Mr. Jason Parravano reports

FRONSAC REIT ANNOUNCES THE CLOSING OF A FINANCING

Fronsac Real Estate Investment Trust closed as of Nov. 20, 2017, a private placement of units for total proceeds of $6.5-million. The units were issued to investors pursuant to exemptions under Regulation 45-106 respecting prospectus exemptions.

Fronsac issued 13 million units at a price of 50 cents per unit for total proceeds of $6.5-million. The units are subject to a four-month-plus-one-day hold period from the closing date of the placement, expiring on March 22, 2018, pursuant to securities legislation and the policies of the TSX Venture Exchange.

The proceeds of the placement will be used for acquisitions and for working capital purposes.

Fronsac contracted the services of Paradigm Capital Inc., a qualified finder, in the course of the placement. In accordance with the agreement entered into between Fronsac and Paradigm, as well as in accordance with applicable regulations, Paradigm shall receive a finder's fee in the amount of $40,000, plus applicable taxes.

Insiders of Fronsac participated in the offering: Michael Zakuta through Z-Corp Financial 2007 Ltd. subscribed for 475,000 units, and Guy Laframboise through Laframboise Holding Inc. subscribed for 475,000 units. The percentages of Fronsac units now issued and outstanding held by Mr. Zakuta and Mr. Laframboise have changed to 7.6 per cent and 5.82 per cent, respectively.

About Fronsac Real Estate Investment Trust

Fronsac is an open-ended trust that acquires and owns high-quality triple-net and management-free commercial real estate properties.

We seek Safe Harbor.