Eureka closes first tranche of private placement

/NOT FOR DISSEMINATION TO THE US/

VANCOUVER, April 29, 2016 /CNW/ - Eureka Resources Inc. ("Eureka" or the "Company") (TSXV: EUK) announced today that it has closed the first tranche of its non-brokered $400,000 private placement of 5,333,333 units (the "Units") at $0.075 per Unit (the "Offering"). Each Unit will consist of one common share (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one common share (a "Warrant" Share") at $0.125 for a period expiring 24 months following the closing date of the Offering.

Eureka placed 2,693,666 Units in the first tranche of the Offering for gross proceeds of $202,025. In connection with closing the first tranche of the Offering, the Company paid finder's fees of 7% cash totaling $12,285 and issued 163,800 finder's warrants (each a "Finder's Warrant") representing 7% of the Units placed by the finders. Each Finder's Warrant will entitle the holder thereof to purchase a Unit in Eureka at $0.075 per Unit, exercisable for 24 months following issuance.

All share purchase warrants issued under the Offering, including those issued as finder's fees, will be subject to an acceleration clause which will cause the warrants, if unexercised, to expire on the date which is 30 days after the date that the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange exceeds $0.25 per share over a period of 10 consecutive trading days.

All securities issued in the Offering will be subject to a four‐month hold period, during which time the securities may not be traded.  The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.  The Offering is subject to regulatory approval.

Proceeds from the Offering will be used for exploration of the Company's mineral properties and for working capital.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's proposed financing, objectives, and the business and operations of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.  Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE Eureka Resources, Inc.