ST. PAUL, Minn.–(BUSINESS WIRE)–PolyMet Mining Corp (“PolyMet” or the “Company”) TSX: POM; NYSE MKT: PLM
– today reported that it has filed its financial results for the three
months ended April 30, 2017. PolyMet controls 100 percent of the
development-stage NorthMet copper-nickel-precious metals ore-body and
the nearby Erie Plant, located near Hoyt Lakes in the established mining
district of the Mesabi Iron Range in northeastern 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.
funds. 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 [email protected].

HIGHLIGHTS OF FISCAL 2017 AND FISCAL 2018
TO-DATE

• On March 3, 2016, the state determined that the Final Environmental
  Impact Statement addresses the objectives defined in the EIS scoping
  review, meets procedural requirements and responds appropriately to
  public comments. The 30-day period allowed by law to challenge the
  state’s decision passed without any legal challenge being filed. The
  Final EIS demonstrates that the NorthMet Project can be constructed
  and operated in compliance with environmental and human health
  standards.
• On June 2, 2016, the Company agreed to issue up to an additional $14.0
  million secured non-convertible debentures to Glencore AG, a wholly
  owned subsidiary of Glencore plc (together “Glencore”), to fund
  permitting and general corporate purposes. The debentures are on
  similar terms as the existing non-convertible senior secured
  debentures.
• On July 1, 2016, the Company repaid the $4.0 million initial principal
  loan from the Iron Range Resources and Rehabilitation Board.
• On July 11, 2016, the Company submitted applications for water-related
  permits required to construct and operate NorthMet.
• On August 2, 2016, the Company renewed its request for Water Quality
  Certification under Section 401 of the Clean Water Act.
• On August 24, 2016, the Company submitted the air quality permit
  application required to construct and operate NorthMet.
• In October 2016, the Company closed, in two tranches, a private
  placement of 40,074,418 units for gross proceeds of $30.055 million
  which included pro rata participation by Glencore.
• On November 3, 2016, the Company submitted the Permit to Mine
  application required to construct and operate NorthMet.
• On December 15, 2016, the Company received the American Exploration
  and Mining Association’s Environmental Excellence Award for its
  responsible development of the NorthMet Project.
• On December 20, 2016, the Memorandum of Agreement of the Section 106
  Consultation under the National Historic Preservation Act was signed
  by the statutory parties.
• On January 9, 2017, the USFS issued its Final Record of Decision
  authorizing the land exchange.
• Loss for the three months ended April 30, 2017, was $3.225 million
  compared with $2.352 million for the prior year period. General and
  administrative expenses for the three months ended April 30, 2017,
  excluding non-cash share-based compensation, were $1.128 million
  compared with $1.213 million for the prior year period. Other expenses
  were $1.957 million, including a one-time non-cash loss of $1.324
  million on the disposal of wetland credit intangibles, compared with
  $0.512 million for the prior year period.
• At April 30, 2017, PolyMet had cash of $11.865 million compared with
  $18.674 million at January 31, 2017. The Company is in discussion with
  Glencore regarding the convertible and non-convertible senior secured
  debentures currently due to be repaid upon the earlier of availability
  of construction finance or March 31, 2018.
• PolyMet invested $4.937 million cash into its NorthMet Project during
  the three months ended April 30, 2017, compared with $6.868 million in
  the prior year period.
• As of April 30, 2017, PolyMet had spent $121.547 million on
  environmental review and permitting, of which $115.096 million has
  been spent since the NorthMet Project moved from exploration to
  development stage.

GOALS AND OBJECTIVES FOR THE NEXT TWELVE MONTHS

The environmental review and permitting process is managed by the
regulatory agencies and, therefore, timelines are not within PolyMet’s
control. Given these circumstances, PolyMet’s objectives include:

• Completing the approved land exchange with the USFS and transferring
  of title to the surface rights over and around the NorthMet mineral
  rights to PolyMet.
• Obtaining a decision by the state on 401 Water Quality Certification
  and U.S. Army Corps of Engineers Final ROD and 404 wetlands permit
  under the Clean Water Act.
• Publication of draft state permits (Permit to Mine, air, water, dam
  safety and water appropriation permits) for public comment.
• Decisions on state permit issuances.
• Completion of definitive cost estimate and project update following
  permits.
• Completion of project implementation plan.
• Repayment, restructuring, and/or conversion of Glencore loans.
• Completion of construction finance plan including commitment of debt
  prior to the issuance of permits, subject to typical conditions
  precedent such as receipt of key permits.

“The state continues its careful and thorough review of the permit
applications PolyMet has submitted,” said Jon Cherry, president and CEO.
“In addition to responding to technical questions from the state and
federal agencies about the permit applications, we are focused on
conducting pre-construction engineering.”

More detail on the status of permit review can be found at: http://polymet.mn.gov/news.html.

Key Statistics

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

Balance Sheet						April 30, 2017			January 31, 2017
Cash & equivalents			$			11,865			$	18,674
Working capital						(103,419)				16,267
Total assets						391,972				389,049
Total liabilities						187,583				181,720
Shareholders’ equity			$			204,389			$	207,329
			Three months ended April 30,
Income Statement						2017				2016
General & administrative expense excluding non-cash share-based compensation			$			1,128			$	1,213
Non-cash share-based compensation						140				627
Other Expenses:
Finance & Other						633				512
Non-cash loss on disposal of intangibles						1,324				–
Loss before tax:						3,225				2,352
Other Comprehensive (Income)						(12)				(56)
Loss per share						0.01				0.01
Investing Activities
NorthMet Property			$			4,937			$	6,858
Weighted average shares outstanding			318,545,519						277,679,075

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 Erie Plant, 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. Poly Met Mining, Inc. has completed its Definitive
Feasibility Study. The NorthMet Final EIS 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 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 PolyMet’s most recent Annual
Information Form for the fiscal year ended January 31, 2017 and in other
filings with Canadian securities authorities and the U.S. Securities and
Exchange Commission, including the Company’s Form 6-K providing
information with respect to operations for the three months ended April
30, 2017, for a discussion of some of the risk factors and other
considerations underlying forward-looking statements. The Annual
Information Form 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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Contacts

PolyMet Mining Corp
Media
Bruce Richardson, +1
651-389-4111
Corporate Communications
[email protected]
or
Investor
Relations
Jenny Knudson, +1 651-389-4110
Investor Relations
[email protected]