N@N

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2010) - Merit Mining Corp. (TSX VENTURE:MEM) (the "Company") has closed the first tranche of a previously announced private placement by the Company to Hong Kong Huakan Investment Co., Limited ("Huakan"). The first tranche is comprised of 19,000,000 common shares, priced at $0.50 per share, for gross proceeds of $9,500,000. A finder's fee, comprised of a cash payment of $190,000 and 190,000 common shares of the Company, has been paid. In addition, a finder's warrant has been issued for 950,000 common shares, exercisable on or before May 12, 2011, at an exercise price of $0.50 per share. All securities issued pursuant to the first tranche of the private placement are subject to a four month hold period until September 13, 2010.

Under the terms of the subscription agreement with Huakan, a second tranche investment of $6,000,000, priced at $0.67 per common share, will be completed on or before June 30, 2010.

Proceeds of the first closing will be used to: (i) pay $355,000 to unsecured creditors in connection with the Company's proposal under the Bankruptcy and Insolvency Act (Canada); (ii) repay all outstanding principal and accrued interest totalling $4,371,849.96 to extinguish debt owed to Wega Mining AS and Munday Home Sales Ltd.; (iii) pay accrued and unpaid interest in arrears of $441,520.55 to the holders of debentures (the "Jory Debentures") issued pursuant to the Trust Indenture dated July 21, 2008 between Merit and Computershare Trust Company of Canada. The balance of proceeds will be used to advance the Greenwood Gold project, located near Greenwood, BC and the J&L project, located near Revelstoke, BC, and for general corporate purposes.

In addition, the Company has amended the Jory Debentures to: extend the maturity date to July 21, 2014; modify the conversion terms so that they are convertible at $20.00 per share in the fourth and fifth year, with no convertibility in the sixth year; and modify the redemption terms to delete the 5% redemption premium set out in the Trust Indenture.

In connection with the investment by Huakan into Merit, the Company is continuing to restructure its board of directors. Effective today, Mr. Shicheng Song, a nominee of Huakan, has been appointed as a director, replacing Mr. Courtney Shearer, who has stepped down as a director. Mr. Shearer has agreed to act as a consultant to the board. Mr. Song has 28 years experience in accounting, financing and management and currently serves as the manager of the finance department for Tianjin Huakan Group Co., Ltd.

The board has also appointed Mr. Yuandong (Jeffrey) Ren as Chief Financial Officer and Corporate Secretary of the Company. Mr. Ren holds an MBA from Tianjin University of China and has 17 years of experience in financial management, direct investment and fund management and investment banking.

At the upcoming Annual General Meeting of Shareholders of Merit to be held on June 30, 2010, a third nominee of Huakan will be proposed for election to the board of directors.

Deli Tian, Executive Director of Hong Kong Huakan Investment Co., Limited, said, "Huakan is very pleased to be making its first investment in Canada and looks forward to a long and bright future for Merit."

Fred Sveinson, President and CEO of Merit, states: "The closing of this initial investment by Huakan into Merit signals the start of what we believe will be a long and successful partnership. We look forward to working with Huakan to continue re-building Merit."

Merit Mining Corp.

Fred Sveinson, President & CEO

CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION

Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning: the disclosed use of proceeds. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

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