Vancouver, British Columbia–(Newsfile Corp. – May 12, 2020) – Midnight Sun Mining Corp. (TSXV: MMA) (the “Company” or “Midnight Sun”) is pleased to announce a non-brokered private placement of up to 7,500,000 units (the “Units”) at a price of $0.135 per Unit for gross proceeds of $1,012,500 (the “Offering”). Each Unit will consist of one (1) common share (“Common Share”) in the capital of the Company and one (1) Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share of the Company for a period of twenty-four months from the closing of the Offering at an exercise price of $0.25. The Company intends to close the Offering as soon as practicable.

The net proceeds of the Offering will be used by the Company as general working capital.

The Offering, including the future issuance of the Common Shares and Warrants, is subject to the final approval of the TSX Venture Exchange. All securities issued will be subject to a hold period of four months and one day pursuant to applicable securities laws.

Investor Relations & Stock Option Grant

The Company has extended the investor relation services agreement with Kaye Wynn Consulting Inc. (“Kaye Wynn”). Kaye Wynn has been engaged for an additional one year period at a rate of $3,000 (plus GST) per month. The Company will also grant Kaye Wynn stock options to purchase 350,000 Common Shares at an exercise price of $0.135 per share for the term of their engagement. The stock 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.

Additionally, Midnight Sun has granted stock options to purchase an aggregate of 2,650,000 Common Shares of the Company, at an exercise price of $0.135 per share, to certain directors, officers, employees, and consultants. The stock options are granted pursuant to Midnight Sun’s 10% rolling stock option plan, are fully vested upon issuance, and shall expire five years from the date of issue.