Yellowhead Mining Inc. Announces Automatic Conversion of Debenture

TSX:YMI

VANCOUVER, Dec. 30, 2013 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) announces that today its shareholders have approved the full automatic conversion of the $8 million convertible debenture (the "Debenture") previously issued to Matco Investments Ltd. ("Matco"), a private investment firm based in Calgary, Alberta, into common shares of the Company. The Debenture has now been fully converted into an aggregate of 35,555,556 common shares of the Company at a conversion price of $0.225 per share, representing approximately 35.91% of the total issued and outstanding common shares of the Company.

The proceeds of the Matco Financing will primarily be used to complete the environmental assessment process for Yellowhead's 100% owned Harper Creek Project and for general corporate purposes.

Frank D. Wheatley, Yellowhead's CEO, commented that "Yellowhead is extremely pleased that the shareholders have approved the issuance of common shares to Matco, as this will allow Yellowhead to proceed with the environmental assessment process for the Harper Creek Project". Mr. Wheatley added that "work on the environmental assessment process will recommence immediately, with a target of resubmitting the environmental assessment application to the British Columbia Environmental Assessment Office by the end of the third quarter of 2014".

Appointment of New Chief Financial Officer

Lori Price, currently the Controller of Yellowhead, has been appointed Chief Financial Officer of the Company, effective as of January 4, 2014, upon the resignation of Saurabh Handa, the current Chief Financial Officer, to pursue other interests.

About Matco Investments Ltd.

Matco is a private investment corporation based in Calgary, Alberta. Matco is controlled by Mr. Ronald Mathison. Mr. Mathison also serves on the boards of Calfrac Well Services Ltd, Tesla Exploration Ltd. and Western Energy Services Corp.

About Yellowhead Mining Inc.

Yellowhead Mining Inc. is a development stage company with a 100% interest in the Harper Creek copper-gold-silver project located in the North Thompson region of British Columbia, Canada. The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.

For more information on Yellowhead and the Harper Creek Project, please visit Yellowhead's website at www.yellowheadmining.com.

Forward Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

SOURCE Yellowhead Mining Inc.