American CuMo Mining Receives Positive Results From Independent Updated PEA

Vancouver, British Columbia--(Newsfile Corp. - April 10, 2018) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") is pleased to report on positive results from an independent updated Preliminary Economic Analysis (PEA) of its 100% owned CuMo Project, a large Copper-Molybdenum-Silver-Tungsten-Rhenium deposit located in Boise County, Idaho. The independent, third-party analysis was conducted by Sacré-Davey Engineering of North Vancouver.

"CuMo is the largest Molybdenum, Silver, Rhenium and Tungsten deposit in the United States and one of the world's leading mining projects in terms of size, cost, and economics," said Shaun Dykes, President and Chief Executive Officer of CuMoCo. "The updated Preliminary Economic Assessment affirms projections and compels completion of the remaining environmental permitting aspects, pre-feasibility analysis and feasibility initiatives to advance our CuMo Project further. The project design prioritises features which will provide the highest levels of environmental protection, workforce safety, and operating efficiency while minimizing community impacts."

The PEA revision provides critical updates to the economic section of the November 2015 summary report by adding the Mineral Sorting benefits to the project. The PEA is a prelude to a Pre-Feasibility Study and allows the Company to independently verify the benefits of Mineral Sorting to the CuMo Project in a relatively short period. The 150,0000 tons per day case was selected for updating.

The revisions are illustrated through direct comparison between the two economic report sections. To show the benefits of Mineral Sorting, the price of molybdenum and copper used in the comparison are unchanged from the original report.

Highlights of the comparison are:

-               An increase in pre-tax net cash flow from $30.0 billion to $32.8 billion
-               An increase in pre-tax net present value at a 5% discount (NPV5) from $9.0 billion to $10.7 billion
-               An increase in after-tax net cash flow from $20.79 billion to $22.98 billion
-               An increase in production of molybdenum copper and silver
-               An overall decrease in cost to produce a pound of molybdenum oxide (MoO3) (net of byproducts) from $3.91 to $1.58 per pound or an overall decrease in cost to produce a pound of molybdenum metal (Mo) (net of products) from $5.87 to $2.37 per pound.

In the updated results, the Company and Sacré-Davey Engineering produced the current economics using the following metal prices:

The price of molybdenum(Mo) used is $12.50 to reflect long-term average prices. According to Roskill and Platts, molybdenum(Mo) is currently trading in the $12.80 to $12.90 per pound range.

The following table shows the current highlights from the updated results:

Cautionary statement NI 43-101: The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Readers are cautioned that the PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

For readers to fully understand the information in this news release, they are encouraged to read the complete PEA technical report, which the Company expects to file within 45 days from the date of this news release on SEDAR (www.sedar.com), in accordance with NI 43-101. The report will also be available at that time on the Company's website, including all qualifications, assumptions, and exclusions that relate to the PEA. The technical report is intended to be read in its entirety and sections should not be read or relied upon out of context.

The Company and Sacré-Davey Engineering personnel have identified several areas and opportunities that may provide significant costs savings and improved economics for the project, including the following:

Mining

-               Optimization of the production schedule, including examining an increase in cutoff grade which would have the effect of reducing the current 82-year mine life but increasing the amount of metal being produced and thus the profitability and reducing the cost to produce.
-               Optimization of the pit designs and definition of a mineable reserve.
-               Optimization of waste and stockpile haulage methodology by switching to conveyor-based systems to reduce the amount of trucking involved and thus costs.
-               Detailed equipment costing to determine potential discounts to list price for all major components.

Milling

-               Additional metallurgical work to determine optimum grind size (the current assessment is based on the finest grind tested to date), analyze recoveries of the various metals, and analyze the effects of the higher grade coming from the mineral sorters on metal recoveries.
-               Optimize reagents to reduce costs and improve metallurgy.
-               Work on the potential for a tungsten recovery circuit is required (currently excluded).

Tailings

-               Detailed analysis of tailings storage facilities and design to reduce overall costs.

Other

-               Examine alternative concentrate transportation from the mill to the railhead.
-               Optimization of the roaster capital and operating costs.

"These optimizations and further studies will be examined in more detail as part of the Pre-Feasibility Study the Company will commence later this year, with the goal of continuing to reduce overall capital and operating costs further and improve the already exceptional economics of our CuMo Project," stated Mr. Dykes.

The Company also announces that it will hold its Annual General Meeting (AGM) on Wednesday, May 30, 2018, at 10 am PST at Suite 2300-550 Burrard Street, Bentall 5, Vancouver, British Columbia.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company, is the designated qualified person for the CuMo Project and the Calida Gold project and has prepared the technical information contained in this news release.

About CuMoCo

CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo is also advancing its recently-acquired Calida Gold project. Please visit  cumoco.com, idahocumo.com and cumoproject.com.

About Sacre-Davis Engineering

Founded in 1986, Sacré-Davey Engineering provides multi-disciplined engineering and project management services to clients in the mining, oil and gas, heavy industrial and clean-tech sectors. Sacré-Davey is certified by the Professional Engineers and Geoscientists of BC as an Organizational Quality Management Certified organization.

For further information, please contact:

American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.

Cautionary statement regarding forward-looking information

Forward-looking information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company's ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company's proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company's publicly filed documents, including the Company's Management's Discussion and Analysis for the period ended December 31, 2017. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.