Morumbi Announces Closing of $350,000 Debenture Financing

TORONTO, ONTARIO--(Marketwired - July 29, 2016) - Morumbi Resources Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") wishes to announce the closing of its non-brokered private placement offering (the "Offering") of 350 Units at a price of $1,000 per Unit, with each Unit consisting of $1,000 principal amount of convertible unsecured debentures (the "Debentures") of the Company due July 31, 2019 (the "Maturity Date") and 20,000 common share purchase warrants (the "Warrants") of the Company for aggregate gross proceeds of up to $350,000.

The Debentures will bear interest at the rate of 15% per annum, payable quarterly in arrears. Pursuant to the terms of the Debentures, and subject to customary adjustments, the subscribers may, at any time prior to the Maturity Date, convert all or any part of the principal amount outstanding under the Debentures into common shares in the capital of the Company (each, a "Share") at a conversion price of $0.05 per Share until July 31, 2017 and $0.10 per Share thereafter. Each Warrant can be exercised into Shares at an exercise price of $0.05 per Share until the Maturity Date.

The proceeds of the Offering will be used by the Company to finance the pursuit of accretive acquisition opportunities and for general corporate purposes. The Company will continue to update the market concerning potential acquisition activity as circumstances warrant.

All securities issued pursuant to the Offering are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation, expiring on November 30, 2016. Completion of the Offering remains subject to final acceptance by the TSX Venture Exchange

Certain insiders of the Company acquired Units under the Offering. The participation by such insiders is considered to be a "related party transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of such insider participation.

About Morumbi Resources

Morumbi is a public company focused on evaluating resource opportunities in Papua New Guinea. It also has a legacy light oil property in northwest Alberta. The Company trades on the TSX Venture Exchange under the symbol "MOC".