Mr. Johnson Joseph reports

PEAK SIGNS DEFINITIVE CAD$4M PARTNERSHIP AGREEMENT WITH BANLAN SHAREHOLDERS AND COMMITS TO ESTABLISH CHINESE SUBSIDIARY

Peak Positioning Technologies Inc. has signed a definitive $4-million strategic investment partnership with the shareholders of Banlan Industrial Company Ltd., headed by Banlan founder and chairman, Jiatao Luo.

Investment partnership

Under the terms of the executed agreement between the parties and pending approval of the Canadian Securities Exchange, the Banlan partners will initially invest $3.98-million in the form of a private placement financing of 199 million units at a price of two cents per unit. Each unit comprises one common share of Peak and one common share purchase warrant. Each warrant will allow its holder to subscribe to one common share of Peak at a price of five cents per share for a period of 24 months following the closing of the Banlan private placement.

The investment partnership between the parties is expected to be a long-term strategic alliance whereby Peak will serve as an investment vehicle used by the Banlan partners to finance the development of a revolutionary Web-based platform for the Chinese plastics industry and take advantage of high-growth project opportunities in China's information technology sector. Following the initial investment, whereby they will own 51 per cent of Peak's outstanding common shares, the Banlan partners will have a right of first refusal on all future financings to be conducted by the company.

Peak has submitted the necessary documents to the CSE for review and approval of closing of the Banlan private placement. Given the magnitude of the investment, Peak expects to close the Banlan private placement on or prior to Jan. 31, 2016, to provide the Banlan partners with enough time to complete the necessary steps to allow for the funds to flow from China to Canada. Until the Banlan private placement closes, the Banlan partners have agreed to advance the sum of $100,000 to the company by Dec. 5, 2015, so as not to delay certain business objectives agreed to by the parties.

Investment use of proceeds and Chinese operations

Peak will use the majority of the initial $4-million investment proceeds to first establish a wholly owned Chinese subsidiary (Peak China), which will then develop the aforementioned web-based platform for the Chinese plastics industry. To that end, during their recent travels to China to meet with the Banlan partners, Peak's executive officers signed a letter of intent with the municipal government of the Wuxi New District of Jiangsu province for the establishment of Peak China's head office in the region.

Peak China will take over some of the business transactions currently being conducted by Banlan, which involve the buying, selling, warehousing and distribution of raw materials in the Chinese plastics industry. In addition to those activities, Peak China will also develop and manage China's first bulk plastics trading e-commerce platform, combining trading, transaction processing, warehousing, logistics and financing. The concept behind the plastic bank platform comes from Mr. Luo's vision to digitize and bring the entire plastics trading process on-line, from order placement and transaction processing to distribution and logistics. This will allow Peak China to capture valuable data and to use analytics to provide customized financial services, including loans and purchase order financing, to China's plastics industry participants.

Peak China expects to begin its operations by the end of the first quarter of 2016, shortly followed by the launch of the plastic bank platform.

"We are absolutely delighted with the signing of this agreement," commented Mr. Luo. "We share a common vision with Peak to use analytics to provide customized financial services to businesses in China, starting with those operating in the plastics industry. We are very excited to become Peak shareholders to contribute to the realization of that vision," concluded Mr. Luo.