GFG Resources Inc. Closes C$5 Million Bought Deal Financing

SASKATOON, SK--(Marketwired - February 22, 2017) - GFG Resources Inc. (TSX VENTURE: GFG) (OTCQB: GFGSF) ("GFG" or the "Company") is pleased to announce that it has closed its private placement financing announced on January 31, 2017 for aggregate gross proceeds of C$5,002,500 (the "Offering").

The Offering consisted of a total of 4,350,000 common shares ("Common Shares") of the Company at a price of C$1.15 per Common Share sold on a bought deal private placement basis through a syndicate of underwriters led by Cormark Securities Inc. and including Macquarie Capital Markets Canada Ltd, BMO Capital Markets and Mackie Research Capital Corporation (collectively the "Underwriters"). In consideration for their services, the Company has paid the Underwriters a cash commission of 6% of the gross proceeds of the Offering.

The net proceeds from the Offering will be used towards the Company's 2017 exploration drilling program at its 100% controlled Rattlesnake Hills Gold Project in Wyoming, U.S. and for general corporate purposes.

All Common Shares sold under the Offering are subject to a hold period in Canada of four months and one day expiring June 23, 2017.

The Common Shares issued under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in the United States.

GFG Resources Inc. is a publicly traded precious metals exploration company headquartered in Saskatoon, Saskatchewan, Canada, whose shares trade on the TSX Venture Exchange (GFG) and on the OTCQB (GFGSF). The Company controls 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyoming, U.S. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold.