Mr. Gordon Ellis reports

LUPAKA GOLD COMPLETES CLOSING OF PRIVATE PLACEMENT FINANCING AND REPORTS SECOND RUN-OF-MINE BULK PROCESSING TEST RESULTS

Lupaka Gold Corp. has closed the non-brokered private placement previously announced on Feb. 11, 2016.

Additionally, the company has completed its second run-of-mine bulk test of 532 tonnes achieving total recoveries of 87.52 per cent for gold, 91.18 per cent for silver and 91.52 per cent for copper. The tests were run under the supervision of an independent metallurgist, at a local toll mill in Nazca, south of Lima, Peru.

Closing of private placement

The company issued 8.39 million units at a price of five cents for gross proceeds of $419,500. Each unit consists of one common share and one transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional common share, exercisable at 10 cents for a period of 36 months from closing.

At any time following the date that is four months after the date of issue, the warrants are subject to an acceleration clause in the event the closing price of Lupaka Gold's common shares is greater than 30 cents for a period of 20 consecutive trading days. Lupaka Gold may accelerate the expiry date of the warrants by giving notice to the holders thereof through the issuance of a news release. In such case the warrants will expire on the 30th day after the date on which such notice is given.

No insiders participated in this placement, and finders' fees to arm's-length parties in connection with the placement consist of $16,110 in cash. The shares and warrants issued in the placement are subject to a four-month hold period.

Proceeds from the placement will be used for general working capital purposes in Canada and to further the company's Invicta gold project.

Gordon Ellis, president and chief executive officer of Lupaka Gold, commented: "We were originally aiming for $300,000 in funding from this private placement but the enthusiastic reception from investors resulted in the oversubscription to a total of $419,500. We thank our new and repeat shareholders for their support. Together with a successful closing of the Pandion financing opportunity, we will be able to move Invicta forward to near-term production."

Second run-of-mine bulk test results

A single bulk copper concentrate was produced with concentrate tonnes and grades per tonne achieved as shown in the table.

   CONCENTRATE TONNES AND GRADES PER TONNE FROM THE 532 T BULK SAMPLE

Concentrate stream Concentrate DMT      Au(1)   Ag(1)  Cu(1)   Pb(2)  Zn(2)
                                      (g/t)   (g/t)    (%)     (%)    (%)

Copper (Cu)                  47.58    58.5     648   15.2   11.11   9.63

(1) Based on a Mineral assay report prepared by ALS Peru SA.
(2) Based on results obtained by the processor, Mineria y Exportaciones
SAC.

 

"This is our second bulk test of primarily run-of-mine material from the Atenae vein at Invicta. The sample is a blend of approximately 80 per cent run-of-mine material and 20 per cent from an existing low-grade stockpile derived from development of existing workings. The mineralized rock was processed with the prime objective of producing a saleable concentrate and no effort was made to optimize content of specific metals. The resulting concentrate was exceptionally clean, with virtually no penalty elements, and, as such, is ideal for sale and blending with other concentrates," commented Gordon Ellis, president and chief executive officer of Lupaka Gold.

Recovery

Overall average percentage recovery for each target metals in the concentrate is shown in the table.

DISTRIBUTION OF METAL -- RECOVERY OF METAL IN CONCENTRATE STREAMS

Concentrate stream         Au       Ag       Cu       Pb       Zn  
                           (%)      (%)      (%)      (%)      (%)  
          
Copper                  87.52    91.18    91.52    90.03    90.13

"As stated earlier, we are pleased with these results and particularly with the cleanliness of the concentrates. Bench tests previously carried out by the company's independent metallurgists indicate that individual metal recoveries can be further improved to increase profitability. Processing adjustments will continue to be made as we move forward," continued Mr. Ellis.

Toll process plant used

The company completed the process test at the Minex processing plant located in Nazca, south of Lima, Peru. The total tonnage received at the processing plant was 532 tonnes of which 432 tonnes was from recently extracted run-of-mine material and 100 tonnes was from low-grade stockpiled material. This processing plant has only one processing system, resulting in all of the material being blended and run as a single test.

Qualified person

The technical information in this document has been reviewed and approved by Julio Castaneda Mondragon, MAIG, the president of Invicta Mining Corporation SAC, a Peruvian subsidiary of the company, a qualified person as defined by National Instrument 43-101. Mr. Castaneda has verified the scientific and technical information, including sampling, analytical and test data underlying the information or opinions contained in this news release.

The Invicta gold project resource estimates referred to in this news release are disclosed in the technical report dated April 16, 2012, titled "Technical Report on Resources, Invicta Gold Project, Huaura Province, Peru," and prepared by SRK Consulting (U.S.) Inc., which is available at SEDAR under Lupaka Gold's profile.

The Crucero A-1 mineral resource estimates referred to in this news release are disclosed in the technical report with effective date Jan. 17, 2013, amended and restated Oct. 22, 2013, titled "Technical Report for the Crucero Property, Carabaya Province, Peru," and prepared by Tetra Tech WEI Inc. and SRK Consulting (Canada) Inc., which is available at SEDAR under Lupaka Gold's profile.

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