Shareholder approval of the Rights Plan will be sought at the Company ’s annual meeting of

TEUTON RESOURCES CORP.

2130 Crescent Road Victoria, BC V8S 2H3 Phone: (778) 430-5680 Website: www.teuton.com

NEWS RELEASE—SHAREHOLDER RIGHTS PLAN ADOPTED

May 16, 2016, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) ("TFE"- Frankfurt) (“TEUTF”—OTCBB) announces that its board of directors has approved the adoption of a Shareholder Rights Plan (the “Rights Plan”) pursuant to a Shareholder Rights Plan Agreement (the “Rights Plan Agreement”) between the Company and Computershare Investor Services Inc.. Shareholder approval of the Rights Plan will be sought at the Company’s annual meeting of shareholders scheduled for June 27, 2016. The Rights Plan is subject to TSX Venture Exchange acceptance and shareholder ratification.

The fundamental objectives of the Rights Plan are to provide adequate time for Teuton's board of directors (the "Board") and shareholders to assess an unsolicited take-over bid for the Company; to provide the Board with sufficient time to explore and develop alternatives for enhancing and maximizing shareholder value if a take-over bid is made; and, to provide shareholders with an equal opportunity to participate in a take-over bid. The Rights Plan encourages a potential acquirer who makes a take-over bid (an "Acquirer") to ensure the take-over bid satisfies certain minimum standards designed to promote fairness, or to proceed with the concurrence of the Board (a "Permitted Bid"). If a take-over bid fails to meet these minimum standards and the Rights Plan is not waived by the Board, the Rights Plan provides that holders of common shares of the Company, other than the Acquirer, will be able to purchase additional common shares at a significant discount to market, thus exposing the Acquirer to substantial dilution of its holdings.

The Rights Plan has been prepared in alignment with recent amendments to the regulatory framework governing take-over bids published by the Canadian Securities Administrators, which were scheduled to generally come into effect on May 9, 2016. The Board considers that the adoption of the Rights Plan is desirable and in the interests of all of the Company's shareholders, and recommends shareholders vote in favour of the Rights Plan at its annual general meeting scheduled for June 27, 2016. If the Rights Plan is ratified by the eligible shareholders at such meeting, it will have an initial term which expires at the annual meeting of shareholders of the Company to be held in 2019 unless terminated earlier. The Rights Plan may be extended beyond 2019 by approval of eligible shareholders at such 2019 meeting.

Pursuant to the Rights Plan, effective May 12, 2016, rights (the "Rights") have been issued and attached to all of Teuton's outstanding common shares. A separate rights certificate will not be issued until such time as the Rights become exercisable (which is referred to as the "separation time"). The Rights will become exercisable only if a person, together with its affiliates, associates and joint actors, acquires or announces its intention to acquire beneficial ownership of Teuton common shares which, when aggregated with its current holdings, total 20% or more of the outstanding Teuton common shares (determined in the manner set out in the Rights Plan) other than as permitted under the Rights Plan. The Rights will effectively permit holders, other than an Acquirer and such related parties, to purchase common shares of the Company at a 50% discount to their market price (as defined in the Rights Plan Agreement).

The Rights Plan was not adopted by the Board in response to, or in anticipation of, any offer or takeover bid. The Company has no knowledge of any pending or threatened takeover bids for the Company, and has no reason to believe that any takeover offer for the Company's shares is imminent.

Additional details regarding the Rights Plan will be provided in the Management Information Circular that will be available for viewing on SEDAR and mailed to the shareholders of the Company prior to the Company's upcoming annual meeting of shareholders scheduled for June 27, 2016

About Teuton

Teuton owns interests in more than thirty properties in the prolific “Golden Triangle” area of northwestern British Columbia and was one of the first companies to adopt what has since become known as the “prospect generator” model. One of Teuton’s core holdings comprises ground staked in the mid-1980’s along extensions of favourable geology to the north and south of the KSM property (owned by Seabridge Gold) and the Brucejack-Snowfield property (owned by Pretium Resources). Teuton’s King Tut, Tuck, Delta, High North and Fairweather properties, located south of Pretium’s Brucejack property, were farmed out in 2015-16 for cash consideration totaling $4.15 million. In May of 2016, the Company joint ventured its Treaty Creek property, adjoining to the northeast of Seabridge Gold’s KSM property, with Tudor Gold (“TUD”) and American Creek (AMK”). Shareholders and other interested parties can access information about Teuton at the Company’s website, www.teuton.com.

Respectfully:

“Dino Cremonese, P.Eng.”

President, Teuton Resources Corp.

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This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.