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PHD.V ·

Providence Gold Mines Arranges Private Placement

Financings

Providence Gold Mines Arranges Private Placement

February 27, 2018 Trading Symbol: PHD

Vancouver, British Columbia – Providence Gold Mines Inc. (the “Company” or “Providence Gold”) is pleased to

announce that it has arranged a non-brokered private placement of up to $1,200,000 (the “Financing”) through

the issuance of up to 8,000,000 units (the “Units”) at a price of $0.15 per Unit. Each Unit will be comprised of

one common share and one-half of one common share purchase warrant (“Warrant”), with each whole

Warrant entitling the holder to purchase one common share of Providence Gold at a price of $0.25 per share

for a period of 2 years.

The Company may pay finders’ fees equal to 7% in cash and 10% in warrants for subscriptions as may be

attributable to such finders. Finders’ warrants issued to registered dealers or exempt market dealers will be

valid for a period of two years, with each warrant exercisable into one common share of the Company at a

price of $0.25 per share.

The net proceeds of the private placement will be budgeted as follows:

• $ 1,000,000 for exploration and drilling of up to 3050 meters of HG core drilling as recommended in the

recently-filed NI 43-101 report dated February 12, 2018 on the Providence Gold Mines property located

near Sonora, California ( see news release dated February 12, 2018 ). The program is designed to test

zones near surface and to depth and along strike to delineate new high grade shoots within the historical

past producing Providence group of gold mines which were shut down during profitable mining in 1916;

and

• The balance for working capital and general corporate purposes.

There is no material fact or material change about the Company that has not been generally disclosed.

The Financing is subject to Exchange acceptance.

ON BEHALF OF THE BOARD

“Ronald Coombes”

Ronald Coombes, President & CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

Robert Eadie: (604) 602-4935

Or Ronald Coombes: (604) 724-2369

[email protected]

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.

Suite 750 – 580 Hornby Street, Vancouver, B.C. V6C 3B6

Telephone: 604-602-4935  Fax: 604-602-4936

Website: www.providencegold.com