Rathdowney Announces Private Placement of up to $6 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 23, 2016) -

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Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX VENTURE:RTH) announces that it plans to complete a brokered private placement of up to approximately 31,579,000 units ("Units") of the Company at a price of $0.19 per Unit (the "Issue Price") for proceeds of up to approximately $6 million (the "Offering"). This Offering will be conducted through a syndicate of agents (the "Agents") led by Dundee Securities Ltd. on a best efforts basis.

Each Unit shall consist of one common share in the capital of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder to purchase one additional Share (a "Warrant Share") at a price of $0.24 per Warrant Share for a period of two years from the date of closing of the Offering, which is expected to be by mid July 2016.

The Company has also granted the Agents an option to offer for sale up to an additional 15% of the Units, at the Issue Price.

In consideration for their services, the Company agreed to pay the Agents a cash commission equal to 6% of gross proceeds raised under the Offering and broker warrants ("Broker Warrants") equal to 6% of the number of Units issued under the Offering, in each case excluding Units issued as part of a Company President's List. The Agents will also be compensated for their reasonable expenses in connection with the Offering.

The Units, Shares and Warrant Shares, and the Broker Warrants will be subject to applicable resale restrictions, including a four month hold period from date of closing of the Offering under applicable Canadian securities laws.

Proceeds will be used to advance Polish permitting activities and further refine mining engineering work to progress the Company's Olza zinc-lead-silver project towards feasibility and completion of permit licensing, as well as for general corporate working capital purposes.

About Rathdowney and Project Olza

Rathdowney Resources Ltd. is focused on advancing Project Olza through permitting and into production.

Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi Valley-type zinc-lead deposits with well-developed mining infrastructure. A railway line through the Olza project-area provides direct access to smelters in Europe and to tidewater to reach off-shore facilities.