Acquisition of Call Option

TORONTO, ONTARIO--(Marketwired - Dec. 18, 2015) - Arnold T. Kondrat ("Kondrat") announces that he has acquired a call option in respect of a convertible debenture of Delrand Resources Limited ("Delrand" or the "Company"). Reference is made to the Company's press release issued today announcing that Delrand and its largest creditor (the "Creditor") have agreed to settle indebtedness of Cdn$1,300,000 pursuant to the issuance by Delrand to the Creditor of an unsecured debenture (the "Debenture") in the principal amount of Cdn$1,300,000 (the "Principal"). The Debenture has a maturity date (the "Maturity Date") of 30 months from the date of issue of the Debenture. The terms of the Debenture also provide that (a) the holder thereof shall have the option to convert the outstanding Principal into common shares of Delrand ("Common Shares") at a price of Cdn$0.25 per share (subject to adjustment in accordance with the terms of the Debenture for events such as a share consolidation) (the "Conversion Price"), and (b) within 30 days of the Maturity Date, Delrand may elect to repay the outstanding Principal in Common Shares at the Conversion Price, provided that the 5 day per share volume-weighted average trading price of the Common Shares at that time is at least Cdn$0.25 (subject to adjustment in accordance with the terms of the Debenture for events such as a share consolidation). Reference is made to the said Delrand press release for additional details in respect of the Debenture.

Kondrat, who is Chief Executive Officer and a director of the Company, has entered into a call option agreement with the Creditor pursuant to which Kondrat shall have the right (the "Call Option") to require the Creditor to sell to Kondrat all or a portion of the Debenture for a purchase price payable of Cdn$1.00 for each Cdn$1.00 of Principal purchased. Assuming the exercise of the Call Option, the conversion by Kondrat of all of the Principal into Common Shares at the Cdn$0.25 per share Conversion Price would result in the issuance to Kondrat of a total of 5,200,000 Common Shares (the "Debenture Shares"). Taking into account such conversion, the Debenture Shares would represent 19.27% of the outstanding Common Shares.

Kondrat currently holds 4,786,567 of the outstanding Common Shares. The said 4,786,567 Common Shares, together with the Debenture Shares, total 9,986,567 Common Shares. Assuming the exercise of the Call Option and the conversion by Kondrat of all of the Principal into Common Shares at the Cdn$0.25 per share Conversion Price, the said 9,986,567 Common Shares would represent 37% of the outstanding Common Shares.

Kondrat acquired the Call Option for investment purposes and may in the future increase or decrease his ownership of securities of the Company from time to time depending upon the business and prospects of the Company and future market conditions.

Kondrat's address is Suite 7070, 1 First Canadian Place, 100 King Street West, Toronto, Ontario, M5X 1E3.

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