25 July 2014
Vancouver, British Columbia, July 25, 2014 - Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX: ELG) is pleased to provide the following update on the previously announced transaction with Mandalay Resources Corporation ("Mandalay") (TSX: MND). Elgin Mining has now reached a resolution on all outstanding reclamation obligations relating to its former coal operations in Kentucky, and these are to Mandalay's satisfaction. Elgin Mining has filed amended and restated interim financial statements and management's discussion and analysis for the three months ended March 31, 2014 to reflect this settlement. The parties have also entered into an amended and restated arrangement agreement ("Amended and Restated Arrangement Agreement") dated July 25, 2014 with respect to the previously announced acquisition by Mandalay of all the outstanding common shares of Elgin Mining for consideration consisting of C$0.37 cash or 0.4111 of a Mandalay common share per Elgin Mining common share, subject to pro ration, by way of plan of arrangement (the "Arrangement").