Cyprium Mining Corporation announces closing of private placement and other corporate transactions

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSX-V: CUG and CUG.DB

MONTREAL, April 28, 2016 /CNW/ - Cyprium Mining Corporation (TSXV: CUG) ("Cyprium" or the "Company") is pleased to announce that it has completed a second closing of its previously announced private placement of up to 8,000,000 units (the "Units") at a price of $0.065 per Unit for gross proceeds of up to $520,000 (the "Offering"). In this closing, Cyprium issued 2,300,000 Units for gross proceeds of $149,500 (the "First Tranche"). Each Unit is comprised of one (1) common share in the capital of the Corporation ("Common Share") and one (1) share purchase warrant of the Corporation ("Warrant"). Each Warrant will be exercisable into one Common Share at an exercise price of $0.10 expiring two (2) years from the date of issuance.

The net proceeds made available through the sale of the Units will be used by the Company to pay for the continued development of the Company's Potosi mining project in Mexico, the costs of the Offering, for working capital and general corporate purposes.

Cyprium has paid finders a cash commission of up to 8% of the proceeds that have resulted from such parties efforts, subject to compliance with applicable securities laws. The finders have also been granted warrants to purchase up to 8% of the number of Units sold under this second closing, with each warrant entitling the holder to purchase one Unit at CDN$0.065 per Unit for a period of eighteen months from the second closing.

The Company announces that it has completed certain of its previously disclosed conversion of certain secured and unsecured debts into convertible debentures of the Company (the "Debt Conversions"). Arm's length holders of $90,000 of secured debt and US $21,000 (CDN $28,000) of non-secured debt by a company wholly-owned by the Chairman and CEO of the Company have been converted into convertible unsecured debentures (the "Convertible Debentures"). The Convertible Debentures will mature three (3) years from the date of issuance and will bear interest at a rate of 8% per annum payable quarterly in cash. The principal amount of the Convertible Debentures shall be convertible at any time at the option of the holder into Common Shares of the Company at a price of $0.08 per Common Share in the first year following closing and $0.10 per Common Share thereafter, and upon giving effect to such conversion, all accrued and unpaid interest will be paid in full within 60 days.

The Company has also received conditional approval from the TSX Venture Exchange Inc. (the "Exchange") to complete up to $570,887 in various debt settlements by way of either Units and/or Common Shares to be issued at a price of $0.065 per Unit and/or Common Share. The Company has entered into and completed debt settlements with eleven creditors who are not insiders of the Company for an amount of $413,588 by way of issuance of 6,362,891 Units of the Company. The Company expects to shortly close an additional two debt settlements with arm's length creditors for a total of $54,025 by way of issuance of 831,154 Units. A further debt settlement in the amount of $95,900 to be completed by the issuance of 1,475,385 Common Shares to four insiders of the Company is subject to the approval of disinterested shareholders at the Company's next annual shareholders meeting.

Final closing of certain Debt Conversions and the issuance of the Common Shares and the Convertible Debentures pursuant to the same is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Exchange. Pursuant to applicable securities laws, all securities issued pursuant to the Debt Conversions will be subject to a hold period of four months plus one day following the closing of the Debt Conversions.

About Cyprium Mining Corporation

For the description of Cyprium Mining's business and the Company's Forward Looking Statement Disclaimer which form an integral part of this news release please visit our website at:

http://www.cypriummining.com/en/investors/disclaimers

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook",  "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated plans for developments of the Company and its mining projects.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by the Company will be successful. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law. Investors should note that, while the mineralized material being processed by the Company is assayed, there is no certainty that the proposed operations will be economically or technically viable. Investors should also note that the Potosi silver mine and La Chinche property have no established mineral resources or mineral reserves as defined by NI 43-101. Although Cyprium Mining has made a production decision regarding the Potosi silver mine based on historical production records, historical results of sampling and drilling, a feasibility study of its projects has not been completed and there is no certainty that the proposed operations will be economically or technically viable.

SOURCE Cyprium Mining Corp

Image with caption: "Cyprium Mining Corporation (CNW Group/Cyprium Mining Corp)". Image available at: http://photos.newswire.ca/images/download/20160429_C4227_PHOTO_EN_678235.jpg

For further information: Alain Lambert, Chairman and C.E.O., Email: ir@cypriummining.com; Ronald Keenan, COO, Email: rkeenan@cypriummining.com

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www.cypriummining.com

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