Oversubscribed Placing to Raise £1 Million

Oversubscribed Placing to Raise £1 Million

ECR Minerals plc

AIM: ECR

US OTC: MTGDY

ECR MINERALS plc

(“ECR” or the “Company”)

OVERSUBSCRIBED PLACING TO RAISE £1 MILLION

LONDON: 2 JUNE 2017 - The directors of ECR Minerals plc (the “Board”) are pleased to announce that the Company has raised gross proceeds of £1,000,000 by way of an oversubscribed placing (the “Placing”) for 55,555,556 new ordinary shares in the Company of 0.001 pence (the “Placing Shares”) at a price of 1.8 pence each (“Issue Price”).

The net proceeds of the Placing, which is only conditional on admission of the Placing Shares to trading on AIM, will be used to support the ongoing activities of the Company in Australia and to explore new opportunities.

Optiva Securities Ltd (“Optiva”) acted for the Company in the Placing.

Craig Brown, Chief Executive Officer of ECR, commented:

“The significant demand from both new and existing investors to take part in this fundraise is an encouraging vote of confidence in ECR’s future. ECR also recently announced the receipt of the full amount of the Gross Proceeds of £553,564 from Shenyang Xinliaoan Machinery Tool Co Ltd and will seek to complete this subscription with Shenyang once our relationship agreement has been delivered. We would hope to update the market upon this in the near future and once completed this amount added to the £1,000,000 announced today will go a long way to enabling the Board to use its technical strengths and expertise to maximise the value of the Company’s existing assets whilst also evaluating further new business opportunities.

Having already received the required consent to begin drilling at our Bailieston project area, we are greatly excited about testing the potential of the Byron target within Bailieston and we look forward to further updating the market as soon as our fully funded drill programme commences”.

Admission of Placing Shares to AIM

Pursuant to the Placing, application will be made for the Placing Shares to be admitted to trading on AIM (“Admission”). This is expected to occur on or around 16 June 2017. Following admission of the Placing Shares and the issue of consideration shares which was announced on 26 May 2017, ECR’s issued ordinary share capital will comprise 192,248,849 ordinary shares of 0.001 pence. This number represents the total voting rights in the Company and following Admission may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules. The Placing Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Grant of Warrants

Under the terms of the placing Optiva as broker to ECR, will receive 2,777,778 broker warrants to subscribe for one ordinary share of 0.001 pence at the Issue Price and will be exercisable for three years. By virtue of Christian Dennis being the CEO and controlling shareholder of Optiva and a Non-Executive Director of ECR, Christian Dennis is considered to be interested in these warrants.

Market Abuse Regulations (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

ABOUT ECR

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has acquired 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR’s website.

ECR’s wholly owned subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc		Tel: [phone]
William (Bill) Howell, Non-Executive Chairman
Craig Brown, Director & CEO Ivor Jones, Director & COO
Email: [e-mail]
Website: www.ecrminerals.com
Cairn Financial Advisers LLP		Tel: [phone]
Nominated Adviser
Emma Earl / Jo Turner
Optiva Securities Ltd		Tel: [phone]
Broker
Graeme Dickson
FlowComms		Tel: [phone]
Investor Relations
Sasha Sethi

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Any forward looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward looking statements as a result of new information, future events or for any other reason.

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