Mr. Jason Jessup reports

MAGNA MINING ANNOUNCES C$140 MILLION STRATEGIC INVESTMENT BY ALPAYANA

Magna Mining Inc. has arranged a non-brokered private placement financing with Alpayana SAC to purchase 62,222,222 common shares of the company at a price of $2.25 per share for aggregate gross proceeds of approximately $140-million. At closing of the offering, Alpayana is expected to hold approximately 19.9 per cent of the issued and outstanding shares of Magna.

Jason Jessup, chief executive officer of Magna, commented: "We are extremely pleased with this proposed strategic investment from Alpayana and welcome them as a major shareholder of Magna. Alpayana is a Peruvian mining company with six operating underground mines in Latin America. Their operating experience in Peru and Mexico dovetails well with our growing production, advanced-stage projects, extensive property portfolio and deep knowledge of the Sudbury basin in Northeastern Ontario. Most importantly, the values of our two companies are very closely aligned. This financing will allow us to simultaneously pursue multiple growth opportunities and accelerate the advancement of our past-producing Levack and Crean Hill projects. We look forward to working with the team from Alpayana in order to learn from each other and explore additional opportunities for growth in Sudbury."

Alejandro Gubbins, chairman of Alpayana, noted: "This investment reflects Alpayana's confidence in Magna's team and in the exceptional geological endowment of the Sudbury basin. As a private group with four decades of continuous operations in Latin America, we are proud to extend our long-term, responsible approach to mining into one of the world's most established districts and to support Magna as it advances its growth pipeline in the region."

The net proceeds of the offering will be used to finance advancement of Magna's development activities at its mineral projects located in the Sudbury region of Ontario, Canada, as well as for general corporate and working capital purposes.

Completion of the offering will be subject to regulatory approval, including the approval of the Toronto Stock Exchange and other customary regulatory approvals and closing conditions for a transaction of this nature, including, but not limited to, execution of a subscription agreement between the company and Alpayana. The shares issued under the offering will be subject to a statutory hold period in Canada expiring four months and one day from the closing date of the offering. The company will pay to certain finders aggregate finders' fees on the gross proceeds of the offering, in cash, in accordance with applicable securities laws and TSX policies. The company anticipates closing of the offering as soon as practicable, subject to receipt of all required regulatory approvals.

Canaccord Genuity Corp. acted as financial adviser to the company in connection with the offering. Desjardins Capital Markets acted as strategic adviser.

About Magna Mining Inc.

Magna Mining is a producing mining company with a strong portfolio of copper, nickel and precious metals assets located in the world-class Sudbury mining district of Ontario, Canada. The company's primary asset is the McCreedy West mine, currently in production, supported by a pipeline of prospective past-producing properties including Levack, Crean Hill, Podolsky and Shakespeare.

Magna Mining is strategically positioned to unlock long-term shareholder value through continued production, exploration upside and near-term development opportunities across its asset base.

We seek Safe Harbor.