Oracle Mining Provides Oracle Ridge Project Update

Oracle Mining Provides Oracle Ridge Project Update in Letter to Shareholders



VANCOUVER, BRITISH COLUMBIA, Jun 19, 2013 (Marketwired via COMTEX) -- Oracle Mining Corp. ("Oracle Mining" or the "Corporation") CA:OMN +1.72%
(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, AZ.

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 2010:







-- 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 price.

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 Mining.

Sincerely,

Paul Eagland, Chairman

Rod Campbell, President

Qualified Person