Zinc8 Energy Solutions Inc. ("Zinc8" or the "Company") (CSE:ZAIR) (OTC:MGXRF)(FSE:0E9) is pleased to announce that it has completed its previously announced non-brokered private placement (the "Private Placement"), as described in its News Release dated August 5th, 2020, pursuant to which it has issued an aggregate of 8,750,000 units (each, a "Unit") at a price of $0.16 per Unit for gross proceeds of $1,400,000.

Each Unit will be comprised of one common share in the capital of the Company (each, a "Share") and one non-transferable share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share in the capital of the Company (each, a "Warrant Share") for a period of 24 months from the closing date at an exercise price of $0.30. Insiders may participate in the Private Placement.

The Company paid finder's fees of $37,560.00 and issued 234,750 share purchase warrants to certain finders in connection with the Private Placement.

Certain insiders of the Company subscribed for a total of 2,266,250 Units under the Private Placement, which is a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25% of the Company's market capitalization.

All securities issued in respect of the Private Placement will be subject to a hold period of four (4) months and a day from closing of the Private Placement in accordance with securities laws.

The proceeds of the Private Placement will be used for general working capital.

Zinc8 | https://zinc8energy.com