Bear Creek Mining Board Approves Adoption of Shareholder Rights Plan

VANCOUVER, April 22, 2016 /CNW/ - Bear Creek Mining Corp. (TSX-V: BCM) (the "Company" or "Bear Creek") announced today that its board of directors has approved the adoption of a Shareholder Rights Plan (the "Rights Plan") pursuant to a Shareholder Rights Plan Agreement (the "Rights Plan Agreement") between the Company and Computershare Trust Company of Canada. Shareholder approval of the Rights Plan will be sought at the Company's annual meeting of shareholders to be held on June 2, 2016. The Rights Plan is subject to TSX Venture Exchange acceptance and shareholder ratification.

The fundamental objectives of the Rights Plan are to provide adequate time for Bear Creek's board of directors (the "Board") and shareholders to assess an unsolicited take-over bid for the Company; to provide the Board with sufficient time to explore and develop alternatives for enhancing and maximizing shareholder value if a take-over bid is made; and, to provide shareholders with an equal opportunity to participate in a take-over bid. The Rights Plan encourages a potential acquirer who makes a take-over bid (an "Acquirer") to ensure the take-over bid satisfies certain minimum standards designed to promote fairness, or to proceed with the concurrence of the Board (a "Permitted Bid"). If a take-over bid fails to meet these minimum standards and the Rights Plan is not waived by the Board, the Rights Plan provides that holders of common shares of the Company, other than the Acquirer, will be able to purchase additional common shares at a significant discount to market, thus exposing the Acquirer to substantial dilution of its holdings.

The Rights Plan has been prepared in alignment with recent amendments to the regulatory framework governing take-over bids published by the Canadian Securities Administrators, which are scheduled to generally come into effect on May 9, 2016. The Board considers that the adoption of the Rights Plan is desirable and in the interests of all of the Company's shareholders, and recommends shareholders vote in favour of the Rights Plan at its annual general meeting scheduled for June 2, 2016. If the Rights Plan is ratified by the eligible shareholders at such meeting, it will have an initial term which expires at the annual meeting of shareholders of the Company to be held in 2019 unless terminated earlier. The Rights Plan may be extended beyond 2019 by approval of eligible shareholders at such 2019 meeting.

Pursuant to the Rights Plan, effective April 20, 2016 rights (the "Rights") have been issued and attached to all of Bear Creek's outstanding common shares. A separate rights certificate will not be issued until such time as the Rights become exercisable (which is referred to as the "separation time"). The Rights will become exercisable only if a person, together with its affiliates, associates and joint actors, acquires or announces its intention to acquire beneficial ownership of Bear Creek common shares which, when aggregated with its current holdings, total 20% or more of the outstanding Bear Creek common shares (determined in the manner set out in the Rights Plan) other than as permitted under the Rights Plan. The Rights will effectively permit holders, other than an Acquirer and such related parties, to purchase common shares of the Company at a 50% discount to their market price (as defined in the Rights Plan Agreement).

The Rights Plan was not adopted by the Board in response to, or in anticipation of, any offer or take-over bid. The Company has no knowledge of any pending or threatened takeover bids for the Company, and has no reason to believe that any takeover offer for the Company's shares is imminent.

Additional details regarding the Rights Plan will be provided in the Management Information Circular that will be available for viewing on SEDAR and mailed to the shareholders of the Company prior to the Company's upcoming annual meeting of shareholders scheduled for June 2, 2016.

On behalf of the Board of Directors,

Andrew Swarthout
President and CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements:

This news release contains forward-looking statements and information (collectively, "forward-looking statements") regarding the terms and conditions and effect of the Rights Plan and the Rights Plan Agreement. Forward-looking statements relate to future events or future performance and by their very nature involve inherent risks and uncertainties, both general and specific, and risks exist that the estimates, forecasts, projections and other forward-looking statements expressed herein will not be achieved or that assumptions that underlie these statements do not reflect future experience. All forward-looking statements are based on the Company's current beliefs as well as various assumptions made by and information currently available to it, including assumptions regarding the Shareholder Rights Plan remaining in effect as planned. While the forward-looking statements express management's best estimates, objectives, predictions, expectations or beliefs at the time they are made, a number of factors could cause the actual outcomes to differ materially from those expectations expressed in forward-looking statement and undue reliance should not be placed on them. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.

SOURCE Bear Creek Mining Corp.