Tawsho Mining Inc. Announces Closing of Previously Announced Private Placement and Grant of Stock Options

CONCORD, ONTARIO--(Marketwired - Aug 2, 2013) - Tawsho Mining Inc. (TSX VENTURE:TAW) ("Tawsho" or the "Corporation") announces it has completed a non-brokered private placement offering to arm's-length and non-arm's-length parties (the "Offering"), as announced in a previous news release dated June 18, 2013. Tawsho issued 1,600,000 flow-through ("FT") units at a price of $0.125 per unit, for proceeds of $200,000 and 1,000,000 hard dollar ("HD") units at a price of $0.10 per unit for proceeds of $100,000, for total gross proceeds of $300,000. Tawsho has 29,251,849 common shares issued and outstanding following completion of this private placement.

Each FT unit consists of one flow-through common share and one half of a common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one non-flow-through common share of Tawsho at a price of $0.20 per share for a period of two years from the date of issuance. Each HD unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of Tawsho at a price of $0.20 per share for a period of two years from the date of issuance.

Insiders of the Corporation subscribed for 81% of the Offering. No finder's fees were paid by the Corporation in respect of the Offering. All securities issued to purchasers under the Offering are subject to a four-month hold period expiring December 3, 2013, as required under applicable securities legislation and the policies of the TSX Venture Exchange.

The proceeds of the Offering will be used for the exploration and development of Tawsho's properties in Newfoundland and Quebec, and for general working capital.

Tawsho announces today that it has granted options to acquire up to 1,695,000 common shares to the Corporation's directors, officers and consultants.

The directors received 1,220,000 options, with 1,020,000 of the directors' options granted vesting immediately upon issuance, and with the remaining 200,000 directors' options vesting on the first anniversary of issuance. The options are exercisable at any time until the close of business on August 1, 2023 and have an exercise price of $0.11 per share, being yesterday's closing price of the common shares of the Corporation on the TSX Venture Exchange.

The President received 250,000 options, with the options vesting in three tranches on the first, second and third anniversary of the issuance of the options and are exercisable at any time until the close of business on August 1, 2023 and have an exercise price of $0.25 per share.

Consultants to the Corporation received 225,000 options, with the options vesting in three tranches on the first, second and third anniversary of the issuance of the options and are exercisable at any time until the close of business on August 1, 2023 and have an exercise price of $0.11 per share, being yesterday's closing price of the common shares of the Corporation on the TSX Venture Exchange.

The granting of these options is subject to the approval of the TSX Venture Exchange. Including this grant of options, there are currently options to acquire a total of 465,184 common shares outstanding pursuant to Tawsho's stock option plan.

Tawsho announces today that Rocco Pugliese has submitted his resignation from the Board of Directors of Tawsho effective immediately. The Board would like to thank Mr. Pugliese for his service as a director.

About Tawsho Mining Inc.

Tawsho is a mining exploration company focused on the acquisition, exploration and development of gold resources and advanced stage gold exploration projects. The Corporation is presently developing its Whisker Valley Property (comprised of 764 claims, covering an area of 19,100 hectares, or 191 sq. km) and its Cabot Property (comprised of 102 claims covering and area of 2,550Ha or 25.5sq. km) both located in Baie Verte Peninsula, Newfoundland and its Chevrier Property (comprised of 557 claims, covering an area of 9542 hectares, or 95.4 sq. km) located in the Chibougamau region of Quebec. Tawsho currently has approximately 29.3 million shares outstanding.

Neither the TSX Venture Exchange nor its Regulations Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.