Sego Resources Inc. - Shares for Debt

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 Resources Inc. - Shares for Debt

August 17, 2016-Sego Resources Inc. has issued 7,857,500 common shares at a price of $0.05 per share to settle debts totalling $392,875 (see News Release June 20, 2016).

Sego Resources is currently placing a private placement to continue drilling the Miner Mountain Copper/Gold Porphyry project, near Princeton, BC (News Release August 3, 2016).

Management believes that the shares-for-debt was necessary to strengthen the Company’s balance sheet and thereby increase the attractiveness of the Company for future private placement financings.

The shares-for-debt have received regulatory approval. The shares issued have a hold period of four months (December 16, 2016).

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 holds a 5-year exploration permit for the property and has received an Award of Excellence for its reclamation work at Miner Mountain.

For further information please contact:

J. Paul Stevenson, CEO (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 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 that actual results or developments may differ materially from those projected in the forward-looking statements.