Mr. Normand Champigny reports

SPHINX CLOSES $1,402,810 HARD DOLLAR PRIVATE PLACEMENT FINANCING

Sphinx Resources Ltd. has closed a non-brokered hard-dollar private placement for aggregate gross proceeds of $1,402,810, including $804,110 from subscribers identified by Haywood Securities Inc. and $400,400 from four Quebec-based institutional funds:

• Caisse de depot et placement du Quebec (CDPQ) ($150,000);
• Capital croissance PME II sec (CCPME) ($100,200);
• Societe de developpement de la Baie-James (SDBJ) ($100,200);
• Societe d'investissement dans la diversification de l'exploration (SIDEX) ($50,000).

The private placement comprised 23,380,165 units of the corporation at a price of six cents per unit. Each unit consists of one common share in the capital of the corporation and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of nine cents per common share until Feb. 28, 2020. The securities of the corporation to be issued pursuant to the private placement are subject to a four-month hold period expiring June 29, 2017. Management and one director of the corporation subscribed for an amount of $15,300 of the private placement.

The net proceeds of the private placement will be used to finance the corporation's precious metals exploration projects (Cheechoo-Eleonore trend and Chemin Troilus in Eeyou Istchee James Bay and Green palladium in the Pontiac regional municipal county in southwestern Quebec) and for general working capital purposes. Financing for drilling the Calumet-Sud zinc project (next to the Green palladium project) will be provided solely by SOQUEM, Sphinx's partner on that project. SOQUEM can acquire a 50-per-cent interest in the project by carrying out exploration work totalling $450,000. The private placement has been conditionally accepted by the TSX Venture Exchange.

"We would like to thank Haywood, Quebec institutions, and our existing and new shareholders for their support. We are enthusiastic about the upcoming drilling programs on three separate projects: Calumet-Sud for zinc, Green palladium for palladium and Chemin Troilus for gold, and look forward to a steady flow of news for the balance of 2017," stated Normand Champigny, president and chief executive officer.

In connection with the private placement, the corporation has agreed to pay to certain finders a finder's fee of up to 7 per cent in cash, representing an aggregate amount of up to $60,992, and will issue 918,528 non-transferable finder's warrants, each such entitling the finder to acquire one common share at a price of nine cents per common share for a period of three years from the date of grant. This amount includes finder's fees of $50,702 paid to Haywood.

About Sphinx Resources Ltd.

Sphinx is engaged in the generation and acquisition of exploration projects in Quebec, Canada, which is recognized as an attractive mining jurisdiction worldwide. The corporation has 83.9 million shares outstanding, including 12 per cent held by insiders and 20 per cent by Quebec institutions.

We seek Safe Harbor.