Rubicon Minerals Announces Extension of Loan Facility

Rubicon Minerals Corporation (TSX: RMX |OTCQX: RBYCF) ("Rubicon" or the "Company") announces that it has entered into an agreement to extend the maturity of its existing secured loan facility by one year to December 31, 2021.

Background

On December 20, 2018, CPPIB Credit Investments Inc. transferred its then $12.0 million secured loan facility with Rubicon to Sprott Private Resource Lending (Collector), L.P. ("Sprott"), with certain concurrent amendments agreed between Sprott and Rubicon (the "Loan Facility"). As consideration for amendments reflected in the Loan Facility, on December 20, 2018 the Company issued 800,000 warrants to Sprott which expire on December 31, 2020 and have an exercise price of $1.35/share.

Amended Loan Facility

On June 1, 2020, Sprott and Rubicon agreed to extend the maturity date of the Loan Facility by one year to December 31, 2021 subject to certain other amendments and conditions as more particularly described below (the "Amended Loan Facility").

As of June 1, 2020, the outstanding principal under the Amended Loan Facility is $14.2 million, reflecting accrued, deferred and capitalized interest on the original principal to such date, offset by a nominal pre-payment of principal. Under the amended Loan Facility, the interest rate will remain at 5% per annum until December 31, 2020 and thereafter will increase in two scheduled increments, resulting in an average interest rate to maturity of 9% per annum, as more particularly set out below.

As consideration for the extension of the maturity date and related other amendments in the Amended Loan Facility, Rubicon will pay down $43,909.91 of the principal amount of the loan and will pay Sprott two interest premium payments of $355,000; the first such payment to be made on or before June 16, 2020 by issuance of 217,791 common shares of the Company priced at $1.63, being the closing price on the TSX on May 29, 2020, subject to TSX approval (or cash in lieu if such shares cannot be issued) and the second, in cash, on the earlier of repayment of the Amended Loan Facility and December 31, 2020.

CEO's Comment

Rubicon President and Chief Executive Officer George Ogilvie, P.Eng., commented, "The completion of the feasibility study is an important milestone for the shareholders of Rubicon and we remain acutely focused on completing the feasibility study for the Phoenix Gold Project, which remains on schedule for delivery in H2/2020. The extension of repayment of our obligations under the Amended Loan Facility to December 31, 2021 provides the Company with greater financial flexibility to pursue its long-term funding requirements without the need for an equity financing at the current time; we currently have $13.5 million in cash at this time and are fully-funded to undertake our budgeted exploration program for 2020 and into 2021. The Amended Loan Facility is effectively a bridge facility towards a longer and more permanent capital structure to fund the anticipated capital program to be defined by the feasibility study. We would like to thank the team at Sprott for their continued support of Rubicon and the Phoenix Gold Project."

About Rubicon Minerals Corporation

Rubicon Minerals Corporation is an advanced gold exploration company that owns the Phoenix Gold Project located in the prolific Red Lake gold district in northwestern Ontario, Canada. Additionally, Rubicon controls the second largest land in Red Lake consisting of over 285 square kilometres of prime, strategic exploration ground, and more than 900 square kilometres of mineral property interests in the emerging Long Canyon gold district that straddles the Nevada-Utah border in the United States. Rubicon's shares are listed on the Toronto Stock Exchange (RMX) and the OTCQX markets (RBYCF). For more information, please visit our website at www.rubiconminerals.com.