Marlin Gold Mining Successfully Completes Rights Offering to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 17, 2016) -

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Marlin Gold Mining Ltd. (TSX VENTURE:MLN) ("Marlin" or the "Company") is pleased to announce the completion of its rights offering (the "Rights Offering"), which expired at 5:00 p.m. (Eastern time) on May 16, 2016. The shareholders of Marlin, including Wexford Spectrum Trading Limited ("WST") and Wexford Catalyst Trading Limited ("WCT"), the Company's largest shareholders, exercised rights to acquire 43,340,680 common shares of the Company (the "Common Shares"). The 43,340,680 Common Shares issued by the Company pursuant to the Rights Offering were issued at a price of $0.30 per Common Share for gross proceeds of $13,002,204. Following the closing of the Rights Offering, there were a total of 158,854,219 Common Shares issued and outstanding.

The number of Common Shares issued pursuant to the basic subscription privilege was 37,566,273. Of these, 34,819,671 Common Shares were issued to persons who were insiders before the closing of the Rights Offering, and 2,746,602 Common Shares were issued to all other persons.

A total of 5,774,407 Common Shares were issued pursuant to the additional subscription privilege. Of these, 5,342,748 Common Shares were issued to persons who were insiders before the closing of the Rights Offering, and 431,659 Common Shares were issued to all other persons.

A total of 40,162,419 Common Shares were issued pursuant to the standby commitment (the "Standby Commitment") contemplated by the standby agreement (the "Standby Agreement") entered into on April 8, 2016 by Marlin, Wexford Spectrum Trading Limited ("WST") and Wexford Catalyst Trading Limited ("WCT"). Of these, 7,742,111 Common Shares were issued to WCT and 32,420,308 were issued to WST.

No fee was payable by the Company to WCT or WST in respect of the Standby Commitment. However, in accordance with the terms of the Standby Agreement, Marlin was responsible for the reasonable fees and out-of-pocket expenses of WCT and WST in connection with the negotiation and execution of the Standby Agreement in the amount of $20,000.

Marlin intends to use the net proceeds of the Rights Offering for the removal of waste at La Trinidad mine, option payments in respect of the Company's Commonwealth Project, the purchase of land and claims, and general working capital.