IDM Mining Increases Non-Brokered Private Placement Flow-Through

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 3, 2017) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

IDM Mining Ltd. (TSX VENTURE:IDM)(OTCQB:IDMMF) ("IDM" or the "Company") is pleased to announce that it has increased the size of its previously announced non-brokered private placement flow-through financing (the "Offering") to $6,000,000.

The Company will sell up to 38,709,677 flow-through common shares at a price of $0.155 per share for aggregate gross proceeds of up to $6.0 million. The proceeds from the Offering will be used for exploration, permitting, First Nations engagement and community relation work on the Company's Red Mountain Gold Project (the "Project"), located east of Stewart, BC.

The financing is scheduled to close in two tranches, one on or about Aug. 17, 2017, and the second on or about Sept. 10, 2017, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The total gross proceeds from the financing must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by Dec. 31, 2018.

The Company will pay a finder's fee on a portion of the Offering, comprised of a cash fee equal to 6% of the gross proceeds raised from the sale of flow-through shares and warrants equal to 6% of the number of certain flow-through shares. Each such finder warrant will entitle the holder to purchase one common share at a price of $0.23 for a period of twelve months following the applicable closing of the Offering.

Certain insiders of the Company may acquire shares in the Offering. Any such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction 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 by such persons will exceed 25% of the Company's market capitalization.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable securities laws of any state of the United States and may not be offered or sold in the United States, or to, or for the account or benefit of a U.S. person (as defined in Regulation S 2 under the 1933 Act) unless registered or pursuant to an available exemption from such registration requirements.