Issue of Equity

11 May 2016 13:50

ECR MINERALS plc

(“ECR Minerals”, “ECR” or the “Company”)

AIM: ECR

US OTC: MTGDY

ISSUE OF EQUITY

LONDON: 11 MAY 2016 - ECR Minerals plc announces the issue and allotment of 415,402,731 new ordinary shares of 0.001 pence each in the Company (“Ordinary Shares”) as follows:

i) 61,163,435 new Ordinary Shares at a price of 0.0225625 pence per share in settlement of consulting fees payable by the Company totalling £13,800 (“Fee Shares”);

ii) 348,510,371 new Ordinary Shares at a price of 0.0198875 pence per share pursuant to the conversion of US$100,000 of outstanding principal amount under the Company’s convertible loan facility (the “Facility”) with YA Global Master SPV Ltd (“YA Global”).

Accordingly, the outstanding principal amount under the Facility (following the scheduled loan draw downs on 1 April 2016 and 2 May 2016 as announced on 11 March 2016) will be reduced by US$100,000, leaving a total of US$300,000 in principal amount outstanding under the Facility (not including a further amount of US$100,000 expected to be drawn down on or about 1 June 2016).

A further 5,728,925 new Ordinary Shares are to be issued and allotted to YA Global at a price of 0.0198875 pence per share in settlement of accrued interest, therefore, in total 354,239,296 new Ordinary shares will be issued to YA Global in respect to the Facility (“YA Global Shares”)

Pursuant to this announcement, applications have been made for 415,402,731 new Ordinary Shares of the Company to be admitted to trading on AIM. Admission in respect to the YA Global Shares is expected to occur on or around 16 May 2016 with admission in respect to the Fee Shares expected to occur on or around 17 May 2016 (“Admission”).

Following Admission, it is expected that ECR’s issued ordinary share capital will consist of 8,488,066,586 Ordinary Shares. The new Ordinary Shares will rank pari passu in all respects with the Ordinary Shares of the Company currently traded on AIM.

ABOUT ECR

ECR is a mineral exploration and development company with the right to earn a 50% interest in the Danglay epithermal gold project in the Philippines. Danglay is 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 Province, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia (MGA) has agreed to acquire 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. Mercator Gold Australia is estimated to have tax losses of approximately AUD 66M as at 30 June 2015, which may be available, subject to certain conditions (as described in ECR’s announcement dated 4 December 2014), to reduce MGA’s future taxable profits. This is considered particularly significant in view of an opportunity which may exist at Avoca to establish relatively near term gold production from the reprocessing of historical mine dumps, with the potential for sale of gravel and sand by-products.

FOR FURTHER INFORMATION PLEASE CONTACT:

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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