Yellowhead Completes Rights Offering & Defers Harper Creek Project

VANCOUVER, Oct. 1, 2015 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) announces the completion of its rights offering, which was previously announced on August 21, 2015 and expired on September 29, 2015, together with the deferral of expenditures on the Harper Creek Project.

Rights Offering

The Company issued a total of 24,751,431 common shares under the rights offering at a price of $0.045 per share for gross proceeds of $1,113,814.  A total of 14,035,706 common shares were issued under the basic subscription privilege and a total of 10,715,725 common shares were issued under the additional subscription privilege, resulting in the total number of issued and outstanding common shares of the Company currently being 123,757,157 common shares.

Use of Proceeds

The net proceeds of the rights offering will be used for general corporate and working capital purposes and to repay the bridge loan from Matco Capital Ltd. ("Matco").  The net proceeds are not sufficient for the Company to complete the environmental assessment (the "assessment") for the Harper Creek Project.

The Board of Directors has concluded that, in light of current conditions in the commodity markets and the international capital markets, it is in the best interest of all shareholders to defer any additional expenditures on the Harper Creek Project until such time as more favorable commodity and capital markets present themselves.

About the Harper Creek Project

Harper Creek is a proposed 70,000 tonnes-per-day open pit copper mine with a 28 year mine life, located in the Thompson – Nicola region of British Columbia near Vavenby.  Harper Creek has a four year development period, with the initial two years focused on environmental and construction permitting, and the second two years dedicated to construction.  When developed, Harper Creek will provide up to 600 jobs during construction and up to 450 permanent jobs during operations.

About Yellowhead Mining Inc.

Yellowhead Mining Inc. is a development stage company with a 100% interest in the Harper Creek Project, located in the North Thompson - Nicola region of British Columbia, Canada.  The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.

Forward Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements and information include statements regarding the completion of the Rights Offering, the gross proceeds to be raised by Yellowhead under the Rights Offering, the use of proceeds, and the exercise of rights by Matco. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, receipt of TSX and securities regulatory approvals, completion of the Rights Offering, the gross proceeds raised by Yellowhead under the Rights Offering, the use of proceeds, the exercise of rights by Matco, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

SOURCE Yellowhead Mining Inc.

Frank D. Wheatley, Chief Executive Officer, 604-681-1709 Ext. 212, Email: [email protected], Website: www.yellowheadmining.com