MANGAZEYA MINING : ANNOUNCES ITS PRODUCTION RESULTS for 9 months 2016

TORONTO, ONTARIO, October 12, 2016 - Mangazeya Mining Ltd. ('Mangazeya' or the 'Company') (NEX: MGZ.H)is pleased to announce its production results for the third quarter and the nine months ended September 30, 2016.

Highlights:

• Gold sales during 9m 2016 was 19.4 koz, an increase of 5% compared to the previous year, and gold production was 21.2 koz, a 0.7% increase y-o-y.
  Gold sales during 3Q 2016 was 12.8 koz, a 15.7% decrease compared to the previous year, and gold production for 3Q 2016 was 13.1 koz, a 18.1% decrease y-o-y.
• During 9m 2016, total ore mined was 776 kt (a 13.3% decrease y-o-y) with the average grade 1.06 g/t (a 36.2% decrease y-o-y). In Q3 2016, total ore mined was 323 kt (a 22.6% decrease y-o-y) with the average grade 1.14 g/t (a 43.5% decrease y-o-y).
• The average stripping ratio for 9m 2016 increased by 44.4% compared to the previous year.
• For 9m 2016, total ore stacked was 954 kt (a 1.5% decrease y-o-y) with the average grade 1.21 g/t (a 15.5% decrease y-o-y). In Q3 2016, total ore stacked was 417 kt (-16.5% y-o-y) with the average grade 1.07 (-30.2% y-o-y).

Roman Kashuba, CEO of Mangazeya, commented: 'Despite the difficulties due to unfavorable weather conditions and the significant quantity of primary ore resulted in increased stripping ratio and decreased grading, we do our best to cope with them and to end this year with solid results. We have also started preparation of the site for the next operating year.'

About Mangazeya Mining Ltd.

Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Roman Kashuba
Chief Executive Officer
Mangazeya Mining Ltd.
r.kashuba@mangazeya.ru

Caution Concerning Forward-Looking Information

This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, 'forward-looking statements') relating, but not limited to, the Company's expectations, intentions and beliefs (including, without limitation, statements regarding, the Bridge Loan (including the timing of advances thereunder and the terms thereof), the Company's financial position, financial alternatives and the Company's ability to continue operations and the Loan Facility (including the occurrence of an event of default thereunder and its potential effect on the Company)). Words such as 'may', 'will', 'should', 'anticipate', 'plan', 'expect', 'believe', 'estimate' and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: the Company's ability to obtain additional financing on acceptable terms or at all; the Company's ability to demonstrate compliance with NEX listing requirements; changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of the Company; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from the Company's activities in Russia; fluctuations in foreign exchange rates; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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.