RTG Mining Inc. — Regulatory Filings 2016

Oct 30, 2016

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

SEPTEMBER 2016 QUARTERLY REPORT

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE

31 OCTOBER 2016

Highlights

• RTG Mining Inc. (RTG, "the Company") completed a Private Placement to raise circa A\$20M before costs which will enable a more aggressive focus on exploration programs.
• The Company completed the sale of its interest in the Segilola Gold Project for US\$8.5m.
• The Company received A\$274,000 during the quarter as part of its Research and Development tax claim from the Australian Government. The claims received to date are worth A\$319,000.
• Cash and liquid assets as at 30 September were A\$18M.

MABILO PROJECT

Overview of the Quarter

The September quarter focused on 3 key areas:

• 1. Planning and preparation for the next campaign of drilling was finalized. The drilling will be directed across 4 areas:
• a. Diamond drilling infill program;
• b. Step out drilling on skarn mineralization along strike;
• c. Porphyry targeting; and
• d. Sterilization, water and geotechnical drilling.
• 1. Acquisition of additional multi element assay data.
• 1. Planning and preparation of infrastructure and manning associated with the planned start-up of Oxide Mining.

Project Background

The Mabilo Project is located in Camarines Norte Province, Eastern Luzon, Philippines. It is comprised of one granted Exploration Permit (EP-014-2013-V), of approximately 498 ha. The Project area is relatively flat and is easily accessed by 15 km of all-weather road from the highway at the nearby town of Labo.

Massive magnetite mineralization containing significant copper and gold grades occurs as replacement bodies together with mineralized garnet skarn and calc-silicate altered rocks within a sequence of hornfels sediments of the Eocene aged Tumbaga Formation. The garnet and magnetite skarn rocks were extensively altered by argillic retrograde alteration and weathering prior to being covered by 25-60 metres of post mineralization Quaternary volcaniclastics (tuff and lahar deposits) of the Mt. Labo Volcanic Complex. The deposits are localized along the margins of a diorite stock which does not outcrop within the Exploration Permit.

The primary copper mineralization (predominantly chalcopyrite with lesser bornite) occurs as disseminated blebs and aggregates interstitial to magnetite grains and in voids within the magnetite. A strong correlation between gold and copper values in the un-weathered magnetite skarn indicates the gold is hosted by the chalcopyrite. A late stage phase of sulphide mineralization (predominantly pyrite) veins locally brecciates the magnetite mineralization.

Figure 1- RTP ground magnetic image with modelled South, North and East magnetic bodies, showing exploration upside targets.

In places the more shallow upper parts of the magnetite skarn bodies were weathered to form hematite skarn. Copper in the weathered zone was remobilized forming highgrade supergene copper zones (chalcocite and native copper) at the base of the weathering profile. The gold is more variable, remobilized throughout the hematite skarn and is domained within garnet skarn and calc-silicate altered country rocks in places. The average iron grade of the hematite skarn is consistent with the magnetite skarn.

Sierra Mining Limited ("Sierra") discovered the mineralization in 2012 during a reconnaissance drilling program targeted on magnetic anomalies from a ground magnetic survey conducted by a former explorer. Sierra subsequently conducted a new ground magnetic survey in early 2013, remodeled the data and commenced a second phase of drilling in mid-2013.

Extensive drilling has been undertaken during 2014 and 2015 with significant extensions in known strike beyond the magnetic model in the north and south directions. A total of 69 drill holes totaling 11,231m were used for the maiden Resource estimate (ASX released on the 24th November 2014). An updated Resource estimate (ASX released on the 5th November 2015) was completed using 98 drill holes totaling 18,200.9m. By the end of December 2015, 111 drill holes had been completed at the project. The current Resource is open down plunge and along strike.

Figure 2- North and Southern Mineralized Zones with intercept highlights - Schematic Oblique view 3D

Planned Exploration

Planning for the next round of drilling has been finalized and selection of a contractor is nearing finalization. Phase 1 of the campaign will be 3000m of diamond drilling and will concentrate on upgrading the Inferred Resources in the South Mineralized Zone and step out drilling to the north of the North Mineralized Zone; both of which are contained within the current optimized pit (Figure 3).

Figure 3- 3,000m of planned drilling designed to upgrade the Resource classification and extend strike length of the Resource

Phase 2 of the campaign will be focused on step out drilling of skarn mineralization along strike of the current defined Resource (Figure 2). Phase 2 will also include 3 holes into a porphyry target (Figure 4). The porphyry target has resulted from detailed studies of alteration zonation, metallogenic zonation, chlorite alteration intensity and re-logging of previously drilled holes.

Figure 4 Schematic geology cross section highlighting the porphyry target.

Mabilo Mineral Reserves

March 2016 Mineral Reserve Estimate

The Probable Reserve represents an equivalent gold grade for the Reserves of 5.26 g/t* (before recoveries) containing 1.32 Moz of equivalent gold or an equivalent copper grade of 4.1%* (before recoveries) containing 316Kt of equivalent copper.

Table 1
---------	--

Probable Mineral Reserve Estimate
Ore						Waste
Class	Type	Mt	Fe %	Au g/t	Cu %	Ag g/t	Mt	Strip Ratio
Probable	Gold Cap	0.351	40.1	3.11	0.38	3.26	77.713	10.0
	Supergene	0.104	36.5	2.20	20.7	11.9
	Oxide Skarn	0.182	43.6	2.52	4.17	19.9
	Fresh	7.155	45.9	1.97	1.70	8.73
Total Probable Ore		7.792	45.5	2.04	1.95	8.79

*The gold equivalent grade is based on the following formula –

AuEq=((((AuOz*\$1,200)+(CuMetal*\$5,000)+(FeMetal*\$50)+ (AgOz*\$14)) / \$1,200)/Total ore tonnes)

The copper equivalent grade is based on the following formula –

CuEq=((((AuOz*\$1,200)+(CuMetal*\$5,000)+(FeMetal*\$50)+ (AgOz*\$14)) / \$5,000)/Total ore tonnes)

The November 2015 Resource estimation provided by CSA classified the Resource for the Mabilo Project as Indicated and Inferred. Only Indicated Mineral Resources as defined in NI 43-101 were used to establish the Probable Mineral Reserves. No Reserves were categorized as Proven.

Mineral Reserves are quoted within specific pit designs based on Indicated Resources only and take into consideration the mining, processing, metallurgical, economic and infrastructure modifying factors.

Feasibility Study ("FS")1

The Company announced on March 18, 2016 the results from an independent NI 43- 101 compliant FS for 100% of the high grade Mabilo Project in Southeast Luzon, Philippines* . The Mabilo Project is both high grade and low cost, underpinning the robust economics presented in the FS including a 33% IRR after tax at US\$5,000/t Cu US\$1,200/oz Au prices (43.6% with only a 10% lift in commodity prices) and an equivalent operating cost of US\$0.80/lb copper equivalent or US\$425/oz gold equivalent for concentrate production at a throughput rate of 1.35mtpa**.

** The Copper equivalent tonnes and gold equivalent ounces are based on the following formulas –

^* The FS is based on a treatment rate of 1Mtpa. A treatment rate of 1.35Mtpa was also considered in an upside case. Factored indicative capital and operating cost estimates were developed for a planned throughput of 1.35 Mtpa. The capital cost estimates were derived from first principles for the 1 Mtpa process plant to an accuracy of +/- 15% and then the capital cost estimates were factored with an accuracy of +/- 25% for the 1.35 Mtpa process plant. The operating cost estimates were derived from first principles for the 1Mtpa process plant and then plant costs were factored with an accuracy of +/- 25% for the 1.35Mtpa operating scenario. All costs are in 2015 US dollars.

CuEq = (Cu produced/contained*\$5000) + (Au produced/contained*\$1200+ (Any Contained Fe metal produced* \$50))/\$5000

AuEq = (Cu produced/contained*\$5000) + (Au produced/contained*\$1200+ (Any Contained Fe metal produced* \$50))/\$1200

¹ The Company confirms that all the material assumptions underpinning the Feasibility Study as announced to the ASX on the 18th of March continue to apply and have not materially changed. A copy of the announcement can be found on the Company's website at www.rtgmining.com.

BUNAWAN PROJECT

Figure 3 - Bunawan GAIP Resistivity Survey

The Bunawan Property is located in the east of Mindanao Island in Agusan del Sur Province, approximately 190km north-northeast of Davao and adjacent to the Davao – Surigao highway.

Community development programs and Indigenous People programs continued during the current quarter.

The Company has also planned a further drill program at Bunawan. The program will target key areas highlighted in the December 2015 Gradient Array - Induced Polarization (GAIP) and Dipole-Dipole Induced Polarisation (DDIP) programs.

CORPORATE

RTG was pleased to announce during the quarter that it had successfully completed the issue of approximately 33 million shares at a price of A\$0.60 per share to institutional and sophisticated investors pursuant to a heavily oversubscribed private placement announced on 15 July 2016 ("Private Placement"). The Private Placement raised proceeds of circa A\$20 million (before costs).

The Private Placement was led in Australia by Hartleys Limited and co-managed by Taylor Collison and co-led internationally by BMO Capital Markets, together with a syndicate of agents including Tectonic Advisory Partners (acting through Ecoban Securities Corporation), Arlington Group Asset Management Limited and Raymond James.

The Company also completed the sale of RTG's interest in the Segilola Gold Project to Thor Explorations Ltd ("Thor"), a TSX-V listed company, for consideration of US\$8.5million including US\$3m of upfront consideration with US\$1.5m in cash and a further US\$1.5m in shares in Thor.

The Company received a A\$274,000 payment for a Research and Development tax claim from the Australian Government during the quarter. This brings the total claims received to date A\$319,000.

Cash and liquid assets as at 30 September were A\$18M.

ABOUT RTG MINING INC

RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange. RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the Company to move quickly and safely to production.

RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.

ENQUIRIES

Australian Contact		US Contact
	President & CEO – Justine Magee	Investor Relations – Jaime Wells
Tel:	+61 8 6489 2900	+1 970 640 0611
Fax:	+61 8 6489 2920
Email:	jmagee@rtgmining.com	jwells@rtgmining.com

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. Statement regarding interpretation of exploration results, plans for further exploration and accuracy of mineral Resource and mineral Reserve estimates and related assumptions and inherent operating risks, are forwardlooking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG's mineral projects; the need to obtain additional financing to develop RTG's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG's mineral projects and other risks and uncertainties disclosed under the heading "Risk Factors" in RTG's Annual Information Form for the year ended 31 December 2015 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.

QUALIFIED PERSON AND COMPETENT PERSON STATEMENT

The information in this release that relates to exploration results at the Mabilo Project is based upon information prepared by or under the supervision of Robert Ayres BSc (Hons), who is a Qualified Person and a Competent Person. Mr Ayres is a member of the Australian Institute of Geoscientists and a full-time employee of Mt. Labo Exploration and Development Company, a Philippine mining company, and an associate company of RTG Mining Limited. Mr Ayres has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Ayres has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr. Ayres consents to the inclusion in the release of the matters based on his information in the form and the context in which it appears.

The information in this release that relates to Mineral Resources is based on information prepared by or under the supervision of Mr Aaron Green, who is a Qualified Person and Competent Person. Mr Green is a Member of the Australian Institute of Geoscientists and is employed by CSA Global Pty Ltd, an independent consulting company. Mr Green has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Green has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr Green consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

The information in this release that relates to Mineral Reserves and Mining is based on information prepared by or under the supervision of Mr Carel Moormann, who is a Qualified Person and Competent Person. Mr Moormann is a Fellow of the AusIMM and is employed by Orelogy Consulting, an independent consulting company. Mr Moormann has sufficient experience that is relevant to the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr Moormann has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr Moormann consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

The information in this release that relates to Metallurgy and Processing is based on information prepared by or under the supervision of David Gordon, who is a Qualified Person and Competent Person. David Gordon is a Member of the Australasian Institute of Mining and Metallurgy and is employed by Lycopodium Minerals Pty Ltd, an independent consulting company. David Gordon has sufficient experience that is relevant to the type of process under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). David Gordon has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. David Gordon consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

The information in this release that relates to areas outside of exploration results, Mineral Resources, Mineral Reserves and Metallurgy and Processing is based on information prepared by or under the supervision of Mark Turner, who is a Qualified Person and Competent Person. Mark Turner is a Fellow of the Australasian Institute of Mining and Metallurgy and is employed by RTG Mining Inc, the Company. Mark Turner has sufficient experience that is relevant to the information under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43- 101"). Mark Turner has verified the data disclosed in this release. Mark Turner consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

For the ASX Feasibility Study announcement including JORC tables Section 1 to 4 please refer to the RTG Mining website (www.rtgmining.com) and on the ASX, under announcements (www.asx.com.au).

The information in this report relating to Bunawan exploration results, mineral resources or ore Reserves is based on information provided to Mr Robert McLean by RTG Mining Inc. Mr McLean is an independent consultant geologist and is a corporate member of the Australian Institute of Mining and Metallurgy. Mr McLean has the relevant qualifications, experience, competence and independence to qualify as an "Expert" under the definitions provided in the Valmin Code, "Competent Person" as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and as a "Qualified Person" under National Instruments 43-101 – Standards of Disclosure for Mineral Projects ("NI 43- 101"). Mr McLean consents to the inclusion in the report of the matters based on the information he has been provided and the context in which it appears.

Appendix 1: Location of Reported Mabilo Drill Holes

No drilling conducted during the quarter.

Appendix 2 – Schedule of interests and location of Tenements

Tenement reference	Location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
Application for Mineral Production Sharing Agreement APSA-V-002	Philippines	RTG's interest is held through its interest in its associate entity, Mt. Labo Exploration and Development Corporation.	40%	40%
MLC MRD 459	Philippines		40%	40%
Exploration Permit ("EP") 014- 2013-V	Philippines		40%	40%
EXPA-0000209-V	Philippines		40%	40%
EXPA-000188-V	Philippines		40%	40%
Exploration Permit Application ("EXPA") 118-XI	Philippines	RTG's interest is held through its interest in its associate entity	40%	40%
APSA-003-XIII	Philippines	Bunawan Mining Corporation.	40%	40%
EXPA-037A-XIII	Philippines		40%	40%
EP 033-14-XIII	Philippines	(EP 033-14-XIII is subject to 1st Renewal)	40%	40%
EP-001-06-XI	Philippines		40%	40%
EP-01-10-XI	Philippines	RTG's interest is held through its interest in its associate entity Oz Metals Exploration & Development Corporation.	40%	40%
EP-02-10-XI	Philippines	(Both EP-02-10-XI and EP-01-10- XI are subject to 2nd Renewal)	40%	40%
EXPA-123-XI	Philippines		40%	40%