Mr. Matthew Watson reports

RIO CRISTAL ANNOUNCES SHAREHOLDER APPROVAL OF ALL MATTERS PRESENTED AT ITS SHAREHOLDERS MEETING

Rio Cristal Resources Corp. shareholders approved all resolutions presented at the annual general and special meeting of shareholders held on Feb. 27, 2015.

The shareholders of the company approved the following matters:

• The reappointment of Davidson & Company LLP, chartered accountants, as auditor of the company for the ensuing year;
• The setting of the number of directors at four;
• The ratification, confirmation and approval of the company's stock option plan;
• The election of Lenard Boggio, Purni Parikh, Robert Pirooz and Richard Warke to the board of directors of the company;
• The approval for settlement of debt accrued in the amount of $1,280,905.36 by the issuance of 25,618,106 units for debt (further information herein);
• The authorization and approval of a $200,000 private placement under which the company will issue four million units (further information herein).

Units-for-debt transaction

Shareholders approved the issuance of 25,618,106 units for debt with each debt unit composed of one common share and one common share purchase warrant, to settle an aggregate debt of $1,280,905.36 owing to Augusta Investments Inc. and Iris Consulting Ltd. A total of 25,618,106 debt units will be issued at a deemed price of five cents per debt unit. The debt warrants will have an exercise price of five cents per common share and will be exerciseable for a five-year term. Augusta and Iris each hold an equal amount of the company's debt. The debt transaction is subject to TSX Venture Exchange approval.

Private placement

Shareholders authorized and approved the $200,000 private placement financing under which the company will issue four million units at a deemed price of five cents per private placement unit. Each private placement unit will be composed of one common share and one common share purchase warrant. The private placement warrants will have an exercise price of eight cents per common share and will be exercisable for a three-year term. The private placement is conditional upon the successful completion of the debt transaction. Augusta, Hemisphere Holdings Ltd. and Ms. Parikh are participating in the private placement. Hemisphere Holdings is owned by Shimmer Trust, of which Mr. Pirooz, QC, is a beneficiary. The private placement is subject to TSX Venture Exchange approval.

Management appointments

The company also announces the reappointment of Matthew Watson as president and chief executive officer, the appointment of Margaret Brodie as chief financial officer, and the appointment of Amber Schaefer as corporate secretary.