Red Eagle Exploration Announces $20 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 19, 2017) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Red Eagle Exploration Limited (TSX VENTURE:XR) ("Red Eagle Exploration") is pleased to announce that a preliminary prospectus has been filed in connection with a marketed offering of units (the "Units"), at a price of $0.15 per Unit (the "Issue Price"), for aggregate gross proceeds of a minimum of $10 million and a maximum of $20 million (the "Offering"). The Offering will be co-led by Haywood Securities Inc. and National Bank Financial Inc. on behalf of a syndicate of agents including PI Financial Corp. (collectively, the "Agents"). Kallpa Securities Sociedad Agente de Bolsa S.A. will act as special selling agent solely in connection with the Offering in South America. Each Unit will consist of one common share in the capital of Red Eagle Exploration (a "Common Share") and one common share purchase warrant in the capital of Red Eagle Exploration (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common share (a "Warrant Share") at a price of $0.25 per Warrant Share for a period of 18 months following the closing date of the Offering.

In addition, Red Eagle Exploration has granted the Agents an option to purchase up to an additional 15% of the Units sold under the Offering at the Issue Price at any time until 30 days following the closing date. In the event that the maximum offering size is sold and the over-allotment option is exercised in its entirety, the aggregate gross proceeds of the offering will be up to $23 million.

The Units will be offered by way of a short form prospectus which has been filed in all of the provinces of Canada (other than Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended. Closing of the Offering is anticipated to occur on or about May 12, 2017 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.