MarketSmart Resources

SEGO RESOURCES CLOSES THIRD AND FINAL TRANCHE OF FINANCING, SUCCESSFULLY RAISING A COMBINED TOTAL OF $1,500,000 BY WAY OF PRIVATE PLACEMENTS

August 27, 2018

Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is very pleased to announce that the Company has closed the third and final tranche of the financing for total gross proceeds of $282,990 as part of the financing previously announced on April 23, 2018. In this third tranche of the financing, Sego will issue in total 1,420,000 units at $0.05 per unit of Flow Through Units ("FTU") for gross proceeds of $71,000, and 4,239,800 units at $0.05 per unit of Non Flow Through units ("NFTU") for gross proceeds of $211,990.

Combined with the previously announced first closing and second closings of the financing, Sego will issue in total 14,270,000 units at $0.05 per unit of FTU for gross proceeds of $713,500, and 15,730,000 units at $0.05 per unit of NFTU for gross proceeds of $786,500 for total combined proceeds of $1,500,000.

Each FTU unit consists of one common share and one-half of one share purchase warrant. Each FTU full warrant entitles the holder to purchase an additional common share at $0.10 for two years from closing of the private placement. Each NFTU consists of one common share and one share purchase warrant. Each NFTU warrant entitles the holder to purchase an additional common share at $0.10 for four years from the closing of the private placement. The securities issued under this third closing are subject to the applicable statutory 4 month + one day hold period from the date of issuance. The closing of this third tranche is subject to regulatory approval.

The flow through proceeds will be expended on the continued exploration of the Company's Miner Mountain Copper-Gold Alkalic Porphyry project located near Princeton, BC. The non-flow through proceeds will be used for working capital and general corporate purposes.

Certain finder's fees are payable on a portion of the private placement and consist of 7% cash and 7% Broker's Warrant, each Broker Warrant entitling the holder to subscribe for additional NFTU or FTU, as the case may be, for $0.05 for two years from the closing of this tranche of the private placement.

This offering is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the securities sold pursuant to these offerings will be subject to a four-month hold period from the date of closing.

Completion of the private placement is subject to the TSX Venture Exchange approval.

The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

There is no material change about the issuer that has not been generally disclosed.

For further information please contact:

J. Paul Stevenson, CEO (604) 682-2933

For investor & shareholder information, please contact:

MarketSmart Communications Inc.
Ph: +1 877 261-4466
Email: info@marketsmart.ca

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 release. No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.


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