Claim Post increases private placement to $1.4-million

Jun 2, 2014

CLAIM POST RESOURCES INC. ANNOUNCES INCREASE OF NON-BROKERED PRIVATE PLACEMENT

Claim Post Resources Inc., due to increased interest, intends to increase the size of its recently announced non-brokered private placement offering. The offering will now be for up to a total of 15 million common share units and up to a total of 2.3 million flow-through units. The units will be offered at a price of eight cents per unit with each unit consisting of one common share of the company and one-half of a warrant. Each warrant is exercisable for one common share in the capital of the company at a price of 12 cents per share for a six-month period. The flow-through units will be offered at a price of nine cents per share with each flow-through unit consisting of one flow-through common share and one-half of a warrant. Each warrant comprising the flow-through unit is exercisable for one common share in the capital of the company at a price of 12 cents per share for a six-month period. The aggregate gross proceeds of the offering will now be up to approximately $1.4-million.

The proceeds received from the offering will be used to (1) make the $350,000 Gossan Resources payment, (2) to carry out a minimum 1,000-metre drilling program toward increasing the 25-million-tonne resource estimation of the Seymourville frac sand project in accordance with National Instrument 43-101 rules (see the April 29, 2014, press release filed on SEDAR), (3) to complete a scoping study on the project (preliminary economic assessment) which will give Claim Post the ability to release project economics and test market frac sand, and (4) for general working capital purposes.

All securities issued will be subject to a four-month hold period from the date of closing. The offering is subject to the approval of the TSX Venture Exchange. At closing of the offering, finder fees of 7 per cent of the proceeds may be payable in cash, and finder warrants equal to 7 per cent of the number of securities issued, which are exercisable at the price of 12 cents per share and expiring six months from the date of closing of the offering, may be payable.

Charles Gryba, chief executive officer of Claim Post Resources, stated: “This financing is at a 60-per-cent-higher price than the financings earlier in 2014 and will allow us more financial flexibility to move the frac sand project forward. Claim Post board members and major shareholders are subscribing for at least 60 per cent of the offering.”

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