Oracle Mining Signs Indicative Term Sheet for Minimum US$6.5 Million and Maximum US$7.5 Million Secured Convertible Loan and up to CAD$20 Million Future Project Financing

VANCOUVER, BC--(Marketwired - December 08, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX: OMN) (FRANKFURT: OMC) is pleased to announce it has signed a non-binding indicative term sheet (the "Term Sheet") for a secured convertible loan facility for an aggregate minimum principal amount of US$6.5 million and maximum principal amount of US$7.5 million (the "Loan") and a warrant for up to CAD$20 million (the "Warrant") with Vincere Resource Holdings LLC ("Vincere"). Vincere is a private entity, specializing in investing in late-stage mining projects that can be taken into production within 18 months.

All references to "$" in this news release are U.S. dollars unless otherwise indicated.

Secured Convertible Loan

The proposed Loan would be advanced on or about December 16, 2014 (the "Closing Date"), conditional on the satisfaction of usual and customary conditions precedent including, but not limited to, completion of due diligence satisfactory to Vincere in its sole discretion, signing and delivering definitive transaction documents, and obtaining all applicable consents and approvals, including the approval of the Toronto Stock Exchange (the "TSX"). As a condition to acceptance, the TSX is requiring shareholder approval (see below for further details).

The Loan will mature twelve (12) months after the Closing Date (the "Maturity Date"). An annual interest rate of 13.00% shall apply to the principal amount for the period from the Closing Date to the Maturity Date and shall be paid in advance to Vincere on the Closing Date. No further interest shall be incurred except in the event of default at 5.00% per annum of the principal amount outstanding prior to the Maturity Date and 18.00% per annum thereafter.

CAD$2,378,251 of the principal amount may, at the sole discretion of Vincere and in whole or in part in multiple tranches at any time prior to the Maturity Date, be converted into 31,710,013 Common Shares (the "Vincere Shares"), representing approximately 65% of the Corporation's currently outstanding common shares, at the Conversion Price (as defined below) (the "Conversion Feature"). However, the number of Common Shares issuable upon such conversion may at no time exceed 24.9% of the issued and outstanding Common Shares (including for greater certainty, such Common Shares issued upon such conversion). The volume weighted average trading price of common shares of the Corporation (the "Common Shares") for the five trading days ended November 7, 2014, the last trading day prior to the signing of the Term Sheet, was C$0.057 and the conversion price of C$0.075 per share (the "Conversion Price") is an approximate 30% per cent premium to such price as at such time.