared with no ore stacked in heaps during the fourth quarter of 2014.

                                        Three months ended          12 months ended
                                                   Dec. 31,                 Dec. 31,
                                          2015        2014         2015        2014

Total rock moved, 000s m3                1,077         973        4,048       3,049
Stripping, 000s m3                         967         943        3,524       2,809
Ore mined, kt                              236          63        1,131         520
Stripping ratio, m3/t                      4.1        14.9          3.1         5.4
Average grade in ore mined, g/t           1.52        1.09         1.63        1.10
Gold in ore mined, kg                      359          69        1,849         574
Ore stacked, kt                             77           -        1,046         502
Average grade in ore stacked, g/t         1.74           -         1.45        1.15
Gold in ore stacked, kg                    134           -        1,520         577
Extraction, %                              n/a         n/a           69%         60%
Gold  production, koz                     12.9         3.8         33.9        11.1
Gold  sold, koz                           15.2         6.0         33.6        11.2

• The increase in the amount of ore mined and stacked, the higher grades, and operational efficiency and higher extraction rates contributed to the solid performance of the company in 2015.
• The production target for 2016 is set at the level of 2015 despite worsening pit parameters (grade and strip ratio).
• In February, 2016, the company reached an agreement with its controlling shareholder to convert all of the company's debts (in the amount of $201,230,563.54) into newly issued shares. Subject to the approval of the NEX board of the TSX Venture Exchange, the transaction will be executed at an over 733-per-cent premium to the current share price in order to maintain the company's free float of common shares at over 11 per cent. Following the completion of the transaction, the company will be reactivated on the TSX-V (Tier 2), which will increase liquidity of its shares. The transaction will clean the company's balance sheet and give access to external sources of financing for future development.

Sergey Yanchukov, chief executive officer of Mangazeya, summarized the operational results for the 12-month period ended Dec. 31, 2015: "I would like to congratulate the company's staff and existing shareholders with a successful year. Our operational team managed to substantially improve the production process at all stages and triple gold output compared to 2014."

We seek Safe Harbor.