Rapier Announces Q1 Financial Highlights; Necessity for Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 25, 2017) - Rapier Gold Inc. (TSX VENTURE:RPR) ("Rapier" or the "Company") today announced, in connection with private placement previously disclosed on February 20, 2017 (the "Offering"), certain highlights from the Company's soon to be released first quarter financial statements.

Q1 Highlights:

• Continued to execute corporate strategy, with $464,083 spent on direct exploration at Pen Gold Project.
• Closing cash position of $46,577 with working capital deficit of $225,587.
• Incurred significant time and costs of $117,500 relating to a highly speculative transaction aggressively promoted by Delbrook Capital Advisors ("Delbrook").
  
  

Objectives 2017:

• Complete capital raise to fund corporate strategies as previously disclosed.
• Drilling and exploration programs to follow up on high grade gold results and test targets generated in 2016 programs.
• Focus exploration efforts on five specific target areas.
  
  

Mr. Roger Walsh, President and CEO of Rapier commented: "In the first quarter the Company was highly successful in continuing to carry out the Company's ambitious exploration program at the Pen Gold Project. The Company finished the quarter low on funds".

"Significant time and expense were involved in reviewing the ultimately ill-conceived transaction promoted by Delbrook. This transaction, which was reviewed by a Special Committee of the Board and its independent advisors, included terms which the Special Committee and the Board found to be not in the interests of Shareholders including, among others:

• the assumption of at least $3.179 million in environmental bonds;
• the involvement of a needless intermediary shell company which would dilute Rapier Shareholders and increase liabilities;
• the participation of a streaming and royalty company with terms that would be highly unfavorable to the Company and its Shareholders;
• no ability of the Company to do due diligence on the proposed shell company or the assets proposed to be acquired.
  
  

The Company granted the Delbrook supported proposal an exclusivity period, and three extensions, in order to propose a transaction which would be favorable to the Company and its Shareholders. This exclusivity period prevented the Company from pursuing its own financing initiatives for programs consistently outlined in the Company's public disclosure"