Kapuskasing Closes 1st Tranche of Private Placement

Vancouver, B.C., May 27, 2014 – KAPUSKASING GOLD CORP. (TSX-V: KAP) (the “Company” or “Kapuskasing”), announces that it has closed the first tranche of a private placement announced May 7, 2014. A total of 1,448,800 units (the "Units") at a price of $0.15 per Unit have been issued for gross proceeds of $217,320 (the "Offering").

Each Unit consists of a common share in the capital of the Company (a "Share") and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one Share at a price of $0.20 per Share for two years following the closing of the Offering.

All securities issued in connection with the Offering will be subject to a four month hold period expiring on September 27, 2014, in accordance with applicable Canadian securities laws. Net proceeds from the Offering will be applied toward advancement of the Company's recently announced (see news release February 28, 2014) acquired properties, which are still subject to TSX Venture Exchange approval and for general working capital purposes. The Offering remains subject to final acceptance by the TSX Venture Exchange.

In connection with the Offering, the Company paid certain finders (the "Finders") a cash commission equal to 7% of the proceeds of the sale of Units by such Finder and issued finder's compensation warrants (the "Finder's Warrants") equal to 7% of the number of Units sold by such Finder.

On behalf of the Board of Directors:

KAPUSKASING GOLD CORP.

“Dean Nawata”

Dean Nawata President & CEO, Director Phone 1-604-561-2821

Neither 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.

Forward Looking Statements and Cautionary Notes

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this document are based on certain key expectations and assumptions made by Kapuskasing Gold, including, without limitation, the closing of the offering, expectations and assumptions respecting the outlook of exploration activity on the Borden and Rollo properties and the impact on Kapuskasing Gold’s business and management assessment of future operations. Although the forward-looking information contained in this press release is based upon what Kapuskasing Gold’s management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such

Suite 350 – 885 Dunsmuir Street, Vancouver, B.C. V6C 1N5 Page 1 information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release.

It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company’s Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this press release and Olympic assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties.

Suite 350 – 885 Dunsmuir Street, Vancouver, B.C. V6C 1N5 Page 2