Early Warning News Release Issued Pursuant to NI 62-103 Acquisition of Common Shares of Volatus Capital Corp.

Crest Resources acquires 1.5M Volatus Capital shares

2020-11-12 15:44 PT - News Release

See News Release (C-CRES) Crest Resources Inc

Mr. Michael Collins of Crest Resources reports

EARLY WARNING NEWS RELEASE ISSUED PURSUANT TO NI 62-103 ACQUISITION OF COMMON SHARES OF VOLATUS CAPITAL CORP.

This news release is being disseminated by Crest Resources Inc., pursuant to National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, in connection with the acquisition of certain common shares of Volatus Capital Corp. (the issuer), a British Columbia corporation, the common shares of which are listed for trading on the Canadian Securities Exchange under the symbol VC. On Nov. 9, 2020, the acquiror acquired 1.5 million common shares at a deemed price of 21 cents per common share for total investment of $315,000 by way of a property purchase and sale agreement.

This transaction represents an increase of 2.85 per cent in the acquiror's securityholding percentage in the issued and outstanding common shares of the issuer, or an increase of 2.77 per cent in the acquiror's securityholding percentage of the deemed outstanding shares of the issuer, including the 500,000 warrants held by the acquiror on an exercised basis.

Prior to the transaction, the acquiror owned and controlled 9,215,667 common shares of the issuer, representing 23.96 per cent of the then issued and outstanding common shares of the issuer based on a total of 38,469,407 common shares outstanding as of Nov. 6, 2020, or 9,715,667 common shares of the issuer, representing 24.93 per cent of the outstanding shares assuming exercise of the 500,000 warrants held by the acquiror.

Subsequent to the transaction, the acquiror owned and controlled 10,715,667 common shares of the issuer, representing 26.81 per cent of the then issued and outstanding common shares of the issuer based on a total of 39,969,407 common shares outstanding as of Nov. 9, 2020, or 11,215,667 common shares of the issuer, representing 27.71 per cent of the outstanding shares assuming exercise of the 500,000 warrants held by the acquiror.

Michael Collins, the president and chief executive officer of both the issuer and the acquiror, is a joint actor of the acquiror. Prior to the transaction, the acquiror, together with Mr. Collins, owned and controlled 10,509,667 common shares of the issuer, representing 27.31 per cent of the then issued and outstanding common shares of the issuer based on a total of 38,469,407 common shares outstanding as of Nov. 6, 2020, or 11,009,667 common shares of the issuer, representing 28.25 per cent of the outstanding shares assuming exercise of the 500,000 warrants held by the acquiror. Subsequent to the transaction, the acquiror, together with Mr. Collins, owned and controlled 12,009,667 common shares of the issuer, representing 30.04 per cent of the then issued and outstanding common shares of the issuer based on a total of 39,969,407 common shares outstanding as of Nov. 9, 2020, or 12,509,667 common shares of the issuer, representing 30.91 per cent of the outstanding shares assuming exercise of the 500,000 warrants held by the acquiror.

The acquiror has acquired the common shares for investment purposes and in accordance with applicable securities laws. The acquiror may, from time to time, acquire additional common shares and/or other equity, debt, or other securities or instruments of the issuer, in the open market or otherwise, and reserves the right, subject to applicable securities law, to dispose of any or all of its securities, in the open market or otherwise, at any time and from time to time, and to engage in similar transactions with respect to the securities, the whole depending on market conditions, the business and prospects of the issuer, and other relevant factors.

A copy of the early warning report dated Nov. 12, 2020, to be filed by the acquiror in connection with the acquisition of the common shares of the issuer will be available on SEDAR under the issuer's profile. Copies of such reports will also be available from the acquiror upon written request to Crest Resources, at Suite 1100, 595 Howe St., Vancouver, B.C., V6C 2T5, telephone at 604-681-3170.