Mr. Julio Benedetti reports

NEWS RELEASE ANNOUNCING LOAN AGREEMENT

Bellhaven Copper & Gold Inc. has reached an agreement in principle with the Toquepala Fund LP, the largest shareholder of the company, whereby the fund is to loan the company the sum of $350,000 (U.S.) pursuant to the terms of a convertible loan agreement to be entered into between the parties.

Under the terms of the loan agreement, which remains subject to the TSX Venture Exchange acceptance and execution of definitive agreements, the fund is to loan the company $350,000 (U.S.) for a term of nine months, with a right of the company to extend the term by two three-month periods on payment of an extension fee of 10 per cent of the then-outstanding principal. The loan is to bear interest at 10 per cent per annum, payable on maturity, and is to be secured by a charge over substantially all the assets of the company and its subsidiaries.

The loan is convertible into units of the company at a conversion price of 7.5 cents for the first year of the loan and at 10 cents if the loan is extended beyond 12 months, with each unit being composed of one common share of the company and one share purchase warrant exercisable at 7.5 cents for a term of five years.

The loan is to be applied to certain property payments and for general working capital purposes.

As a result of securing the loan, the company will not be proceeding with its private placement announced on Feb. 23, 2016.