Cleveland Mining Co Ltd : Cleveland Successfully Completes $3m Equity Placement

ASX Release

26th August 2013

Cleveland Successfully Completes $3m Equity Placement

Highlights

• Cleveland completes $3 million equity placement at $0.12 per share
• Placement well supported by existing shareholders and new institutional and sophisticated investors
• Proceeds will be used to accelerate development of Cleveland's Premier Gold Mine in Brazil
• As a result of the funding, Cleveland intends not to draw down any further from the Investment
Facility from Baycrest Capital
Cleveland Mining Company Ltd (ASX: CDG) is pleased to announce that it has received firm commitments from institutional and sophisticated investors to raise $3 million through a placement of
25 million ordinary shares ("Placement") priced at $0.12 per share. Funds raised include $100,000
from a Director of the Company, Mr Russell Scrimshaw.
Cleveland will use the proceeds of the Placement for both working capital at the head entity and capital works that will further the development of the Premier Gold Mine in Brazil.
These capital works will include:
1. Procurement and installation of a new primary crushing circuit to replace the contract crusher that has been demobilised from site
2. Commencement of pre-stripping of waste over the higher-grade "Metago" pit at Premier
3. Upgrading the process water supply to match the newly-optimised ball mill
In addition, approximately $400,000 of the funds raised through the Placement will be used to repay a loan facility that was established and drawn in late 2012.
As a result of the Placement, Cleveland intends not to draw down any further from the Investment
Facility provided by Baycrest Capital, doing so without cost or penalty.
Managing Director of Cleveland Mining, Mr David Mendelawitz, said, "This capital raising allows Cleveland to continue to ramp up production at the Premier Gold Mine and increase the efficiency and profitability of the operation over time."
"We are pleased with the significant support for the Placement from existing shareholders, new investors and broking firms. We believe these relationships will provide ongoing support for

Corporate Information

ASX Code: CDG

Total shares: 211.5 million

Unlisted options: 28.6 million

Board and Management

Non-Exec. Chairman - Donald Bailey Managing Director - David Mendelawitz Non-Exec. Director - Russell Scrimshaw Non-Exec. Director - Jim Williams

Contact

Investor & Media Enquiries T: [phone] [e-mail]

Head Office

Suite 3, Level 1, Rokeby Ctr,

254 Rokeby Road

Subiaco WA 6008

T: [phone]

F: [phone] [e-mail]

Cleveland as it executes its growth strategy of developing low cost mines in Brazil, starting with the
Premier operation," said Mr Mendelawitz.

- Ends -

Further Information Mr David Mendelawitz Managing Director

[phone]

[e-mail]

About Cleveland Mining Company Ltd.

Cleveland Mining Company Ltd is an Australian-managed, ASX-listed minerals company squarely focused on developing projects into mines.

The Company's management team have a track-record for building billion-dollar projects from the ground up, providing Cleveland with the expertise to secure and build robust projects.

Cleveland has gold and iron ore assets in Brazil in areas with excellent mining credentials:

- Mining and production are underway at Cleveland's Premier Gold Mine JV in Goiás State in central Brazil.

The Company is working to add throughput from the O Capitão project, which is less than 10km from the

Premier Mine.

- Cleveland has formed a strategic alliance with ASX-listed company BC Iron Ltd. (ASX: BCI) to co-acquire and co-develop new iron projects in Brazil as joint venture partners. The companies recently signed MOUs for three Brazilian iron projects.

Cleveland has a different approach to project selection with project economics driving target selection. Projects are chosen according to their likelihood of generating returns at the bottom of the economic cycle.