Red Eagle Mining Corporation announces a comprehensive restructuring. As of June 30, 2018, Red Eagle Mining had a negative working capital of approximately $100 million, had been accruing interest on its $60 million credit facility with Orion Mine Finance (“Orion”) and Liberty Metals & Mining Holdings, LLC (“LMM”) at the default rate of LIBOR + 14% and been operating under a forbearance agreement since April 2018. The situation was unsustainable, so a comprehensive restructuring is being implemented including a private placement, retirement of the credit facility, writing off all accrued interest, writing off supplier account payables, appointing a new independent Chairman and a share consolidation. Write offs of the credit facility, accrued interest and supplier account payables total $44 million and capitalization of the credit facility and supplier account payables total $18 million. The company has agreed to retire its $60 million credit facility with Orion and LMM. Red Eagle Mining will settle the credit facility, including all accrued interest, for $28 million cash and approximately $15 million in equity (99 million Shares) on the same terms as the Private Placement (Debt Retirement Transaction).

Fernando Palazuelo, Founder and Chief Executive Officer of Annibale, will replace Jeffrey Mason on company's Board of Directors upon closing of the Private Placement. Mr. Palazuelo will also assume the role of independent Chairman.