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Mr. Ramon Perez reports

CANDELARIA ANNOUNCES RESULTS OF 33-HOLE, 4,700-METRE DIAMOND DRILL PROGRAM, PINOS GOLD PROJECT, ZACATECAS, MEXICO; GRANT OF OPTIONS

Candelaria Mining Corp. has released the results of its recently completed diamond drilling program at its Pinos gold project in southeastern Zacatecas state, Mexico.

Drill intersections include 1.95 metres grading 6.27 grams per tonne gold equivalent, including 0.8 metre grading 14.75 grams per tonne AuEq, 6.4 metres at 1.9 AuEq, including 0.75 metre at 5.25 grams per tonne AuEq, 2.58 metres grading 6.77 grams per tonne AuEq, including 1.5 metres at 9.02 grams per tonne AuEq, 6.9 metres grading 2.64 grams per tonne AuEq, including 0.5 metre at 5.43 grams per tonne AuEq, and 4.25 metres grading 4.42 grams per tonne AuEq, including 2.45 metres at 6.67 grams per tonne AuEq.

The recently completed drilling campaign began in May, 2016, and was carried out on one of the principal vein structures in the district, the Cinco Estrellas vein, over a strike length of 2.2 kilometres. Drilling tested downdip extensions of known vein mineralization, below existing workings, as well as the possibility of previously unknown veins parallel to the principal vein.

Gold-equivalent values are calculated on the basis of prices of $1,266 (U.S.) per troy ounce gold and $17.50 (U.S.) per troy ounce silver.

Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) AuEq (g/t)
CA16PI001 37.65 38.6 1.95 5.88 28 6.27
Including 37.03 37.83 0.8 14.2 40 14.75
CA16PI005 47.2 47.85 0.65 1.17 15 1.38
CA16PI008 102.65 104.3 1.65 1 12 1.17
CA16PI011 107.79 108.38 0.59 1.16 22 1.46
CA16PI012 128.2 129.1 0.9 4.84 6 4.92
  172.81 173.16 0.35 2.67 37 3.18
CA16PI013 121.4 122.2 0.8 1.27 3 1.31
CA16PI014 78.54 79.2 0.66 0.94 1 0.95
  96.7 97.9 1.2 0.75 2 0.78
  148.6 150 1.4 0.6 121 2.27
CA16PI015 71.1 72.2 1.1 1.33 20 1.61
CA16PI016 96.55 102.95 6.4 1.65 18 1.9
Including 98.8 100.15 1.35 3.73 24 4.06
And 99.4 100.15 0.75 5.02 17 5.25
CA16PI017 123.32 124.02 0.7 0.71 94 2.01
CA16PI018 92.31 94.11 1.8 2.87 71 3.85
Including 93.18 93.5 0.32 11.05 275 14.85
CA16PI021 121 123.58 2.58 6.31 33 6.77
Including 121 122.5 1.5 8.37 47 9.02
CA16PI022 93.81 96.19 2.38 2.6 12 2.77
Including 95.19 96.19 1 5.14 20 5.42
CA16PI023 88.17 88.45 0.28 0.67 227 3.81
  88.8 89.15 0.35 0.56 168 2.88
  107.85 109.8 1.95 2.1 14 2.29
CA16PI025 106.5 113.4 6.9 2.52 9 2.64
Including 108.2 112.85 4.65 3.1 9 3.22
And 110.4 112.85 2.45 3.32 8 3.43
And 106.5 107 0.5 5.2 17 5.43
And 110.4 110.8 0.4 4.13 10 4.27
CA16PI026 36.68 37.04 0.36 3.13 3 3.17
CA16PI027 42.24 42.6 0.36 1.01 5 1.08
CA16PI029 91.99 93.5 1.51 1.02 9 1.14
  106.56 111.56 5 1.79 16 2.01
Including 108.65 110.47 1.82 2.17 14 2.36
And 108.65 109.1 0.45 3.14 26 3.5
And 110.17 110.47 0.3 3.88 22 4.18
CA16PI031 36.6 40.85 4.25 4.32 7 4.42
Including 38.4 40.85 2.45 6.53 10 6.67
And 40.25 40.85 0.6 8.48 10 8.62

The Pinos property consists of 29 concessions covering 3,516.14 hectares situated in eastern Zacatecas state, Mexico. Numerous veins hosting gold-silver low-sulphidation epithermal mineralization occur within strongly folded and locally overturned Cretaceous sedimentary rocks. Vein thicknesses average between 1.2 metres and 1.5 metres. Veins exceed 10 metres in thickness in some locations.

The Pinos district produced more than five million ounces of gold and 25 million ounces of silver during the period 1860 until the Mexican Revolution (1910 to 1920).

"Our geological team at the Pinos project has demonstrated continuity of gold mineralization below the known workings on the Cinco Estrellas vein structure," stated Ramon Perez, chief executive officer of Candelaria Mining. "The company plans to continue exploring in areas of high-grade mineralization on the Cinco Estrellas vein and other veins in the district."

Company staff logged and prepared the drill samples for shipment at a warehouse facility at the project site. Samples were bagged and sent, along with regularly inserted blanks and standards, to the ALS-Chemex preparation facility in Zacatecas, Mexico, for preparation. Prepared sample pulps were then sent to ALS-Chemex's analytical facility in Vancouver, B.C., Canada.

Stephen R. Maynard, a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical data in this release, including the quality assurance/quality control procedures and results.

Grant of options

The company also announces the grant of 300,000 stock options to its recently appointed chief financial officer. The options are exercisable at a price of 30 cents per share.

Candelaria Mining is an exploration and development mining company focused on high-grade gold and silver projects in Mexico.