Morien Closes Cash and Royalty Transaction for Donkin Interest - Seite 2

The Donkin royalty further diversifies Morien's asset portfolio which includes two existing royalty arrangements; a 1.5% net smelter return royalty from the Yellow Giant gold mine in British Columbia owned by Banks Island Gold Ltd., which currently provides royalty payments to Morien in the order of $200,000 per year; and a production royalty from the Black Point Aggregate Project in Nova Scotia from Vulcan Materials Co. ("Vulcan"), which is anticipated to commence within the 2018 to 2020 period, and estimated to be in the range of $250,000 to $750,000 per year in royalty payments to Morien over that project's expected 50 year life.

The cash payment received on closing of the Donkin Transaction will result in Morien having a total cash position of approximately $4.5 million. In addition, future milestone payments from Kameron and Vulcan, combined with existing royalty payments from Banks Island Gold Ltd., are projected to be approximately $5 million over the next 36 months. These amounts are prior to receipt of any potential royalty stream from the Black Point Aggregate Project (Vulcan) or the Donkin Coal Project (Kameron). These funds will further strengthen the Company's financial position and allow Morien to pursue additional growth opportunities at an opportune time in a period of low valuations in the resource sector.

Donkin Coal Project Update

Kameron commenced dewatering of the access tunnels at Donkin during Q1 2015 and expects to have the tunnels fully dewatered by Q3 2015. Kameron has also recently begun the process of clearing the right-of-way of a 69kv power line at the Project, and in regards to coal marketing has had positive discussions with prospective overseas buyers, and with Nova Scotia's local power utility, Nova Scotia Power Inc., to supply coal to local power generating plants.

Normal Course Issuer Bid

Morien announced on January 20, 2015 the approval of a normal course issuer bid ("NCIB"), permitting Morien to acquire up to 4,995,300 common shares, representing approximately 10% of the public float of Morien. In the opinion of the board of directors of Morien, its common shares have been trading at prices that do not reflect the underlying value its royalty portfolio and strong financial position. Accordingly, Morien believes that purchasing and returning its common shares to treasury at current pricing represents an opportunity to enhance value for its ongoing shareholders. Morien's cash position allows for the implementation of the bid without adversely affecting Morien's other opportunities.