Gunpowder Capital Corp. Completes the Sale of its Third USA Home Rehabilitation Property

Toronto, Ontario--(Newsfile Corp. - May 7, 2018) - Gunpowder Capital Corp. (CSE: GPC) (CSE: GPC.PR.A) (OTCQB: GNPWF) (FSE: YS6N) ("Gunpowder" or the "Corporation") announced today that it has successfully closed the sale, via its USA Home Rehabilitation Programme (the "Programme"), of its third rehabilitated property.

The sale of the third property generated a net gain of Twenty-Four Thousand Dollars ("$24,000.00") USD to Gunpowder which amounts to a Twenty-Four percent ("24%") annualized rate of return on the Corporation's total investment.

Since December of 2017, Gunpowder has now earned approximately Forty-Five Thousand Dollars ("$45,000.00") USD in total profit via the combined sale of the three properties. Thus far, the Management Team of Gunpowder is very pleased with the results and the profit margins the Programme has produced. Furthermore, the Management Team of Gunpowder has found that the Programme itself is extremely efficient, and requires minimal oversight.

Although the Corporation has elected not to disclose the geographic region of our focus for competitive reasons, the region where Gunpowder is focusing its attention on continues to show high demand for resale properties and Gunpowder is now in the process reviewing additional properties in this region that meet our criteria.

About Gunpowder Capital Corp.

Gunpowder Capital Corp., is a merchant bank and advisory services firm based in Toronto, Ontario, Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder partners with these businesses to support their growth initiatives with its proven methodology of appropriate financing and structured exits. Gunpowder offers debt financing, including mezzanine and bridge loans, equity financing and advisory services. Gunpowder is also building a portfolio of companies in which it takes a long term position and view. For more information please visit www.gunpowdercapitalcorp.com.

For further information please contact:

Mr. Frank Kordy
CEO & Director
Gunpowder Capital Corp.
T: (647) 466-4037
E: frank.kordy@gunpowdercapitalcorp.com

Mr. Paul Haber
CFO
Gunpowder Capital Corp.
T: (416) 363-3833
E: paul.haber@gunpowdercapitalcorp.com

Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

— 30 —