Mr. John Costigan reports

ELECTRA STONE LTD. CLOSES $500,000 PLACEMENT

Electra Stone Ltd.'s non-brokered private placement as reported in a news release dated Dec. 31, 2015, has closed. The company has closed the private placement of 6,036,868 units at 8.3 cents per unit for gross proceeds of $501,060.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common warrant share of the company at a price of 20 cents per share for a period of 24 months following the date of closing.

All of the securities issued under the private placement will be subject to a four-month hold period from closing.

The company paid cash finders' fees totalling $8,763.80 in connection with the private placement and issued broker warrants exercisable into a total of 105,600 common shares in the capital of the company for a period of 24 months from the closing date at an exercise price of 20 cents per share.

Of the 6,036,868 common shares issued, 500,000 have been issued to Zimtu Capital Corp., an insider of Electra.

The proceeds of this private placement are for the company's operations, Nephrite project development and general corporate purposes.

John Costigan, president and chief executive officer, commented, "I believe that the popularity of this financing demonstrates the strength of Electra's offering in these difficult markets."

We seek Safe Harbor.