Mr. Brian Briggs of Tyhee reports

TYHEE GOLD: RMB EXTENDS MATURITY DATE OF LOAN

Tyhee Gold Corp. has received an extension on the maturity date of the previously announced note purchase agreement with RMB Australia Holdings Ltd. (see Tyhee news release dated Feb. 14, 2014) to Sept. 30, 2014. Under the terms of the agreement, RMB Australia provided the company with a $5-million (U.S.) loan, which was to mature on Aug. 13, 2014, and bears interest at 2 per cent per month.

This extension has been made in order to facilitate Tyhee's plans to raise the appropriate capital for the previously announced implementation agreement with RMB Australia and Sutter Gold Mining Inc., whereby, subject to certain conditions, Tyhee will acquire: all of the issued and outstanding shares of Sutter currently held by RMB and/or its affiliates; all of the issued and outstanding shares of Sutter that are to be issued to RMB by Sutter upon the proposed conversion of $8-million (U.S.) of RMB's current debt exposure to Sutter; and approximately $17-million (U.S.) of RMB's additional debt exposure to Sutter. Upon completion of the transaction, Tyhee will hold approximately 73 per cent of Sutter's issued and outstanding shares, on a non-fully diluted basis.

The TSX Venture Exchange has conditionally accepted the terms of the implementation agreement, subject to a number of filing requirements, including a revised National Instrument 43-101 technical report on Sutter's primary asset, the Lincoln project near Sutter Creek, Calif.

Capital raising

Tyhee has been actively engaged for several months with a variety of large investors in North America and Europe, which have expressed an interest in providing the capital required to conclude the transaction. As previously announced, this includes potential investors considering the company's special purpose vehicle (see Tyhee news dated Nov. 26, 2013).

In parallel with the SPV, the company is also advancing discussions with a number of institutional investors concerning alternative financing structures, including possible debt-based financing with potential equity and other components.

In both cases, discussions are quite advanced and the company hopes to provide an update in the coming weeks.

Due diligence process

In order to advance the financing process, Tyhee has recently engaged SRK Consulting (U.S.) Inc. out of its Denver office to conduct an independent due diligence overview focusing on the Lincoln project. SRK's risk and opportunity report will examine the project's geology as well as Tyhee's mine and milling plan, including the costs and financial model. The results of this independent review will be provided to the company's potential financing partners as well as to the TSX-V.

Combined company

Upon the successful completion of this proposed transaction, Tyhee's core assets will include a number of precious metals properties in or near Sutter Creek, Calif., including the permitted Lincoln underground mine and a new, permitted processing facility, located near the entrance to the Lincoln mine, as well as the Yellowknife gold project in the Northwest Territories, a significant and much larger, but longer-term, growth asset.

We seek Safe Harbor.