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TMAC Announces Strategic Review Process

January 20, 2020 GMT

TORONTO--(BUSINESS WIRE)--Jan 20, 2020--

TMAC Resources Inc. (TSX: TMR) (“ TMAC ” or the “ Company ”) announces it has initiated a strategic process to explore, review and evaluate a broad range of potential alternatives focused on maximizing shareholder value, including a potential sale or merger of the Company, joint venture of the Hope Bay mine, introduction of a new significant strategic shareholder or various long-term financing alternatives.

Jason Neal, President and Chief Executive Officer of TMAC, stated, “With the support of Resource Capital Funds and Newmont Corporation, representing 58.5% of our shares outstanding, we have initiated a strategic process to explore potential alternatives to maximize shareholder value, potentially enhance trading liquidity and generate the financial strength which will allow Hope Bay to achieve its potential. Alignment with our largest shareholders is a key consideration in the timing of this process. Additionally, a transaction in early 2020 would provide an advantage in planning and procurement for the 2020 sealift, which may include additional purchases to support investment that TMAC may not otherwise make itself at this time.”

Jason Neal continued, “Maximizing value for our stakeholders, including but not limited to our shareholders, employees and the people of the Kitikmeot region, is not possible without maximizing the value of Hope Bay. We have been making operational performance improvements since construction was completed, although we have not yet reached our targets. We have recently initiated development of the second underground mine at Madrid North, and with respect to the production expansion of Hope Bay, we are advancing our prefeasibility study which is expected to be completed this quarter. Work on the feasibility study would follow immediately thereafter. Ultimately however, the value of Hope Bay may be greater in the context of a multi-asset portfolio and/or a stronger balance sheet, which is the driving force behind our strategic review process.”

TMAC has engaged CIBC Capital Markets and BMO Capital Markets as financial advisors.

TMAC announces a further step in Board renewal in accepting the resignation of Frank Davis, who has been a Director since March 2013. TMAC would like to thank Mr. Davis for his contributions and long service to the Company.

The Company has not made any decisions related to strategic alternatives at this time, and there can be no assurance that the evaluation of strategic alternatives will result in any transaction or change in strategy. The Company does not intend to comment further unless and until the Board of Directors of the Company has approved a specific course of action or the Company has determined further disclosure is appropriate or necessary.

ABOUT TMAC RESOURCES INC.

TMAC operates the Hope Bay property located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of expenditures have been spent in exploration and evaluation, surface infrastructure, and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris Plant which originally had nameplate capacity of 1,000 tonnes per day and expanded to 2,000 tonnes per day midway through 2018. There is potential to grow TMAC’s established deposits considerably at depth, and then grow resources further through the prioritized exploration of the more than 90 other identified regional targets. TMAC is now permitted to produce from both Madrid and Boston.

FORWARD-LOOKING INFORMATION

This release contains “forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations or comparable terminology. Forward looking information includes statements with respect to the outcome of the strategic process, the timing of any strategic transaction and its potential impact on the sealift, development of the second underground mine at Madrid North, and statements with respect to advancing the Company’s prefeasibility study and the timing thereof.

“Forward-looking information” is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such “forward-looking information” involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements expressed or implied. See “Risk Factors” in the Company’s Annual Information Form dated March 11, 2019 filed on SEDAR at www.sedar.com for a discussion of these risks.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200120005090/en/

CONTACT: For further information:TMAC Resources Inc.Jason Neal

President and Chief Executive Officer

Phone: 647-480-3111Lisa Wilkinson

Vice President, Investor Relations and Strategic Development

Phone: 647-480-3110

Email:Lisa.Wilkinson@tmacresources.com

www.tmacresources.com

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: MINING/MINERALS NATURAL RESOURCES

SOURCE: TMAC Resources Inc.

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PUB: 01/20/2020 07:01 AM/DISC: 01/20/2020 07:01 AM

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