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VANCOUVER, British Columbia, May 28, 2018 (GLOBE NEWSWIRE) -- Aton Resources Inc. (TSXV:AAN)
(“Aton” or the “Corporation") is pleased to announce that it has closed its non-brokered private placement of 43,493,858 units for
proceeds of $1,957,223.61 (the “Private Placement”). Sandstorm Gold Ltd. (“Sandstorm”) acquired 40,000,000 units in the Private
Placement for proceeds of $1,800,000. Additionally, Sandstorm paid Aton $300,000 for a 1% Net Smelter Royalty over the Abu
Marawat Concession Area (see news release dated May 9, 2018).
Each Unit consists of one common share in the capital of the Corporation (a “Common Share”) and one half of one
common share purchase warrant (each whole warrant a “Warrant”). Each Warrant is transferable and entitles the holder to acquire one
Common Share at a price of $0.08, until May 28, 2023. The Common Shares and the Warrants comprising the Units issued in the
Private Placement and any Common Shares issued on the exercise of the Warrants are subject to a four-month hold period, which ends
on September 29, 2018.
The net proceeds from the Private Placement will be used to fund continued exploration and development
activities at Aton’s Abu Marawat concession, located in Egypt. All currency amounts in Canadian dollars.
In connection with the closing of the Private Placement, the Corporation paid finder’s fees of 6% cash totalling
$6,210.00.
Aton’s President & CEO Mark Campbell commented, “We are extremely pleased to have Sandstorm
as an investor in Aton and believe that their involvement with Aton speaks to the quality of our team and our assets. The
funds from the Private Placement and Royalty will allow Aton to continue advancing and unlocking the value of the Abu Marawat
concession. Another notable development is the study commissioned by Egyptian President El Sisi, by Wood Mackenzie to review the
Egyptian Mining Law and regime and by August 2018 to make recommendations and a plan for implementation, to bring reform. In my 23
years of being involved with mining in Egypt, this is the first time that this has occurred.”
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider
Reporting Issues, Sandstorm acquired an aggregate of 40,000,000 common shares (“Aton Shares”) and 20,000,000-share purchase
warrants (“Aton Warrants”) of Aton. Sandstorm acquired the Aton Shares and Aton Warrants through the Private Placement.
With the acquisition of Aton Shares, Sandstorm now holds approximately 14.94% of the outstanding common shares.
Sandstorm is only entitled to exercise, from time to time, such number of Aton Warrants held by it such that, after the applicable
exercise, the number of Aton Shares then owned by Sandstorm and its affiliates shall not exceed 19.99% of the then issued and
outstanding Aton Shares.
The acquisition of the Aton Shares by Sandstorm was effected for investment purposes. Sandstorm may from time to
time acquire additional securities of Aton, dispose of some or all of the existing or additional securities it holds or will hold,
or may continue to hold its current position. Sandstorm has agreed not to dispose of any Common Shares or Warrants for a
minimum of twelve (12) months from the date of closing.
The early warning report, as required under National Instrument 62-103, contains additional information with
respect to the foregoing matters and will be filed by Sandstorm on Aton’s SEDAR profile at www.sedar.com.
About Aton Resources Inc.
Aton Resources Inc. (AAN: TSX-V) is focused on its 100% owned Abu Marawat Concession (“Abu Marawat”), located in
Egypt’s Arabian-Nubian Shield, approximately 200 km north of Centamin’s Sukari gold mine. Aton has identified a 40 km long gold
mineralized trend at Abu Marawat, anchored by the Hamama deposit in the west and the Abu Marawat deposit in the east, containing
numerous gold exploration targets, including three historic British mines. Aton has identified several distinct geological trends
within Abu Marawat, which display potential for the development of RIRG and orogenic gold mineralization, VMS precious and base
metal mineralization, and epithermal-IOCG precious and base metal mineralization. Abu Marawat is over 738km2 in size and
is located in an area of excellent infrastructure; a four-lane highway, a 220kV power line, and a water pipeline are in close
proximity.
For further information regarding Aton Resources Inc., please visit us at www.atonresources.com or contact:
Mark Campbell
President and Chief Executive Officer
Tel: +20227377274
Email: mcampbell@atonresources.com
Note Regarding Forward-Looking Statements
Some of the statements contained in this release are forward-looking statements. Since forward- looking statements address future
events and conditions; by their very nature they involve inherent risks and uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements. Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be
any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of
the securities in the United States of America. The securities have not been and will not be registered under the United States
Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to,
or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such registration requirements is available.