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KALO.V ·

E36 Capital Corp. | TSXV: ETSC.V

Corporate Updates

E36 Capital Corp. | TSXV: ETSC.V

Suite 1430, 800 West Pender Street

Vancouver, BC, V6C 2V6

For Immediate Release

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR

DISSEMINATION IN THE UNITED STATES

E36 Capital Receives TSXV Conditional Approval for Qualifying

Transaction with Kalo Gold Corp.

VANCOUVER, BC, CANADA, JANUARY 29, 2021, E36 CAPITAL CORP. (TSX.V: ETSC.V) (“E36”

or the “ Company”), a Capital Pool Company as defined in the policies of the TSX Venture Exchange

(the “TSXV”), is pleased to announce that it has received conditional acceptance from the TSX Venture

Exchange (the “TSXV”) for the closing of its proposed qualifying transaction with Kalo Gold Corp.

(“Kalo Gold”) (the “QT”) which, upon completion, will result in a three-cornered amalgamation among

E36, Kalo Gold, and a wholly -owned subsidiary of E36. A filing statement (the “Filing Statement”) in

respect of the QT has been prepared in accordance with the requirements of the TSXV and will be filed

under E36’s issuer profile on SEDAR at www.sedar.com.

The completion of the QT is subject to a number of conditions, including, but not limited to, receipt of all

required regulatory approvals, including final TSX -V acceptance, approval of the QT by Kalo Gold

shareholders, and satisfaction of other customary closing conditions. Assuming all conditions are

satisfied, closing of the QT is expected to occur on or about February 12, 2021, or such other date as may

be determined. The trading symbol post -closing of the QT shall be “KALO”. Upon completion of the

proposed Qualifying Transaction, the Company is expected to meet all of the minimum listing

requirements of the Exchange for a Tier 2 Mining issuer. Sponsorship of the qualifying transaction has

been waived by the Exchange.

Trading of the E36’s Shares will remain halted until such time as the TSXV may determine, having

regard to the completion of certain requirements pursuant to the CPC Policy. Further details of the

Transaction will follow in future news releases.

About Kalo Gold Corp.

Kalo Gold Corp. is a mineral exploration company focused on the Vatu Aurum gold project on Fiji's

north island -- Vanua Levu. Kalo holds two mineral exploration licenses covering over 36,700 hectares

of land and on trend with many of the largest gold deposits in the world within the Southwest Pacific

Ring of Fire.

About E36 Capital Corp.

E36 Capital is a capital pool company within the meaning of the policies of the TSX-V. The company has

not commenced commercial operations and has no assets other than cash. Except as specifically

contemplated in the CPC policy, until the completion of its qualifying transaction, the company will not

carry-on business, other than the identification and evaluation of companies, businesses or assets, with a

view to completing a proposed qualifying transaction.

Completion of the transaction is subject to a number of conditions, including TSX -V acceptance and, if

applicable pursuant to TSX -V requirements, majority of the minority shareholder approval. Where

applicable, the transaction cannot close until the required shareholder approval is obtained. There can be

no assurance that the transaction will be completed as proposed or at all.

On behalf of E36 Capital Corp.

Kevin Ma

Chief Executive Officer

For more information contact:

Kevin Ma

E: [email protected]

P: +1 (604) 363-0411

Investors are cautioned that, except as disclosed in the management information circular or filing

statement to be prepared in connection with the transaction, any information released or received with

respect to the transaction may not be accurate or complete and should not be relied upon. Trading in

the securities of a capital pool company should be considered highly speculative.

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

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

Forward Looking Statements Disclaimer

Certain statements in this release are forward -looking statements, which are statements that are not purely historical, including

any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news

release include statements relating to the Concurrent Financing, the funds available to the Company on completion of the

Transaction and the proposed use of such funds, the intention of Kalo to commence its proposed drill program, and the ability of

Kalo to undertake its drill p rogram as proposed. Forward -looking statements are often identified by terms such as “will”,

“may”, “should”, “anticipate”, “expects” and similar expressions. All statements, other than statements of historical fact,

included in this release, including sta tements regarding the Proposed Transaction and the future plans and objectives of the

Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements

will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from the Company’s expectations include the failure to

satisfy the conditions to completion of the Proposed Transaction set forth above and other risks detailed from time to time in the

filings made by the Company pursuant to applicable Canadian securities laws.

The reader is cautioned that assumptions used in the preparation of any forward-looking st atements herein may prove to be

incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous

known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result,

the Company cannot guarantee that the Proposed Transaction will be completed on the terms and within the time disclosed

herein or at all. The reader is cautioned not to place undue reliance on any forward-looking information. Such information,

although considered reasonable by management at the time of preparation, may prove to be incorrect, and actual results may

differ materially from those anticipated. Forward -looking statements contained in this news release are expressly qua lified by

this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news

release and the Company will update or revise publicly any of the included forward-looking statements as expressly requi red by

Canadian securities law.