Mr. Graham Downs reports

ATAC RESOURCES LTD. COMPLETES $3,250,000 FINANCING

Atac Resources Ltd. has closed the non-brokered private placement announced on April 19, 2016, consisting of the sale of five million flow-through common shares at 65 cents per share, for gross proceeds of $3.25-million.

"All proceeds will be used to finance phase I of the 2016 exploration program at the Rackla gold project and to significantly increase the scope of phase II exploration, which will be based on favourable phase I results," said Graham Downs, president and chief executive officer. "This financing allows ATAC to minimize the use of its $16-million treasury of hard dollars (non-flow-through dollars). With approximately $19-million now in its treasury, ATAC is well positioned to substantially advance the newly discovered Orion target and Airstrip anomaly during the 2016 field season."

2016 phase I exploration objectives:

• Approximately 30 rotary air blast (RAB) holes will be drilled to follow up on the 2015 discovery hole (ARB-15-026) at the Orion target which returned 3.79 grams per tonne gold over 47.24 metres (RAB drill hole intersections are drilled thicknesses, and true widths are unknown). This hole bottomed in gold mineralization with the last interval grading 2.56 grams per tonne gold over 1.52 metres.
• Permitting of a 69-kilometre tote road to the Rau trend and Tiger gold deposit will commence in the spring of 2016.
• Soil sample coverage around the open-ended, 10-square-kilometre Airstrip gold anomaly will be significantly expanded and all high-priority gold anomalies will receive detailed prospecting, trenching and mapping.
• Results and time-permitting RAB drilling will be carried out at the Airstrip anomaly.

The placement proceeds of $3.25-million will be used to incur Canadian exploration expenditures as defined in the Income Tax Act (Canada). All expenditures will be incurred by Dec. 31, 2016. All shares issued under the placement will be subject to a four-month hold period in Canada expiring on Aug. 23, 2016.

A finder's fee of 6 per cent of the gross proceeds ($3,185,000) raised by Secutor Capital Management Corp. of Toronto was paid to Secutor.

The technical information in this news release has been approved by Julia Lane, PGeo, vice-president of exploration for ATAC and a qualified person for the purposes of National Instrument 43-101.