Mindoro Files Second Quarter 2016 Financial Results

MANILA, PHILIPPINES--(Marketwired - Aug. 29, 2016) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) ("Mindoro" or the "Company") today announced the filing of the Company's Second Quarter 2016 financial results for the three and six months ended June 30, 2016. Details of the Company's financial results are contained in the unaudited condensed consolidated interim financial statements and management's discussion and analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in Canadian dollars unless otherwise stated.

SECOND QUARTER FINANCIAL OVERVIEW

The Company incurred a loss of $1,178,000 (June 30, 2015 - net income of $96,000) and operating cash outflows of $381,000 for the six months ending June 30, 2016 (June 30, 2015 - $431,000). At June 30, 2016, the Company has a net working capital deficit of $5,998,000, excluding warrants liabilities (December 31, 2015 - $6,066,000). In addition to its on-going working capital requirements, mining and exploration licences held by the Company have annual expenditure obligations to maintain their "good standing" status. The majority of these expenditure obligations have been assumed by TVI Resource Development (Phils.) Inc. ("TVIRD").

At June 30, 2016, the Company had an ending cash position of $104,000, and the Company is presently dependent on cash flows from financing activities to continue operations and fund expenses.

The Company borrowed $500,000 from TVIRD pursuant to the terms of a secured promissory note on December 19, 2014. This agreement is intended as a bridge financing while negotiating a larger financing arrangement with TVIRD and its shareholders. The note was originally due on January 31, 2015, but the term has subsequently been extended until a subsequent financing is completed. The note accrues interest equal to 8% per annum and is secured by Mindoro's interest in its wholly owned subsidiary, MRL Nickel In addition to the principal and interest on the note, the Company will reimburse legal and other issue costs to TVIRD up to a maximum of $30,000. In 2015, TVIRD advanced additional funds totalling $296,000 to the Company on the same terms as the original note. As at June 30, 2016, total principal borrowings from TVIRD amount to $1,153,000.