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{3945-001/01573946.DOC.2}

Trading symbol: TSX-V: RMO Trading Symbol: TSX-V: IBC

Frankfurt: EK7N-FF

News Release No: 3

News Release No: 27

International Bethlehem and Rainy Mountain Announce Option Agreement

West Vancouver, British Columbia – October 4, 2017 – International Bethlehem Mining Corp.

(“International Bethlehem”) and Rainy Mountain Royalty Corp. (“Rainy Mountain”) are pleased to

announce that the two companies have entered into an option agreement (the “ Option

Agreement”). Pursuant to the Option Agre ement, International Bethlehem has been granted the

option (the “Option”) to acquire an undivided 90% interest in certain mining claims , referred to as

the Powell Property, held by Rainy Mountain in Ontario, Canada (the “Property”), on the terms and

conditions of the Option Agreement and subject to the approval of TSX Venture Exchange (the

“Exchange”).

In order to exercise the Option and acquire an undivided 90% interest in the Property, International

Bethlehem is required to: (i) issue 2,000,000 common sh ares of International Bethlehem to Rainy

Mountain; and (ii) incur exploration expenditures in the aggregate amount of $1,000,000 on the

Property over a five year period commencing on the date the Exchange approves the Option

Agreement. Upon exercise of the Option, International Bethlehem and Rainy Mountain will, in good

faith, negotiate and enter into a joint venture agreement provided, however; that International

Bethlehem has the option to purchase the 10% interest retained by Rainy Mountain upon exercise

of the O ption in full in exchange for 1,000,000 shares of International Bethlehem and a 2% net

smelter royalty on the Property.

The Option Agreement is considered to be a non -arm’s length transaction and remains subject to

approval by the Exchange.

The Property was originally acquired in 2004 by Rainy Mountain and subsequently joint ventu red

with Mega Uranium Ltd. The P roperty has had extensive grids (over 110 km) and Induced

Polarization (“IP”) surveys, and a limited amount of drilling and trenching, which exposed a number

of gold showings. This work was carried out by Fairmont Resources (“Fairmont”). The most rec ent

drill program on the Property, also carried out by Fairmont, occurred in 2011 and yielded 2.91 gm

Au/1.55m and 8.45 gm Au/1.9 m (as reported in Fairmont’s news release of June 14, 2011). The IP

surveys have outlined 3 major shear zones which extend South West from the Ardeen Mine and

other shears extending from the Moss Lake gold deposit now being developed by a Wesdome

Gold Mines Inc. subsidiary, Moss Lake Gold Mines Ltd.

Furthermore, International Bethlehem is pleased to announce that the Exchange has granted it an

extension to file certain documents regarding its Tier 2 Continued Listing Requirements (the “Tier 2

CLR”). As disclosed Inte rnational Bethlehem’s news release dated June 28, 2017, the Exchange

had determined International Bethlehem did not meet the Exchange’s Tier 2 CLR. As a result, the

Exchange had given International Bethlehem until September 29, 2017 to submit documentation

{3945-001/01573946.DOC.2}

that it met the Tier 2 CLR requirements. This deadline has now been extended until November 29,

2017. The entering into of the Option Agreement will partially assist International Bethlehem in

fulfilling the Tier 2 CLR.

For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922-2030 or

visit International Bethlehem’s website at www.bethlehemmining.com or Rainy Mountain’s website at

www.rmroyalty.com.

INTERNATIONAL BETHLEHEM MINING CORP. RAINY MOUNTAIN ROYALTY CORP.

“Douglas L. Mason” “Douglas L. Mason”

__________________________ __________________________

Douglas L. Mason, CEO Douglas L. Mason, 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

This release includes certain statements that may be deemed “forward-looking statements ” within the meaning of

applicable securities legislation. All statements, other than statements of historical facts, that address such matters,

including the use of proceeds of the private placement, are forward -looking statements. Forward-looking statements are

generally, but n ot always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “suspects”, “intends”,

“estimates”, “projects”, ”targets”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”,

“could” or “should” occur . 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 may differ mate rially from those expressed in, or implied by, this forward looking information. Factors that could

cause actual results to differ materially from those in forward -looking statements include such matters as market prices

for the Company’s anticipated products, regulatory approvals require d for the Company’s business plans, continued

availability of capital and financing, and general economic, market or business conditions. Any forward -looking

statements are expressly qualified in their entirety by this cautionary statement. Forward-looking statements are based

on the beliefs, estimates and opinions of the Company’s management on the date such statements were made and are

subject to change after that date and the Company does not undertake any obligation to update publicly or revise any

forward-looking statements , whether as a result of new information, future events or otherwise , except as may be

required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in

the United States. The securities described herein have not been and will not be registered under the United States

Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a

U.S. person absent an exemption from the registration requirements of such Act.