2012-05-07

Vancouver, BC, May 7, 2012: Cadillac Mining Corporation (TSX-V:CQX) announces that it has received approval from the TSX Venture Exchange for closing of the First Tranche of a non-brokered private placement (the Placement) as announced on April 11, 2012 in respect of 5,000,000 Units of the Company at a price of $0.20 per Unit. As of the date of this release a total of 2,215,000 Units have been placed, for gross proceeds of $443,000. Each Unit comprises one common share and one-half warrant, each whole warrant exercisable at $0.40 for 18 months from closing of the Placement, subject to the accelerator provision described below.

The 8% finder's fee due on a portion of the First Tranche of the Placement comprises $16,480 in cash and 72,800 Units, and 155,200 brokers' warrants exercisable at $0.40 for 18 months from closing of the Placement will be issued as well. If at any time after closing of the Placement, the trade-weighted price of Cadillac's shares on the TSX Venture Exchange is equal to or greater than $0.55 for fifteen consecutive trading days, the warrants must be exercised within the ensuing 30 days. All securities issued pursuant to the Placement will be subject to a four-month hold period.

The net proceeds of the Placement will be utilized primarily in the Company's planned 5000-meter diamond drilling program on its 100%-owned Carlin-type Goldstrike Project in southwestern Utah, where results released on February 21, 2012 included 1.08 g Au/t over 73.1 meters, and 1.25 g Au/t over 82.3 meters in RC holes 11-02 and 11-03 respectively.

Drilling has commenced on the Hamburg Extension approximately 30 meters east of RCH 11-02. The initial portion of the program will comprise 15 or more holes ranging in depth from 60 to 150 meters on up to seven cross-sections. This is expected to define the relationship between mineralization, structural controls, and stratigraphic constraints, and therefore developan exploration model for subsequent larger and more aggressive drilling programs.

As of the date of this release, DDH 12-04, angled northerly at 67 degrees to parallel RCH 11-02, is at 117 meters in fractured limestone, having intersected 90 meters of prospective rusty Claron formation sandstone from the drill hole collar. Core recovery has been generally good, but locally problematic in strongly fractured sections. Initial logging has confirmed the complexity of the southern graben-bounding structure. Core is being sawn and logged, prior to the submission of half to an accredited laboratory in Nevada for preparation and analysis.

Quality Control

Mr. Andre J. Audet, P.Eng., V.P. Exploration of Cadillac Mining Corporation, and Qualified Person as defined in National Instrument 43-101, is directing and supervising the drilling and sampling program.

About Cadillac Mining Corporation

Cadillac Mining Corporation is a junior exploration and development company based in Vancouver, Canada focused on large-scale precious and base metal projects in the Abitibi geological province in Canada, and the Great Basin in the western USA. The Company's long term objective is the discovery of a major deposit through carefully planned exploration strategies. Its business model provides shareholders access to a wealth of exploration experience, dedicated management and the opportunity to experience discovery through a very conservatively capitalizedcompany.The Company has approximately 31.7 million shares outstanding as of completion of the First Tranche of the Placement.

On Behalf of the Board of Directors

Victor Erickson, P.Eng.

President & CEO

Neither 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 the release.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the recently completed reverse circulation drilling program which may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that could be encountered if additional exploration and drilling is completed.

In connection with the forward-looking information contained in this news release, Cadillac has made numerous assumptions, regarding, among other things: the geological data and information has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. While Cadillac considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Cadillac's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the possibility that future drilling on the Goldstrike project may not occur on a timely basis, or at all; that additional drilling may not intersect additional gold mineralization and uncertainty as to timely availability of permits and other governmental approvals.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and Cadillac disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

Company: 604-684-7300

Victor Erickson 
President & CEO
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