IDM Mining Closes Private Placement with Osisko Gold Royalties for $15.25 million

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 7, 2017) - IDM Mining Ltd. (TSX VENTURE:IDM) ("IDM" or the "Company") is pleased to announce that it has closed the previously announced private placement with Osisko Gold Royalties Ltd. (TSX:OR)(NYSE:OR) ("Osisko") for total proceeds of $15,248,000.

The Company issued 29,400,000 common shares at a price of $0.17 per share and 41,000,000 flow-through common shares at a price of $0.25 per share (the "Shares") to Osisko resulting in Osisko holding 19.9% of the IDM shares on a non-diluted basis.

The proceeds from the offering will be primarily used for advancement of development of the Red Mountain Gold Project ("Project") and for general corporate and working capital purposes. Gross proceeds from flow-though Shares will be used to incur "Canadian exploration expenses" that will also qualify as "flow-through mining expenditures".

The Shares are subject to a four month hold period that will expire on July 8, 2017.

In connection with the Private Placement, IDM granted to Osisko certain pre-emptive rights in respect to purchases or grants of royalties or streams from the Project.

ABOUT IDM MINING LTD.

IDM Mining Ltd. is a mineral exploration and development company based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia and Yukon, with a primary focus on the high-grade, underground Red Mountain Gold Project, which is advancing through the BC and Canadian environmental assessment processes.

ON BEHALF OF THE BOARD of IDM Mining Ltd.,

Robert McLeod, President, CEO and Director

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

Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the use of proceeds from the offering, proposed exploration and development activities and their timing, and other plans and objectives of IDM. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, unanticipated delays in completing development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: required regulatory approvals will be obtained; the proposed exploration and development will proceed as planned; that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Contact

IDM Mining Ltd.
Robert McLeod
CEO and Director
604-681-5672 direct or 604-617-0616 cell
rm@idmmining.com
Investor Relations:
Shobana Thaya
416-807-1009
st@idmmining.com
Alex Horsley
604 618-3058
ah@idmmining.com
www.idmmining.com