September 16, 2019, Vancouver, B.C. — Para Resources Inc. (the “Company” or “Para”) is pleased to announce that it has arranged a non-brokered private placement (the “Private Placement”) for total gross proceeds of up to C$10,000,000. The Private Placement will consist of up to 100,000,000 units at a price of C$0.10 per unit (each a “Unit”). Each Unit is comprised of one common share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company for a period of 24 months 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. Proceeds of the Private Placement will be used for general corporate and working capital purposes and work related to the Company’s projects.

Existing directors and officers of Para are expected to participate in the Private Placement. Participation of insiders of the Company in the Private Placement constitutes a related-party transaction as defined under Multilateral Instrument 61-101. Because the Company’s shares trade only on the TSX Venture Exchange, 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 pursuant to Subsection 5.7(a) of MI 61-101.

The Private Placement is subject to TSX Venture Exchange (“TSXV”) approval. Para may pay finder’s fees to eligible finders, as permitted by applicable securities laws and the rules of the TSXV.

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