Baja Corporate Update -- Boleo Ramp-up and 2016 MMB Budget

VANCOUVER, BC--(Marketwired - February 29, 2016) - Baja Mining Corp. ("Baja" or the "Company") (TSX VENTURE: BAJ) (OTCQB: BAJFF) is pleased to report that Tom Ogryzlo -- Interim CEO and Director, and Wolf Seidler -- Director, visited the Boleo Mine on February 19, 2016, and met with operations management of Minera y Metalúrgica del Boleo, S.A. P.I. de C.V. ("MMB") to discuss progress at Boleo, including both the underground and open pit mining and the process plant production ramp-up.

Representatives from Majority Shareholder KORES Visit to the Site

The Baja site visit coincided with a visit to the site by senior executives from KORES who are 74% owners of the project. As the KORES schedule was very full, it was not possible to advance outstanding ongoing discussions such as revisions to the Shareholders Agreement. MMB management organized a large open meeting that included the KORES visitors, senior MMB management, some 300 MMB employees and the Baja representatives. Slide presentations during the meeting highlighted the 2015 results, and the 2016 business plan targets, which were generally significantly higher than 2015 results. While KORES confirmed its support for the Boleo Project for the coming year it sought to focus everyone's attention on the importance of meeting the 2016 targets in order to maintain KORES' continuing support.

Projected Cash Shortfall 2016

MMB management have projected a cash short fall of approximately US$300 million for 2016 based on a 2016 capital and operating budget, which has now been approved by all members of the MMB Board of Directors including Baja. It is unclear at this time to what extent this cash short fall will be covered by new equity and/or new shareholder or third-party loans. In the meantime, MMB has issued a further Project Funding Notice to its shareholders requesting a total advance of US$38.3 million to ensure MMB is able to meet its cash requirements and fulfill the shortfall in operating expenditures of the Boleo Project for the period through to the end of March 31, 2016. Baja has informed MMB that it does not intend to participate and contribute its $3.83 million share. This may well result in a further decrease in Baja's ownership of the Boleo Project, in addition to that which may arise in respect of the May 2015 MMB cash call (total advance of $76.0 million). The extent of any dilution to Baja's current 10% shareholding in MMB is pending finalization of the revised Shareholders Agreement and the ultimate form of the cash call participation (ie. shareholder loan or equity).