Mr. Greg Andrews reports

SEARCH MINERALS INC. ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT, FILING OF SECOND QUARTER RESULTS AND PROVIDES CORPORATE UPDATE

Search Minerals Inc. has closed the first tranche of its previously announced private placement and has filed the second quarter ended May 31, 2015, financial statements and management's analytical discussion. The company has also provided a corporate update regarding the 2015 exploration program, the relocation of the exploration office to St. Lewis and the planned program for the balance of the year.

Greg Andrews, president, stated: "Search continues to work towards achieving its corporate goals for 2015, which are: (1) to continue to advance the Port Hope Simpson critical rare earth element (CREE: Nd, Eu, Tb, Dy, Y) district in SE Labrador, specifically the Foxtrot project and the recently announced Deepwater Fox prospect; (2) to prove the commercial application of the company's proprietary metallurgy process with a demonstration plant, which should allow the company to initiate a feasibility study; and (3) continue to build relationships and seek strategic partners. Search has also been working very diligently in strengthening the balance sheet and reducing corporate expenses."

Financing

Further to the news release dated July 2, 2015, the company has completed the first tranche of its non-brokered private placement, raising gross proceeds of $477,000 by the issuance of 7.95 million units at six cents per unit. Each unit consists of one common share in the capital of the company and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share in the capital of the company at a price of 10 cents per warrant share for a period of 24 months from the closing of the offering. The company intends to close the final tranche of the offering shortly.

The company will use the proceeds from the offering as follows:

• To continue channel sampling work program at the new Deepwater Fox prospect;
• To prepare an updated preliminary economic assessment report using the information contained in the recent engineering study (see Search receives engineering study for processing plant, June 16, 2015) and including information from Search's proprietary metallurgical process (see Search receives engineering study for processing plant, Feb. 2, 2015);
• To maintain its rare-earth properties in the Port Hope Simpson CREE district;
• For general working capital.

All securities issued in the offering are subject to a statutory hold period to Nov. 29, 2015, in accordance with applicable securities legislation. Closing of the offering is subject to final approval of the TSX Venture Exchange.

A director of the company acquired units under the offering. Such participation is considered to be a related-party transaction, as defined under Multilateral Instrument 61-101. The company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5 (b) and 5.7 (1) (b) of MI 61-101 in respect of such insider participation.

Progress of 2015 exploration program

The Search exploration crew, consisting of three geologists and five local support staff, has been in the field for just over two months. The focus of the exploration program is maintenance work on licences in the Port Hope Simpson CREE (critical rare earth element) district and a channelling program on the company's new Deepwater Fox prospect (see Search Minerals news release dated Jan. 27, 2015).

The main part of the channelling program is almost complete: a total of 12 channels totalling 350 metres of channel and approximately 650 assay samples over a strike length of 500 m. Most samples have been delivered for assay, and the results are pending. Geological surface mapping, prospecting and channel logging indicate the presence of mineralization over a 500-metre strike length and vary from three to 34 metres wide. An additional two to three channels are planned.

Results of the channel program will be used to evaluate and plan a 2,000-metre drill program at Deepwater Fox in October. The aim of this program is to outline a second source of feed material, in the Port Hope Simpson CREE district, for a possible central processing plant in the St. Lewis, Labrador, region.

Upon completion of the Deepwater program, exploration will also be carried out elsewhere in the Port Hope Simpson CREE district, in the Henley Harbour area of southeast Labrador and in the 100-per-cent-owned Red Wine area of central Labrador (see June 29, 2015, Search Minerals now owns 100% of Red Wine).

Relocation of Search exploration office

The Search exploration office is in the process of moving to a larger facility in St. Lewis, which will house the exploration team, facilitate the core analysis and separation operation, and provide space to maintain all the company's core, including that from the Red Wine complex. The consolidation of offices and core shacks will have immediate savings for the company. The exploration office is located closer to the Foxtrot project and Deepwater Fox prospect, which will reduce travel time and the associated costs getting to the work sites.

Planned advancements for balance of 2015:

• Design and build a larger-scale pilot demonstration plant to test the Foxtrot project mineralization. The material processed through the demonstration plant will confirm the specifications and purity of the mixed rare earth oxide product for further testing by end-users or separation refineries;
• Engage an engineering company to initiate an environmental scoping study to provide the company with guidance and tools required to initiate the environmental assessment process;
• Continue to work on the company's relationships with Atlantic Canada Opportunities Agency, Research and Development Corp., NunatuKavut Community Council, and the local communities, and cultivate new relationships to enhance the development of Foxtrot. These new relationships could include offtake partners, joint venture partners, end-users or other partners;
• Build market awareness of Search Minerals, by enhancing the company's investor relations, redesigning its website and increasing communication to the marketplace.

The advancements for 2015 will depend on financing to complete and, therefore, are subject to change.

We seek Safe Harbor.