Medallion Resources Completes First Tranche of Private Placement

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Medallion Resources Ltd. (TSXV:MDL), today announced that it has closed the first tranche of its non-brokered private placement (the “Offering”), as announced in its July 12, 2017 and September 15, 2017 news releases, for gross proceeds to date of $670,000.

Medallion is pursuing production of rare-earth elements (“REE”) by sourcing and processing the by-product mineral monazite, which is rich in the REE elements neodymium and praseodymium, collectively also known as “NdPr”.  The main use for NdPr is for lightweight, powerful rare-earth permanent magnets which are facing increased demand for their use in hybrid and electric vehicles, wind energy, and robotics.

Minerals industry consultancy Roskill Information Services recently reported that NdPr prices have risen sharply since the beginning of July to gain over 60% in just two months. The rare-earth magnets in most electric vehicles contain one to two kilograms of NdPr per vehicle and are fundamental to the powertrain of electric vehicle motors in current models such as the Nissan LEAF, Chevrolet Bolt and BMW i3.  Adamas Intelligence has estimated the value of global annual rare-earth oxide demand for the production of rare-earth permanent magnets totaled $1.44 billion in 2016. Adamas’ longer-term forecast anticipates an increase in demand for the magnet-oriented rare-earth oxides to $6.07 billion by 2025, a compound annual growth rate of 17.4%.

Medallion has issued an aggregate of 4,187,500 units (each a “Unit”) pursuant to the first tranche of the Offering at a price of $0.16 per Unit, each Unit consisting of one common share and one transferable common share purchase warrant (a “Warrant”). Each Warrant is exercisable to acquire one common share of Medallion at an exercise price of $0.32 until September 27, 2020. Following the completion of this financing tranche, Medallion now has 25,210,472 common shares issued and outstanding, and an aggregate of 36,919,639 common shares on a fully diluted basis, including exercise of all outstanding options and warrants.

Proceeds of the Offering will be used to further the metallurgical test program that Medallion has undertaken with the Saskatchewan Research Council; additional customer and monazite feedstock supply development work; jurisdiction and site analysis for the Company’s proposed rare-earth extraction plant; and working capital. The completion of further tranches of the Offering are subject to the acceptance of the TSX Venture Exchange (the “Exchange”).

All securities issued to purchasers in the Offering are subject to a hold period expiring four months and one day after issuance, pursuant to relevant securities legislation and the policies of the Exchange.   In connection with this tranche of the Offering the Company paid aggregate finders’ fees to qualified finders of $7,680, representing 8% of the gross proceeds in respect of certain subscriptions. The Company also issued 48,000 finder warrants to qualified finders, each finder warrant giving the finder the right to acquire one common share of Medallion at an exercise price of $0.16 until September 27, 2019.

The securities offered have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale, or solicitation would be unlawful.

About Medallion Resources
Medallion Resources is developing an approach for low-cost, near-term, rare-earth element (REE) production by exploiting monazite. Monazite is a rare-earth phosphate mineral that is widely available as a by-product from mineral sand mining operations. REEs are critical inputs to electric and hybrid vehicles, electronics, imaging systems, wind turbines and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral transportation, processing and the safe management of waste materials. More about Medallion (TSX-V: MDL) (OTCPK:MLLOF) (Frankfurt:MRDN) can be found at medallionresources.com.

Donald Lay, President & CEO at +1.604.681.9558 or info@medallionresources.com

Medallion management takes full responsibility for content and has prepared this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as statements that describe Medallion’s plans with respect to the completion of further tranches of the Offering and the use of the proceeds of the Offering. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks related to market conditions and regulatory approval and other risks outlined in the Company’s management discussions and analysis of financial results. Actual results in each case could differ materially from those currently anticipated in these statements. Also, in order to proceed with Medallion’s plans, additional funding will be necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion’s plans. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, Medallion disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.

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