Minco : Reports Interim Financial Results for the First Quarter of 2017 and Provide and Update on Operations

London AIM: MIO

This news release should be read in conjunction with the Company's unaudited financial statements and the associated management's discussion and analysis (MD&A) for the first quarter ended 31 March 2017 which are available on the Company's website at www.mincoplc.com, under the "Financials" section, or under the Company's profile on SEDAR (www.sedar.com).

The Company recorded no revenue in the three-month periods ended 31 March 2017 or 31 March 2016.

For the three-month period ended 31 March 2017, the Company recorded a loss of $219,000 compared to a loss of $426,000 for the same period ended March 31, 2016. The loss for the three- month period ended 31 March 2017 included a foreign exchange loss of $32,000 compared to a foreign exchange loss of $159,000 for the same period ended 31 March 2016.

At March 31, 2017, Minco held $2,006,000 (2016- $2,351,000) in cash and cash equivalents and had a working capital surplus of $1,585,000, compared to a working capital surplus of $1,935,000 at December 31, 2016.

During the period ended 31 March 2017, Minco invested $150,000 (2016-$133,000) on exploration of its mineral properties, of which the largest amounts were expended on the Buchans Minerals zinc- lead project in central Newfoundland.

During 2016, Minco focussed its exploration efforts near the former Lucky Strike mine to explore for high-grade resources that may positively impact open pit and underground development of the Company's Lundberg deposit

In the first quarter of 2017, Minco continued its program of relogging of historic archived drill cores to assess potential for discovery of additional high-grade resources near the Lundberg deposit. Several target areas have been identified and will be further investigated by relogging and possibly diamond drilling in 2017.

During 2016, Minco, through its wholly owned subsidiary Buchans Minerals Corporation ("Buchans Minerals"), in a collaboration agreement with Canadian Zinc Corporation (TSX:CZN) ("Canadian Zinc") successfully completed a research programme to evaluate the metallurgical characteristics of their respective volcanogenic massive sulphide ("VMS") Zn-Pb-Cu-Ag-Au base metal deposits in central Newfoundland.

The metallurgical research study demonstrated that the ore from Minco's Lundberg, Daniels Pond and Bobbys Pond deposits can be successfully processed in a central mill using a sequential flotation flowsheet, and that selective zinc, lead and copper concentrates at marketable grades can be produced from these deposits.

The economic assessment portion of the program applied a process simulation and cost assessment model (conceptual economic modelling) to evaluate and identify the key factors impacting the operating economics of a centralized processing concept for the production of the base metal concentrates. Multiple conceptual economic scenarios at three potential sites were developed to simulate the proposed centralized milling concept. The variables assessed included the different potential mill sites, with or without Dense Media Separation, new or used process equipment, mining rate, and processing feedstock composition for each deposit. The outcome of this economic assessment was successful in identifying several optimum scenarios, all of which depend on the majority of the feed coming from the larger lower grade Lundberg deposit with supplemental feed coming from the smaller higher grade satellite deposits.

In October of 2016, Minco, through its wholly-owned subsidiary, Buchans Minerals Corporation, competitively staked 2,075 hectares in central Newfoundland, known as the Lake Douglas project, located 40 km southwest of Minco's Buchans project and 20 km southwest of Minco's Daniels Pond and Bobbys Pond deposits.

Minco's property covers a 3.5 km segment of the prospective trend that is located northeast, along strike of Marathon Gold Corporation's (TSX:MOZ) Valentine Lake project, where Marathon has announced a Measured and Indicated mineral resource estimate of 21.8 million tonnes at an average grade of 1.84 grams of gold per tonne containing 1,292,800 ounces of gold and an Inferred mineral resource of 8.8 million tonnes at an average grade of 1.98 grams of gold per tonne containing 562,600 ounces of gold (Marathon Gold Corporation, February 21, 2017) as a potential open pit resource development.

The Marathon Deposit sits in a near vertical mineralized corridor that contains consistent stacking of en-echelon vein swarms for more than 500- meters depth. The Marathon Deposit consists of a 40 to 100-meter wide, near vertical corridor of alteration and mineralization that is open along strike and to depth, and hosts flat laying, en-echelon quartz-tourmaline-pyrite-gold bearing vein arrays. The thickness and grades of these vein arrays varies throughout the mineralized corridor. Current drilling has defined a mineralized corridor that has a 150-meter long strike length at 100 meters below surface, and this strike length increases to more than 400 meters at 200 meters below surface.

In April 2017, Marathon announced the results of two deep holes which demonstrate the potential for deep gold mineralization. Marathon continues to aggressively explore its Valentine Lake pr operty to continue expanding the resources at the Marathon Deposit and has initiated a 30,000 metre drilling programme for 2017.

Since acquiring the Lake Douglas property Minco conducted limited initial reconnaissance work on the claims prior to the onset of winter weather. Minco intends to maintain the property and consider additional work as may be warranted in response to increased activity and attention to this new exploration area.

Minco's 2016-2017 drill programme at Moate consisted of 13 holes completed between September 2016 and January 2017 for a total of 1299m. Drilling was concentrated in two areas centred on the townlands of Knockanea-Fardrum (PL 1229) and Tully (PL 1228). 942m were drilled on PL 1229 and 357m on PL 1228. Minco's drilling programme initially focused within PL 1229 on the southwestern three kilometres of the target area, adjacent the east northeast striking Moyvoughly Fault where five holes (1229-35 to 1229-39) were drilled for a total of 700 metres. Reef-derived breccias comparable to those at Tynagh were intersected confirming the geological model, and in Holes 1229-38, 39 and 40 the breccias contain widespread trace amounts of disseminated sphalerite.

Drilling in the Tully area has defined a major west northwest striking cross fault off-setting the Moyvoughly Fault and the proposed Tynagh-Ballinalack basement structure. There is evidence that the cross fault is also a regional structure, localised by basement structure. The strike of the cross- fault swings from west northwest to east-west over a strike length of 1.5 kilometres where it offsets the Tynagh-Ballinalack trend. The structural pattern is comparable to the setting of the Silvermines where the zinc-lead-barite deposits are localised north of an east-west striking flexure of a regional east northeast fault

The 2016-2017 drill programme at Moate has confirmed the geological model and enhanced exploration potential. The geological structure has proven more complicated than expected as the Moyvoughly Fault was not intersected in the drilling programme. The Moyvoughly Fault is believed to have been straddled by the drilling and to have a reversed throw of approximately 150m. To the northeast, on PL 1228, previous drilling indicates the Moyvoughly Fault is present with a down-throw of approximately 180m to the north, while on PL 3581, further north, the fault was intersected by previous drilling with a throw of 300m.

A second phase of drilling, comprised of 13 holes totalling 2600m, has been recommended to explore these targets in 2017.

Minco, through its wholly owned subsidiary Westland Exploration Ltd, holds a 20% interest in Prospecting Licence 1440R, which is being explored under a Joint Venture with Boliden Tara Mines Limited (80%), and which hosts part of the Tatestown-Scallanstown zinc lead mineral deposit.

The Tatestown-Scallanstown deposit, with a resource of 2.4 million tonnes averaging 7.31% zinc plus lead, is located 1.5 kilometres to the northwest of Boliden's large Tara zinc lead mine at Navan and straddles the Blackwater River, which forms the licence boundary between prospecting Licences 1440R and PL 1496 (100% Tara).

During 2016, Tara Boliden, Operator of the JV, completed an infill drilling programme of four drill holes between and peripheral to existing resource blocks on PL 1440R. Potentially economic grades and widths were intersected in all four of these holes. During the first quarter of 2017, a further four holes were completed, with all four holes intersecting economic grade mineralisation over widths between two and nine metres. The drilling confirms the continuity of the deposit and the very widespread nature of mineralisation in this area.

The Tatestown-Scallanstown deposit is centered on the east-west Tatestown Fault and lies within a well-defined, two-kilometre wide, north-south trending, zone of mineralisation, which is a peripheral extension of the large Navan mineralised system. Traced by drilling, this extends north-south for four kilometres, terminated to the south by the Randalstown Fault, which separates it from the main body of the Navan mineralisation, and to the north by the Boolies Fault, a major reverse fault with a throw of around 400m identified by recent seismic surveying.

On PL 1440R, the northern two kilometres of the north-south trending zone remains essentially unexplored, with just four, widely spaced intercepts comparable to those peripheral to the known deposit. A second east-west fault, parallel to the Tatestown Fault, is indicated by drilling cutting this area suggesting potential for higher grades and widths similar to those adjacent to the Tatestown Fault.

Minco currently holds a 2% Net Smelter Return ("NSR") royalty on the Curraghinalt gold property in Northern Ireland, which is being explored and developed by Dalradian Resources Inc. (TSX:"DNA") ("Dalradian").

On 21 March 2017, Minco announced that it is in discussions with Dalradian regarding the possible disposal of its 2% NSR royalty on the Curraghinalt gold deposit (the "Royalty Disposal") in return for the issue of a total of 15,490,666 new Dalradian Shares valued at C$20,000,000, in total, based on the volume weighted average price of Dalradian shares on the Toronto Stock Exchange for the five trading-day period ending on the day prior to 21 March 2017.

It is proposed that the Royalty Disposal would be structured as an offer by Dalradian for the acquisition of the entire issued share capital of Minco (the "Possible Offer"). It is intended that the Possible Offer would be implemented by means of a scheme of arrangement, under Section 450 of the Companies Act 2014 of Ireland (the "Scheme"). As part of the Scheme, it is proposed that Minco would undertake a demerger of its wholly owned subsidiary Buchans Resources Limited ("Buchans"), by way of a transfer in specie of the shares of Buchans to Minco Shareholders (the "Demerger").