Data Deposit Box Announces Private Placement and First Closing

Toronto, Ontario--(Newsfile Corp. - May 20, 2016) - Data Deposit Box Inc. (CSE: DDB) (OTCQB: DDBXF) (FSE: 2DD) (the "Company"), a global provider of cloud backup and recovery technology, is pleased to announce a non-brokered private placement financing (the "Offering") of up to 4,000,000 units (each, a "Unit") at a price of $0.20 per Unit for gross proceeds of up to $800,000. Each Unit consists of one common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"), entitling the holder thereof to purchase one Common Share at a price of $0.25 per Common Share for a period of twelve (12) months from the date of issuance.

The Company has completed the first tranche ("First Tranche") of the Offering issuing 1,709,999 Units raising gross proceeds of $341,999.80. Proceeds raised from the Offering will be used for marketing, product development and general operating expenses.

Pursuant to the closing of the First Tranche, certain eligible persons (the "Finders") were paid a cash commission equal to 8% of the proceeds raised from subscribers introduced to the Company by such Finder and also issued an aggregate of 116,799 warrants (the "Finder Warrants") to Finders, each Finder Warrant entitling the holder to acquire one Common Share at a price of $0.20 for a period of one year from the date of issuance.

The securities issued upon closing of the First Tranche are subject to a hold period until September 21, 2016, pursuant to applicable securities laws. In connection with the Offering, a subscriber (the "Subscriber") entered into share loan and pledge agreements with certain of the Company's existing shareholders (the "Lenders"), pursuant to which the Lenders loaned to the Subscriber an aggregate of 1,429,999 Common Shares without resale restriction. As collateral, the Subscriber pledged to the Lenders an equal number of Common Shares purchased pursuant to the closing of the First Tranche.

A director of the Company participated in the First Tranche, which constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to the related party nor the consideration being paid by the related party exceed 25% of the Company's market capitalization. The participants in the First Tranche and the extent of such participation were not finalized until shortly prior to the completion of the First Tranche. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the First Tranche pursuant to a material change report filed at least 21 days prior to the completion of the First Tranche.

About Data Deposit Box

Data Deposit Box, a pioneer of cloud backup and recovery technology, has set a new industry standard by providing the SMB market with the same level of security and protection that is available to large enterprises. Data Deposit Box patented backup technology, known for its Exabyte scalability, advanced data reduction capabilities and ease-of-use, has won prestigious industry awards and has been featured in many key industry publications.

Data Deposit Box technologies and solutions are currently used daily by over 200,000 customers, 1,000 resellers, 25 MSPs and private label partners for online backup and recovery, archiving, disaster readiness, secure file sharing and remote access.

Visit the Company's website at: www.datadepositbox.com

Investor Inquiries

W. Clark Kent
Corporate Development
Telephone: 647-519-2646
Email: ckent@currentmca.com

This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.