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Oracle Mining Files First Quarter Financial Results and Provides Finance and Strategy Update

Oracle Ridge Drill Results Include 23.5 Feet of 2.35% CuEQ and 5.5 Feet of 4.81% CuEQ

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/14 -- Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX:OMN)(FRANKFURT:OMC) announces its financial results for the period ended March 31, 2014. This news release should be read in conjunction with the unaudited condensed consolidated interim financial statements and notes thereto for the three months ended March 31, 2014 and 2013, and the related management's discussion & analysis ("MD&A"), both available on SEDAR at

First Quarter 2014 financial summary

--  Net loss for the quarter was $2.2 million compared to a net loss of $3.8
    million for the three months ended March 31, 2013, primarily due to a
    decrease of $1.4 million in exploration and evaluation expenditures, and
    a decrease of $0.6 million in general and administrative costs, offset
    by an increase of $0.5 million in interest expense; 

--  Net working capital as at March 31, 2014 was a deficiency of $6.9
    million compared with a deficiency of $5.0 million on December 31, 2013;

--  Cash and cash equivalents at March 31, 2014 totaled $0.3 million
    compared to $0.3 million on December 31, 2013. 

During the quarter ended March 31, 2014, advances were made in three aspects of the Corporation's principal property, the Oracle Ridge copper project ("Oracle Ridge" or the "Project"), located northeast of Tucson, Arizona, U.S.A., including: (a) the announcement on February 26, 2014 of an updated Mineral Resource Estimate in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and filing on March 31, 2014 of a supporting NI 43-101 technical report under the Corporation's profile on SEDAR (; (b) the continuation of geological, mining and engineering studies; and (c) permitting and regulatory programs. A discussion of the progress made on these activities is available in the MD&A.

All financial information for the quarter ended March 31, 2014 is prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in United States dollars unless otherwise noted, including this news release. Please refer to Note 2 of the audited consolidated financial statements for the years ended December 31, 2013 and 2012 for more information.

Corporate strategy update

The Board of Directors of Oracle Mining and Management have reviewed the Corporation's spending priorities at the Oracle Ridge Project. During the past several years, Oracle Mining has focused primarily on project permitting, engineering studies in metallurgy and geotechnical engineering, drilling and resource modelling with the objective of completing a positive feasibility study in support of constructing a complete processing facility and tailings storage area. In the past few months, Oracle Mining has been conducting a review of various project alternatives. The Project is distinctively located in the sixth-largest copper producing region in the world and the proximity to producing copper mines could potentially provide synergistic opportunities to work with third-parties to utilize their existing infrastructure ("Third Party Options").

Accordingly, Oracle Mining has temporarily suspended the 2014 Drill Program and rationalized expenditures to manage remaining financial resources while evaluating Third Party Options and continuing to advance permitting. For additional clarity, evaluation of Third Party Options does not preclude Oracle Mining from pursuing the completion of a Feasibility Study. In conjunction with the change in strategy for the Corporation, Oracle Mining has amended its Loan Agreement with Rich Stone Mining Investment (Hong Kong) Limited ("Rich Stone") to provide additional funds to the Corporation in the short term (See "Rich Stone and Oracle Mining amend loan agreement" below).

There is no assurance that a Third Party Option will be pursued or, if pursued, be successful. To the extent possible, we intend to incorporate previously completed engineering studies in metallurgy and geotechnical engineering into a future Feasibility Study. There is no assurance that a Feasibility Study will be completed or, if completed, that the outcome will be positive. We have not made a production decision with respect to Oracle Ridge. A decision to proceed with production will be based upon the Corporation completing a future Feasibility Study demonstrating economic and technical viability.

Rich Stone and Oracle Mining amend loan agreement

In addition, Oracle Mining provides investors with an update regarding an amendment to its C$10 million secured convertible loan ("Loan Facility") with Rich Stone Mining Investment (Hong Kong) Limited ("Rich Stone"). Effective today, Rich Stone and the Corporation agreed to an amendment of the Loan Facility whereby the interest in aggregate amount of C$1,200,000 and the origination fee payable of C$600,000 (including origination fees paid to date by the Corporation to Rich Stone under the Loan Facility in the amount of C$390,000) are to be advanced to the Corporation as soon as practicable and repaid to Rich Stone on the maturity of the Loan Facility. As at May 13, 2014, the aggregate funds to be received from Rich Stone include C$1.19 million for the remaining second tranche of the Loan Facility and C$1.80 million for fees and interest to be repaid at the Loan Facility's maturity.

Oracle Ridge drill results

Oracle Mining is pleased to announce the initial assay results from its 2014 Drill Program at the Oracle Ridge Project. The four core holes reported in this news release were all drilled underground from Drill Station 3 with the purpose of extending high-grade copper mineralization beyond the drilling that defines our current Mineral Resource Estimate. Until further drilling is completed and a geologic model constructed, all intervals reported in this news release are apparent thicknesses. All units are imperial unless otherwise noted. Highlights include:

--  OUH-58 intersected two copper-bearing skarn beds of the Martin Formation
    in Zone 8, (B8 48 and B8 51) and copper-bearing endoskarn. OUH-58
    discovered B8 48 as a newly recognized copper-bearing skarn bed within
    the Martin Formation. 
--  OUH-59 intersected an apparent thickness of 19.5 feet grading 2.17 %
    copper equivalent ("CuEQ") of Abrigo Formation (B8 51) 100 feet along
    strike north of the intersection in OUH-58. The hole also intersected
    lower-grade copper-bearing endoskarn north of the OUH-58 intersection. 
--  OUH-60 was drilled to extend Zone 8 mineralization south of OUH-58. The
    hole intersected an apparent thickness of 23.5 feet of 2.35% CuEQ
    enhanced by notably higher silver content of 1.01 ounces silver per
    short ton. The hole also intersected an apparent thickness of 21.5 feet
    grading 1.13% CuEQ which may confirm the continuity of copper
    mineralization in new skarn bed B8 48. 
--  OUH-61 was a vertical hole which successfully tested the trend of copper
    mineralized skarn below the drilling which defines the Mineral Resource
    Estimate. OUH-61 intersected two skarn beds in Zone 8 (B8 48 and B8 51)
    and another in Zone 12. Notable intersection of B8 51 was an apparent
    thickness of 19.4 feet of 2.03% CuEQ which contained and apparent
    thickness of 5.5 feet of 4.81% CuEQ. The potential for copper
    mineralization continues to the east of these intersections. 

Each of these holes confirmed Oracle Mining's geologic interpretation and have extended copper-bearing skarn mineralization beyond the limit of current drilling and our current Mineral Resource Estimate. Intervals in the table below labelled "includes" are higher-grade portions of the previous listed interval. The following tabulates the assay results obtained from the underground drilling program to date:

                                      Au    Ag                              
Drill     From    To   Interval  Cu  (oz/  (oz/  CuEQ(i)                    
Hole     (feet) (feet)  (feet)  (%)  ton)  ton)    (%)     Zone  Azimuth Dip
OUH-58   139.5  150.0    10.5   1.00 0.003 0.26   1.13      B8     280   -68
OUH-58   184.0  217.5    33.5   1.28 0.003 0.23   1.41      B8     280   -68
OUH-58   223.0  235.2    12.2   0.51 0.002 0.19   1.07  Endoskarn  280   -68
OUH-59   220.0  239.5    19.5   2.07 0.003 0.20   2.17      B8     333   -62
OUH-59   249.50 258.50   9.00   0.67 0.002 0.34   0.80  Endoskarn  333   -62
OUH-60   144.5  166.0    21.5   0.97 0.005 0.27   1.13      B8     230   -63
includes 154.5  159.5    5.0    2.12 0.011 0.65   2.51                      
OUH-60   195.5  219.0    23.5   1.89 0.009 1.01   2.35      B8     230   -63
OUH-60   234.5  239.5    5.0    0.58 0.002 0.10   0.65  Endoskarn  230   -63
OUH-61   102.0  108.6    6.6    1.21 0.007 0.36   1.44     B12      0    -90
OUH-61   189.5  202.6    13.1   1.24 0.003 0.24   1.36      B8      0    -90
OUH-61   210.1  229.5    19.4   1.92 0.001 0.33   2.03      B8      0    -90
includes 224.0  229.5    5.5    4.55 0.001 0.84   4.81                      
(i)CuEQ - Copper equivalency has been estimated using metal pricing of $2.80
per pound of copper, $20 per ounce of silver and $1,300 per ounce of gold.  
Metallurgical recovery were derived from preliminary lock cycle test results
and assumed to be 81% for gold and silver. The formula used is as follows:  
CuEQ = Cu% + ((Ag oz/t x $20 x 0.81) + (Au oz/t x $1,300 x                  
0.81))/$2.80/2,000 x 100.                                                   

There are no known drilling, recovery or other factors that could materially affect the accuracy or reliability of the data. Oracle Mining has posted an updated diagram of all drill hole locations of these reported assay results at

Data Verification

The drill program and sampling protocol were managed by qualified persons employed by Oracle Mining. The Corporation maintains a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and split in half. The sample length varies depending on the geology and the mineralization. In general, the samples are predominantly about 5 feet long. Drill core recovery was excellent and exceeded 90 per cent. One-half of each drill core is maintained for future reference and one-half of each drill core is sent for analysis. Half-core samples are shipped to Skyline Assayer and Laboratories ("Skyline"), in Tucson, Arizona, an ISO/IEC 17025 accredited laboratory. Skyline is contracted to complete all sample preparation and assaying and is independent of Oracle Mining. Samples are analyzed employing acid digestion and Atomic Absorption for analyses of copper, as well as fire assaying for silver and gold. For QA/QC purposes, Oracle Mining inserts standard reference materials and blank samples into each sample batch submitted for assay to monitor laboratory performance. The Corporation periodically submits the pulps of the samples assayed by its primary lab to ALS Chemex Labs Ltd. in Reno, Nevada for check analysis.

Kevin Francis RM SME, Vice President Technical Services of Oracle Mining, a non-independent "qualified person" within the meaning of NI 43-101, has reviewed and approved the scientific and technical information included in this news release.

About Oracle Mining Corp.

Oracle Mining Corp. (TSX:OMN)(FRANKFURT:OMC) is a Vancouver, Canada-based corporation that is the sole owner and operator of Oracle Ridge Mining, LLC and the Oracle Ridge copper project located 24 km northeast of Tucson, Arizona. Oracle Mining is managed by an experienced team of mining professionals with extensive operating and financial experience.

Cautionary Note Regarding Forward-Looking Information

Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and Oracle Mining does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Corporation's expectations or beliefs regarding future events. In certain cases, forward-looking information can be identified by the use of words such as "plans", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. Examples of forward-looking information in this news release include, but are not limited to, statements with respect to: our plans and expectations for the Oracle Ridge Project, including our ability to negotiate a favourable arrangement with any third-party for a Third-Party option to utilize their existing infrastructure and the timing or completion of any work on the Oracle Ridge Project. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: our ability to successfully raise capital.

By its very nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by forward-looking information. Such factors include, but are not limited to: risk that we are unable to enforce our legal rights under existing agreements, permits or licences or are subject to litigation or arbitration that has an adverse outcome, including results of operations, our mining and project development operations or our current or potential financing arrangements; risk that we are unable to obtaining financing or are substantially delayed in obtaining financing, as well as those factors discussed in the section entitled "Risks and Uncertainties" in the Managements' Discussion and Analysis for the year ended December 31, 2013 and discussed in the Corporation's annual information form dated March 31, 2014, for the year ended December 31, 2013, filed and available for review on SEDAR at Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. 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 by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.

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