Mr. Ian Graham reports

MONTAN MINING CLOSES CERRO DORADO ACQUISITION

Montan Mining Corp. has closed the transaction to acquire 100 per cent of Cerro Dorado SAC from Chazel Capital Inc. Please refer to Montan's press release dated Dec. 15, 2016, for details on the terms of the acquisition.

"The closing of the Cerro Dorado acquisition is a transformative milestone for Montan Mining as we are now the sole owners of the only permitted mineral-processing plant in the prolific Atico Valley. The majority of miners in this valley currently trucks their mineral hundreds of kilometres to processing plants elsewhere in Peru, so Montan has the advantage of a most strategic location with its fully permitted Cerro Dorado plant. We anticipate Cerro Dorado and its adjoining Rey Salomon mine and claims will comprise a key launch asset moving Montan towards our goal of becoming a regional precious metals producer. We are very excited about the future of the company, given completion of this acquisition, which provides us with a strong springboard for growth," stated Luis F. Zapata, executive chairman of Montan.

Cerro Dorado holds an option and permits to operate the Rey Salomon gold mine with two kilometres of underground development, 32 identified veins and a 60-tonne-per-day-capacity carbon-in-pulp processing plant currently permitted for up to 100 tonnes per day. The entire mineral property under option by Cerro Dorado is composed of four concessions totalling 1,172 hectares located in the district of Arequipa, in the province of Caraveli, Peru.

The company also wishes to announce that it has granted options pursuant to its stock option plan to certain officers, directors and consultants to purchase up to 4.3 million shares at seven cents per share for a period of five years. This option grant is subject to regulatory approval.

We seek Safe Harbor.