Filo Mining Announces Books Closed on Cdn $20 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 25, 2016) - Filo Mining Corporation (TSX VENTURE:FIL)(NASDAQ OMX:FIL) ("Filo Mining" or the "Company") announces that Filo Mining has successfully completed the book build for its non-brokered, private placement announced earlier this morning in the amount of 10 million common shares (the "Common Shares") at a price of C$2.00 per Common Share for gross proceeds of C$20 million (the "Private Placement").

A 4.00% finders' fee may be payable on all or a portion of the Private Placement.

The Common Shares have been offered by way of prospectus exemptions in Canada and the Common Shares sold in the Private Placement will be subject to a hold period of four months plus one day. In connection with the Private Placement, shareholders who are currently insiders of the Company will complete a share swap whereby such insider shareholders will sell Common Shares from their holdings and intend to subscribe for a corresponding number of Common Shares under the Private Placement.

Completion of the Private Placement is subject to regulatory approval, including the approval of the TSX Venture Exchange, and certain other customary conditions including, but not limited to, execution of subscription agreements between the Company and the subscribers.

Net proceeds of the Private Placement will be used towards ongoing work programs in Chile and Argentina as well as for general corporate purposes.

The issuance of Common Shares to insiders constitutes a "related party transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transactions will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any Common Shares issued to nor the consideration paid by such persons would exceed 25% of the Company's market capitalization.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the U.S., or in any jurisdiction in which such an offer or sale would be unlawful. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any U.S. state securities laws and may not be offered or sold in the U.S. or to the account or benefit of a U.S. person or a person in the U.S. absent registration or an applicable exemption from the registration requirements.