Kapuskasing Gold Announces Private Placement

Vancouver, British Columbia (FSCwire) - KAPUSKASING GOLD CORP. (TSX-V: KAP) (the Company or KAP), announces that it intends to raise up to a total of $500,000 by way of a non-brokered private placement (the Offering) of Flow-Through Units (FT Units) at a price of $0.06 per FT Unit and Non Flow-Through Units (NFT Units) at a price of $0.05 per NFT Unit.

The Offering

The maximum Offering is up to 10,000,000 common shares (the Shares) for gross proceeds of $500,000 consisting of:

NFT Units at $0.05 per NFT Unit. Each NFT Unit will consist of one NFT Common Share (a NFT Share) and one Non Flow-Through share purchase warrant (NFT Warrant). Each NFT Warrant will entitle the holder to purchase one NFT Share at $0.10 for 18 months from the date of issuance.

FT Units at $0.06 per FT Unit. Each FT Unit will consist of one FT Common Share (a FT Share) and one NFT warrant. Each NFT Warrant will entitle the holder to purchase one NFT Share at $0.10 for 18 months from the date of issuance.

In connection with the private placement, Kapuskasing Gold may, subject to regulatory acceptance, pay a finder's fee to certain arm's-length parties on the proceeds raised. Company insiders may be participating in the offering.

All securities issued in connection with the Offering will be subject to a four month hold period commencing on the Closing Date, in accordance with applicable Canadian securities laws. Net proceeds of the private placement will be used for general working capital purposes and to advance the companys mineral properties. The Offering is subject to acceptance by the TSX Venture Exchange.

Jonathan Armes

President & CEO, Director

Phone 1 (416) 708-0243

Neither 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 release.

Forward Looking Statements and Cautionary Notes

Statements in this document, which are not purely historical, are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this document are based on certain key expectations and assumptions made by Kapuskasing, including, without limitation, expectations and assumptions respecting the outlook of exploration activity on the Borden and Rollo properties and the impact on Kapuskasings business and management assessment of future operations. Although the forward-looking information contained in this press release is based upon what Kapuskasings management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release.

It is important to note that actual outcomes and the Companys actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Companys Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects managements current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this press release and Kapuskasing assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

To view this press release as a PDF file, click onto the following link:

http://fscwire.com/sites/default/files/news_release_pdf/Kapuskasing05272016.pdf

Source: Kapuskasing Gold Corp. (TSX Venture:KAP) http://www.kapuskasinggold.com/s/home.asp

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