Red Eagle Exploration Files Application

VANCOUVER, British Columbia, March 21, 2018 (GLOBE NEWSWIRE) — Red Eagle Exploration Limited (TSX-V:XR) (“XR”) owns 100% of the Vetas Gold Project in Santander, Colombia.  During 2014, the Ministry of Environment set forth the limits of the Paramo, a high altitude wetland where mining is prohibited.  This delineation included a portion of the Vetas Gold Project within the Paramo.  XR has been in amicable discussions over the last year with the Ministry of Commerce and the Agency for the Defense of the State to come to an agreement on a reimbursement of up to C $40 million in costs incurred on the portion delineated within the Paramo.

XR has filed an application for arbitration under the Canada-Colombia Free Trade Agreement (“FTA”) to preserve XR’s rights under the FTA allowing the current discussions between the government and XR to continue.

About Red Eagle Exploration

XR is a precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining.  XR has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects in Colombia.  XR owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects, which consist of numerous historic and existing mines and where exploration is underway to delineate high-grade vein resources exploitable by modern underground mining.

XR and majority owner Red Eagle Mining have entered into a definitive amalgamation agreement pursuant to which Red Eagle Mining has agreed to acquire all of the issued and outstanding shares of XR not already owned.  The amalgamation will complete Red Eagle Mining’s acquisition of XR (formerly known as CB Gold), simplify the holding structure and reduce costs.  Implementation of the amalgamation is subject to the approval by a majority of the minority XR shareholders at a special meeting to be held on April 5, 2018.

For further information, please contact Ian Slater, Chief Executive Officer or:

Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
balit@redeaglemining.com

Neither the 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. Information set forth in this news release includes forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the terms and completion of the proposed sale transaction are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: failure to satisfy all conditions precedent to the transaction, including disinterested shareholder approval and stock exchange regulatory approval, and the additional risks identified in the management discussion and analysis section of the Company’s interim and most recent annual financial statement or other reports and filings with Canadian securities regulators. Forward looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

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