NioGold Mining Corporation Announces C$3.1 Million Bought Deal Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 7, 2015) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

NioGold Mining Corporation (TSX VENTURE:NOX) ("NioGold" or the "Company") is pleased to announce that it has entered into an agreement with Cormark Securities Inc. ("Cormark"), pursuant to which Cormark has agreed to purchase 2,650,000 units ("Units") at a price of C$0.38 per Unit and 4,226,000 flow-through common shares ("Flow-Through Shares") at a price of C$0.50 per Flow-Through Share of the Company, on a bought deal private placement basis, for aggregate gross proceeds to the Company of approximately C$3.1 million (the "Offering"). Each Unit shall consist of one common share ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"). Each whole Warrant shall be exercisable into one Common Share at a price of C$0.50 for 24 months following the Closing of the Offering. This Offering, including warrants, will result in a minor 6.8% dilution of issued and outstanding shares.

The Company has also granted Cormark an option to purchase up to 50% of the number of Units sold pursuant to the Offering, exercisable at any time prior to the Closing Date.

The net proceeds from the sale of the Units will be used to fund the exploration and development of the Company's mineral properties in Quebec, Canada and for general corporate and working capital purposes. The gross proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses ("CEE") that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's properties in Quebec which will be renounced to the subscribers with an effective date no later than December 31, 2015, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares. The CEE shall be incurred no later than December 31, 2016.