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MacDonald Enters into Agreement to Acquire Charlevoix Silica Property in Quebec

MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", "MacDonald" or the "Company") is pleased to announce that it has entered into an agreement, subject to certain terms and conditions, to acquire 6 claims known as the "Charlevoix Silica Property" located approximately 42 kilometres north of Baie-Saint-Paul, on the north shore of the Saint Lawrence River, in the Province of Quebec.

Quentin Yarie, MacDonald's President and CEO commented: "With this acquisition, MacDonald Mines is adding safe-jurisdiction, infrastructure-rich projects to its portfolio. The property is adjacent to Rogue Resources' Silicon Ridge Project which hosts a 43-101 measured and indicated resource of 9.7Mt @ 98.6% SiO2 , and is located within 15 kilometres of the Sitec Silica Mine which has been in operation for over fifty years. We believe that the quartzite-rich lithologies on our property could be extensions of the high-purity quartzite units found at Silicon Ridge and our team is excited about the property's potential.1"

Charlevoix Silica Property Details

The geology on the property appears to be an extension of Rogue Resources ("Rogue") Silicon Ridge Property (Figure 1) and displays similar geology to the Sitec Silica Mine ("Sitec"), located within 15 kilometres and which has been in production for more than 50 years. Sitec produces approximately 250,000 tonnes of silica a year and has an estimated future mine life of over 20 years. Silica from the Sitec Mine is shipped to plants in Bécancour, Chicoutimi and the United States. Silica produced at Sitec is used at foundries and glass factories as well as in the production of solar panels and high-tech components.

The mineral horizons on the Sitec Mine strike SW NE towards Rogue's Silicon Ridge Project and the Charlevoix Silica Claims. Moreover, the Silicon Ridge Project's high purity quartzite horizons host a measured and indicated resource of 9.7 Mt at 98.6% SiO2 and an inferred resource of 1.6 Mt at 98.56% SiO2 (NI 43-101 Technical report on the Silicon Ridge Mineral Resources Quebec - Canada, June 7, 2016). MacDonald Mines believes that the Charlevoix Silica Claims, underlain by the same quartzite sequences with multiple quartzite outcroppings may host an extension of Rogue's high-purity quartzite horizons2.

Quartzite commonly contains a high silica content with minimal impurities, typically less than 1%. Commonly referred to as high-purity quartz, the silica produced from this type of quartz is highly sought after as a component for the production of semiconductors, LCD displays, fuse quartz tubing, microelectronics, solar silicon applications and Silicon-Anode Lithium batteries.

CRU's, Silicon Metal Report, published on December 30, 2015, reports "the rise in global silicon demand is expected to be considerably higher, as consumption will continue to benefit from favourable developments in all of the major end-use sectors, most importantly the solar industry. The resumption of double-digit growth in solar-related consumption, together with continued solid gains in demand from the silicone industry, will be instrumental in fuelling a projected increase in total silicon consumption over the next five years at a rate that will be nearly double that of the world economy as a whole."

Project Acquisition Terms

The consideration for the acquisition is the issuance of 10,000,000 shares (post consolidation) of the Company and the grant of a 2% net sales returns ("NSR") royalty to the property vendor, 9019-5504 Quebec Inc. 100% of the NSR may be bought back for $1,000,000. The vendor is at arm's length to the Company. Closing is subject to TSX Venture Exchange approval and certain other customary closing conditions.

Qualified Person

Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.

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