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SMY.V ·

Search Closes First Tranche of Priv Ate Placement and Extends Priv Ate Placement Offering

Financings

SEARCH MINERALS INC.

# 211, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 6w.searchminerals.ca .

E [email protected]

NEWS RELEASE

FOR IMMEDIATE RELEASE: May 5, 2017

SEARCH CLOSES FIRST TRANCHE OF PRIV ATE PLACEMENT AND EXTENDS

PRIV ATE PLACEMENT OFFERING

Vancouver, B.C. May 5, 2017 – Search Minerals Inc. (TSXV: SMY) (“ Search” or the “ Company”) is

pleased to announce the closing of the first tranche of its previously announced private placement. Further to its

news release dated March 20, 2017, the Company has comp leted the first tranche of its non-brokered private

placement (the “Offering”) raising gross proceeds of $325,994.94 by the issuance of 3,622,166 units (the

“Units”) at $0.09 per Unit. Each Unit consists of one common share in the capital of the Company (a “Share”)

and one-half of one share purchase warrant (a “Warrant ”). Each Warrant entitles the holder to purchase one

additional common share in the capital of the Company (a “Warrant Share”) at a price of $0.18 per Warrant

Share for a period of 12 months from the closing of the Offering.

All securities issued pursuant to the Offering are subject to a statutory hold period of four months plus one day

from the date of issuance, in accordance with applicable securities legislation.

The Company will use the proceeds from the Offering to complete a drilling program on the Deep Fox prospect

(formerly called Deepwater Fox ), to complete the environmental ass essment applications and for general

working capital requirements. The aggregate gross pro ceeds of the Offering will be allocated as 1) $ 1,000,000

for the environmental application process and general work ing capital, and 2) up to $ 2,060,000 will be used for

the Deep Fox drill program and other exploration in the District.

The Company also announces th at it has extended the closing of the Offe ring to June 5, 2017. Closing of the

Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory

approvals, including the approval of the TSX Venture Exchange.

A portion of the second tranche of the Offering may be completed pursuant to BC Instrument 45-534 -

Exemption from Prospectus Requirement for Certain Trades to Existing Security Holders and similar

instruments in other jurisdictions in Canada (the “E xisting Security Holder Exemption”). The aggregate

acquisition cost to a subscriber under the Existing Security Holder Exemption cannot exceed $15,000 unless that

subscriber has obtained advice from a re gistered investment dealer regardin g the suitability of the investment.

The Company has fixed March 16, 2017, as the record date for the purpose of determining existing shareholders

of the Company who are entitled to participate in the Offering pursuant to the Existing Security Holder

Exemption.

About Search Minerals Inc.

Led by a proven management team and board of direct ors, Search is focused on finding and developing

resources within the emerging Port Hope Simpson Critical Rare Earth Element (“ CREE”) District of South East

Labrador (the “District”). The Company controls a belt 70 km long a nd 8 km wide including its 100% interest

in the FOXTROT Project which is road accessible and at tidewater. Exploration efforts have advanced “Deep

Fox” and “Fox Meadow” as significant new CREE prospects ve ry similar and in close proximity to the original

FOXTROT discovery. While the Company has identified mo re than 20 other prospects in the District, its

SEARCH MINERALS INC.

# 211, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 6w.searchminerals.ca .

E [email protected]

primary near-term objective remains development of the FOXTROT deposit.

With proprietary processing technology now demonstrated at the pilot plant level and ongoing delineation of

additional prospects, the Company’s long-term goal is to ensure competitive-low cost production well beyond

the 14-year mine life contemplated in the prelimin ary economic assessment of FOXTROT completed in April

2016. The FOXTROT Project has a low capital cost to brin g the initial project into production ($152 M), a short

payback period and is scalable due to Search’s prop rietary processing technology. The preliminary economic

assessment is preliminary in nature and includes inferre d mineral resources that are considered too speculative

geologically to have the economic considerations applied to them that would enable them to be categorized as

mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. The

preliminary economic assessment includ es the results of an economic analysis of mineral resources. Mineral

resources are not mineral reserves and do not have demonstrated economic viability.

All material information on the Company may be found on its website at www.searchminerals.ca and on

SEDAR at www.sedar.com

About neo-CREOs (Adamas Intelligence – December 2016)

We consider neodymium, praseodymium, and dysprosium to be neo-CREOs and they are vital to NdFeB

magnets used widely in renewable power generation, elect ric mobility, and energy-efficient technologies. We

consider terbium to be a neo-CREO because upon experi encing shortages of dysprosium, consumers in the

magnet industry will rapidly consume available terbiu m supplies in its place for applications involving

renewable power generation, electric mobility and energy efficient technologies. Lanthanum is considered a

neo-CREO because it is widely used in catalytic converte rs and rechargeable batteries, and will be increasingly

used as a thermal stabilizer by producers of poly-viny l chloride (PVC) to minimize lead consumption and

improve the energy efficiency of PVC and other processing equipment.

For further information, please contact:

Greg Andrews

President and CEO

Tel: 604-998-3432

E-mail: [email protected]

Paul Snow

Investor Relations

Tel: 709-753-0794

E-mail: [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.

Not for distribution to U.S. Newswire Services of for dissemination in the Unit ed States. Any failure to comply

with this restriction may constitute a violation of U.S. securities laws.

Cautionary Statement Regarding “Forward-Looking” Information.

This news release includes certain "forward-looking information” and "forward-looking statements” (collectively

"forward-looking statements”) within the meaning of a pplicable Canadian and United States securities legislation

including the United States Private Securities Litigatio n Reform Act of 1995. All statements, other than

statements of historical fact, included herein, without limitation, statements relating the future operating or

financial performance of the Company, are forward-looking statements.

SEARCH MINERALS INC.

# 211, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 6w.searchminerals.ca .

E [email protected]

Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”,

“believes”, “intends”, “estimates”, “potential”, “possibl e”, and similar expressions, or statements that events,

conditions, or results “will”, “may”, “c ould”, or “should” occur or be achi eved. Forward-looking statements in

this news release relate to, among other things, comple tion of the Offering. Actual future results may differ

materially. There can be no assurance that such statemen ts will prove to be accura te, and actual results and

future events could differ materially from those antici pated in such statements. Forward-looking statements

reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of

assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to

significant business, economic, competitive, political and so cial uncertainties and contingencies. Many factors,

both known and unknown, could cause act ual results, performance or achievem ents to be materially different

from the results, performance or achievements that are or may be expressed or implied by such forward-looking

statements and the parties have made assumptions and estim ates based on or related to many of these factors.

Such factors include, without limitation, the risk that the Company is not ab le to find suitable investors for the

Offering or does not receive the approval of the TSX Venture Exchange. Readers should not place undue reliance

on the forward-looking statements and information contai ned in this news release concerning these times. Except

as required by law, the Company does not assume any obl igation to update the forward-looking statements of

beliefs, opinions, projections, or other factors, should they change.