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MMA.V ·

Midnight Sun Mining Corp. Completes First Tranche of Private Placement

Financings

Midnight Sun Mining - Corporate Office

#615 - 800 West Pender Street, Vancouver, BC Canada V6C 2V6

Tel: +1 (604) 351-8850 Email: [email protected]

NOT FOR DISTRIBUTION TO THE UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES

Midnight Sun Mining Corp. Completes First Tranche of Private Placement

Vancouver, British Columbia, October 31, 2018 -- Midnight Sun Mining Corp. (the

"Company" or "Midnight Sun") (TSX -V: MMA) is pleased to announce the completion of the

first tranche of its previously announced non -brokered private placement by issuing

4,458,000 units (the "Units") at a price of $0.12 per Unit for gross proceeds of $534,960.

Each Unit consists of one common share ("Common Share") in the capital of the Company

and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to

purchase one Common Share of the Company for a period of twelve months from closing, at

an exercise price of $0.20.

The Company has agreed to pay finder’s fees of $26,236.80 in cash and 218,640 finder’s

warrants in connection with this tranche of the Private Placement. Each finder’s warrant

will entitle the holder to purchase one common share at a price of $0.20 for a period of

twelve months, expiring on October 31, 2019.

The net proceeds of the Offering will be used by the Company to fund exploration work on

its Zambian mineral properties as well as general working capital.

All securities issued pursuant to this tranche, including the Common Shares underlying the

Warrants, are subject to a statutory hold period which expires on March 1, 2019.

The completion of this private plac ement and the issuance of all Common Shares and

Warrants is subject to final acceptance by the TSX Venture Exchange.

Stock Options

The Company has extended the previously announced investor relation s agreement with

Kaye Wynn Consulting Inc. ("Kaye Wynn") for an additional 12 months. Kaye Wynn has been

extended for a period of twelve months at a rate of $1,500 (plus GST) per month. The

Company will also grant Kaye Wynn stock options to purchase 350,000 Common Shares at

$0.25 for a period of one year. The sto ck options shall vest in accordance with TSX Venture

Exchange policies relating to the granting and vesting of Investor Relations Stock Options.

The options are granted pursuant to the Company's Stock Option Plan and the contract may

be cancelled by either party with 30 days’ notice.

ON BEHALF OF THE BOARD OF MIDNIGHT SUN MINING CORP.

Brett A. Richards – President and Chief Executive Officer

For Further Information Contact:

Midnight Sun Mining - Corporate Office

#615 - 800 West Pender Street, Vancouver, BC Canada V6C 2V6

Tel: +1 (604) 351-8850 Email: [email protected]

Brett A. Richards Al Fabbro

President and Chief Executive Officer Lead Director

Tel: +1 905 449 1500 Tel: +1 604 351 8850

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 NEWS RELEASE.

These securities being offered have not been, and will not be, registered under the United States

Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the

United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S.

Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration

requirements. This release does not constitute an offer for sale of securities in the United States.