Oracle Mining Announces Updated NI 43-101 Resource Estimate for the Oracle Ridge Copper Project

7.3 Million Tons Grading 1.88% Copper Equivalent Measured and Indicated and 5.6 Million Tons Grading 1.75% Copper Equivalent Inferred; Additional Assays

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 26, 2014) - Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX:OMN)(FRANKFURT:OMC) announces an updated Measured and Indicated and Inferred Mineral Resource estimate in accordance with National Instrument 43-101 ("NI 43-101"), along with additional assay results from its recent underground drilling program, for its Oracle Ridge copper project ("Oracle Ridge" or "Oracle Ridge Project"), located 24 km northeast of Tucson, AZ.

Highlights:

At a 1.0% copper equivalent (CuEQ) cut-off grade, the updated Mineral Resource estimate for Oracle Ridge in accordance with NI 43-101, is:

• 7.3 million tons grading 1.88% CuEQ, 1.61% copper and 0.52 silver ounces/ton in the Measured and Indicated mineral resource category containing 236 million pounds of copper, and 3.8 million ounces of silver.
  
  
• 5.6 million tons grading 1.75% CuEQ, 1.53% copper and 0.49 silver ounces/ton in the Inferred mineral resource category containing 173 million pounds of copper and 2.8 million ounces of silver.
  
  

The Corporation announced its initial Mineral Resource estimate for Oracle Ridge in March 2013, which was included in a technical report filed April 1, 2013 (the "2013 Technical Report"). We subsequently conducted an underground drill program in the summer of 2013. The results of the 2013 drill program are incorporated into the updated Mineral Resource estimate and intercepts from that drill program are reported in this news release.

As recommended in the 2013 Technical Report, Oracle Mining initiated a program of twinning historical holes and re-assaying historical core. Eleven holes were twinned and 66 historical holes were re-logged, photographed, resampled and submitted to Skyline Assayer and Laboratories for analysis. An analysis of core samples between historical and re-assays identified a bias of 12.5% in the copper grade. Consequently, all historical assay data were adjusted downward by 12.5%. Additionally, new drilling results obtained since the Oracle Ridge Project was acquired in 2010 have been consistently lower than the historical grades, resulting in lowering the overall average grade of the deposit. The new drilling information, the adjustment to historical drilling, along with other adjustments to the mineral resource estimation process have resulted in the loss of tons and overall lower grade compared to the March 2013 Mineral Resource estimate.

"The process undertaken in this Mineral Resource update has been thorough and provides management with increased confidence in the new Mineral Resource estimate," said Mr. Kevin Drover, Oracle Mining's CEO. "We believe the updated Mineral Resource estimate will allow management to better understand and evaluate the steps that will be necessary to advance the Project and we will provide shareholders with an update in the near future."

Updated Mineral Resource Estimate

In November 2013, Oracle Mining contracted ARSENEAU Consulting Services to prepare a Mineral Resource estimate in accordance with NI 43-101 for the Oracle Ridge Project.

Table 1 summarizes the combined estimated Measured and Indicated Mineral Resources at various cut-off grades for comparison purposes, with 1.0% CuEQ used as the base case cut-off grade. Measured plus Indicated Mineral Resources at the 1.0% CuEQ base case cut-off grade are estimated to be 7.3 million short tons at 1.61% copper. All tonnages in this news release are in imperial (short) tons.

Table 1. Oracle Ridge Project Measured and Indicated Mineral Resource Estimate

• The effective date of the Mineral Resource estimate is February 26, 2014.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
• The base case cut-off grade of 1.0% CuEQ has been estimated to ensure reasonable prospects of economic extraction assuming extraction by an underground mining scenario, projected copper price of $2.80 per pound and estimated total site operating costs of $45 per ton.
• A selective mining unit of 15 x 15 x 10 feet has been used.
• Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
• Silver and gold grade estimates were based on a less comprehensive data set than the copper grade estimates. Where copper grade estimates exist without accompanying silver or gold grade estimates, the drill hole was not used to estimate the silver or gold grade.
• Copper equivalency has been estimated using metal pricing of $2.80 per pound of copper, $20 per ounce of silver and $1,300 per ounce of gold. Metallurgical recovery were derived from preliminary lock cycle test results and assumed to be 81% for gold and silver. The formula used is as follows: CuEQ = Cu% + {(Ag oz/t x $20 x 0.81) + (Au oz/t x $1,300 x 0.81)}/$2.80/2,000 x 100.

Table 2 summarizes the estimated Measured Resources at various cut-off grades for comparison purposes, with 1.0% CuEQ used as the base case cut-off grade and Table 3 summarises the Indicated Mineral Resources at various cut-off grades for comparison purposes, with 1.0% CuEQ used as the base case cut-off grade.

Table 2. Oracle Ridge Project Measured Mineral Resource Estimate

• The effective date of the Mineral Resource estimate is February 26, 2014.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
• The base case cut-off grade of 1.0% CuEQ has been estimated to ensure reasonable prospects of economic extraction assuming extraction by an underground mining scenario, projected copper price of $2.80 per pound and estimated total site operating costs of $45 per ton.
• A selective mining unit of 15 x 15 x 10 feet has been used.
• Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
• Silver and gold grade estimates were based on a less comprehensive data set than the copper grade estimates. Where copper grade estimates exist without accompanying silver or gold grade estimates, the drill hole was not used to estimate the silver or gold grade.
• Copper equivalency has been estimated using metal pricing of $2.80 per pound of copper, $20 per ounce of silver and $1,300 per ounce of gold. Metallurgical recovery were derived from preliminary lock cycle test results and assumed to be 81% for gold and silver. The formula used is as follows: CuEQ = Cu% + {(Ag oz/t x $20 x 0.81) + (Au oz/t x $1,300 x 0.81)}/$2.80/2,000 x 100.

Table 3. Oracle Ridge Project Indicated Mineral Resource Estimate

• The effective date of the Mineral Resource estimate is February 26, 2014.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
• The base case cut-off grade of 1.0% CuEQ has been estimated to ensure reasonable prospects of economic extraction assuming extraction by an underground mining scenario, projected copper price of $2.80 per pound and estimated total site operating costs of $45 per ton.
• A selective mining unit of 15 x 15 x 10 feet has been used.
• Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
• Silver and gold grade estimates were based on a less comprehensive data set than the copper grade estimates. Where copper grade estimates exist without accompanying silver or gold grade estimates, the drill hole was not used to estimate the silver or gold grade.
• Copper equivalency has been estimated using metal pricing of $2.80 per pound of copper, $20 per ounce of silver and $1,300 per ounce of gold. Metallurgical recovery were derived from preliminary lock cycle test results and assumed to be 81% for gold and silver. The formula used is as follows: CuEQ = Cu% + {(Ag oz/t x $20 x 0.81) + (Au oz/t x $1,300 x 0.81)}/$2.80/2,000 x 100.

Table 4 summarizes the estimated Inferred Mineral Resources at various cut-off grades for comparison purposes, with 1.0% CuEQ used as the base case cut-off grade. At the 1.0% copper base case cut-off grade, the Inferred Mineral Resources are estimated to be 5.6 million tons at 1.53% copper.

Table 4. Oracle Ridge Project Inferred Mineral Resource Estimate

• The effective date of the Mineral Resource estimate is February 26, 2014.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
• The base case cut-off grade of 1.0% CuEQ has been estimated to ensure reasonable prospects of economic extraction assuming extraction by an underground mining scenario, projected copper price of $2.80 per pound and estimated total site operating costs of $45 per ton.
• A selective mining unit of 15 x 15 x 10 feet has been used.
• Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
• Silver and gold grade estimates were based on a less comprehensive data set than the copper grade estimates. Where copper grade estimates exist without accompanying silver or gold grade estimates, the drill hole was not used to estimate the silver or gold grade.
• Copper equivalency has been estimated using metal pricing of $2.80 per pound of copper, $20 per ounce of silver and $1,300 per ounce of gold. Metallurgical recovery were derived from preliminary lock cycle test results and assumed to be 81% for gold and silver. The formula used is as follows: CuEQ = Cu% + {(Ag oz/t x $20 x 0.81) + (Au oz/t x $1,300 x 0.81)}/$2.80/2,000 x 100.
• Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred Mineral Resources will ever be upgraded to a higher category.

The Mineral Resource model was developed using a total of 613 drill holes, including 128 holes (70 from surface and 58 from underground) drilled on behalf of Oracle Mining between 2011 and 2013 drilling campaigns and 485 historical drill holes. All copper grades from the historical drill holes were adjusted down by 12.5% to correct an apparent bias associated with the historical assay database identified as a result of the 2013 re-assaying program of historical drill core.

The Mineral Resource estimate has been generated from drill hole sample assay results and the interpretation of a geologic model that relates to the spatial distribution of copper in the deposit. Grade was estimated by ordinary kriging constrained within individually identified geological beds using sample data composited to 10-foot intervals into model blocks measuring 15 by 15 by 10 feet vertically. High grades, greater than 10% copper and greater than 2.0 oz/t silver, were restricted to search radii of 20 by 20 by 20 feet. A comprehensive geological model that encompasses all known mineralization was constructed. Resources have been classified using average distances and a minimum number of drill holes within the search ellipse and are reported according to the CIM definition standards for Mineral Resources and Mineral Reserves.

Dr. Arseneau has verified the technical and scientific information including sampling, analytical and test data underlying the information or opinions relating to the updated Mineral Resource estimate included in this news release. This verification was done during visits to the Oracle Ridge Project site and by reviewing and interpreting the data that was produced.

There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources.

A technical report supporting this disclosure will be filed under the Corporation's profile on SEDAR (www.sedar.com) on or before the filing of the Corporation's annual information form for the year ended December 31, 2013.

Qualified Persons

The Mineral Resource estimate has been prepared by Dr. Gilles Arseneau, who is an independent "qualified person" within the meaning of NI 43-101. Dr. Arseneau has reviewed and approved the scientific and technical information included in this news release relating to the Mineral Resource estimate.

Dr. Arseneau Ph.D., P.Geo., has more than 30 years of experience, and is experienced in mineral resource estimation specializing in underground mining and in NI 43-101. Over the past 15 years, he has worked in consulting and with the TSX Venture Exchange ("TSXV"). His consulting activities included the preparation of mineral resource estimates and technical reports for junior, intermediate and senior mining clients. With the TSXV, he was Manager, Geology for three years where he was responsible for the review of technical reports and listing applications for mining companies. He also served on the Canadian Securities Administrators Mining Technical Advisory and Monitoring Committee on NI 43-101. Dr. Arseneau is the Principal Geologist of ARSENEAU Consulting Services.

Additional assay results reported

Oracle Mining also reports additional assay results that are incorporated into the Mineral Resource estimate above. In the table below, "OUH" holes indicate underground-drilled holes.

Oracle Mining has posted an updated diagram of all drill hole locations of these reported assay results at http://www.oracleminingcorp.com/_resources/images/2014_February_skarn.pdf.

The drilling intervals were calculated using a 1.0% copper cut-off grade and may include internal waste and accordingly are not representative of the true width of mineralized intercepts. The mineralized intercepts have been used in the model for the Mineral Resource Estimate. As the holes cut the mineralization at different angles, they all have different true widths. In general, they are estimated to be 60% to 100% of the stated interval length for Zones 1, 2 and 4. Additional drilling in Zones 5 and 6 will be needed before true thickness can be estimated. Intervals labelled "includes" are higher-grade portions of the previous listed interval. There are no known drilling, recovery or other factors that could materially affect the accuracy or reliability of the data.

Data Verification

The Corporation maintains a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and sawn in half. The sample size varies depending on the geology and the mineralization. In general, the samples are predominantly about 5 feet long. One-half of each drill core is maintained for future reference and one-half of each drill core is sent for analysis. During 2013, half-core samples were shipped to Skyline Assayer and Laboratories ("Skyline"), in Tucson, Arizona, an ISO/IEC 17025 accredited laboratory. Skyline is contracted to complete all sample preparation and assaying and is independent of Oracle Mining. Samples are analyzed employing acid digestion and Atomic Absorption for analyses of copper, as well as fire assaying for silver and gold. For QA/QC purposes, Oracle Mining inserts standard reference materials and blank samples into each sample batch submitted for assay to monitor laboratory performance. The Corporation periodically submits the pulps of the samples assayed by its primary lab to ALS Chemex Labs Ltd. in Reno, Nevada for check analysis.

Dr. Gilles Arseneau has verified the technical and scientific information including sampling, analytical and test data underlying the 2013 drilling program assay results. Verification included QA/QC procedures review, inspection of drill core and review of assay certificates. This verification was done during a visit to the Oracle Ridge site and by reviewing and interpreting the data that was produced.

Note: All financial information in this news release is reported in United States dollars, unless otherwise noted.

About Oracle Mining Corp.

Oracle Mining Corp. (TSX:OMN)(FRANKFURT:OMC) is a Vancouver, Canada-based corporation that is the sole owner and operator of Oracle Ridge Mining, LLC and the Oracle Ridge copper project located 24 km northeast of Tucson, Arizona. Oracle Mining is managed by an experienced team of mining professionals with extensive operating and financial experience.

Cautionary Note Regarding Forward-Looking Information

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 news release include, but are not limited to, statements with respect to: our Mineral Resource estimate for the Oracle Ridge Project; the estimates of cut-off grade and the factors underlying including projected copper prices and estimated total operating costs; expected level of selectivity within underground stopes; estimated true widths of mineralized intercepts; our plans and expectations for the Oracle Ridge Project; and the timing or completion of any work on the Oracle Ridge Project. 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: 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; 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; dilution to shareholders from any equity or convertible debt financings; the availability of capital on acceptable terms, or at all; 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 www.sedar.com. 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.

No regulatory authority has approved or disapproved the contents of this news release.