Otterburn Provides Update on Financing and Meeting

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 3, 2016) -

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Otterburn Resources Corp. ("Otterburn") (TSX VENTURE:OBN) announces that, further to news releases of July 28, 2015, October 28, 2015, March 8, 2016 and March 11, 2016, Otterburn and K92 Mining International Limited ("K92") have closed the sixth and seventh tranches of the interim financing pending closing of their previously announced RTO.

To date, Otterburn has raised an aggregate of C$1,270,126 through the sale of 3,628,931 subscription receipts at $0.35 ("Subscription Receipts") via the sixth and seventh tranche closings and anticipates closing a final eighth tranche of the interim financing of $150,500 through the sale of 430,000 Subscription Receipts.

Otterburn issued 2,639,302 Subscription Receipts ($923,756) in the sixth tranche closing and 989,629 Subscription Receipts ($346,370) in the seventh tranche closing. Otterburn anticipates issuing 430,000 Subscription Receipts ($150,500) in a final eighth tranche closing expected to close on or about May 6, 2016.

Otterburn is undertaking the financing in conjunction with its proposed acquisition of K92 Mining International Limited ("K92"), (the "RTO"). Otterburn is raising private placement funding through the sale of Subscription Receipts, at $0.35 per receipt. Otterburn has and will advance the net subscription proceeds realized from the sale of majority of the Subscription Receipts to K92 as loans for financing its operations in Papua New Guinea pending closing of the RTO.

Each Subscription Receipt entitles the holder to automatically receive either:

1. one unit of Otterburn following closing of the RTO ("Units"); each Unit consisting of one common share of Otterburn, and one common share purchase warrant exercisable at C$0.50 for a period of 18 months from the date of issue; or
   
   
2. should the RTO fail to close by July 1, 2016, then either a return of the subscription proceeds or an interest in the loans made by Otterburn to K92.
   
   

Aggregate finder's fees of $10,412, 83,075 common shares and 112,825 finders' warrants have been paid in connection with the sixth and seventh tranche closings of the interim financing. Each finder's warrant is exercisable into one additional common share of Otterburn at a price of $0.50 for a period of 18 months after the closing of the Company's RTO.