TriMetals Mining Inc. Files Second Quarter 2016 Financial Statements and MD&A

VANCOUVER, BC--(Marketwired - August 05, 2016) - TriMetals Mining Inc. (TSX: TMI) (TSX: TMI.B) (OTCQX: TMIAF) (OTCQX: TMIBF), reports the release of its unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2016 and the related management's discussion and analysis of financial position and results of operations ("MD&A"). In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.

At June 30, 2016 the Company had $2,612,080 in cash and cash equivalents which included $1,699,747 (CDN$2.2 million) in cash received for the first tranche of a private placement that closed on July 5, 2016. Subsequent to June 30, 2016, the Company received additional CDN$2.1 million in cash for the second tranche of the private placement which closed on July 11, 2016.

On July 26, 2016 the Company announced the start of the 2016 drill program at Gold Springs (NR 16-17 dated July 26, 2016). The program, which consists of 20,000 feet of drilling (6,100 metres), is expected to cost approximately $1.3 million, and includes drilling, road and drill-pad construction, geochemistry, camp costs and environmental studies for permitting among other things.

The Company reported a net loss of $19,960,453 ($0.15 per share) during the three months ended June 30, 2016 (2015 - $2,062,047 ($0.02 per share)) and a net loss of $21,981,999 ($0.16 per share) (2015 - $1,350,031 ($0.01 per share)) during the six months ended June 30, 2016. The 2016 three-month loss includes a non-cash charge of $18,988,076 (2015 - $1,570,634) due to the significant change in the fair value of the Company's Class B shares during that period. Under International Financial Reporting Standards, the Company's Class B shares are considered to be financial instruments, not equity instruments, and classified as non-current liabilities in the Company's balance sheet. The Class B shares are measured at fair value at each period-end, which is based on the closing price of the Class B shares on the Toronto Stock Exchange ("TSX"), and changes in fair values are included in the determination of earnings/loss for the period. During Q2, 2016, the closing price of the Class B shares on the TSX increased from CDN$0.12 per Class B share at March 31, 2016 to CDN$0.33 per Class B share at June 30, 2016. This significant price increase during Q2, 2016 gave rise to the non-cash charge of $18,988,076. The non-cash charge for the six-month period ended June 30, 3016 amounted $20,490,977 (2015 - $432,557) as the closing price of the Class B shares on the TSX at December 31, 2015 was CDN$0.11 per share.