Toronto, Ontario (FSCwire) - (TSXV:MUM) ("Mustang" or the "Company") today provided a corporate update on its activities.

The Company has completed several transactions in order to improve its' working capital position. The cash position of the company as at June 30, 2016 was $647,000 although the working capital deficit remained significant at ($622,000) after accounting for liabilities associated with the CRA audit. The sale of the mill equipment announced May 16, 2016 (which closed June 30) involved three of the four grinding mills owned by the Company. The Company has also received proceeds from the sale of certain non-core mining claims in Ontario and Manitoba. The Company continues to look for opportunities to improve its' working capital position through non-core asset divestments.

The Company has noted the steady improvement in nickel prices over the past several months. While Mustangs' Makwa-Mayville property requires higher metal prices than currently exist to meet benchmarks for economic development the current trend in metal prices is positive.

Exploration The Company's most recent geophysical program at the Mayville Property consisted of surface pulse EM and outlinedtwotargets. The interpreted "Keel" area of the Mayville Deposit extending at depth was further defined and is interpreted as the depth extension of the higher grade core of the Mayville Deposit. A second anomaly was confirmed at the Mayville South area of the property by the EM survey. Both targets are to be subject of further exploration when a new exploration program resumes at Mayville.Further exploration at depth underneath or proximal to the Makwa Nickel Property is also considered warranted, in particular for the source of high grade nickel-copper-pgm massive sulphides found intermittently on the property in association with the Makwa Nickel Deposit.

About Mustang Minerals

Mustang owns the mineral rights to the Makwa Nickel Property and the Mayville Property both located in the Bird River Complex in southeastern Manitoba. The Company completed a PEA on the Makwa_Mayville Project in 2014. The Company also controls the East Bull Lake Property west of Sudbury prospective for PGM and the Bannockburn Nickel Property near Matachewan.

Carey Galeschuk P.Geo is the Qualified Person for purposes of this press release.

To find out more about Mustang Minerals Corp. (TSX-V: MUM)

visit our website at www.mustangminerals.com or:

Telephone: 416-955-4773 email:info@mustangminerals.com

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements").Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different.Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price ofnickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Neither the TSX Venture Exchange nor it Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/MustangOct172016.pdf

Source: Mustang Minerals Corp. (TSX Venture:MUM, WKN:910385, ISIN:CA6281981036)

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