Sego Resources Closes Second Tranche of Financing, Raising a Combined Total of $1,217,010 by way of Private Placements

Vancouver, British Columbia--(Newsfile Corp. - August 16, 2018) - Sego Resources Inc. (TSXV: SGZ) ("Sego" or the "Company") has completed the second closing of its non-brokered private placement of units at $0.05 per unit announced on April 23, 2018 and updated on June 7, 2018, June 15, 2018 and July 30, 2018.

Combined with the previously announced first closing of the financing, Sego will issue in total 12,850,000 units at $0.05 per unit of FTU for gross proceeds of $642,500, and 11,490,200 units at $0.05 per unit for NFTU for gross proceeds of $574,510 for total combined proceeds of $1,217,010.

In the second closing of the financing, Sego will issue 7,000,000 units units at $0.05 per unit of Flow Through Units ("FTU") for gross proceeds of $350,000 and 3,050,000 units at $0.05 per unit of Non-Flow Through Units ("NFTU") for gross proceeds of $152,500. This issuance is subject to regulatory approval. Each FTU unit consists of one common share and one-half of one share purchase warrant. Each full FTU warrant entitles the holder to purchase an additional common share at $0.10 for two years from the date of closing of the second tranche of the private placement. Each NFTU consisted 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 date of closing of the second tranche of the private placement. The securities issued under this second closing are subject to the applicable statutory four month plus one day hold period, which is December 16, 2018. A Director and Senior Officer of the Company has subscribed for FTU in the second tranche of this financing totaling $30,000.00.

In connection with the second tranche, the company paid to certain eligible persons a cash commission totaling $8,475 and issued an aggregate of 193,900 broker warrants to such finders. Each Broker Warrant entitles the holder to subscribe for additional NFTU or FTU, as the case may be, at $0.05 for two years from the date of closing of the first tranche of the private placement. The Broker Warrants will be subject to a four month plus one day hold period which is December 16, 2018.

There is no material fact that has not been generally disclosed.

The flow-through funds raised are for exploration on the Company's Miner Mountain Project. The non-flow-through units will be used for working capital. The Company fully expects to spend the funds as stated.

Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056.54 hectares in size and located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Copper. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band, in whose Traditional Territory the Miner Mountain Project is situated. Sego has received an Award of Excellence for its reclamation work at Miner Mountain.

J. Paul Stevenson, CEO
Sego Resources Inc.
[email protected]

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MarketSmart Communications Inc.
Ph: +1 877 261-4466
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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 are 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 that actual results or developments may differ materially from those projected in the forward-looking statements.