Canadian Spirit Resources Inc. Announces Upsize of Previously Announced Private Placement and Change of Auditor

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CALGARY, Alberta, Oct. 20, 2020 (GLOBE NEWSWIRE) -- Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSXV:SPI) (OTCBB:CSPUF) is pleased to announce that, further to its press release dated October 9, 2020, it has increased the size of its previously announced non-brokered private placement offering of units of the Corporation ("Units") to up to $1,600,000 (the "Offering"). The Offering will be comprised of up to 32,000,000 Units at a price of $0.05 per Unit. The Offering is still anticipated to close by the end of October 2020.

Each Unit will consist of one common share in the capital of the Corporation (a "Common Share") and one-half of one Common Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one Common Share at a price of $0.08 for a period of two years after closing of the Offering.

The closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange (the "TSXV"). All the securities issued pursuant to the Offering will be subject to a four-month restricted resale period under Canadian securities laws.

The net proceeds of the Offering will be used for various field activities and initiatives, and for general corporate purposes.

It is anticipated that the Offering will be a related party transaction under Multilateral Instrument 61–101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") as Elmag Investments Inc. (Investissements Elmag Inc.), an insider and control person of the Corporation, has notified the Corporation that it intends to participate in the Offering. It is anticipated that the Offering will be exempt from the formal valuation and minority shareholder approval requirements of MI 61–101 as the fair market value of the insiders' participation in the Offering will not exceed 25% of the Corporation's market capitalization.

CHANGE IN AUDITORS

The Corporation announced today that PricewaterhouseCoopers LLP ("PwC") have, at the request of the Corporation, resigned as auditors of the Corporation, effective October 7, 2020. The Corporation further announced that the Board of Directors has appointed Crowe MacKay LLP ("CMK") as auditors of the Corporation effective October 7, 2020.