Placing and Subscription to Raise £380,000

23 May 2019

Georgian Mining Corporation

Placing and Subscription to Raise £380,000

Georgian Mining Corporation ('GEO' or the 'Company') is pleased to announce that it has raised £380,000 by way of a placing and subscription of 19,000,000 new ordinary shares of no par value in the capital of the Company (the 'Placing Shares'), with new and existing shareholders in the Company, at a price of 2 pence per Placing Share (the 'Placing').

Mr Peter Damouni, Non-Executive Director of the Company has subscribed for 500,000 Placing Shares. Following this purchase, Mr Damouni's total beneficial ownership in the Company is 907,500 ordinary shares of no par value in the capital of the Company ("Ordinary Shares") representing 0.79% of the Company's issued share capital.

The net proceeds of the Placing will be primarily used to sustain operations in Georgia during the extended exploration permit renewal process, for identifying compelling new assets on which the Company can add short term value, as well as for general working capital purposes.

In addition, certain directors of the Company, being Neil O'Brien, Gregory Kuenzel, Laurence Mutch and Peter Damouni have agreed to completely write off their accrued compensation for the past 12 months. Michael Struthers, CEO of the Company, has agreed to write off part of his compensation for the past 12 months. The total amount of the write off will total approximately £275,000.

GEO's CEO, Mike Struthers said, "We're pleased to secure further support from our existing shareholders in this challenging period for the Company, allowing us to continue to try to unlock the permitting challenge with the Government in Georgia, and to further assess the potential for adding new assets into the Company on which we can add value in the short term. We have an excellent team in Georgia who are highly motivated and eager to prove themselves. I hope we can provide them that opportunity for the benefit of all our shareholders in the near future."

Application for Admission

The Placing Shares will rank pari passu in all respects with the existing ordinary shares of no par value in the capital of the Company. Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective on or around 30 May 2019.

As a result of the issue of the Placing Shares as described above, the issued share capital of the Company now consists of 133,756,991 ordinary shares of no par value.

Mr Peter Damouni is a non-executive director of the Company, and is therefore regarded as a related party as defined by the AIM Rules for Companies (the "AIM Rules"). Mr Damouni's participation in the Placing is therefore classified as a related party transaction for the purposes of Rule 13 of the AIM Rules. Michael Struthers, Greg Kuenzel, Neil O'Brien and Laurie Mutch, being the independent directors for the purposes of Rule 13, consider, having consulted with the Company's Nominated Adviser, SP Angel Corporate Finance LLP, that the terms of the related party transaction are fair and reasonable insofar as the shareholders of the Company are concerned.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM 

**ENDS**

For further information please visit www.georgianmining.com  or contact: