Mangazeya Mining : Announces Filing of 2017 Year-End Financial Statements, MD&A and Financial Results for 2017

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TORONTO, ONTARIO, April 30, 2018 - Mangazeya Mining Ltd.('Mangazeya' or the 'Company') (NEX:
MGZ.H) announced the filing of its annual audited financial statements ('Financial Statements'),
management's discussion and analysis ('MD&A') for the Company's financial year ended December 31,
2017 as required by National Instrument 51-102 Continuous Disclosure Obligations.
All figures are quoted in Canadian dollars unless otherwise indicated.

Highlights for 2017 include:

• In 2017, Mangazeya produced 24.3 koz of gold (-11% year-on-year) on the back of decreased
  volumes of ore stacked (-4% year-on-year) and low grades in ore stacked (-3% year-on-year); in
  Q4 2017, gold production decreased by 11% to 5.5 koz compared to 6.1Koz in Q4 2016;
• Revenue decreased to $40.3 million for 2017 or by 11% compared to 2016. In 2017, Mangazeya
  sold 24.1 Koz of gold and 13.2 Koz of silver (2016: 27.5 koz of gold and 9.6 koz of silver). In Q4
  2017, revenue decreased by 18% to $10.7 million from $13.1 million in Q4 2016, the Company
  sold 6.5koz of gold compared to 8.2koz of gold in Q42016. In 2017, The average gold price was
  $1,657 (1% year-on-year) (US$1,268); and $1,618 in Q42017 compared to $1,624;
• In 2017, the total cash costs (TCC) per ounce of gold sold equals $988 (US$ 756) compared to
  $834 (US$ 630) in 2016. TCC increased by 18% in 2017 compared to 2016 mainly because of
  currency rate fluctuation (average RUB/CAD currency rate decreased by 11% compared to 2016)
  as well as growth in general expenses, expenses for fuels and lubricants and other expenses
  included into COGS. TCC increased by 19% in Q42017 compared to Q42016 due to the same
  reasons;
• The gross margin decreased to 33% in 2017 from 44% in 2016;
• Administrative expenses during 2017 increased by 259% to $8.6 million from $2.4 million in 2016
  due to active construction and exploration works in Nasedkino and Zolinsko-Arkiinskaya areas
  and resulting increase in management service fees;
• Adjusted EBITDA for 2017 equals $0.1 million compared to EBITDA of $13.8 million in the
  corresponding period of 2016. For Q4 2017 adjusted EBITDA decreased to negative $6.1 million
  compared to negative $1.4 million in Q4 2016. Adjusted EBITDA margin was 0.3% for 2017 and
  -57% for Q4 2017;
• The finance expenses for 2017 decreased by 31% ($1.22 million in 2017 and $1.77 million in
  2016); and increased by 141% in Q4 2017 compared to Q4 2016;
• The net loss for 2017 was $3.5 million comparing with the net income of $10.79 million in 2016.
  The Company reported a net loss of $6.98 million for Q4 2017 compared to a net income of $0.67
  million for Q4 2016;

Cash flow and capital resources:

• For 2017, cash used in operating activity before changes in working capital was $0.5 million in
  comparison with cash received in 2016 of $14.1 million. Cash used in investing activities in 2017
  was $31.9 million as compared to $22.5 million in 2016. Cash provided by financing activities in
  2017 was $34.9 million compared to cash provided by financing activities of $1.7 million in 2016;
• For Q4 2017, cash used in operating activity before changes in working capital was $6.7 million
  in comparison with cash used in Q4 2016 of $2.2 million. Cash used in investing activities in Q4
  2017 was $3.9 million as compared to $6.4 million in Q4 2016. Cash provided by financing
  activities in Q4 2017 was $9.5 million compared to cash used in financing activities of $10.8
  million in Q4 2016;
• The Company invested $33.9 million in 2017 compared to $22.5 million in 2016. In PPE - $29.9
  million ($14.5 million for 2016); in Mine properties - $1.3 million ($0.8 million for 2016); in
  Exploration and evaluation assets - $2.7 million ($5.6 million for 2016).

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:
Georgy Kandelaki
Mangazeya Mining Ltd.
[e-mail]