TMAC Resources Provides Hope Bay Project Update and Second Quarter 2015 Results

TORONTO, ONTARIO--(Marketwired - Aug. 12, 2015) - TMAC Resources Inc. ("TMAC" or the "Company") (TSX:TMR) is pleased to announce its financial results for the second quarter of 2015 and to provide an update on its 100% owned Hope Bay Project, located in Nunavut, Canada.

Dr. Catharine Farrow, Chief Executive Officer of TMAC, stated, "We are very pleased to provide our first quarterly report as a TSX listed, fully financed, gold development company. During 2015, TMAC significantly de-risked the Hope Bay Project financially by securing equity and debt financing for gross proceeds of over $350 million. Gross proceeds of $199.2 million were collectively raised from the $44.1 million equity financing in January, and our $135.0 million initial public offering ('IPO') financing in July, plus the $20.1 million IPO overallotment option proceeds received in August. In addition, the senior secured credit facility was completed in July and provides US$120 million of debt for the Hope Bay Project."

Dr. Farrow added, "In addition, the Company significantly reduced both the technical and land tenure risks. In January, the Company announced a Measured and Indicated resource of 4.4 million ounces of gold and an Inferred resource of 1.3 million ounces of gold at Hope Bay. In late March, TMAC signed landmark, 20-year benefit and land tenure surface and sub-surface agreements for the entire Hope Bay property with the Kitikmeot Inuit Association ('KIA') and Nunavut Tunngavik Inc. ('NTI') of Nunavut. Also in April, TMAC published its very robust Pre-Feasibility Study ('PFS') on the Hope Bay Project which estimated a 20-year mine life and a post-tax IRR of 40%. On June 26, the Company filed a final prospectus (the 'Prospectus') and closed its IPO on July 7 thereby fully funding the Company to achieve its Path to Production plan with initial production expected in December 2016."

The net loss and comprehensive loss for the three and six months ended June 30, 2015 were $2.5 million and $4.7 million, respectively, compared to $3.0 million and $3.7 million, respectively, in the three and six months ended June 30, 2014.

Cash and Liquidity

Cash and cash equivalents totalled $23.4 million at June 30, 2015 compared to $32.0 million at December 31, 2014. The decrease in cash and cash equivalents resulted from expenditures incurred on the development of the Hope Bay Project, partially offset by the net proceeds of $40.3 million from a private equity financing completed in January 2015.

Subsequent to period end, on July 7, 2015, TMAC completed the IPO and the over-allotment option was exercised on August 11, 2015 bringing the aggregate gross proceeds of the IPO to $155,100,000.

Also subsequent to period end, on July 23, 2015, TMAC entered into a definitive credit agreement with a syndicate of lenders led by Sprott Resource Lending Partnership (as Agent) and Morgan Stanley Capital Group Inc. with respect to a previously announced US$120 million senior secured term loan facility (the "Debt Facility").

TMAC's common shares began trading on the Toronto Stock Exchange (the "TSX") on July 7, 2015 under the trading symbol "TMR". With the closing of the over-allotment option there are 77,613,259 common shares issued and outstanding.

Key Activities at the Hope Bay project

The following key activities were undertaken in the six months ended June 30, 2015:

• Completed new Mineral Resource Statement with an additional 1.7 million ounces of gold in the Measured and Indicated classification;
• Commissioned the automated controls for the existing 4 generator primary powerhouse at Doris;
• RPA Inc. completed a PFS on the Hope Bay Project, with an effective date of March 31, 2015, that indicated the Doris, Madrid and Boston deposits were technically feasible and commercially viable. The issuance of the PFS in April of 2015 was a key factor for the Company being able to do the financings completed in July 2015;
• Purchased construction equipment to erect the processing plant building in 2016;
• Designed and completed fabrication of the processing plant building with delivery anticipated on the 2015 sealift;
• Initiated on site construction of the processing plant building foundations at site;
• Completed the Gekko processing plant flowsheet design, ordered long lead time items and initiated fabrication;
• Completed certain environmental permit submissions;
• Delivered narrow vein test mining equipment via an airlift;
• Purchased mobile mine equipment capable of mining at a rate of 1,000 tonnes per day with anticipated delivery on the 2015 sealift;
• Developed a narrow vein undercut test drift at Doris to validate the PFS mining model and cost assumptions;
• Ordered the first year mining supplies with anticipated delivery on the 2015 sealift;
• Initiated widening of the Doris mine vent raise to incorporate escape-way infrastructure; and
• Completed the tactical plan for mine development and production.

Work planned for the remainder of 2015:

• Complete the 2015 sealift including the purchase and delivery of 15 million litres of diesel fuel and delivery of the processing plant building to Hope Bay to allow for erection of the building in the second and third quarters of 2016;
• Increase underground development activities in September with the arrival of the underground equipment on the 2015 sealift;
• Complete widening of the vent raise for escape-way infrastructure;
• Continue the fabrication of the Gekko processing plant;
• Continue site preparation work including the construction of the foundation of the processing plant building; and
• Continue surface pre-production and exploration diamond drilling at Doris and Madrid deposit trends.

Declaration of Development Stage

With the completion of the PFS, and the entering into of 20 year land tenure agreements with the KIA and NTI on March 30, 2015, TMAC concluded that, for accounting purposes, effective April 1, 2015, Doris has transitioned from the exploration and evaluation stage to the development stage. The planned expenditures included in the PFS commenced January 1, 2015 and, accordingly, by the end of June 2015, TMAC is six months into a 24 month plan. Consistent with the PFS, TMAC envisions achieving commissioning of the processing plant by the end of 2016.

Path to Production Plan

With existing cash on hand combined with the funds received from the completion of the IPO and the funds made available through the Debt Facility, TMAC is now in a position to execute a path to production ("Path to Production") plan that incorporates the overall costs in the PFS plus the related bonding, exploration and general and administrative expenditures necessary to bring the Doris deposits of the Hope Bay Project into initial production. TMAC intends to utilize the "bootstrap" approach to develop other deposits within the Hope Bay Project. This approach to development has been used for decades of historical gold mining camp development in the Canadian Shield, most notably in the Kirkland Lake, Timmins and Val D'Or gold camps. At the Hope Bay Project, initial production at Doris is expected to generate cash flow to fund the development of Madrid, the cash flow from which will subsequently fund the development of Boston and/or other potential discoveries that TMAC may make elsewhere along the Hope Bay greenstone belt, which management believes holds high-grade gold targets throughout.

The following table, taken from TMAC's Prospectus illustrates the estimated amount to be expended during 2015 and 2016 to achieve initial production by the end of 2016:

As at June 30, 2015, TMAC had incurred $55 million of the planned $165 million of the Path to Production expenditures for the 2015 financial year. The expenditures to date are in line with the Path to Production plan in terms of timing and the amount of expenditure. The total estimated expenditures for 2015 and 2016 remains at $290 million.

Exploration

The drilling program in the first half of 2015 focused on the Madrid North Deposit, Naartok and Suluk zones, building on the success of the 2014 program. To the end of June, a total of 18,143 metres were completed in 41 diamond drillholes at a total cost of $420 per metre, compared to the budget of $423 per metre. The cost per metre includes indirect costs such as camp costs. Direct drilling costs were $265 per metre, compared to the budget of $273 per metre. The drilling on the Naartok zone targeted a potential second thick, high-grade zone of mineralization east of, and up-dip of, the high-grade shoot defined in 2014. The objective of the Suluk drilling was to provide material for metallurgical testing within the current indicated resources and target higher-grade historical areas within the Inferred Resources. This drilling was successful in demonstrating continuity of wide higher-grade mineralization at depth below the Indicated Resources at Suluk and the potential to increase the Suluk resource base with continued drilling. The drill results with assays and sections are expected to be ready for release in September.

A helicopter supported drilling program planned for the second half of 2015 will continue to test areas that were not accessible during the winter drill program. The planned diamond drilling program consists of 16,700 metre of surface diamond drilling at a budgeted cost of $425 per metre and 4,800 metres of underground drilling at Doris at a budgeted cost of $275 per metre.

The primary objective of the 2015 Exploration and Evaluation budget is to support the advancement of the Hope Bay Project through continued geological modelling, diamond drilling and metallurgical test work and resource definition at both Doris and Madrid. Drilling at Doris will support short to medium term mine planning and is focused on further definition of stopes within the 1-2 year mine plan. Drilling during the fall of 2015 on the Madrid deposit trend will focus on the Naartok zone with the objective of further defining the high-grade areas and the addition of gold ounces to the resources base. No specific exploration work is planned to be conducted on the Boston Deposit in 2015.

The secondary objective of the 2015 Exploration program is to begin regional exploration work outside of the three known deposits at the Doris, Madrid and Boston trends. Two airborne geophysical surveys have commenced over the Hope Bay greenstone belt. The geophysical program will consist of airborne Mag/EM and airborne Gravity, utilizing the SkyTEM 516 and CGG HeliFalcon systems, respectively, over the entire Hope Bay property. Along with Mag/EM data, post processing of Airborne IP signatures will also be completed. If unique geophysical indicators can be defined for the various styles of mineralization at Hope Bay it will significantly improve future exploration targeting and reduce future exploration expenditures and timelines to success.

In addition to the Hope Bay property, TMAC acquired in the original purchase of properties in March 2013 from Newmont certain mineral claims located approximately 35 km to the north-east of Hope Bay comprising an area of approximately 305 square kilometres entitled the Elu claims (the "Elu claims") that are contained within the Elu greenstone belt (the "Elu belt"). The Elu belt is a similar age greenstone belt to the Hope Bay greenstone belt. Limited historical exploration suggests that there is potential for significant gold mineralization similar to those deposits found within the Hope Bay greenstone belt. In order to maintain the Elu claims in good standing an airborne geophysical survey and Mag/EM survey will be conducted consisting of approximately 3,750 line km and a gravity survey of 3,750 line km will be completed on the Elu claims in the third quarter of 2015 at a cost of approximately $966,000. The work includes expenditures to cover past commitments for 2013 and 2014 during which no physical work was completed and payments were made in lieu. Upon completion of the 2015 work commitment, $302,000 is expected to be refunded by Aboriginal Affairs and Northern Development Canada to be received in 2016.

Common Shares

As at August 11, 2015, the Company has 77,613,259 common shares, 2,643,875 common share purchase options (all at $5.25 per common share) and 1,900,000 share purchase warrants with an exercise price of $7.50, totalling 82,157,134 common shares outstanding on a fully-diluted basis.

About TMAC Resources

TMAC Resources Inc. was incorporated under the OBCA on October 30, 2012. The Company's principal business objectives are the acquisition, exploration and development of precious metal resource properties. The Company's principal asset is a 100% interest in the Hope Bay Project, which it acquired from Newmont in March 2013. The Company's near term goal is to bring the Hope Bay Project into production, beginning with bringing the Doris deposit into production by the end of 2016.

Since TMAC's incorporation, it has focused on the exploration and development of the Hope Bay Project and the raising of equity capital to fund property exploration and development. The Company has an experienced board of directors with depth of experience and market credibility and an exploration and development team with an extensive track record of developing high grade, profitable underground mines.

Scientific and Technical Information

Information of a scientific or technical nature in respect of the Hope Bay Project is based upon the technical report for the Hope Bay Project (the "Hope Bay Technical Report") dated May 28, 2015 entitled "Technical Report On The Hope Bay Project, Nunavut, Canada", which has an effective date of March 31, 2015, as filed on TMAC's profile at www.sedar.com. Scientific and technical information contained in this document was reviewed and approved by Dave King, P.Geo., the Vice President, Exploration and Geoscience of TMAC, and Paul Christman, P.Eng., the Manager of Mining of TMAC, each of whom is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Forward-Looking Information

This release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, bringing the Hope Bay Project into production, beginning with bringing Doris into production by the end of 2016, the availability of funds under the Debt Facility, and that the net proceeds of the IPO and drawdowns under the Debt Facility will be sufficient to fully fund the Hope Bay Project, the planned activities for the rest of 2015 and the objectives of the exploration budget.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made, including among other things, assumptions about; the ability meet the conditions to drawdowns under the Debt Facility; the ability to raise any additional capital needed to advance the development of the Hope Bay Project to production; future prices of gold and other metal prices; the geology of the Hope Bay Project being as described in the PFS filed on SEDAR; accuracy of the mineral resource and mineral reserve estimates in the PFS; the metallurgical characteristics of the deposit being suitable for the processing plant; the successful and timely delivery, installation and operation of the processing plant; production costs being as estimated in the PFS; accuracy of budgeted exploration and development costs and expenditures, including to complete development of the infrastructure at the Hope Bay Project; the price of other commodities such as fuel; future currency exchange rates and interest rates; favourable operating conditions; political and regulatory stability; receipt of governmental approvals and permits and all necessary third party financing on favourable terms; obtaining renewals for existing licences and permits and obtaining all other required licences and permits; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with the KIA and NTI and other local groups; and the Company's ability to operate in the harsh northern Canadian climate. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's Prospectus filed on SEDAR at www.sedar.com for a discussion of these risks.

The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information contained herein. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.

No securities regulatory authority has either approved or disapproved of the contents of this press release.

Contact

Terry MacGibbon
416-628-0216

Catharine Farrow
416-628-0216