Oban Mining Corporation (TSX:OBM) is pleased to announce that it has completed its previously announced subscription receipt offering (which includes the partial exercise of the over-allotment option) pursuant to which it has issued and sold 10,521,700 subscription receipts at a subscription price of $1.20 per Subscription Receipt for gross proceeds of $12,626,040. The Offering was completed on a private placement basis through a syndicate of agents led by Dundee Securities Ltd. and including Beacon Securities Limited, Medalist Capital Ltd., Cormark Securities Inc., Haywood Securities Inc. and M Partners Inc.

Each Subscription Receipt purchased in the Offering entitles the holder thereof to receive, for no additional consideration and without further action on the part of the holder thereof, on or about the date that the Escrow Release Conditions are satisfied, a unit comprised of (i) one common share of Oban and (ii) one common share purchase warrant of Oban. Each Unit Warrant shall, following the Conversion Date, be exercisable into one common share of Oban for a period of thirty-six months from the closing date of the Offering at an exercise price of $1.44, subject to early expiry in certain circumstances.

The following are conditions precedent to the conversion of the Subscription Receipts: (i) the completion of the acquisition by Oban of all of the common shares of NioGold Mining Corp. on the terms and conditions set forth in the arrangement agreement dated January 11, 2016 between Oban and NioGold; and (ii) the receipt by Oban of the requisite approval of the Offering by its shareholders pursuant to the requirements of the Toronto Stock Exchange.

The total gross proceeds of the Offering, less certain expenses of the Agents and 50% of the cash commission payable to the Agents in connection with the Offering, have been deposited in escrow with the subscription receipt agent for the Subscription Receipts pending notice being given by Oban and Dundee to the Subscription Receipt Agent that the Escrow Release Conditions have been satisfied. Following the delivery of such notice to the Subscription Receipt Agent, the Escrowed Proceeds shall be released to the account of Oban and each Subscription Receipt shall automatically convert into a unit comprised of one Unit Share and one Unit Warrant.

If the Escrow Release Conditions are not satisfied prior to April 29, 2016, or if Oban announces to the public by news release that it does not intend to satisfy the Escrow Release Condition then (i) the Subscription Receipt Agent shall return the Escrowed Proceeds to the holders of the Subscription Receipts in an amount equal to the aggregate subscription price for the Subscription Receipts held by such holder, together with a pro rata portion of the interest earned on the Escrowed Proceeds, and (ii) the Subscription Receipts shall be cancelled with no further force or effect.

Oban intends to use the proceeds from the Offering to fund certain expenses in connection with the Arrangement and for working capital and general corporate purposes.

All securities issued pursuant to the Offering are subject to a hold period that will expire on June 4, 2016, which is four months and one day from the closing date of the Offering, in accordance with applicable securities laws in Canada.

The Arrangement is subject to a number of conditions, including shareholder, court and regulatory approvals, and is anticipated to be completed on or about March 11, 2016.

About Oban Mining Corporation

Oban is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Oban owns a 100% interest in the high-grade Windfall Lake gold deposit located between Val-d’Or and Chibougamau in Québec, and also holds a 100% undivided interest in a large area of claims in the surrounding Urban Barry area of Québec. In addition, Oban holds properties in the Larder Lake Mining Division located in northeast Ontario, which includes the Jonpol and Garrcon deposits on the Garrison property, the Buffonta past producing mine and the Gold Pike mine property. Oban also holds interests and options in a number of additional properties in northern Ontario. Oban is well financed with approximately $65 million in cash, cash equivalents and marketable securities.