Mr. Mark Elfenbein reports

SLYCE INC. TERMINATES SHORT-FORM PROSPECTUS OFFERING, ANNOUNCES PRIVATE PLACEMENT FINANCING AND CHANGE IN BOARD OF DIRECTORS

Slyce Inc. has elected not to proceed with its public offering of the units of the corporation. The financing was previously disclosed in the corporation's news release dated Dec. 1, 2015.

The corporation is pleased to announce its plans to raise up to $7-million through a non-brokered private placement of up to 70 million units of the corporation at a price of 10 cents per unit. Each unit consists of (i) one common share of the corporation; (ii) one-half warrant, with each whole warrant entitling the holder to purchase a common share for a period of three years from the closing date of the private placement, at an exercise price of 12 cents per common share; and (iii) one-half warrant, with each whole warrant entitling the holder to purchase a common share for a period of four years from the closing date, at an exercise price of 20 cents per common share.

The lead investor has the right to subscribe for up to $5-million in units, subject to the regulatory approvals of the TSX Venture Exchange. In advance and as part of the private placement, the lead investor has subscribed for an aggregate of $1.6-million in 6-per-cent interest-bearing unsecured promissory notes of the corporation, which notes shall be converted as a subscription for units pursuant to the terms under the private placement. Closing of the first $1.6-million of the private placement is expected on or before Feb. 12, 2016. Closing may occur in one or more tranches, with the remaining funds anticipated to close by the end of Feb. 2016. The securities to be issued in connection with the private placement are subject to a hold period of four months plus a day from the closing date, as required under applicable Canadian securities laws.

Kevin Taylor has decided to resign from the board for personal reasons. Mr. Taylor has served as a director of Slyce since June, 2014. The board is grateful for Mr. Taylor's valuable guidance, service and contribution to the corporation and wishes him continued success in his future endeavours. It is expected that Mr. Taylor's vacancy on the board will allow for the appointment of a strategic nominee of the lead investor. Such nominee is subject to the regulatory approvals of the TSX Venture Exchange and the board of Slyce acting reasonably.

The corporation intends to use the proceeds from the private placement for product development and enhancement purposes, general and administrative expenditures, and general corporate purposes. The private placement is subject to the approval of the TSX Venture Exchange.

We seek Safe Harbor.