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PolyMet Reports Results for Year Ended December 31, 2018

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PolyMet Mining Corp. ("PolyMet" or the "company") TSX: POM; NYSE
American: PLM – today reported that it has filed its financial results
for the year ended December 31, 2018. PolyMet is fully permitted to
construct and operate the NorthMet copper-nickel-precious metals mine
and processing plant located near Hoyt Lakes, Minnesota.

The financial statements have been filed at www.polymetmining.com
and on SEDAR and EDGAR and have been prepared in accordance with
International Financial Reporting Standards. All amounts are in U.S.
dollars. Copies can be obtained free of charge by contacting the
Corporate Secretary at First Canadian Place, 100 King Street West, Suite
5700, Toronto, Ontario M5X 1C7 or by e-mail at info@polymetmining.com.

Highlights and recent events for 2018 and 2019
to-date

  • In March 2019, the company received the federal Record of Decision and
    wetlands permit from the U.S. Army Corps of Engineers, which is the
    last key permit or approval needed to construct and operate the
    NorthMet Project.
  • In March 2019, the company and Glencore AG ("Glencore") agreed to
    extend the term of the outstanding debentures to provide the company
    time to prepare for and complete a rights offering by June 30, 2019,
    fully backstopped by Glencore, to raise sufficient funds to repay all
    outstanding debt.
  • In December 2018, the company received all Minnesota Pollution Control
    Agency permits for NorthMet for which the company had applied,
    including air and water permits.
  • In November 2018, the company received all Minnesota Department of
    Natural Resources permits for NorthMet for which the Company had
    applied, including the Permit to Mine, dam safety and water
    appropriations permits.
  • In June 2018, the company and U.S. Forest Service completed the
    federal land exchange giving PolyMet title and control over both
    surface and mineral rights in and around the NorthMet ore body.
  • In March 2018, the company issued an Updated Technical Report under NI
    43-101 incorporating process improvements, project improvements and
    environmental controls described in the Final Environmental Impact
    Statement and draft permits. The update also included detailed capital
    costs, operating costs, and economic valuations for the mine plan
    being permitted, as well as a discussion of potential future
    opportunities.

Goals and objectives for the next twelve months
PolyMet's
objectives include:

  • Maintain political, social and regulatory support for the project;
  • Complete project optimization plan;
  • Complete project implementation plan;
  • Strengthen balance sheet through restructuring or repaying outstanding
    debt; and
  • Execute construction finance, subject to typical conditions precedent.
 

Key Balance Sheet Statistics

(in ‘000 US dollars, except per share amounts)

 

December 31, 2018

 

December 31, 2017

Balance Sheet    
 
Cash & equivalents $ 13,857 $ 6,931
Working capital (see note) (225,359 ) (138,057 )
Total assets 485,629 409,042
Total liabilities 300,587 210,367
Shareholders' equity   $ 185,042     $ 198,675  
Note: Maturity dates for the convertible and non-convertible
debentures were extended to provide time to complete a rights
offering to raise sufficient funds to repay all outstanding debt.
Glencore has agreed to fully backstop the rights offering.
 

Key Income and Cash Flow Statement
Statistics

(in ‘000 US dollars, except per share amounts)

Twelve months ended
December 31, 2018

 

Eleven months ended
December 31, 2017

Income and Cash Flow Statement  
 
General & administrative expense $ 7,070 $ 6,125
Other Expenses:
Finance & Other 544 404
Non-cash rehabilitation accretion 1,796 1,776
Non-cash loss on fair value update 971 -
Non-cash loss on debenture modification 4,109 -
Non-cash loss on disposals     553     1,793
 
Loss for the period: 15,043 10,098
Other Comprehensive (Income) - 202
 
Loss per share     0.05     0.03
Investing Activities
NorthMet Project   $ 57,353   $ 21,669
 
Weighted average shares outstanding

 

320,495,981

 

318,891,961

 
  • Loss for the twelve months ended December 31, 2018, was $15.0 million
    compared with $10.1 million for the prior year period. Excluding
    non-cash compensation, general and administrative expenses for the
    twelve months ended December 31, 2018, were $5.3 million compared with
    $4.8 million for the prior year period.
  • PolyMet invested $57.3 million cash into its NorthMet Project during
    the twelve months ended December 31, 2018, compared with $21.7 million
    in the prior year period. The current year includes $21.1 million in
    wetland credit purchases and $10.0 million to fund the environmental
    rehabilitation trust required under the Permit to Mine.

About PolyMet
PolyMet Mining Corp. (www.polymetmining.com)
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 processing facility, located approximately seven rail miles from
the ore body in the established mining district of the Mesabi Iron Range
in northeastern Minnesota. Poly Met Mining, Inc. has completed its
Definitive Feasibility Study and received all permits necessary to
construct and operate the NorthMet Project. 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
economy.

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 December 31,
2018, and in our other filings with Canadian securities authorities and
the U.S. Securities and Exchange Commission.

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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