Cerro Grande Mining Corporation Announces the Issuance of Convertible Debentures to Complete Debt Settlement

TORONTO, Dec. 7, 2016 /CNW/ - Cerro Grande Mining Corporation (the "Company" or "CEG") (CSE:CEG) (OTCQB:CEGMF) announced today that has issued Convertible Debentures of the Company, as previously announced on November 8, 2016, to Mr. David Thomson, or a company controlled by him, and to Mr. Mario Hernandez, or a company controlled by him, in payment of certain advances, salaries, interest payments and royalties totalling US$2,771,237 owed to them through the end of July 2016. The terms of the Convertible Debentures announced on November 8, 2016 remain the same except the Convertible Debentures issued to Mr. Thomson and Mr. Hernandez are Unsecured Convertible Debentures and are not guaranteed by mortgages on the Tordillo and Catedral/Rino claims and shares of the companies controlled by Tordillo and Catedral/Rino as previously announced.

Cerro Grande Mining Corporation is a minerals producing, exploration and development company with properties and activities currently focused in Chile.

Cautionary Statement on Forward-looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of CEG, including, the anticipated effects of the Proposed Transaction and the expected timing thereof. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CEG to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release based on current expectations and beliefs and CEG disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE Cerro Grande Mining Corporation

For further information: Stephen W. Houghton, CEO, David R. S. Thomson, EVP, E-Mail: ceg@cegmining.com, Telephone: 56-2-2569 6224, Website: www.cegmining.com

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