Mangazeya Mining : Announces Filing of Q1 2020 Financial Statements, MD&A Quarterly

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TORONTO, ONTARIO, June 16, 2020 - Mangazeya Mining Ltd. ('Mangazeya' or the 'Company') (NEX: MGZ.H) announced the filing of its unaudited interim condensed financial statements ('Financial Statements'), management's discussion and analysis ('MD&A') - quarterly highlights ('QH') for the first quarter ended March 31, 2020. All figures are quoted in Canadian dollars unless otherwise indicated.

Highlights for Q1 2020 include

1Q 2020	1Q 2019	Change	%
Operational highlights
Gold production, ounces	13,386	12,259	11,127	150%
Refining gold, ounces	2,594	1,717	877	51%
Gold sales, ounces	3,243	1,814	1,429	79%
Ore mined, tones	279,405	190,033	89,372	47%
Stripping ratio, m3/t	1.50	2.81	(1.31)	(47%)
Ore stacked, tones	26,663	-	26,663	100%
Ore grade in ore stacked, g/t	1.72	-	1.72	100%
Financial highlights
Revenue	7,413	3,113	4,300	138%
Adjusted EBITDA	3,006	(2,909)	5,915	(203%)
Total cash cost per ounce Savkino (TCC), CAD	1,110	987	123	12%
Total cash cost per ounce Kochkovskoye (TCC), CAD	738	2,546	(1,808)	(71%)
Average gold price, CAD	2,286	1,716	570	33%
Cash balance	7,855	3,586	4,269	119%
Cash flow (used in)/ received from operating activities before changes in working capital	676	(2,883)	3,559	(123%)
Cash flow (used in)/ provided by financing activities	21,715	25,683	(3,968)	15%)
Cash flow (used in)/ provided by investing activities	(20,083)	(13,618)	(6,465)	47%

• Gold production in Q1 2020 increased from 2.26k ounces to 3.39k ounces YoY due to active mining at Kochkovskoye deposit and processing of ore produced in 2019 at Savkinskoye deposit.
  Savkinskoe deposit
  In Q1 2020, total gold produced increased by 62.8% YoY due to processing, in 2020, of ore produced at the end of 2019.
  Kochkovskoe deposit
  Gold produced increased from 1.53k ounces in Q1 2019 to 2.20k ounces in Q1 2020 as in Q1 2020, 245k tons of ore were sprayed over as compared to 106k tons YoY, which, in its turn has been caused by the difference in ore stacked: 587k tons in 2019 as compared to 190k tons in 2018.
• For Q1 2020, revenue increased by 138% compared to Q1 2019, the Сompany sold 3,243 ounces of gold (Q1 2019: 1,814 ounces of gold). The Revenue increased due to the increased production volume at Kochkovskoye.
• The average gold price increased from $1,716 in Q1 2019 to $2,286 or by 33% (US$1,291 per ounce in Q1 2019 and US$1,702 in Q1 2020). Silver is a by-product and the Company sold silver occasionally.
• Savkinskoe deposit
  TCC for Q1 2020 increased to $1,110 in comparison with Q1 2019 ($987 per ounce) by 12% as a result of a increase in salaries rate and other cost elements.
  Kochkovskoe deposit
  TCC for Q1 2020 decreased to $738 from $2,546 in comparable period of 2019 due to increase in production and a decrease of proportion of permanent production costs in cost of sales.
• Gross profit increased from $778 in Q1 2019 to $3,825 in Q1 2020 due to increase in revenue and decrease in TTC at Kochkovskoye. The gross profit margin increased from 25% in 1Q 2019 to 52% in Q1 2020.
• Administrative expenses during Q1 2019 decreased by 18% compared to Q1 2020. High administrative expenses are explained by the active construction and exploration works in Nasedkino area.
• Other operating expenses increased by 209 kCAD or 83% in Q1 2020 compared to Q1 2019.
• As a result, the Company had the positive adjusted EBITDA in Q1 2020 ($3,006k) comparing with the negative adjusted EBITDA in Q1 2019 ($2,909k).
• The finance expenses in Q1 2020 increased by 2,693% ($42.4 million in Q1 2020 and $1.5 million in Q1 2019) mainly because of the loss on repayment the gold in loan and commissions on early repayment of obligations to VTB Bank (PJSC) and new financial instruments agreement with PJSC Bank 'Finance Corporation Otkrytie'.
• The net loss for Q1 2020 was $59 million comparing to the net loss of $0.7 million for Q1 2019.

Cash flow and capital resources:

• For Q1 2020 cash received from operating activities before changes in working capital was $0.7 million in comparison with cash used in Q1 2019 of $2.9 million. Cash used in investing activities in Q1 2020 was $20.1 million as compared to $13.6 million in Q1 2019. Cash provided by financing activities in Q1 2020 was $21.7 million compared to $25.7 million in Q1 2019;
• The Company invested $20.1 million in Q1 2020 compared to $13.6 million in Q1 2019. In PPE - $17.9 million ($13.6 million in Q1 2019); in Exploration and evaluation assets - $2.1 million ($0.01 million in Q1 2019), in Intangible assets - $0.32 million ($0 in Q1 2019).

The Financial Statement and MD&A are available on Mangazeya's website at http://mangazeyamining.ru/ and have been filed on SEDAR at www.sedar.com.

About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Anton Grigoryev
Corporate Secretary
Mangazeya Mining Ltd.
[e-mail]