CALGARY, ALBERTA--(Marketwired - June 28, 2016) - Canadian Spirit Resources Inc. ("CSRI" or the
"Corporation") (TSX VENTURE:SPI)(OTCBB:CSPUF) is pleased to announce that it has closed its previously announced
non-brokered private placement offering in two tranches. The private placement was comprised of a combination of 1,000,000 common
shares of the Corporation issued on a flow-through basis pursuant to the Income Tax Act ("Flow-Through Shares") at a
price of $0.10 per Flow-Through Share and 5,400,000 units of the Corporation ("Units") at a price of $0.10 per Unit. The
Flow-Through Share portion of the offering closed on June 1, 2016, and the Unit portion of the offering closed on June 27,
2016.
The Flow-Through Shares issued pursuant to this placement entitle, subject to various income tax considerations, Canadian
investors to a renunciation in 2016 of Canadian Exploration Expense expenditures to be made by CSRI up to December 31, 2017 equal
to 100% of their total subscription amount.
Each Unit consists of one common share of the Corporation and one-half of one common share purchase warrant
("Warrants"). Each whole Warrant entitles the holder to purchase an additional common share of the Corporation for a period
of one year at an exercise price of $0.10 per share.
Finder's fees of $15,000 were paid in connection with the closings.
All securities issued pursuant to the offering are subject to a restricted resale period under Canadian securities laws until
October 2, 2016 for the Flow-Through Shares and October 28, 2016 for the Units.
The offering was a related party transaction under Multilateral Instrument 61 - 101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101") as Richard Couillard, President and Chief Executive Officer of the Corporation
and Elmag Investments Inc., an insider and control person of the Corporation purchased 200,000 and 3,000,000 Units, respectively.
Following completion of the private placement, Richard Couillard owns 1,143,350 common shares of the Corporation or 0.75% of the
outstanding common shares of the Corporation and Elmag Investments Inc. owns 55,764,500 common shares of the Corporation or
36.54% of the outstanding shares of the Corporation.
The offering was exempt from the formal valuation and minority shareholder vote requirements of MI 61 - 101 as the fair market
value of the insider's participation in the offering did not exceed 25% of the Corporation's market capitalization. The
offering was approved by a majority of the members of the Board of Directors of the Corporation who had determined that they
would not participate in the offering.
The net proceeds of the offering are being used to gather reservoir information at the Corporation's c-69-H/94-B-1 well that
was drilled at Farrell Creek, British Columbia in the first quarter 2016, and for general corporate purposes.
At the c-69-H well, pressure recorders have been placed across three perforated zones in the Montney formation in order to
determine reservoir pressure. Given the low porosity nature of the Montney, the recorders will be retrieved after a full 60 day
build up period and analyzed at that time.
CSRI is a natural resource company focusing on the identification and development of opportunities in the unconventional
natural gas sector of the energy industry.
Information regarding CSRI is available on SEDAR at www.sedar.com or the
Corporation's website at www.csri.ca.
On behalf of the Board of Directors
CANADIAN SPIRIT RESOURCES INC.
Richard Couillard, President and Chief Executive Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF
THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE