Cline Mining announces entering into recapitalization agreement

TORONTO, April 26, 2013 /CNW/ - Cline Mining Corporation ("Cline" or the "Company") (TSX:CMK) announced today that it has entered into the definitive recapitalization agreement (the "Recapitalization Agreement") with Marret Asset Management Inc., as agent for the bondholders and standby purchasers party thereto. The transactions contemplated by the Recapitalization Agreement were disclosed by the Company on December 27, 2012. Pursuant to the Recapitalization Agreement, the Company has filed a preliminary short form prospectus dated April 25, 2013 (the "Preliminary Prospectus") with respect to the rights offering and issuance of warrants to its shareholders, as described in greater detail in the Preliminary Prospectus. The Preliminary Prospectus is subject to review by the securities regulators in each province as well as the Toronto Stock Exchange (the "TSX"). Both the Recapitalization Agreement and the Preliminary Prospectus are available on the Company's reference page at the System for Electronic Document Access and Retrieval (www.sedar.com).

Additionally, the Company announced that the TSX has granted an extension postponing the date of the listing committee hearing to June 25, 2013 to consider whether the Company continues to meet TSX listing requirements. The continued listing of the Company on the TSX is a pre-condition to completion of the transactions contemplated by the Recapitalization Agreement and the Preliminary Prospectus. The delisting review by the TSX of the Company was announced on January 9, 2013.

About Cline

Cline has metallurgical coal property interests in British Columbia and in Colorado, U.S.A. including the 100% interest in the New Elk coking coal mine. Cline is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada.

Forward-Looking Statements

This press release contains forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the proposed rights offering and warrant issuance of the Company and the Company's future financial condition. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Such statements are based on assumptions, estimates, forecasts and projections made in light of the trends, conditions and expected developments that are considered to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of the Company. A number of factors and assumptions may cause actual results, level of activity, performance or outcomes of the Company to be materially different from those expressed or implied by such forward-looking statements including, without limitation, obtaining a final receipt for a prospectus with respect to the rights offering and issuance of warrants, the approval of the TSX and the performance of the parties to the Recapitalization Agreement of their obligations thereunder. There can be no guarantee the Company will complete the transaction contemplated by the Recapitalization Agreement and the Preliminary Prospectus. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

Head Office:

Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, M5J 2T3

SOURCE: Cline Mining Corporation

Contact:

Ken Bates, President and CEO
Office: [phone]
Email: [email protected]

Belinda Labatte
Greg DiTomaso
The Capital Lab
Office: [phone]
Email: [email protected]