Rapier Gold Inc. Announces Private Placement to Continue Exploration Programs at Pen Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 20, 2017) -

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Rapier Gold Inc. (TSX VENTURE:RPR) (the "Company") is pleased to announce a non-brokered private placement of non-flow through units (the "NFT Units") and flow through units (the "FT Units") on a best efforts basis at a price of $0.10 per Non-Flow Through Unit (the "NFT Units") and $0.115 per Flow Through Unit (the "FT Units") for aggregate proceeds of up to $2,500,000 (the "Offering").

Each of the NFT units and FT Units will include a transferable common share purchase warrant that will entitle the holder to purchase one common share at an exercise price of $0.15 for a period of 24 months. The Company reserves the right to increase the size of the private placement or to modify the type, nature and/or price of the units for any reason. The Offering and any modification to it are subject to compliance with applicable securities laws and approval of the TSX Venture Exchange. The Company may pay finders' fees in accordance with the policies of the TSX Venture Exchange. The shares will be subject to a statutory four-month hold period. Secutor Capital Management Corp., as well as other parties, are acting as finders on this financing.

The proceeds from the issuance of the FT Units will be used to incur Canadian Exploration Expenses on the Issuer's Pen Gold Project located in the Province of Ontario, and the proceeds from the NFT Units will be used by the issuer for general working capital.

The results of the Company's summer exploration program and winter drilling program were summarized in detail in the Company's news release dated December 6, 2016.

Diamond drilling work permits are in place and Rapier has finalized a winter drill program of approx. 3,000 m in three areas of the Pen Gold Project;

• Area 1 - Nib Yellowknife Area - exploration extensions of anomalous values and determine what the width and possible strike length are, once attitude of mineralization is determined. 3-4 holes
  
  
• Area 2- Broadsword Area - Determine if grade and thickness warrant further work. 2-3 holes
  
  
• Area 3 - Talc Mine Area - 5-7 holes to explore extension of New Vein Zone from hole PG13-108
  
  
• Follow up for Areas 1 - 3. 10 holes; these will be allocated depending on results from the previous drilling. Targets along the Eastgate-Westgate and Porphyry trends will be investigated during the program and drill holes diverted there if warranted. The three areas are shown in Appendix 1.