Northern Vertex Obtains Macquarie Bank Credit Approval for Moss Mine Debt Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 7, 2016) - Northern Vertex Mining Corp. (TSX VENTURE:NEE) (the "Company") is pleased to announce that the Company has obtained credit approval from Macquarie Bank Limited ("Macquarie Bank") to provide a project finance facility of up to US$20 million (the "Macquarie Facility") to be used to fund projected development costs of the Company's 100% owned Moss Gold-Silver Project (the "Project") in north-west Arizona. The Macquarie Facility contemplates a separate and complementary equipment finance facility (the "Equipment Facility") of up to US$6.5 million, to be negotiated with arms-length third parties in parallel with the Macquarie Facility. The Macquarie Facility and the Equipment Facility would together provide up to US$26.5 million towards the estimated pre-production capital and financing costs of the US$33.0 million required to construct the planned 5,000 tonnes per day, open pit, heap leach, gold-silver mine at the Company's Moss Mine site.

Dick Whittington, President and CEO states: "Macquarie credit approval is yet another key milestone in getting our Moss Gold-Silver Project financed and built. Credit approval of the Macquarie Facility provides a strong vote of confidence in the Moss Mine Project for our shareholders and our host communities in Arizona. This is a major step forward for the Company as we seek to advance the Moss Mine Project to production."

The Macquarie credit-approved Term Sheet and Engagement Letter set out detailed terms and conditions, which include:

• Facility Amount & Prepayment - up to US$20 million structured as a US dollar loan that can be prepaid at any time without penalty.

• Interest Rate - LIBOR plus 8.75%.

• Hedging - forward contracts expected to represent less than 15% of current measured and indicated resources at current metal prices.

• Bridge Loan - credit approval and commitments for a Bridge Loan will be concurrently pursued during the approval process for obtaining a final commitment letter and/or completion of final loan documentation for the Macquarie Facility. The Bridge Loan is not part of the credit approved Macquarie Facility at this time.

• Warrants - 400,000 transferable 3-year warrants to be issued on execution of formal commitment letter or definitive lending agreement, priced at 30% premium to the lesser of (a) the Company's 20-day VWAP at that time, and (b) the Company's most recent placement price. The warrants will be subject to TSX Venture Exchange approval.

• Security - will include a first charge over the Project assets and completion guarantees from Northern Vertex. The security package for the Macquarie Facility will provide for second ranking security over the equipment to be financed by the Equipment Facility.

• Costs - The Engagement Letter contains customary break fees and payment of lender costs.

Drawdown of the Macquarie Facility is subject to a number of conditions including additional legal and technical due diligence, delivery of a formal commitment from Macquarie to provide the Macquarie Facility in the form of a committed offer letter or final documentation for the Macquarie Facility, obtaining all required permits, securing sufficient equity to fully fund the Project, and customary corporate approvals of final documentation. The Company looks forward to updating shareholders on milestones and ultimate satisfaction of these conditions over the coming months.