Black Bull Resources Inc.

Corporate Update

SURREY, BRITISH COLUMBIA--(Marketwired - March 26, 2017) -

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Black Bull Resources Inc. ("Black Bull") (TSX VENTURE:BBS.H) announces Black Bull has agreed to settle an aggregate of $78,778 (Cdn.) of debt owed to arm's length and related party creditors via the issuance of 716,164 common shares, at a deemed issue price of $0.11 per common share (the "Debt Settlement"). Of this amount, Black Bull will issue 488,891 common shares to Renewable Energy Minerals Limited ("REM"), an arm's length party, as settlement of $53,778 (Cdn.) previously lent to Black Bull by REM under the terms of the failed reverse take-over transaction, as previously announced on January 26, 2017. Black Bull will also issue 227,273 common shares to a related party director to settle an outstanding promissory note for $25,000.

In addition, Black Bull announces it has applied to the TSX Venture Exchange for approval to issue 296,572 common shares, at a deemed issue price of $0.15 per common share, as bonus shares ("Bonus Shares") in connection with loans to Black Bull totaling $222,428 (the "Loans") from a related party director in 2014 to 2017. The common shares are being issued pursuant to TSX Venture Exchange Policy 5.1 "Loans, Bonuses, Finder's Fee and Commissions", which provides that an issuer can issue bonus shares with a total market value of up to 20% of the value of a loan.

The Loans, which were originally unsecured, will become secured obligations of Black Bull with a general security agreement in favour of the holder over all of Black Bull's assets.

The proposed issuance of Bonus Shares and a portion of the Debt Settlement is a related party transaction in that David Wood is a director of Black Bull and the lender. Accordingly, the related party aspects of the transaction are subject to the requirements of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ("MI 61-101").

The board of directors considered the proposed issuance of common shares and passed a resolution approving the terms and conditions of the issuance, with the related party having abstained from the vote. In reviewing the terms of the transaction, management and the board also considered the requirements of MI 61-101. Sections 5.5 and 5.7 of MI 61-101 provide an exemption from the formal valuation and minority shareholder approval requirements if the fair market value of the transaction, insofar as it involves all interested parties, is less than 25 per cent of the issuers market capitalization at the most recent month ended, being February 28, 2017. Black Bull advises that the fair market value of all interested parties is $69,486, which is less than 25 per cent of the corporation's market capitalization, being approximately $454,266 as of the last trade on April 15, 2014.