Lincoln Grants Ausgold Resources Pty. Ltd. an Option to Enter into a Joint Venture FOR the Development of the Oro CRUZ GOLD Project

Suite 400 – 789 West Pender Street

Vancouver, BC

V6C 1H2

Tel: 604-688-7377

Fax: 604-688-7307

Web: www.lincolnmining.com

LINCOLN GRANTS AUSGOLD RESOURCES PTY. LTD. AN OPTION TO

ENTER INTO A JOINT VENTURE FOR THE DEVELOPMENT OF THE

ORO CRUZ GOLD PROJECT

May 16, 2017

Vancouver, British Columbia - Lincoln Mining Corporation, TSX-V: LMG ("Lincoln" or the

"Company") is pleased to announce that pursuant to a letter agreement dated May 9, 2017, the

Company, through its subsidiary, Lincoln Gold US Corp. ("Lincoln US "), granted Ausgold

Resources Pty. Ltd. ( "Ausgold") an option until June 30, 2017 to enter into a joint venture

agreement for the development of the Oro Cruz Property located in Imperial County, California

("JV Option" ). As consideration for g ranting the JV Option, Ausgold has paid Lincoln US

USD$7,500 and committed to purchasing USD$30,000 worth of securities in the Company’s

next private placement.

The JV Option is exercisable by Ausgold providing Lincoln US with notice that Ausgold is

satisfied with its due diligence investigation of Lincoln US's Oro Cruz Property and entered into

an option with a third party to acquire certain mineral claims referred to as the Hercules claims

in Imperial County, California.

If the JV Option is exercised, the joint venture will cover the Hercules claims and the 131 claims

held by Lincoln US as well as any mining interests or mineral properties acquired by either party

within five miles of the Lincoln US claims.

If the JV Option is exercised, the parties agr ee to negotiate a formal joint venture agreement

which will include the following:

(a) periodic payments to Lincoln US from June 30, 2017 until January 15, 2019 totalling

US$225,000 plus 200,000 shares of Ausgold (or an additional US$30,000 if Ausgold shares

are not publicly traded);

(b) expenditures of an aggregate of US$1,000,000 by January 15, 2019 on the claims covered

by the joint venture, with Ausgold as the operator;

(c) upon the above payments and expenditures being made, Ausgold will hold a 51% joint

venture interest and Lincoln US will hold a 49% interest;

(d) upon Ausgold earning a 51% joint venture interest, Ausgold shall have the right to increase

its interest in the joint venture to 75% by spending an additional US$1,100,000 on the joint

venture properties by January 15, 2020.

Lincoln is a Canadian precious metals exploration and development company , with interests in

the Pine Grove gold propert y in Nevada and the Oro Cruz gold property in California. In the

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United States, the Company operates under Lincoln Gol d US Corp. and Lincoln Resource

Group Corp., both Nevada corporations.

For further information, please contact Investor Relations at 604- 688-7377 or visit the

Company’s website at www.lincolnmining.com.

On behalf of Lincoln Mining Corporation

"Paul Saxton"

Paul Saxton, President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.