October 25, 2019, Vancouver, B.C. — Para Resources Inc. (the “Company” or “Para”) is pleased to announce that it has closed $510,000 in the third tranche of the previously announced Private Placement of Units. The Company has issued 5,100,000 Common Shares and 5,100,000 share purchase warrants (each a “Warrant”). This brings the total raised in the first three tranches of this Private Placement to 95,448,706 Shares and 95,448,706 warrants for total combined proceeds of $8,544,871. Each Warrant entitles the holder to acquire one common share of the Company for a period of 2 years at a price of C$0.15, subject to an accelerated expiry if the closing trading price of the Company’s shares is greater than C$0.30 per share for a period of 10 consecutive trading days (the “Acceleration Event”). The Company will give notice to the holders of the Acceleration Event and the Warrants will expire 30 days thereafter.

Geoff Hampson, Para’s CEO, states, “We are pleased with the investor interest. We are expecting additional subscriptions over the coming week and will close the fourth and final tranche at the end of the month.”

Finders’ fees in cash and 318,500 non-transferable finder’s warrants (having the same terms as the private placement warrants) were issued to registrants in connection with this closing. All securities issued in the Private Placement are subject to a hold period of 4 months from closing.

The proceeds of the Private Placement are expected to be used for general corporate and working capital purposes and work related to the Company’s projects.

Because the Company’s shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101. The Company did not file a material change report 21 days before this second closing of the Private Placement because the Company wished to complete the Private Placement in a timely manner.

A copy of this news release can also be found on our SEDAR profile.

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