Mar 20, 2015

Kapuskasing Gold Announces Private Placement to Begin Work Program

March 20, 2015 - Kapuskasing Gold Corp. (TSX-V: KAP) (the "Company" or "Kapuskasing") is arranging a non-brokered financing of up to 4,500,000 units of the Company at a price of 6.75 cents per unit for gross proceeds of $303,750. Each unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each share purchase warrant will be exercisable into one common share at 10 cents for a period of 24 months from the closing of the financing.

The Company is also arranging a non-brokered private placement of up to 9,333,333 flow-through ("FT") units of the Company at a price of 7.5 cents per FT unit for gross proceeds of $700,000. Each FT unit will consist of one common share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one share purchase warrant exercisable at 10 cents into one common share of the Company for a period of 24 months from the closing of the financing.

Net proceeds will be used to follow up on the initial sampling results on Borden North and Rollo properties (see news release December 18, 2014, "Kapuskasing Gold Samples Up To 7.69 g/t Gold and Makes a New Gold Zone Discovery in the Borden Lake Gold District") and general working capital purposes. Plans are to complete groundwork, geophysics and identify drill targets in and around the several gold showings that were assayed with the view to drill this summer.

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.

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. Company insiders may be participating in the offering.

Kapuskasing Gold controls 6 gold properties located along extensions of the Destor-Porcupine, Borden Lake and Kapuskasing structural zones. The Company's 6 properties surround Probe's discovery to the north, east, south and west. A detailed map and property descriptions can be viewed on the Company's website: www.kapgold.com.

On behalf of the Board of Directors of Kapuskasing Gold Corp.,

"Dean Nawata"
Dean Nawata