NQ Exploration Inc. Closes Acquisition of Interest in A&M Resource Colombia SAS' Colombian Coal Project and $1.5M Debenture Offering

LAVAL, QUEBEC--(Marketwired - Oct. 21, 2016) - NQ Exploration Inc. ("NQ") (TSX VENTURE:NQE) is pleased to announce the closing of the acquisition (the "Acquisition") of a 15% undivided interest in A&M Resource Colombia SAS's ("A&M Colombia") coal project (the "Property") and a $2 per tonne royalty on the Property's production, in consideration of an unsecured loan (the "Loan"), at the rate of 16% per annum with a 36 months maturity, from NQ for a principal amount of $1,200,000 to A&M Resources USA 2015 LLC, under the terms of a transfer of mining right and royalty agreement, dated June 20, 2016, between NQ and A&M Colombia (the "Agreement").

Concurrent with the closing of the Acquisition NQ has also closed a private placement for gross proceeds of $1,500,000 resulting from the issuance of 1,500,000 debentures (each a "Debenture") at $1,000 principal amount per Debenture, which will mature 36 month from their issuance and will bear interest at a rate of 14% per annum payable quarterly in cash. The aggregate principal amount of the Debentures shall be automatically convertible at any time before maturity into common shares of NQ (each a "Common Share") at a price of $5 per Common Share in the event of a default on the Loan.

David Grondin, President and CEO of NQ, commented, "We are very pleased to have closed this atypical transaction to acquire this interest in A&M's project and excited at the opportunities that bringing this new collaboration could yield. We look forward to collaborate with A&M's management and provide them support in their development of the coal project."

All securities in connection with the Closing are subject to a hold period expiring February 22, 2017.

Partial proceeds from the private placement will be applied to the costs of the Acquisition, interest on the Loan and for general working capital.

ABOUT NQ EXPLORATION INC.

NQ Exploration Inc. is a mining exploration company with a solid portfolio of mining properties in the James Bay and Abitibi regions of Quebec. NQ Exploration Inc. is betting on Quebec's excellent mineral potential and favourable investment climate to produce new world-class gold and base metal deposits.

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.