STS.V · 2017-12-12 12:00:00

Stem 7 Files PEA on Santa Cruz Graphite Project

Economic Studies

NEWS RELEASE

December 12, 2017 – Vancouver, B.C. - Stem 7 Capital Inc. (“Stem 7” or the “Company”)

(TSXV: STS.H) Further to the Company’s news release dated October 23, 2017, the Company

has filed a National Instrument 43-101 technical report dated August 21, 2017 and entitled

“Preliminary Economic Assessment Brasil Grafite S.A. on the Santa Cruz Graphite Project

Bahia, Brazil” (the “PEA”). There are no material differences between the mineral resources,

mineral reserves or results disclosed in the PEA and those disclosed in the Company’s October

23, 2017 news release. The PEA can be found under the Company’s Sedar profile at

www.sedar.com.

On behalf of the Board,

Eric Allison

Chief Executive Officer

Ph: +1 (203) 918-3098

For additional information, please contact:

Kris Kottmeier

Ph: +1 (604) 506-2502

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.

Cautionary Note: The PEA is considered by STS to meet the requirements of a Preliminary

Economic Assessment as defined by Canadian Securities Administrators' National Instrument

43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. The economic analysis

contained in the technical report is based, in part, on Inferred Resources (as defined in NI 43-

101) and is preliminary in nature. Mineral Resources that are not Mineral Reserves do not

have demonstrated economic viability. There is no guarantee that all or any part of the

Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered

too geologically speculative to have mining and economic considerations applied to them and

to be categorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or

drilling will be required to convert Inferred Mineral Resources to Measured or Indicated

Mineral Resources. Mineral Resources that are not Mineral Reserves do not have

demonstrated economic viability. There is no certainty that the reserve's development,

production and economic forecasts on which the PEA is based will be realized.