Mr. Dean Nawata reports

KAPUSKASING GOLD GRANTS COMPANY STOCK TO BRUNSWICK HOUSE, CHAPLEAU CREE, CHAPLEAU OJIBWAY AND FLYING POST FIRST NATIONS

As previously announced in a news release dated Sept. 24, 2015, Kapuskasing Gold Corp. has signed a memorandum of understanding (MOU) with Brunswick House, Chapleau Cree, Chapleau Ojibway and Flying Post first nations with respect to Kapuskasing's gold exploration projects located in Northern Ontario near the town of Chapleau.

In addition to the company's commitment to identify opportunities for businesses and citizens of the four communities to participate in Kapuskasing's exploration activities through business, employment and training opportunities, the company has granted 50,000 common shares and 50,000 share purchase warrants of the company to each of the four first nations communities, for an aggregate of 200,000 shares and 200,000 warrants. Each warrant will be exercisable into one share at five cents for a period of five years. The warrants will vest 25 per cent on the approval of the TSX Venture Exchange and 25 per cent after six months, 12 months and 18 months after the date of the MOU.

Dean Nawata, president of the company, commented, "As we look forward to working together with the first nations communities on our projects in Northern Ontario, we are also pleased that each community will be able to participate directly in Kapuskasing Gold's future."

Shawn Batise, executive director of the Wabun tribal council, commented: "The shares and share purchase warrants granted to the four first nations allows for continued participation in Kapuskasing Gold's future as their projects develop. We are very proud of our developing relationship with Kapuskasing. We commend Kapuskasing's commitment to ongoing and meaningful engagement with the first nations surrounding Kapuskasing's exploration projects."

We seek Safe Harbor.