Mr. John Kupice reports

H-SOURCE ANNOUNCES BROKERED PRIVATE PLACEMENT

H-Source Holdings Ltd. has engaged Mackie Research Capital Corp. as lead agent and sole bookrunner on a best-efforts, fully marketed basis for a private placement for a minimum of 6,666,667 common shares of the company at a price of 15 cents per common share to raise gross proceeds of up to $1-million. In addition, the agent has been granted an overallotment option exercisable 48 hours prior to the closing of the offering to increase the size of the offering by up to 15 per cent.

Proceeds from the offering will provide financing for general corporate purposes. The closing of the offering is expected to occur on or about the week of July 16, 2018. Closing is subject to a number of prescribed conditions, including, without limitations, approval of the TSX Venture Exchange. All the securities issued under the offering are subject to resale restrictions under applicable securities legislation.

Offering jurisdictions

The offering will take place by way of a private placement to qualified investors in such provinces of Canada as the agent may designate and otherwise in those jurisdictions where the offering can lawfully be made under applicable private placement exemptions.

Agent's compensation

On the closing of the offering, the company has agreed to pay to the agent, subject to certain exclusions, a commission equal to 7.5 per cent of the gross proceeds arising from the offering, including the exercise of the overallotment option (if applicable). At the closing of the offering, the company will also issue to the agent, subject to certain exclusions, non-transferable warrants exercisable at any time up to 18 months from closing, to acquire common shares from treasury in an amount equal to 7.5 per cent of the common shares issued pursuant to the offering, including the exercise of the overallotment option (if applicable).

About H-Source Holdings Ltd.

H-Source is a technology company operating within the health care industry through its wholly owned subsidiary, H-Source Inc. The company has developed a transaction platform that provides a private, secure and trusted marketplace for member hospitals to buy, sell and transfer excess inventory supplies and capital equipment with each other. Member hospitals can conduct secure transactions within integrated delivery networks, complete H-Source network or customize their own group hospitals using H-Source's built-in filters.

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