Mr. Gordon Ellis reports

LUPAKA GOLD ANNOUNCES CLOSING OF BRIDGE LOAN FINANCING

Lupaka Gold Corp. has closed the bridge loan financing previously announced on June 16, 2016, for the full $750,000.

Commented Gordon Ellis, president and chief executive officer, "The company is pleased that it has reached its bridge loan target of $750,000 with the assistance of Red Cloud KS."

Mr. Ellis further commented, "This financing will allow us to take care of time-sensitive obligations related to the development of the Invicta gold project."

The company has entered into loan agreements for an aggregate of $750,000 with a group of third party individuals and Mr. Ellis (chief executive officer), Darryl Jones (chief financial officer) and Stephen Silbernagel (director), who are company insiders (the lenders).

The company will pay finders' fees in cash to Red Cloud KS in connection with third party investors.

Pursuant to the closing of the loan, the company has agreed to issue to the lenders an aggregate of 3.75 million non-transferable warrants, such number being equal to the amount of the loan divided by 20 cents. Each warrant will entitle the holder to purchase one common share of the company at a price of 20 cents per share for a period of two years following the closing date. The warrants and any shares issued pursuant to the exercise of the warrants will be subject to a statutory hold period under Canadian securities laws expiring four months and a day after the closing date. The completion of the loan and the issuance of the warrants are subject to the approval of the TSX Venture Exchange.

The proceeds will be used for the payment of concession fees and trade payables in connection with the advancement of the company's mineral properties and for general working capital purposes. The loan is unsecured and will bear simple interest at the rate of 12 per cent per annum, calculated and payable semi-annually with the first interest payment due on Dec. 31, 2016, and each subsequent payment due each six months thereafter. The loan and accrued and unpaid interest shall be repaid in full on or before the date that is two years after the closing date.

Mr. Ellis, Mr. Jones and Mr. Silbernagel are directors and officers of the company, and their participation in the loan is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves such persons, will exceed 25 per cent of the company's market capitalization.

We seek Safe Harbor.