Beaufield Responds to Misleading Press Release Issued by Deluce/Shanghai Huaxin Group - Seite 2

Beaufield's Board of Directors and management are confident that the Deluce/Shanghai Huaxin Group's allegations contained in their press release are baseless. As the Deluce/Shanghai Huaxin Group is attempting to remake Beaufield's Board of Directors and take control of the company, shareholders are entitled to understand the Deluce/Shanghai Huaxin Group's strategy and to carefully consider how it differs from that of the current Board and management. This is especially the case as two of the Deluce/Shanghai Huaxin Group's nominees have supported management's direction to date, and a third has persistently refused to exercise preemptive rights that could have represented a source of funding independent of the funding about which the Deluce/Shanghai Huaxin Group now complains.

Beaufield just closed a $6 million financing and now has approximately $8 million in cash, together with a key, strategic mineral property in the newly developing and exciting Windfall gold camp. Beaufield's management has also the support of one of Canada's leading mineral exploration companies, Osisko Mining Inc.

The stealth attack by the Deluce/Shanghai Huaxin Group represents an opportunistic effort by a group with no meaningful mining experience to take control of Beaufield without paying a premium. The Deluce/Shanghai Huaxin Group's last minute gambit was timed to deny our shareholders, who had no knowledge of the Deluce/Shanghai Huaxin Group's effort to replace the Board, a meaningful opportunity to vote.

Beaufield asks our shareholders to elect, at Beaufield's February 27, 2017 annual meeting, the slate of directors nominated for election by the Board of Beaufield. Beaufield's proposed slate offers the best chance for the continuity of successful mineral exploration in Québec and Ontario. Beaufield's proposed slate has practiced appropriate corporate governance at all times, safeguarding the interests of, communicating with, and managing on behalf of all shareholders, and it will continue to do so. The directors on the slate nominated for election by the Board of Beaufield have individually demonstrated successes, and through their involvement over time have been responsible for the successes of several companies. They merit your continued support.