Stem 7 Capital Announces Negotiation of a Potential Business Combination

STEM 7 Capital Inc.

NEWS RELEASE

Stem 7 Capital Announces Negotiation of a Potential Business Combination

May 2, 2016 - Vancouver, B.C. – Stem 7 Capital Inc. (TSXV.NEX: STS.H, Frankfurt: T9NB) (the “Company”) announces that it is in preliminary negotiations regarding a potential business combination. There is currently no letter of intent or agreement with the potential business combination partner and the negotiations are contingent on financing. The Company will advise when an agreement is reached. The prospective target company conducts business in the technology sector. There is no assurance that any agreement will be consummated.

The Company also announces that it has closed its previously announced non-brokered private placement pursuant to which it issued 1,200,000 units (the “Units”) at a price of $0.05 per Unit for gross proceeds of $60,000. Each Unit is comprised of one common share and one non-transferable share purchase warrant. Each warrant is exercisable to purchase one additional common share of the Company at an exercise price of $0.10 for a period of one year from the date of closing. The securities issued in connection with the private placement are subject to a four month hold period expiring on August 7, 2016. A TSX Venture Exchange bulletin announcing final acceptance of the private placement was issued on April 4, 2016 and closing occurred shortly thereafter.

For additional information, please contact:

Dave McMillan Chairman & Chief Executive Officer 1-778-773-4560 [email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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