Mr. Patrick Balit reports

RED EAGLE MINING INTERSECTS 5 METRES AT 33 GRAMS GOLD PER TONNE

Red Eagle Mining Corp. has released results from the 2016 ore production stope delineation drilling program at the San Ramon gold mine, Santa Rosa gold project, Antioquia, Colombia. The 10,000-metre program was drilled from eight pads spaced over 300 m of strike length. One hundred seven diamond drill holes (SRD-0001 to SRD-0107) were drilled on approximately 15 m centres from near surface to a vertical depth of 160 m from surface. The program only infill drilled a portion of the reserves at the San Ramon gold mine which overall extend for two kilometres of strike length and to 250 m depth. The deposit is also open both at depth and on strike to the east where exploration drilling is currently under way. Results from the initial 95 holes (SRD-0001 to SRD-0095) were previously announced. Highlights from the programme include intersections:

• SRD-0027 -- 10.73 m at 8.91 grams per tonne gold from 60.66 m downhole (including 1.20 m at 21.39 g/t Au and 1.10 m at 35.37 g/t Au);
• SRD-0029 -- 6.70 m at 12.69 g/t Au from 69.80 m downhole (including 1.40 m at 45.06 g/t Au);
• SRD-0038 -- 8.25 m at 5.89 g/t Au from 37.25 m downhole (including 0.65 m at 36.17 g/t Au);
• SRD-0038 -- 5.45 m at 11.53 g/t Au from 54.55 m downhole (including 0.92 m at 30.81 g/t Au);
• SRD-0043 -- 2.70 m at 20.56 g/t Au from 81.20 m downhole (including 0.93 m at 49.26 g/t Au);
• SRD-0044 -- 4.25 m at 20.60 g/t Au from 89.75 m downhole (including 0.74 m at 78.35 g/t Au and 0.45 m at 40.21 g/t Au);
• SRD-0046 -- 12.56 m at 7.66 g/t Au from 67.64 m downhole (including 1.05 m at 48.70 g/t Au);
• SRD-0046 -- 9.68 m at 7.89 g/t Au from 94.70 m downhole (including 0.70 m at 48.88 g/t Au);
• SRD-0046 -- 2.07 m at 42.62 g/t Au from 130.70 m downhole;
• SRD-0047 -- 5.21 m at 7.47 g/t Au from 93.15 m downhole (including 1.41 m at 19.18 g/t Au);
• SRD-0049 -- 7.16 m at 29.03 g/t Au from 131.82 m downhole (including 2.31 m at 73.96 g/t Au);
• SRD-0054 -- 3.92 m at 12.83 g/t Au from 50.78 m downhole (including 1.40 m at 30.70 g/t Au);
• SRD-0068 -- 2.90 m at 27.35 g/t Au from 69.90 m downhole;
• SRD-0083 -- 4.05 m at 10.45 g/t Au from 68.30 m downhole;
• SRD-0091 -- 2.40 m at 23.34 g/t Au from 72.60 m downhole;
• SRD-0093 -- 12.60 m at 16.47 g/t Au from 89.90 m downhole (including 0.50 m at 83.60 g/t Au);
• SRD-0101 -- 5.15 m at 33.39 g/t Au from 89.55 m downhole (including 0.60 m at 75.56 g/t Au);
• SRD-0105 -- 6.15 m at 12.82 g/t Au from 90.15 m downhole (including 0.95 m at 41.40 g/t Au).

Results from the delineation drilling exceeded expectations with intercepts often significantly longer than the average mining width of three m and grades significantly higher than the reserve grade of 5.2 g/t Au. Plans and cross-sections can be found on Red Eagle Mining's website. Drill assays were composited by length-weighted averaging into intersections using a two g/t Au cut-off grade. Due to the mining method and mining selectivity contemplated for the deposit, internal dilution was included in some intersections where considered appropriate for mining continuity.

Quality assurance and quality control

All technical information for Red Eagle Mining's Santa Rosa project in Antioquia, Colombia, is obtained and reported under formal quality assurance and quality control (QA/QC) procedures and guidelines. Red Eagle Mining's procedures are designed to meet or exceed CIM (Canadian Institute of Mining, Metallurgy and Petroleum) best practices guidelines and National Instrument 43-101 standards of disclosure. QA/QC protocols for drill core sampling and assaying include the insertion and monitoring of appropriate reference materials (certified standards, blanks and duplicates) to validate the accuracy and precision of the assay results.

All drilling samples were collected with a diamond core drilling rig using approximately one-metre sample intervals following industry-standard practice. Activation Laboratories Ltd. prepared and assayed the samples at its laboratory in Medellin, Colombia. Fire assay for Au (using a 50-gram sample) with an AAS (atomic absorption spectroscopy) finish was carried out routinely on all samples submitted. For all samples which returned initial Au fire assays of greater than five g/t, a second fire assay for Au was performed (also using a 50-gram sample) with a gravimetric finish.

The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's vice-president, exploration, Jeff Toohey, PEng, who is a qualified person as defined under National Instrument 43-101.

About Red Eagle Mining

Red Eagle Mining owns 100 per cent of the Santa Rosa gold project, where the San Ramon gold mine has commenced production. Red Eagle Mining also controls CB Gold, which owns 100 per cent of the Vetas gold and Santa Ana silver projects, and is actively consolidating additional high-grade precious-metal deposits in Colombia.

We seek Safe Harbor.