This news release is not for distribution to United States newswire service or for dissemination in the United States

VANCOUVER, British Columbia, July 22, 2020 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce that it has closed the non-brokered private placement announced June 29, 2020 (the “Private Placement”), subject to TSX Venture Exchange (“TSX-V”) approval.

Due to exceptional demand, the Company took additional subscriptions over the June 29^th, 2020 announcement and will issue 8,937,142 units (the “Units”) at a price of CAD$0.07 per Unit for gross proceeds of approximately CAD$626,000 (the “Offering”). Each Unit consists of one common share in the capital of the Corporation (a “Share”) and one transferable common share purchase warrant (a “Warrant”), entitling the holder to purchase one common share in the capital of the Corporation (a “Warrant Share”) for a period of two years from the Closing Date at a price of CAD$0.12 per Warrant Share, provided that if at any time following the date that is four months from the closing date of the offering, that the closing price of the Company’s common shares on the TSX-V is CAD$0.25 or greater per common share during any 10 consecutive trading day period the Warrants will expire at 4.00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to warrant-holders, and the warrant-holders will have no further rights to acquire any common shares of the Company with the Warrant.

Two directors and one officer of the Company, whose applications were reduced due to other investor demand, participated in the Offering and will acquire, directly or indirectly, an aggregate of 375,000 Units. The participation by insiders in the Offering is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61- 101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of Rugby’s market capitalization.

The Company paid CAD$13,325 as finder’s fees in connection with a portion of the Offering.

All securities issuable pursuant to the Offering are subject to a four month hold period expiring from the date of TSX.V approval.

Proceeds of the Offering will be used to fund Rugby’s exploration expenditures and general expenses.

For additional information you are invited to visit the Rugby Mining Limited website at www.rugbymining.com