Reunion Gold Announces Closing of First Tranche of Non-Brokered Private Placement Raising C$10.2 Million

LONGUEUIL, QUEBEC--(Marketwired - Sept. 11, 2017) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES.

Reunion Gold Corporation (TSX VENTURE:RGD) (the "Company" or "Reunion") reports that it has closed a first tranche of the non-brokered private placement announced on August 23, 2017 (the "Financing"). The Company has issued 78,307,191 units ("Units") at a price of $0.13 per Unit for gross proceeds of C$10,179,935. Each Unit consists of one common share of Reunion and one half of one common share purchase warrant. Each whole warrant may be exercised for one common share at a price of $0.20 per common share for a period of 36 months, subject to the Company's right to accelerate the expiry date in the event that the Company's shares trade on the TSX Venture Exchange at a closing price of $0.40 or greater for 20 consecutive trading days at any time after June 8, 2018.

Pursuant to applicable Canadian securities laws, the common shares and warrants issued to subscribers under the Financing are subject to a four-month hold period. Finder's fees of up to $40,000 are being paid in cash to certain finders for this first tranche of the Financing. The Company expects to close a second tranche within the next 10 days.

The Company intends to use the net proceeds raised from the Financing for exploration and development of the Company's gold projects in French Guiana and Guyana and for general working capital. Following closing of the first tranche, the Company has 265,758,787 common shares and 39,153,595 warrants issued and outstanding.

Cautionary Statement

The Financing is subject to receipt of final approval of the TSX Venture Exchange. The common shares issued under the Financing have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This news release contains certain forward looking information about the Company's plans to complete a second tranche of the Financing. There can be no assurance that the second tranche will be completed within 10 days or at all.

Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website at www.reuniongold.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 press release.

Information about Reunion is available on SEDAR (www.sedar.com) and its website (www.reuniongold.com).