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
revised Letter of Intent ("LOI") to purchase up to a 75% working interest in the
North East Tanjung Block, an onshore Indonesian gas concession and Production
Sharing Contract with a 30 year contract term including an initial 6 year
exploration period, from PT Trimata Energi Investama ("PTTEI"), an Indonesian
company owning 85% of the shares of PT Anugerah Trimata Kaltim Energi
("PTATKE"), 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 approximately 5,453.27 square
kilometres within the onshore Kutai Basin. Geologically, the project area is
situated in the 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 parties 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$32 million.


Earn-in Schedule

To earn an initial 45% working interest in the North East Tanjung Block, Mill
City will deposit US$32 million into a mutually acceptable escrow account to
provide the working capital to conduct the work program described above and to
issue that number of Mill City shares equal to 49% of Mill City's issued and
outstanding share capital upon closing of the transaction (inclusive of any
shares that may be issued under any concurrent equity financing that may be
conducted in connection with the transaction), 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.


Commencing three years plus one day from the closing of this transaction, for a
period of 90 days, Mill City has the right to acquire an additional 30% working
interest in the North East Tanjung Block by issuing to PTTEI that number of
shares equal to 49% of Mill City's issued and outstanding share capital at that
time less the number of shares issued by Mill City to acquire the initial 45%
working interest.


The LOI allows for up to ninety (90) days from the signing to complete due
diligence and to arrange the required financing. 


The foregoing transaction will be considered a "reviewable transaction" under
the policies of the TSX Venture Exchange and is subject to certain closing
conditions, including but not limited to the approval of the TSX Venture
Exchange and the execution of a definitive agreement.


About PT Anugerah Trimata Kaltim Energi 

PTATKE 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 Block. Currently, PTATKE holds a 100% working interest in the North East
Tanjung Block. 


About PT Trimata Energi Investama

PTTEI is an Indonesian company owning 85% of the shares of PTATKE and controls
an 85% working interest in the North East Tanjung Block.


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.


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. 


Caution Concerning Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of
applicable Canadian securities legislation. Forward-looking information
includes, but is not limited to, statements relating to the plans for completion
of the acquisition of an interest in the North East Tanjung Block project, for
entering into a definitive agreement in respect of such acquisition; for
conducting exploration activities and completing a NI 51-101 report; and for
arranging the required financing in connection therewith; timing, availability
and amount of financing; expected use of proceeds; business objectives; and the
potential success of the foregoing. Forward looking information includes
statements that are not historical facts and are subject to a variety of risks
and uncertainties which could cause actual events or results to differ
materially from those reflected in such statements, including, without
limitation: the risk that the transaction, including any transaction to obtain
the requisite financing, will not be approved by the TSX Venture Exchange; risks
and uncertainties related to the transaction and any related financing
transaction(s) not being completed in the event that the conditions precedent
thereto are not satisfied; uncertainties related to raising sufficient financing
to fund the planned work in a timely manner and on acceptable terms.
Forward-looking statements contained in this release are based on the beliefs,
estimates, and opinions of management on the date the statements are made. There
can be no assurance that such statements will prove accurate. Actual results may
differ materially from those anticipated or projected. Mill City undertakes no
obligation to update these forward-looking statements if management's beliefs,
estimates, opinions, or other factors, should change.


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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