Cyprium Mining Corporation Announces US$4.5 Million in Debt Financing and Secures Right of First Refusal for an Additional US$3.5 Million

MONTREAL, QUEBEC--(Marketwired - March 3, 2015) -

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Cyprium Mining Corporation (TSX VENTURE:CUG) ("Cyprium" or the "Corporation"), a Canadian-based mining company with operations located in the state of Chihuahua, Mexico, is pleased to announce that it intends to complete a non-brokered private placement (the "Bond Financing") of bonds in the aggregate amount of US$4,500,000. In addition, the subscriber of the Bond Financing will have the right of first refusal to purchase up to US$3,500,000 in future debt or equity financings of the Corporation for a period of twelve (12) months from the initial closing of the Bond Financing.

The net proceeds of the Bond Financing will be invested by Cyprium in the state of Chihuahua, Mexico to fund:

• Working capital needs for Cyprium's toll milling business;
• Aldama processing plant upgrade and/or new toll milling plant construction;
• Las Cristinas mine site preparation, ramp construction, initiating production;
• Las Cristinas working capital for mining operations;
• Partially fund a processing plant to serve the Las Cristinas mining project; and
• General working capital purposes.

The Corporation will issue three year bonds (the "Bonds") in the aggregate amount of US$4,500,000 in connection with the Bond Financing. The Bonds will bear interest at a rate of 12.5% per annum, calculated and payable quarterly in arrears commencing on September 30, 2015. The Bonds will be issued in three tranches, with US$1,000,000 issuable at the initial closing and US$2,000,000 issuable at the first subsequent closing and US$1,500,000 issuable at the final subsequent closing, which subsequent closings are expected to closing on or about March 31, 2015 and September 30, 2015, respectively.

Andre St Michel, President and CEO of Cyprium stated: "The US $4.5 million financing announced today will allow us to make significant investments in our two existing projects in the state of Chihuahua, Mexico. Chihuahua, where our mining operations are located, presents significant growth opportunities and we look forward to making further investments in that state." He concluded: "Chihuahua has over 300 small mines at various stages of development and we look forward to working closely with the state government to identify business opportunities for the mutual benefit of Cyprium and the local small miners' market."