Mr. Troy Cheeseman reports

DATA DEPOSIT BOX ANNOUNCES COMPLETION OF PRIVATE PLACEMENT RAISING AGGREGATE GROSS PROCEEDS OF $1,495,622

Data Deposit Box Inc., further to its press release dated Nov. 11, 2016, has completed its non-brokered private placement financing.

The company is pleased to announced that it has completed the second and final tranche of the offering effective today, issuing 14,469,498 units at a price of 5.5 cents per unit for gross proceeds of $795,822. The aggregate gross proceeds raised pursuant to the offering were $1,495,622 through the issuance of 27,193,134 units.

Each unit issued pursuant to the second tranche consists of one common share in the capital of the company and one common share purchase warrant, entitling the holder thereof to purchase one common share at a price of seven cents per common share for a period of 24 months from the date of issuance, provided, however, that should the closing price at which the common shares trade on the Canadian Securities Exchange (or any such other stock exchange in Canada as the common shares may trade at the applicable time) exceed 15 cents for 20 consecutive trading days at any time following the date that is four months and one day after the date of issuance, the company may accelerate the warrant term, such that the warrants shall expire on the date which is 30 calendar days following the date a press release is issued by the company announcing the reduced warrant term.

Certain eligible persons were paid a cash commission equal to 6 per cent of the proceeds raised from subscribers introduced to the company by such finder and also issued an aggregate of 255,188 finder warrants to finders, each finder warrant entitling the holder to acquire one common share at a price of 5.5 cents for a period of 24 months from the date of issuance, subject to the reduced warrant term.

The aggregate net proceeds from the raised from the offering will be used for marketing, product development, debt reduction and general operating expenses. All securities issued pursuant to the second tranche are subject to a statutory hold period expiring on April 29, 2017, in accordance with applicable securities legislation.

One director of the company participated in the second tranche, which participation constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the company nor, to the knowledge of the company after reasonable inquiry, the related party has knowledge of any material information concerning the company or its securities that has not been generally disclosed. The participants in the second tranche and the extent of such participation were not finalized until shortly prior to the completion of the second tranche. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the second tranche pursuant to a material change report filed at least 21 days prior to the completion of the second tranche.

About Data Deposit Box

Data Deposit Box, a pioneer of cloud backup and recovery technology, has set a new industry standard by providing the SMB market with the same level of security and protection that is available to large enterprises. Data Deposit Box's patented backup technology, known for its exabyte scalability, advanced data reduction capabilities and ease of use, has won prestigious industry awards and has been featured in many key industry publications.

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