Colibri Announces Signing of a Letter of Intent to Acquire Canadian Gold Resources Ltd

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DIEPPE, N.B., December 16, 2016. (CBI: TSX-V) Colibri Resource Corporation (“Colibri”) is pleased to announce that it has signed a Letter of Intent to acquire all of the issued and outstanding shares of Canadian Gold Resources Ltd. (“CGR”) from Ontop Capital Limited (“Ontop”). CGR and Ontop are both private Canadian corporations (the “Transaction”). As consideration for the Transaction, Colibri will issue an aggregate of 26,666,667 common shares (for a total of $4,000,000) to CGR. The shares will be issued as fully paid and no other compensation will be issued. There will be no finders’ fees payable. The Transaction is subject to Policy 5.3 of the TSX Venture Exchange and subject to exchange approval. The Transaction will be considered a non-arms length transaction pursuant to the policies of the TSX Venture Exchange as a director of Colibri is also a significant shareholder, an officer and a director of Ontop. In addition, Colibri will seek to provide evidence of value by an independent professional valuator. Both parties will mutually agree on the final structure for proceeding with the transaction following completion of due diligence and a review of tax, accounting, corporate and securities law issues.

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