Red Eagle Mining Announces Increase to Previously Announced Bought Deal Financing to $15,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 1, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Red Eagle Mining Corp. (TSX:R)(BVL:R)(OTCQX:RDEMF) is pleased to announce today that, due to strong demand, Red Eagle Mining has increased the size of its previously announced public offering to 20,000,000 common shares (the "Common Shares"), at a price of $0.75 per Common Share for gross proceeds of approximately $15,000,000 (the "Offering"). The Offering is being led by BMO Capital Markets. Red Eagle Mining has granted the underwriters in the Offering an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about February 21, 2017 and is subject to Red Eagle Mining receiving all necessary regulatory approvals.

The net proceeds of the offering will be used to advance exploration of the Santa Rosa Gold Project and for working capital purposes.

The Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada, except Quebec and may also be offered by way of private placement in the United States.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Red Eagle Mining

Red Eagle Mining is a gold producer with an experienced mine development team. Management is focused on building shareholder value through discovering and developing gold projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the Vetas Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although Red Eagle Mining believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Contact

Red Eagle Mining Corp.
Patrick Balit
Vice President Corporate Development
+1 778 372 2558 or +1 604 360 5722 mobile
balit@redeaglemining.com
www.redeaglemining.com