Telferscot Signs Extension Agreement with Auxico Resources and Grants Options

TORONTO, Ontario, October 5, 2016 – Telferscot Resources Inc. (CSE:TFS) (“Telferscot” or the “Company”) announces that further to its news release dated June 30, 2016, the Company and Auxico Resources Canada Inc. (“Auxico”) have signed an amendment to the Amalgamation Agreement to extend the closing date to December 31, 2016.

Telferscot has also granted 10,150,000 stock options at an exercise price of $0.00714 with a 5-year term to Grove Capital Group Ltd. (“Grove”). Grove is a Company controlled by one of the directors.  Additionally, certain Directors and Officers have agreed to surrender their options in order to comply with the Amalgamation Agreement.

Telferscot and Auxico are committed to the transaction and are working diligently to complete the terms of the Amalgamation Agreement.

This news release may contain forward-looking statements that are based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates. Statements about the closing of the transaction, expected terms of the transaction, the number of securities of Telferscot that may be issued in connection with the transaction, and the parties’ ability to satisfy closing conditions and receive necessary approvals are all forward-looking information. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.