Kesselrun Resources Files Notice of Application in Respect of Convertible Debenture Dispute

THUNDER BAY, ON, October 12, 2016 – Kesselrun Resources Ltd. (TSXV:KES) (“Kesselrun” or the “Company”) announces that it has filed a Notice of Application with the Ontario Superior Court of Justice in connection with its previously announced dispute with Tamaka Gold Corporation (“Tamaka”) concerning three senior unsecured convertible debentures of Tamaka held by Kesselrun in the aggregate principal amount of $2,139,900 (the “Debentures”).  The Debentures are automatically convertible into common shares of Tamaka at a prescribed rate upon the occurrence of a “Liquidity Event” (see Kesselrun press release dated November 20, 2013).  As previously announced, Kesselrun believes that the recent transaction (the “Acquisition”) pursuant to which Tamaka became a wholly-owned subsidiary of First Mining Finance Corp. (TSXV:FF) (“First Mining”) constituted a Liquidity Event and a change of control of Tamaka pursuant to the terms of the Debentures, and should have resulted in an automatic conversion of the Debentures effective immediately prior to the closing of the Acquisition. First Mining has asserted that there was no Liquidity Event.

Kesselrun will provide further updates in due course as they become available.

About Kesselrun Resources Ltd.

Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise with particular experience in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.

Neither the 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 news release.

For additional information please contact:

Kesselrun Resources Ltd.

Michael Thompson, P. Geo., President & CEO

Corporate Communications

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Kesselrun, including, but not limited to the ultimate interpretation of the terms of the Debentures in the context of the Acquisition, the potential outcome of the dispute and the costs associated therewith, and the impact of general economic conditions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.


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