Kapuskasing Gold Announces $1 Million Private Placement to Advance Its Projects In The Borden Gold District in Northern Ontario

VANCOUVER, BRITISH COLUMBIA -- (Marketwired - May 7, 2014) - Kapuskasing Gold Corp. (TSX VENTURE:KAP) (the "Company" or "Kapuskasing Gold") announces that the Company intends to complete a non-brokered private placement of up to 6,666,666 units at a price of 15 cents per unit, for gross proceeds of up to $1,000,000. Each unit will consist of one common share and one half of one common share purchase warrant. Each full warrant will entitle the holder thereof to purchase one common share of the Company at an exercise price of 20 cents for a period of two years following the closing of the offering.

Completion of the offering is subject to receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to a statutory four-month hold period.

Net proceeds from the offering will be applied toward advancement of the Company's recently announced (see news release February 28, 2014) acquired properties, which are still subject to TSX Venture Exchange approval and for general working capital purposes.

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. It has yet to be determined if any insiders will be participating in the offering.


On behalf of the Board of Directors:

KAPUSKASING GOLD CORP. "Dean Nawata" Dean Nawata, President & CEO, Director



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 Gold, including, without limitation, the closing of the offering, expectations and assumptions respecting the outlook of exploration activity on the Borden and Rollo properties and the impact on Kapuskasing Gold's business and management assessment of future operations. Although the forward-looking information contained in this press release is based upon what Kapuskasing Gold's 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 Company's 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 Company's 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 management's 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 Olympic assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.



CONTACT INFORMATION

Kapuskasing Gold Corp.
Dean Nawata, President & CEO, Director
Phone 1-604-561-2821