Sierra Mining : RTG announces granting of the Bunawan Exploration Permit EP-033-0III

Level 2, 338 Barker Road

Subiaco WA 6008 Phone : [phone] www.rtgmining.com

ABN: 70 164 362 850

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RTG ANNOUNCES GRANTING OF THE BUNAWAN EXPLORATION PERMIT EP-033-XIII. ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE 20 AUGUST 2014

The Board of RTG Mining Inc. ("RTG", "the Company") (TSX Code: RTG, ASX Code: RTG) is pleased to announce the granting of Exploration Permit EP-033-XIII for the Bunawan Project in the Philippines.
The granted EP covers an area of 677 hectares in the Rosario area in Agusan del Sur, Mindanao (see Figure 1) and is in a similar geological setting as the adjacent high grade Co-O mine held by Medusa Mining Limited. Highlights of the approved EP area include:
 Previous site investigation programs over the area including detailed mapping, rock chip sampling, a ground magnetic survey and stream sediment sampling have identified several highly prospective areas and walk up drill targets including Mahunoc, Imbudo and Baleleng (see Figure 2).
 The geology of mineralisation is consistent with representing the very upper levels of an epithermal vein system similar to Co-O (historic production at an average grade of 10,93g/t Au1) and Diwalwal (production to date of approximately 2.7m ozs2) and is coincident with a 1.5km + 100 ppb gold in soil anomaly overlying a major structure along the diatreme margin. (see Figure 3).

 EP-033-XIII covers the eastern part of the Mahunoc diatreme dome complex and is contiguous with the significant artisanal mining area of Red Mountain (see Figure 1).

1 www.medusamining.com.au
2 www.pmdc.com.ph

Figure 1- Location Plan with Regional Geology Showing Both the Co-O and Mahunoc Diatreme Complexes Figure 2 - TMI Image of Ground Magnetic Data Figure 3 - Soil Sampling Data

Given the highly prospective nature of the EP, the Company is keen to commence a drilling program and is well positioned in the region in terms of both local community issues and near term access to drill rigs.

COMPETENT PERSON

The information in this report relating to exploration results, mineral resources or ore reserves is based on information provided to Mr Robert McLean by RTG Mining Inc. Mr McLean is an independent consultant geologist and is a corporate member of the Australian Institute of Mining and Metallurgy. Mr McLean has the relevant qualifications, experience, competence and independence to be considered an "Expert" under the definitions provided in the Valmin Code and "Competent Person" under the JORC Code. Mr McLean consents to the inclusion in the report of the matters based on the information he has been provided and the context in which it appears.

ABOUT RTG MINING INC

RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange Limited. RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the company to move quickly and safely to production.
RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.

ENQUIRIES

Australian Contact

President & CEO - Justine Magee
Tel: [phone]
Fax: [phone]
Email: [e-mail]

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. Accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG's mineral projects; the need to obtain additional financing to develop RTG's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG's mineral projects and other risks and uncertainties disclosed under the heading "Risk Factors" in RTG's Annual Information Form for the year ended 31 December 2013 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.

Appendix 1: JORC Code 2012 Edition Table 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.	The data reported includes the results of a minus 40 mesh soil sampling program. Samples were collected from the soil C horizon on the average at approximately 40 to 50cm depth below surface and submitted to the Intertek Laboratory in Manila where the minus 40 mesh (425µm) fraction was sieved for analysis. A quartz wash was conducted before each sample during the sample preparation and a new pot was used for each fire assay in order to minimise any potential contamination. Twenty field duplicate samples were included in the soil sample and show good correlation. Gold at higher levels show some variation but it does not affect the distribution or intensity of the Au anomalies identified. Field work reported herein includes the results of mapping a ground magnetic survey and soil sampling. No drilling has been conducted at Bunawan
Drilling techniques	 Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	No drilling has been conducted at Bunawan
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No drilling has been conducted at Bunawan.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.	No drilling has been conducted at Bunawan.
Sub- sampling techniques and sample	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	No drilling has been conducted at Bunawan. Soil samples were collected from the soil C horizon on average at approximately 40 to 50cm depth below surface and submitted to the Intertek Laboratory in Manila where the minus

Criteria	JORC Code explanation	Commentary
preparation	 For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	40 mesh (425µm) fraction was sieved for analysis. A quartz wash was conducted before each sample during sample preparation and a new pot was used for each fire assay in order to minimise any potential contamination. Twenty field duplicates were included in the soil sample program. Duplicates were treated in the same manner and sieved at the laboratory rather than in the field. Twenty field duplicate samples were included in the soil sample program. Duplicates were collected from separate but adjacent pits. Large samples (approx. 5Kg) were collected and sieved. The initial sample size is considered appropriate.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Gold analysis was by fire assay / AAS finish to a detection limit of 5 ppb. Silver [0.5], arsenic [3], copper [1], lead [3] and zinc [1] were assayed by aqua regia digest/ICP/MS to detection levels noted above in ppm. The techniques are considered total. No geophysical tools were used for any analysis conducted. Field duplicates were collected during the soil sampling program. No blanks or standards were used. The laboratory conducted and reported its own internal standards.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	No drilling has been conducted or intervals reported at Bunawan. Data documentation, verification and storage is conducted in accordance with the Company's Standard Operating Procedures Manual and is stored in an appropriate database. No top cuts or averages have been conducted on any of the assay results.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	Soil sample sites and ground magnetic survey points were sited with a hand held GPS with an accuracy of+/- 5 metres which is considered appropriate for the exploration programs conducted. Co-ordinates are on a UTM Grid; WGS84 (52N). The Bunawan area is moderately hilly. Exploration work was conducted using commercially available 1:50,000 contoured topographic maps which is appropriate for the work reported.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity	Soil sampling was conducted on 100 x100m grid. The sample spacing is appropriate for the exploration program and anomaly continuity reported. No resources or reserves have been

Criteria	JORC Code explanation	Commentary
	appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	estimated. No compositing of intervals in the field have taken place.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	The sampling was conducted on a 100 x 100 m grid thus there is no bias in respect to the orientation of structures and geochemical anomalies. No drilling has been conducted at Bunawan.
Sample security	 The measures taken to ensure sample security.	Chain of custody is managed by the Company's employees. Soil samples were initially stored in the Company's compound and then transported by Company vehicles to a local transport company which transported the samples to the laboratory in Manila.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	The sampling techniques and QA/QC data are reviewed on an ongoing basis by Company management and independent consultants and are considered to be appropriate for the early stage of exploration reported.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	EP-033-XIII is a partial approval of the application for Exploration Permit of Bunawan Mining Corporation denominated as EXPA- 000037-XIII involving a 677 hectare portion of the 3,046.9 hectare applied area situated in Rosario, Agusan del Sur. The EP referred to in this announcement is granted for 2 years, with the option to renew for a further 4 years. RTG mining has a 40% ownership in Bunawan Mining Corporation. The tenure over the area reported in this announcement is a granted Exploration Permit and is considered secure.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	The exploration results reported are based on work done by Sierra Mining prior to its merger with the Company. There was no other exploration conducted at the project prior to Sierra's work apart from artisanal prospecting and small scale production.
Geology	 Deposit type, geological setting and style of mineralisation.	The results of exploration conducted to date indicate the potential for the discovery of sheeted epithermal quartz veins hosting gold and silver mineralisation associated with a structural

Criteria	JORC Code explanation	Commentary
zone along the margin of the Mahunoc diatreme.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	No drilling has been conducted at Bunawan..
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	No top or bottom cuts or averaging of assay data has been carried out. No metal equivalent grades are reported.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	No drilling has been conducted at Bunawan.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Maps summarising the results of the previous exploration are reported..
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	No drilling has been conducted at Bunawan.

Criteria JORC Code explanation Commentary

Other substantive exploration data

 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey

results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

A map summarising the results of a ground magnetic survey is included. The results of the survey (readings every 5m on 100m spaced north-south oriented lines) were reported to the ASX by Sierra Mining previously.

Further work  The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

 Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this

information is not commercially sensitive.

A drilling program is warranted, but the details of total metres and drill hole locations has not been finalised.