Item 8.01. Other Events.

On March 27, 2012, Mackinac Financial Corporation (the "Company") announced that it intended to conduct a $7 million rights offering pursuant to the Registration Statement on Form S-3 (Registration Number 333-180610), which was declared effective by the Securities and Exchange Commission on May 25, 2012. The Company subsequently filed a prospectus supplement with the Securities and Exchange Commission on May 31, 2012 pursuant to which the Company launched the rights offering.

At 5:00 p.m., Eastern time, on July 16, 2012, the offering period of the Company's previously announced rights offering expired. On August 2, 2012, the Company announced the results, indicating that its shareholders, including many of the the Company's officers and outside directors, exercised basic subscription and over-subscription privileges leading to a full allocation of the 1,217,390 shares available through the rights offering. Accordingly, the Company will issue shares to shareholders that exercised their basic subscription privileges as well as allocate shares to satisfy over-subscription requests made in the rights offering.

The Company will receive gross proceeds of approximately $7 million from the rights offering. Subscription rights that were not exercised by 5:00 p.m., Eastern time, on July 16, 2012 have expired.

This release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Copies of the registration statement and the related prospectus supplement, dated May 30, 2012, may be obtained without charge from the SEC's website at http://www.sec.gov.

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