September 27, 2019, Vancouver, B.C. – Para Resources Inc. (the “Company” or “Para”) is pleased to announce that it has closed $7,464,870 in the first tranche of the previously announced Private Placement of Units at $0.10 per Unit. The Company has issued 74,648,706 Common Shares and 74,648,706 share purchase warrants (each a “Warrant”). 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.

Two insiders of the Company participated in the Private Placement and subscribed to 69,087,650 Units for proceeds of $6,908,765. On the non-insider subscriptions, finders’ fees in cash and 42,000 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 final tranche of the Private Placement is expected to close in the second week of October.

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.

Participation of insiders of the Company in the Private Placement constitutes a related party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). 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 day before this 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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