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MMA.V ·

Midnight Sun Receives Phase One Assays

Corporate Updates

Midnight Sun Mining - Corporate Office

#1125 - 595 Howe Street, Vancouver, BC Canada V6C 2T5

Tel: +1 (604) 351-8850 Fax: +1 (778) 379-1434

Email: [email protected]

MIDNIGHT SUN RECEIVES PHASE ONE ASSAYS

Vancouver, British Columbia, August 27, 2018 – Midnight Sun Mining Corp. (the

“Company” or “Midnight Sun”) (TSX-V: MMA) is pleased to report initial results of its Phase

One 2018 exploration program on its Zambian copper -cobalt properties, the Solwezi Group

of Licences (“Solwezi Licences”) located in the North -Western province of Zambia . Phase

One work included 7 diamond drill holes totalling 1,503 meters and 234 air core holes

totalling 10,424 meters at the Mitu target , as well as ground and airborne ge ophysical

surveys.

The Company has received independent assay results for all submitted diamond drill holes.

Significant r esults from the diamo nd drill holes , as well as from air core drilling are

presented in the Table below.

Phase One – Mitu Area – Initial Significant Drill Hole Intercepts

Hole # Drill Type Mitu Area Az Dip From

(m)

To

(m)

Interval

(m)

Cu % Co % Ni % Cu Eq

%

MTDD035

Including

HQ Core Discovery 035 60 115.0

125.0

129.3

129.3

14.3

4.3

0.42%

0.51%

0.10%

0.28%

0.05%

0.11%

1.61%

3.73%

MTDD036 HQ Core Discovery 035 60 185.0 190.0 5.0 0.25% 0.04% 0.08% 0.87%

MTDD037

Including

Including

HQ Core Southeast 035 60 129.9

129.9

146.0

153.6

135.0

147.0

23.7

5.1

1.0

0.34%

0.64%

1.62%

0.04%

0.04%

0.10%

0.15%

0.32%

1.50%

1.11%

1.81%

6.05%

MTDD038

Including

HQ Core Southeast 035 60 101.8

104.0

123.0

111.0

21.2

7.0

0.28%

0.45%

0.05%

0.07%

0.03%

0.04%

0.88%

1.28%

MTAC198

Including

Air Core Northwest vertical 3.0

18.0

6.0

31.5

3.0

13.5

0.04%

0.22%

0.06%

0.05%

0.04%

0.05%

0.81%

0.81%

MTAC204

Including

Air Core Northwest vertical 1.5

3.0

49.5

24.0

48.0

21.0

0.14%

0.15%

0.07%

0.10%

0.05%

0.06%

0.96%

1.36%

MTAC212 Air Core Northwest vertical 3.0 12.0 9.0 0.03% 0.03% 0.06% 0.45%

MTAC224 Air Core Southeast vertical 19.5 28.5 9.0 0.05% 0.02% 0.04% 0.33%

MTAC236 Air Core Southeast vertical 45.0 52.5 7.5 0.05% 0.01% 0.05% 0.28%

Notes:

• Reported intervals are the downhole widths, which are similar to the true widths.

• Reported intervals are calculated for zones assaying > 0.2% copper or 0.02% cobalt and containing less than 2

meters of internal waste.

• Copper equivalent values are estimated using current metal prices of $2.73/lb copper, $29.26/lb cobalt, and

$6.03/lb nickel and are presented for ease of interval comparison only. Metallurgical r ecovery factors are

assumed to be 100% although the recovery factors for various metals may vary significantly.

DIAMOND DRILL PROGRAM

Drill holes MTDD035 and MTDD036 were drilled along a profile within the “Discovery Zone”

established in prior years ’ drilling. Drill hole s MTDD037 and MTDD038 were drilled 300

meters to the southeast where one hole drilled in 2017 had defined the southeast margin of

the “Discovery Zone.” These holes indicate continuity of significant copper-cobalt-nickel

mineralization between previous holes.

Midnight Sun Mining - Corporate Office

#1125 - 595 Howe Street, Vancouver, BC Canada V6C 2T5

Tel: +1 (604) 351-8850 Fax: +1 (778) 379-1434

Email: [email protected]

Drill holes M TDD039 and M TDD041 tested targets to the northwest and southeast of the

Discovery Zone i dentified by geo physical, soil geochemical and air c ore drill results. These

holes encountered barren lithologies suggesting structural dislocation in these areas .

Follow-up drilling is planned to determine the source of these anomalies.

The above drilling has shown that the Discovery Zone has a strike length of over 800 meters

and a down dip extension of 300 meters.

Drill hole MTDD040 tested a prominent geophysical anomaly 5 kilometers to the southeast

of the Discovery Zone , identified by geophysical work conducted in 2018 . This hole did not

return significant metal values, although it did encounter black shales, which are the typical

host rocks for the targeted mineralization and follow up drilling in this area is planned.

AIR CORE PROGRAM

234 Air Core holes totalling 10,424 meters have been drilled in 2018, with samples being

sent for independent assays on 99 of these holes with results received f rom 35 of these

holes to date. The primary purpose of this drilling was to locate areas of black shale lithology

with elevated base metal values beneath overburden to direct diamond drilling along the

>14 km of indicated strike length of the Mitu trend along the western flank of the Solwezi

Dome. Air Core holes also provide indications of possibly exploitable oxide mineralization

within the overburden.

A map of the 2018 drill locations can be found on the company website here.

GEOPHYSICAL SURVEY

While the Mitu area has limited surface rock exposure, the favourable black shale host rock

has demonstrated a response to Natural Sourced Audio Magneto Tellurics (“NSAMT”)

geophysics. T he anomalies detected by this system have proven important in developing

targets and directing drill holes , as the NSAMT data shows some of the structural fabric of

the bedrock geology and black shale uni ts. In 2018, an additional 34 line k ilometers of

NSAMT surveying have been conducted over the Mitu area and results from this work are

currently being analyzed and interpreted.

In addition, a 3,889 line kilometer geophysical airborne survey was flown over the entire

Solwezi License area by Geotech Airborne. The survey included the contractor’s proprietary

Versatile Time -Domain Electromagnetic ( “VTEM”) system, as well as horizontal magnetic

gradiometer and radiometrics instruments. The VTEM system is i deal for rapid mapping of

conductive units, such as the prospective black shales that host mineralization at Mitu. This

will help identify black shale basins that may be similar to the Discovery Zone. The

magnetics survey will help with structural mapping, as it responds to the subtly different

Midnight Sun Mining - Corporate Office

#1125 - 595 Howe Street, Vancouver, BC Canada V6C 2T5

Tel: +1 (604) 351-8850 Fax: +1 (778) 379-1434

Email: [email protected]

magnetic signatures of the rocks and the typically lower magnetic signature of faults. The

system should also respond to pyrrhotite, which is associated with copper -cobalt

mineralization. Finally, radiometrics has pr oven very useful in identifying the different

lithologies and will therefore, along with the magnetics and VTEM, help generate an

accurate geology map.

Once the resulting data has been received and compiled, the interpretation will guide the

next phase of drilling at Mitu and other tar get areas including Dumbwa, Kif ubwe, 22 Zone

and Khaziba where significant mineralization has been encountered in previous exploration

campaigns.

The Company’s President and Chief Executive Officer, Brett Richards stated: “ The results of

Phase One drilling continue to support the potential size and scale of the mineralization at

Mitu while also showing the continuity of mineralization in the Discovery Zone. I am excited

to receive the full interpretation of the geophysical work to pair with these assay results as

we plan for Phase Two of this year’s exploration.”

QUALIFIED CONTROL/QUALITY ASSURANCE

Samples obtained during both diamond drill and air core drilling were transported directly

to SGS Inspection Services in Kalulushi, Zambia by Midnight Sun personnel for sample

preparation. There the s amples were sorted, dried, crushed, and pulped before final

chemical analysis using ICP -OE methods. All samples returning >10,000 ppm Cu were

automatically re-assayed for higher level concentrations by SGS, which is a fully accredited

laboratory. Standards and blanks were inserted regularly in the sample stream and checks

were done for Au and Cu.

Qualified Person: Peter Flindell, MAusIMM and MAIG , a Qualified Person under NI 43 -101,

has reviewed and approved the technical data and contents of this release.

Please refer to the C ompany’s previous New Releases as well as the Company presentation

on its website at: www.midnightsunmining.com.

ABOUT MIDNIGHT SUN MINING

Midnight Sun has earned a 60% interest in the Solwezi Licences with the potential to acquire

the remaining 40%. The Solwezi Licences are comprised of two individual prospecting

licences totalling 506 square kilometres, situated in the North-Western Province of Zambia,

adjacent to First Quantum’s Kansanshi Mine; Africa's largest copper mining complex, on the

prolific Zambia-Congo Copper Belt.

Midnight Sun Mining - Corporate Office

#1125 - 595 Howe Street, Vancouver, BC Canada V6C 2T5

Tel: +1 (604) 351-8850 Fax: +1 (778) 379-1434

Email: [email protected]

Led by experienced directors and talented management, Midnight Sun aims to further

explore the impressive mineralization and anomalies that have recently been discovered on

the Solwezi Licenses.

Midnight Sun Mining Corp. trades on the TSX Venture Exchange under the symbol MMA.

ON BEHALF OF THE BOARD OF MIDNIGHT SUN MINING CORP.

Brett A. Richards – President and Chief Executive Officer

For Further Information Contact:

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 NEW RELEASE.

This news release includes certain statements that may be deemed "forward -looking

statements." All statements in this release, other than statements of historical facts, are

forward-looking statements. Although the Company believes the expectations expressed in

such forward-looking statements are based on reasonable assumptions, such statements are

not guarantees of future performance and actual results or developments may differ

materially from those in the forward -looking statements. F actors that could cause actual

results to differ materially from those in forward -looking statements include, changes in

market conditions, unsuccessful exploration results, changes in commodity prices,

unanticipated changes in key management personnel and general economic conditions.

Mining exploration and development is an inherently risky business. Accordingly, the actual

events may differ materially from those projected in the forward-looking statements. This list

is not exhaustive of the factors that m ay affect any of the Company's forward -looking

statements. These and other factors should be considered carefully and readers should not

place undue reliance on the Company's forward -looking statements. The Company does not

undertake to update any forward-looking statement that may be made from time to time by

the Company or on its behalf, except in accordance with applicable securities laws.