Mr. Dennis Fong reports

TERAGO FILES PRELIMINARY SHORT FORM PROSPECTUS IN CONNECTION WITH BOUGHT DEAL OFFERING

TeraGo Inc., further to its previously announced bought deal offering on May 29, 2018, has entered into an underwriting agreement with a syndicate of underwriters led by TD Securities Inc., and including Cormark Securities Inc. and Desjardins Securities Inc., which have agreed to buy on a bought deal basis 1,133,000 common shares of TeraGo at a price of $5.30 per common share for gross proceeds of $6,004,900. In connection with the offering, the company has also filed a preliminary short form prospectus.

In addition, the company has also granted to the underwriters an overallotment option to purchase up to an additional 169,950 common shares, exercisable at any time up to 30 days after the closing of the offering, at a price equal to the offering price. In the event the overallotment option is exercised in full, the gross proceeds to TeraGo will be $6,905,635.

The offering is anticipated to close on or about June 18, 2018, and is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

The company intends to use the net proceeds of the offering to finance its acquisition of six 24-gigahertz spectrum licences for which it is currently leasing and any associated costs of such acquisition, as further disclosed in the preliminary prospectus.

The preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each province of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from TD Securities Inc., TD Tower, on the ninth floor, 66 Wellington St., Toronto, Ont., M5K 1A2 (e-mail at sdconfirms@td.com). A copy of the preliminary prospectus can also be obtained under the company's corporate profile on SEDAR. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final short form prospectus has been issued.

About TeraGo Inc.

TeraGo provides businesses across Canada with cloud, co-location and connectivity services.

We seek Safe Harbor.