Oracle Mining Provides Oracle Ridge Project Update in Letter to Shareholders

Oracle Mining Provides Oracle Ridge Project Update in Letter to Shareholders 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/19/13 -- Oracle
Mining Corp. ("Oracle Mining" or the "Corporation")
(TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) is pleased to provide an update
to its shareholders for our Oracle Ridge copper project ("Oracle
Ridge" or "Oracle Ridge Project"), located 24 km northeast of Tucson,
Dear Oracle Mining shareholder, 
We wish to thank you as a loyal shareholder of Oracle Mining for your
support during the year. These are challenging times in the mining
sector in both the financial markets and with mining project cost
escalations. While we have no control on the markets and the price of
commodities, general cost escalation in the mining sector is
something management has actively been battling since the Oracle
Ridge Project was acquired two-and-a-half years ago. To put it
simply: as experienced mine builders and operators, we will not
accept inflated capex estimates. 
Our belief in the strength of Oracle Ridge is reinforced by the
disclosure of a resource estimate along with a technical report we
filed in April. The scale of Oracle Ridge and established
infrastructure have always set Oracle Ridge apart favourably when
compared to larger greenfield projects and the resource estimate
confirms our belief that we can continue to work towards a
feasibility study. While we have experienced delays, our commitment
to Oracle Ridge being developed responsibly has meant that we have
never strayed from our targets. It is for this reason that we have
significant support from our largest shareholders RK Mine Finance
(19.9%), RichStone Mining Investment (15.9%) and our directors and
officers (16.6%). 
We are also very pleased to be writing to you following our recent
announcement of our partnership with JDS Energy & Mining Inc. ("JDS")
to provide engineering services and produce a feasibility study in
accordance with NI 43-101 (the "Feasibility Study"). JDS and the
Oracle Ridge team have initiated the ground work and are working on
the drilling plan and feasibility study timeline. JDS is
well-respected for their innovative and cost-effective approach to
mine development of projects on the scale of Oracle Ridge and we are
confident they can produce a feasibility study for Oracle Ridge
on-budget and on-schedule. Unlike most engineering firms, JDS has
operated projects on the ground as well as provided technical
expertise; we think this entrepreneurial approach is the right fit
for Oracle Ridge. If you are looking for evidence, I would encourage
you to look at the success stories on their website, from running
drilling programs to feasibility studies to mine construction in
harsh environments. 
A short anecdote about our first meeting after we advised JDS we were
interested in receiving a proposal: We called their CEO on a
Wednesday afternoon; by Thursday, they had flown a five-man team to
meet with us on the ground at the mine site in Arizona and started
work on a new outline for a scoping proposal. We had the completed
outline a week later and soon after that, a final services agreement.
That is a process that would take most large engineering firms weeks,
if not months, to conclude. 
We look at a number of ways to measure the performance of our team
and the level of success over the past year, specifically in the
areas of permitting and finance, and how we've overcome any barriers
to achieving our goals in either area. 
In late 2012, our internal timeline for the production of a technical
report and Feasibility Study encountered what we believe would be an
unreasonable delay. Within days of learning of further delays, we
took a fresh approach and the result was that we announced a mineral
resource estimate (see March 18, 2013 news release) and filed on
SEDAR a technical report entitled Review of the Oracle Ridge Project
was filed within 90 days (on April 1, 2013). The report states that
for a 1.0% copper cut-off grade, the mineral resource estimate at
Oracle Ridge is 

--  9.9 million tons grading 1.64% copper and 0.43 silver ounces/ton in the
    indicated mineral resource category containing 323 million pounds of
    copper and 4.2 million ounces of silver. 
--  6.9 million tons grading 1.58% copper and 0.41 silver ounces/ton in the
    inferred mineral resource category containing 217 million pounds of
    copper and 2.8 million ounces of silver.

The current indicated mineral resource estimate at the time of the
Feasibility Study will be included in the Feasibility Study for the
Project and inferred mineral resource estimates will not be included.
Following the disclosure of the resource, we've had questions from
shareholders about the delay in producing a feasibility study. We
have had our frustrations with this delay as well. This frustration
resulted in our hiring JDS to provide engineering services and
produce a feasibility study, with strict timelines and deliverables. 
Another matter that shareholders ask us about regularly is permitting
for Oracle Ridge. As you are aware, permitting is not entirely under
any mining company's control as there are multiple stakeholders who
have input during the process and success is reliant upon favourable
relations with the community as well as working cooperatively with
the permit-granting agencies. We have engaged in a pro-active manner
with State and Federal regulatory agencies, State and County
Officials and local communities to ensure stakeholders are kept
informed and appraised of the project. We place a high priority on
being a good corporate citizen and a responsible member of the
community. We are pleased to report that thanks to the help of our
excellent team in Tucson, permitting remains on schedule. A brief
review of what has been accomplished since acquiring Oracle Ridge in

--  The project Preliminary Jurisdictional Delineation ("PJD") was approved
    by the US Army Corp. of Engineers ("USACE") on February 6, 2013. An
    approved PJD is a step toward securing a Clean Water Act Section 404
    permit. If the project moves toward a construction decision, final
    construction drawings will be compared to the PJD by USACE to determine
    the amount of disturbance and the permitting path forward.
--  In July 2012, we announced that we had signed a Memorandum of
    Understanding (the "MOU") with Pima County for the development of the
    Mine. On July 10, 2012, the county Board of Supervisors unanimously
    approved a resolution in support of our proposal to re-open the Mine,
    and also approved and ratified the MOU.
--  In December 2012, pursuant to the MOU, we exchanged with Pima County
    approximately 133 acres of private land for certain Pima County land
    that lies between the Mine site and the historical tailings facility,
    and is considered critical by the Corporation in ensuring access to the
    Mine site. In addition, the Corporation provided at least an additional
    300 acres of land to Pima County as mitigation for potential
    disturbances related to the operation of the Oracle Ridge project.
--  Oracle Mining has continued to secure access rights to the Mine site,
    and in the fourth quarter of 2012 received a Right of Way from the
    Arizona State Land Department that provides the Corporation access along
    the Black Hills Road to the mining operation from San Manuel.
--  In July 5, 2012, we received the Class II Air Quality Operating Permit
    (the "Air Permit") from the Pima County Department of Environmental
    Quality. The application had been submitted in October 2011.
--  In January 2012, we submitted the Aquifer Protection Permit ("APP")
    amendment application under expedited review process of the Arizona
    Department of Environmental Quality ("ADEQ") and in March 2013, the
    amended APP was granted to the Corporation.
--  A preliminary draft Environmental Assessment was submitted to the U.S.
    Forest Service ("USFS") during the fourth quarter of 2012 in support of
    the Application for Transportation and Utility Systems and Facilities on
    Federal Lands (SF-299) permit. This permit is necessary to allow us the
    use of a portion of Forest Service lands.

Like all small mining companies, Oracle Mining has no cash flow until
it has a producing asset, and must finance itself to get to that
stage. We have previously reported that Credit Suisse has provided us
with a $70 million indicative term sheet detailing the standards
necessary for the provision of funds. We have maintained an ongoing
relationship with Credit Suisse since signing the term sheet and they
have advised us that they are prepared to negotiate final terms of a
debt arrangement and prepare for credit committee review if a
feasibility study confirming positive economic and technical
viability is completed. 
While the Oracle Ridge Project has a current mineral resource
established, the Corporation expects that additional drilling will be
undertaken this year with the goal of expanding and upgrading, if
possible, the mineral resource estimate. The Corporation has not made
any production decision with respect to Oracle Ridge and a decision
to proceed with production at the Oracle Ridge Project can only be
based upon the results of the feasibility study demonstrating
economic and technical viability. 
Management has effectively countered and overcome obstacles to
development of Oracle Ridge since work began more than two-an-a-half
years ago. We feel it is management's role to ensure a project is
built economically and efficiently and while delays have been
frustrating, we are ultimately responsible for ensuring shareholders
see the value of this great Oracle Ridge reflected in our share
Please contact any of our team anytime at 604-689-9282 to answer any
questions you may have about the Oracle Ridge Project or Oracle
Paul Eagland, Chairman 
Rod Campbell, President 
Qualified Person 
The scientific and technical information included in this letter to
shareholders has been reviewed and approved by Kevin Francis, SME RM,
Vice President Technical Services of Oracle Mining, a non-independent
qualified person within the meaning of NI 43-101. 
Regulatory footnotes: 
Information and statements contained in this news release that are
not historical facts are "forward-looking information" within the
meaning of Canadian securities legislation that involves risks and
uncertainties. Forward-looking information included herein is made as
of the date of this news release and Oracle Mining does not intend,
and does not assume any obligation, to update forward-looking
information unless required by applicable securities laws.
Forward-looking information relates to future events or future
performance and reflects management of the Corporation's expectations
or beliefs regarding future events. In certain cases, forward-looking
information can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "scheduled",
"estimates", "intends", "anticipates" or "does not anticipate",
"goal" 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" or the
negative of these terms or comparable terminology. Examples of
forward-looking information in this letter to shareholders include,
but are not limited to, statements with respect to: our plans to work
towards commencing and completing the Feasibility Study; our Mineral
Resource estimate for the Oracle Ridge Project; our plans and
expectations for the Oracle Ridge Project including our plans
relating to completion of a further drilling program and further
exploration and development of the Oracle Ridge Project; the timing
or completion of any work on the Oracle Ridge Project, including
timing of commencement and completion of our proposed drilling
program and the Feasibility Study; and our goal to expand the Mineral
Resource estimate and upgrade Mineral Resources, if possible, to a
higher Mineral Resource category. This forward-looking information is
based, in part, on assumptions and factors that may change or prove
to be incorrect, thus causing actual results, performance or
achievements to be materially different from those expressed or
implied by forward-looking information. Such factors and assumptions
include, but are not limited to: our assumptions regarding copper,
base metal and precious metal prices; accuracy of Mineral Resource
estimate and Mineral Resource modelling; accuracy of cut-off grade
and assumptions underlying thereto, including projected copper prices
and estimates of total operating costs; dilution allowance
assumptions; success of future drilling programs; reliability of
drilling, sampling and assay data; representativeness of
mineralization; accuracy of metallurgical testwork; our ability to
comply with current and future environmental, safety and other
regulatory requirements and to obtain and maintain timely receipt of
regulatory approvals. 
By its very nature, forward-looking information involves known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Corporation to be
materially different from any future results, performance or
achievements expressed or implied by forward-looking information.
Such factors include, but are not limited to: dilution to
shareholders from any equity financings; the availability of capital
on acceptable terms, or at all; risks relating to our estimates of
Mineral Resources and cut-off grade and factors underlying, proving
to be inaccurate; our dependence on the Oracle Ridge Project; risk
that we are unable to enforce our legal rights under existing
agreements, permits or licences or are subject to litigation or
arbitration that has an adverse outcome; risk there are changes in
project parameters as plans continue to be refined; risks related to
the actual results of exploration and development activities; our
historical experience with development-stage mining operations;
changes in commodity prices, and particularly copper prices; receipt
of necessary permits and licences; regulatory changes; risks related
to the uncertainty of timing of events including delays in obtaining
governmental approvals or financing or in the completion of project
development studies; we are affected by environmental, safety and
regulatory risks, including increased regulatory burdens or delays,
accidents, labour disputes and other risks inherent in the mining
industry; availability of materials and equipment; lack of revenue
and commercial production; increased indebtedness and events of
default thereunder; competition for properties, capital, skilled
personnel and resources; uninsured risks; defects in title; influence
of significant shareholders; foreign operations; adequate
infrastructure in the jurisdictions in which we operate; opposition
to mining activities; fluctuations in currency exchange rate, as well
as those factors discussed in the Corporation's annual information
form dated April 1, 2013, for the year ended December 31, 2012, filed
and available for review on SEDAR at Although the
Corporation has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
forward-looking information, 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 by such forward-looking
information. Accordingly, readers should not place undue reliance on
forward-looking information.
Oracle Mining Corp.
Investor Relations
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