Sego Closes First Tranche of Private Placement

SEGO RESOURCES INC.

Suite 310 -744 West Hastings Street Vancouver, BC V6C 1A5 TSX-V: SGZ Tel: (604) 682-2933 www.segoresources.com Toll Free: 1-866-683-2933

SEGO CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Vancouver, British Columbia, October 28, 2016 - Sego Resources Inc. (“Sego” or the “Company”) has closed the first tranche of its proposed non-brokered private placement of units at $0.05 per unit announced on August 3, 2016 and updated on September 6, 2016. Each unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase an additional common share at $0.075 in the first year and at $0.10 in the second year.

The first tranche consisted of 2,050,000 units for gross proceeds of $102,500 (300,000 units were non-flow-through units for proceeds of $15,000 and 1,750,000 units were flow-through units for proceeds of $87,500). A finder’s fee of $6,125 and 122,500 finder’s warrants was paid with respect to the first tranche. Each finder's warrant entitles the holder to purchase a non-flowthrough unit with the same terms as the private placement units at $0.05 per unit for two years.

The flow-through funds raised are for exploration on the Company’s Miner Mountain Project. 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.

For further information please contact the Company’s CEO, J. Paul Stevenson at 604-682-2933.

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.