Market Overview

Polymet Restructures Glencore Debt


Secures commitment for additional $80 million in debentures

Poly Met Mining Inc., a wholly-owned subsidiary of PolyMet Mining Corp.
(together "PolyMet" or the "company") TSX: POM; NYSE AMERICAN: PLM – has
negotiated a 12-month payment extension and reduction in interest rates
on approximately $152 million of debt owed to Glencore AG, a
wholly-owned subsidiary of Glencore plc. The company also secured a
commitment for an additional $80 million in debentures from Glencore
over the next 12 months to complete pre- and post-permitting work,
including detailed engineering and environmental cleanup, and to
purchase wetland credits.

The terms of the refinancing agreement result in:

  • extending the term of $152 million of outstanding secured convertible
    and non-convertible debentures to March 31, 2019, repayable at any
    time if it is prudent to do so. Convertibility of the relevant
    debenture also is extended to March 31, 2019 at the same conversion
    price of $1.2696 per share and has been approved by the NYSE American
    and TSX;
  • lowering the interest rate on the loans from 12-month US$ LIBOR plus
    15 percent to 12-month US$ LIBOR plus 10 percent; and
  • issuing 6,458,001 purchase warrants with an exercise price of $0.8231
    and an expiration date of March 31, 2019, which has been approved by
    the NYSE American and TSX. These replace 6,458,001 purchase warrants
    with an exercise price of $0.8231 that expired December 31, 2017.

The additional $80 million in debentures is on the same terms as the
existing non-convertible debt. These funds are to be drawn in five
tranches, each cancellable at the company's discretion, and may be used
to complete detailed engineering, purchase wetland mitigation credits
and conduct pre-construction work – all part of project development and
subject to applicable final permit decisions. The funding may also be
used to complete permitting and cover rehabilitation and other
environmental cleanup work such as asbestos abatement at the former LTV
Steel Mining Company plant site.

The last of the public comment periods for the state's draft permit
decisions closed March 16, 2018. The company is currently awaiting final
decisions for permits, which include water appropriations, dam safety,
water quality, air quality and the Permit to Mine.

"As we continue to progress through the permitting process, we
appreciate Glencore's continued financial and technical support for this
great project, which will produce essential metals including those
needed for renewable energy and electric vehicles," said Jon Cherry,
president and CEO.

About PolyMet

PolyMet Mining Corp. (
is a publicly traded mine development company that owns 100 percent of
Poly Met Mining, Inc., a Minnesota corporation that controls 100 percent
of the NorthMet copper-nickel-precious metals ore body through a
long-term lease and owns 100 percent of the former LTV Steel Mining
Company site, a large processing facility located approximately six
miles from the ore body in the established mining district of the Mesabi
Iron Range in northeastern Minnesota. The NorthMet Final Environmental
Impact Statement was published in November 2015, preparing the way for
decisions on permit applications. NorthMet is expected to require
approximately two million hours of construction labor, create
approximately 360 long-term jobs directly, and generate a level of
activity that will have a significant multiplier effect in the local

PolyMet Disclosures

This news release contains certain forward-looking statements
concerning anticipated developments in PolyMet's operations in the
future. Forward-looking statements are frequently, but not always,
identified by words such as "expects," "anticipates," "believes,"
"intends," "estimates," "potential," "possible," "projects," "plans,"
and similar expressions, or statements that events, conditions or
results "will," "may," "could," or "should" occur or be achieved or
their negatives or other comparable words. These forward-looking
statements may include statements regarding the ability to receive
environmental and operating permits, job creation, and the effect on the
local economy, or other statements that are not a statement of fact.
Forward-looking statements address future events and conditions and
therefore involve inherent known and unknown risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements due to risks facing PolyMet or due to actual facts differing
from the assumptions underlying its predictions.

PolyMet's forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements are
made, and PolyMet does not assume any obligation to update
forward-looking statements if circumstances or management's beliefs,
expectations and opinions should change.

Specific reference is made to risk factors and other considerations
underlying forward-looking statements discussed in PolyMet's most
recent Annual Report on Form 40-F for the fiscal year ended January 31,
2017, and in our other filings with Canadian securities authorities and
the U.S. Securities and Exchange Commission, including our Report on
Form 6-K providing information with respect to our operations for the
three and nine months ended October 31, 2017.

The Annual Report on Form 40-F also contains the company's mineral
resource and other data as required under National Instrument 43-101.

The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

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