Mr. Richard Whitehead reports

FUNDAMENTAL APPLICATIONS CORP. CLOSES NON-BROKERED PRIVATE PLACEMENT

Fundamental Applications Corp. has closed the non-brokered private placement initially announced on June 24, 2015.

The company raised $349,900 by issuing 1,749,500 units at a price of 20 cents per unit. Each unit consists of one common share and one whole warrant. Each warrant is exercisable at a price of 30 cents until Dec. 15, 2015. Upon exercise of a warrant, the shareholder will receive one common share and an additional half warrant. Each whole warrant will be exercisable to receive one common share at a price of 45 cents until Dec. 15, 2016. Finders' fees of $3,885 cash and 19,425 warrants were paid to Canaccord Genuity Corp., and $6,230 cash and 31,150 warrants were paid to Richardson GMP Ltd. Each of the warrants issued to the finders will be exercisable at a price of 30 cents until Dec. 15, 2015.

Richard Whitehead, chief executive officer and director, purchased 45,000 units under the terms of this placement. In addition, Arni Johannson, insider, purchased an additional 852,000 units.

Fundamental would also like to announce that it has settled debt in an aggregate amount of $200,000 in exchange for the issuance of one million units to an arm's-length vendor. The debt settlement will be based on a deemed price of 20 cents per unit. Each unit consists of one common share and one share purchase warrant, where each share purchase warrant is exercisable for one common share at a price of 30 cents until Dec. 15, 2015.

All securities issued in connection with the offering and the debt settlement are subject to a statutory hold period of four months plus one day from the date of issuance.

Proceeds from the offering will be used for general working capital and corporate purposes.

We seek Safe Harbor.