mgo announces terms of equity financing

Marengo Mining Limited ("Marengo" or the "Company") (TSX:MRN)(ASX:MGO)(POMSoX:MGO) is pleased to announce the terms of the best efforts offering (the "Offering") announced on March 13, 2012. The Offering is being led by Paradigm Capital Inc. ("Paradigm") and includes Casimir Capital Ltd. ("Casimir") (together, the "Agents").

The Company expects to raise gross proceeds of up to C$30,000,000 from the Offering.

The Offering will be by way of the issuance of Ordinary Shares but, may, in certain circumstances be by way of Units where each Unit will consist of one ordinary share (an "Ordinary Share") of the Company and one subscription receipt (a "Subscription Receipt"). Each Subscription Receipt will be automatically converted into one ordinary share of the Company upon receipt of shareholder approval required pursuant to the listing rules of the Australian Securities Exchange (the "Release Condition") at a shareholder meeting held no later than 35 days following receipt for the final prospectus.

The effective price per Ordinary Share under the Offering is C$0.25 (the "Effective Price").

Pending satisfaction of the Release Condition, that portion of the proceeds received in respect of the Subscription Receipts (the "Escrowed Proceeds") will be held in escrow. In the event that the Release Condition is not satisfied within 35 days following receipt for the final prospectus, the Escrowed Proceeds, plus interest thereon, will be returned to the holders of the Subscription Receipts.

The Company has also granted the Agents an over-allotment option (the "Over-Allotment Option") to purchase up to such number of additional Ordinary Shares (or Subscription Receipts) at the Effective Price as is equal to 15% of the aggregate number of Ordinary Shares and Subscription Receipts issued pursuant to the Offering. Subscription Receipts issued upon exercise of the Over-Allotment Option will only be converted into the underlying Ordinary Shares upon satisfaction of the Release Condition and on the same terms and conditions of the Offering.

The net proceeds from the Offering will be used to finalise Marengo's feasibility study ("FS"), advance the Company's district exploration program at the Yandera copper-molybdenum-gold deposit located in Madang Province, Papua New Guinea (the "Yandera Project"), as well as for permitting and other pre-construction expenditures relating to the Yandera Project and for general corporate and working capital purposes.

The Offering is subject to the approval of the Australian Securities Exchange, the Toronto Stock Exchange and applicable securities regulatory authorities.

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