MC Jervois Mining Limited

MILL CITY GOLD CORP. ("Mill City" and/or the "Company") (TSX
VENTURE:MC)(OTCBB:MCYGF)(FRANKFURT:NJ6) is pleased to announce the signing of a
Letter of Intent ("LOI") to purchase up to a 60% interest in the North East
Tanjung Block, an onshore Indonesian gas concession and Production Sharing
Contract with a 30 year contract term including initial 6 year exploration
period, from PT Anugerah Trimata Kaltim Energi ("PTATKE"), an Indonesian limited
liability company that holds a 100% working interest in the project.


"This is an incredible opportunity for Mill City and our shareholders to acquire
a majority stake in a high potential gas field, located in a friendly
jurisdiction with a shortage of natural gas production," stated James R. Brown,
Mill City's Chairman, President and CEO.


Project Description

The North East Tanjung Block project is located at Kutai Barat regency, East
Kalimantan Province, which is approximately 180 km to the north-west of
Balikpapan City. The project area covers initially 11,191.8 square kilometres
and reduced into approximately 5,453.27 square kilometres within the onshore
Kutai Basin. Geologically, the project area is situated in Western Kutai Basin,
known as the Upper Kutai Basin, which is one of the most prolific petroleum
basins within Indonesia. Moreover, from a previous study on adjacent ground, the
gas potential has been proven in the Mendung Well, within the onshore West
Kutai. 


There are three target "pay zone" formations on the project. Previous work
conducted on the project by the Indonesian government indicates that a gas
resource is present. The Company intends to complete a NI 51-101 report in due
course to verify this resource. 


Scheduled Work Program

To confirm the potential of the North East Tanjung Block, the joint venture
partners plan to conduct exploration activities including drilling 2 exploration
wells and 2 delineation wells, and to conduct a 2D seismic survey over a 2 km x
300 km area by the end of 2016. The estimated total cost to complete the
exploration program is approximately US$31.52 million.


Earn-in Schedule

To earn up to a 60% interest in the North East Tanjung Block, Mill City agrees
to provide up to US$32 million thru staged financings over three years to
provide the working capital to conduct the work program described above.


Year 1 - US$10 million for an initial 20% Interest in the North East Tanjung
Block and issuing to PTATKE that number of shares equal to 49% of Mill City's
issued and outstanding share capital immediately prior to TSX Venture Exchange
(the "Exchange") Acceptance, which shares shall be subject to such resale
restrictions and hold periods as may be imposed under applicable securities laws
and the policies of the Exchange.


Year 2 - US$11 million for an additional 20% Interest in the North East Tanjung
Block and issuing to PTATKE that number of shares equal to 49% of Mill City's
issued and outstanding share capital (less the total number of shares issued in
Year 1). 


Year 3 - US$11 million for an additional 20% Interest in the North East Tanjung
Block and issuing to PTATKE that number of shares equal to 49% of Mill City's
issued and outstanding share capital (less the total number of shares issued in
Year 1 and Year 2).


The signed LOI allows for up to ninety (90) days from the signing to complete
due diligence and to arrange the first year tranche of required capital to
finance the work program.


About Mill City Gold Corp.

Mill City Gold Corp. is a TSX Venture listed exploration company that is focused
on identifying and acquiring advanced precious metals, uranium and hydrocarbon
projects in the most favorable jurisdictions around the world. For further
information please visit the Company's website at www.millcitygold.com.


About PT Anugerah Trimata Kaltim Energi 

PT Anugerah Trimata Kaltim Energi is an Indonesian limited liability company
engaged in oil and gas exploration and production business. PTATKE was
established in 2012, exclusively for the purpose of the exploration and
production activities of the North East Tanjung PSC. Currently, PTATKE holds a
100% working interest in the North East Tanjung PSC Block.


ON BEHALF OF THE BOARD OF DIRECTORS 

James R. Brown, Chairman, President & CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Mill City Gold Corp.
James R. Brown
Chairman, President & CEO
403-640-0110
www.millcitygold.com

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