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MGX Minerals Announces Closing of Rights Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BRITISH COLUMBIA / September 22, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) announces the closing of its previously announced rights offering. Under the rights offering, on September 21, 2016, 10,062,728 units of the Company (“Units”) were distributed at a price of $0.18 per Unit for gross proceeds to the Company $1,811,291. Each Unit consists of one common share and one-half of one purchase warrant, with each whole warrant exercisable into one common share at a price of $0.20 per share for a period of 24 months from the issuance date of the Units.

Under the rights offering, 6,759,516 Units were distributed under the basic stand-by privilege and 3,303,212 Units were distributed under the additional subscription privilege. 1,345,537 Units were distributed to persons who were insiders of the Company before the distribution pursuant to their basic subscription privilege.

In accordance with the terms of the rights offering and the soliciting dealer agreement with Mackie Research Capital Corporation (“MRCC”), MRCC received a soliciting dealer’s fee and the balance of its corporate finance fee plus expenses totaling $179,722.91. MRCC was also issued an option entitling it to acquire 1,422,939 Units at an exercise price of $0.18 per Unit for a period of 24 months following the closing date.

As of the closing date, the Company had 51,815,745 common shares issued and outstanding and 17,833,434 common shares reserved for issuance, including 13,146,965 common share purchase warrants.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.