Mr. John Costigan reports

ELECTRA COMPLETES FIRST TRANCHE OF PRIVATE PLACEMENT

Electra Stone Ltd. has closed the first tranche of the non-brokered private placement financing announced on May 19, 2016. Tranche one of the offering consisted of the sale of 4,332,882 shares at 8.5 cents for gross proceeds of $368,295. All securities issued pursuant to offering are subject to a hold period under applicable Canadian securities laws, which will expire four months plus one day from the date of closing of the private placement. The net proceeds from the offering will be used for general working capital purposes.

We seek Safe Harbor.