BTU Closes First Tranche of Financing

METALS CORP.

Suite 1240, 789 West Pender St. Vancouver, British Columbia

Phone: 604-683-3995/ Toll Free: 888-945-4770/Fax: 604-683-3988

BTU CLOSES FIRST TRANCHE OF FINANCING

October 2nd, 2017, Vancouver, British Columbia - BTU METALS CORP. (“BTU” or the “Company”) (BTU-TSX-

V) is pleased to announce the Company has closed a first tranche of its previously announced non -brokered

private placement (see PR dated September 14th, 2017) issuing 5,114,500 units (the "Units") at a price of $0.12

per Unit for an aggregate proceeds of $613,740.

Each Unit is comprised of one common share (a "Share") and one half of one Share purchase warrant (a

"Warrant") of the Company. Each full Warrant will entitle the holder to purchase one Share (a “Warrant Share”)

at a price of $0.18 per Warrant Share for an 18 month period after the Closing Date. The warrants are subject to

an acceleration clause, which states that the issuer will have the right to accelerate the expiry date of the warrants

if, at any time, the average c losing price of the shares is equal to or greater than 30 cents for 10 consecutive

trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after the

issuer issues a news release, announcing that it has elec ted to exercise this acceleration right. Finders fees of

$31,267.20 will be payable including 264,560 broker warrants.

Paul Wood, CEO of BTU Metals said “We are pleased with the support the market has shown us and welcome

all the new shareholders who participated in this round of financing and look forward to closing on the second

tranche shortly. This financing enables BTU to commence its Irish work program on schedule in October. The

Company has also commenced its exploration program on our Shakesp eare property and we look forward to

updating the market on the results of these programs as they progress.”

The proceeds raised will be used for general corporate purposes and for advancing the Company’s 16,640 hectare

Galway Gold Project located in Coun ty Galway, Republic of Ireland. The work program will include ground

geophysics, geological sampling and mapping, trenching, and drill target generation to commence next month.

For more details regarding the Galway project please refer to PR dated July 27, 2017 ("BTU Confirms High-

Grade Gold Samples on Irish Property").

Michael England, President, Director

FOR FURTHER INFORMATION, PLEASE CONTACT:

Telephone: 1-604-683-3995

Toll Free: 1-888-945-4770

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture

Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance

and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based

on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are

neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected.

These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does

not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press

release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).