$10M Equity Financing

$10M EQUITY FINANCING

Vancouver, British Columbia (June 12, 2018) - Progress Minerals Inc. (“Progress” or the “Company”) is pleased to provide the following updates to its shareholders regarding financing plans and strategic initiatives underway by the Company. 

Highlights: 

  • Raising up to C$10,000,000 in a non-brokered private placement; 
  • Strategic equity and royalty investments secured with Sandstorm Gold Royalties and another royalty party totalling C$5,000,000; 
  • 100% acquisition of the Bobosso project in Côte d’Ivoire. 

Progress has commenced a non-brokered private placement of up to C$10,000,000 in gross proceeds through the sale of up to 40,000,000 common shares of the Company priced at C$0.25 per common share (the “Offering”). 

In connection with the Offering, Sandstorm Gold Royalties (“Sandstorm”) has agreed to subscribe for 10,000,000 common shares representing an investment of C$2,500,000. In exchange for this commitment, Sandstorm will receive a 1% NSR covering Progress’ current portfolio of mineral properties in Burkina Faso and Côte d’Ivoire, as well as a right-of-first-refusal on any future royalty and metal stream sales undertaken by the Company. In additional to the Sandstorm commitment, a second royalty company has committed to invest alongside Sandstorm on the same terms (including receiving a 1% NSR), bringing the total strategic investment commitments to C$5,000,000 as part of the Offering. 

The net proceeds from the Offering shall be used for exploration activities in Burkina Faso and Côte d’Ivoire, payment of the upfront consideration with respect to the Bobosso acquisition and for general corporate purposes. 

The Company reserves the right to adjust the size of the Offering at any time. The common shares issued pursuant to the Offering will be subject to a statutory four month and one day hold period. A finder’s fee equal to 8% may be payable in connection with the Offering to eligible finders for subscriptions from arm’s length purchasers. Progress intends to complete the Offering on or about June 29, 2018.

Progress Minerals Inc. Unit 1 – 15782 Marine Drive, White Rock, BC, Canada, V4B 1E6 info@progressminerals.com 

Progress is also pleased to announce that it has signed a binding memorandum of understanding (the “MOU”) with Predictive Discovery Ltd. (“Predictive”) and West African Venture Investment LLC (“WAVI”) pursuant to which Progress will acquire a 100% interest in the Bobosso project in Côte d’Ivoire. The terms of the MOU provide that Progress will make an upfront payment of C$1,150,000 in cash and potential bonus payments tied primarily to the achievement of production on up to a maximum of three mine developments. Bonus payments will be set at US$10 per ounce of gold within a proven and probable reserve and will accrue no earlier than the point in time when Progress has completed a bankable feasibility study and received a mining license. Progress has the flexibility to satisfy bonus payments through the issuance of common shares, subject to certain conditions. The completion of the Bobosso purchase is subject to a number of conditions and is expected to be completed on or prior to August 31, 2018. 

About Progress Minerals Inc. 

Progress is an exploration company, focused on the West African Birimian Greenstone Belts, targeting large, low-cost, high-quality, gold deposits. Progress is currently earning into a portfolio of permits in both Burkina Faso and Côte d’Ivoire, covering approximately 2,000km2 including anchor projects in each jurisdiction; the Bira Trend Project (Burkina Faso) and the Bobosso Project (Côte d’Ivoire). 

On the Bira Trend Project, Progress has completed a district-wide power auger program targeting over 24km of a geochemical anomaly and recently completed a concurrent follow-on 5,129m (49 hole) reverse-circulation (“RC”) drill program to test priority targets within an area of known mineralization. Progress has identified seven drill-ready targets for follow-on RC drilling to commence in the fall of 2018. Progress is earning into a 70% interest in a large property package in Burkina Faso in partnership with Predictive Discovery Ltd. (ASX:PDI), whereby Progress is sole-funding US$5 million in expenditures by October 2021 to earn a 70% interest, after which time a joint-venture will be formed. Progress is finalizing its initial earn-in of 51% with Predictive after having spent the first US$1 million in eligible expenditures in Burkina Faso. 

On the Bobosso Project, Progress has recently released final assays from its 2017 reverse-circulation drill program which have generated a number of targets for further follow-up within a large 7km2 gold-in-soil anomaly. Progress is earning into a 55% interest in a large property package in Côte d’Ivoire also in partnership with Predictive Discovery Ltd., whereby Progress is sole-funding US$2.5 million in expenditures by February 2019 to earn a 55% interest, after which time a joint-venture will be formed. Progress achieved the initial earn-in of 30% by completing US$1 million in eligible expenditures on Côte d’Ivoire in early 2018.

Progress Minerals Inc. Unit 1 – 15782 Marine Drive, White Rock, BC, Canada, V4B 1E6 info@progressminerals.com 

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. 

Contact Information 

Adam Spencer 

President & CEO 

Tel: +1 416 804-9032 

Email: aspencer@progressminerals.com