Sphinx: Conversion of debentures into shares by Quebec institutions

MONTRÉAL, QUÉBEC--(Marketwired - Dec. 21, 2016) - Sphinx Resources Ltd. ("Sphinx" or the "Corporation") (TSX VENTURE:SFX) announces that the Fonds de solidarité FTQ (the "Fonds") and the Fonds de solidarité FTQ Nord-du-Québec (the "Fonds NdQ") have accepted a settlement of the repayment of the amount of their debentures of $150,000 and $75,000 respectively issued by Sphinx (see press release dated December 19, 2014). The settlement will be made through the issuance of 4,500,000 common shares of Sphinx to the Fonds and 1,500,000 common shares to the Fonds NdQ at a price of $0.05 per share, subject to approval by the TSX Venture Exchange (the "Exchange"). As a result of this settlement, the Fonds and the Fonds NdQ will exercise control on 3,720,032 and 1,887,392 common shares respectively, representing 6.15% and 3.12% of the outstanding common shares.

Debenture with the Société d'investissement dans la diversification de l'exploration s.e.c. ("SIDEX")

The Corporation also announces that it has agreed with SIDEX, subject to the approval of the Exchange, to extend until December 19, 2018 the maturity date of the $150,000 debenture issued by Sphinx on December 19, 2014. Other conditions of the debenture remain unchanged.

The Corporation thanks the Québec institutions for this conversion into common shares and extension of the debenture which support the mission of Sphinx by sustaining its long term growth.

Finally, Sphinx will issue to FTQ, FTQ NdQ and SIDEX a total of 900,081 common shares in lieu of a cash payment for interest due of $45,004 for the period from December 2015 to December 2016 in accordance with the convertible debentures of $375,000 issued on December 19, 2014. This share issue will be made at a price of $0.05 per Sphinx share and will also be subject to the approval of the Exchange.

About the Fonds

The Fonds is a development capital fund that channels the savings of Quebecers into investments. At May 31, 2016, the organization had $11.7 billion in net assets, and through its current portofolio of investments has helped create and protect 187,414 jobs. The Fonds is a partner in more than 2,600 companies and has 618,551 shareholders-savers.

About the Fonds NdQ

An integral part of the large Fonds' network since their inception in 1996, the Fonds NdQ is an active participant in the economic development of Québec's northern region.

About SIDEX

SIDEX was established in 2001 by the Government of Québec and the Fonds. The mission of SIDEX is to invest in mineral exploration companies working in Québec to diversify Québec's mineral base. SIDEX encourages companies to explore for new substances, to use new metallogenic models and to open new territories. SIDEX also helps to promote entrepreneurship and innovation.

About Sphinx

Sphinx is engaged in the generation and acquisition of exploration projects in Québec, a Canadian province which is recognized as an attractive mining jurisdiction worldwide.

For further information, please consult Sphinx's website: www.sphinxresources.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results and activities to vary materially from targeted results and planning. Such risks and uncertainties include those described in Sphinx's periodic reports including the annual report or in the filings made by Sphinx from time to time with securities regulatory authorities.