Elkwater Resources Ltd. Announces Details of Rights Offering

CALGARY, ALBERTA--(Marketwired - July 31, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Elkwater Resources Ltd. ("Elkwater" or the "Corporation") (TSX VENTURE:ELW) is pleased to announce that it has set August 14, 2014 (the "Record Date") as the record date for the previously announced rights offering (the "Rights Offering") to the holders of common shares of Elkwater ("Common Shares"). Pursuant to the Rights Offering, each holder of Common Shares on the Record Date will receive one transferable right (a "Right") for every Common Shares held. Every four Rights will entitle the holder to purchase one Common Share at a price of $0.10 until the Rights expire at 4:00 p.m. (Calgary time) on September 30, 2014 (the "Expiry Date"). There is no additional subscription privilege and no standby commitment in respect of the Rights Offering. The completion of the Rights Offering is not subject to Elkwater receiving any minimum amount of subscriptions from shareholders.

The Rights Offering will be made in each of the provinces of Canada (other than Québec), and in such other jurisdictions where Elkwater is eligible to make such offering (the "Qualifying Jurisdictions"). Details of the Rights Offering are described in the Rights Offering Circular (as defined as below) to be mailed to shareholders in connection with the Rights Offering as soon as practicable following the Record Date.

The Corporation has applied to receive conditional approval from the TSX Venture Exchange (the "TSXV") for posting and listing the Rights and the Common Shares issuable thereunder, subject to the Corporation satisfying certain conditions pursuant to the policies of the TSXV.

Subject to the receipt of approval from the TSXV, the Common Shares are expected to commence trading on the TSXV on an ex-rights basis at the opening of business on August 12, 2014. This means that Common Shares purchased on or following August 12, 2014 will not be entitled to receive Rights under the Rights Offering. At that time, the Rights are expected to be posted for trading on a "when issued" basis on the TSXV under the symbol "ELW.RT". Trading of the Rights is expected to continue until 10:00 a.m. (Calgary time) on the Expiry Date.