Filo Mining Announces US$2 Million Credit Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 12, 2018) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Filo Mining Corp. ("Filo Mining or the "Company") (TSX VENTURE:FIL)(OMX:FIL) ("Filo Mining", "Filo", or the "Company"), reports that the Company has secured a US$2,000,000 credit facility (the "Facility") to be evidenced by a debenture (the "Debenture") to provide additional financial flexibility to fund general corporate purposes. The Debenture is unsecured and has a term of 12 months from the issue date of the Debenture (the "Maturity Date"). No interest is payable during the term of the Debenture, however, any amount of the Facility remaining unpaid and outstanding on or after the Maturity Date shall bear interest at a rate of 5.00% per annum until repaid in full.

The Facility will be issued by Zebra Holdings and Investments S.à.r.l. (the "Lender" or "Zebra") a company controlled by a trust settled by the late Adolf H. Lundin and an insider of the Company. The terms of the Facility include the Company issuing to the Lender, subject to approval of the TSX Venture Exchange, an aggregate of 6,000 common shares of Filo (the "Common Shares") and an additional 300 Common Shares per month for each US$50,000 of the Facility outstanding from time to time up to the Maturity Date. All securities issued in conjunction with the Facility will be subject to a four-month hold period under applicable securities law.

The Common Shares to be issued pursuant to the terms of the Debenture will be issued at a deemed price of $2.60 per share, being the closing price of the Common Shares on the TSX Venture Exchange on January 12, 2018.

The issuance of Common Shares to an insider and entering into of the Debenture each constitute 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 shares issued to or the consideration paid for the Debenture will 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.