Redishred Capital Corp. Announces It Will Not Proceed with Proposed Financing

Mississauga, Ontario--(Newsfile Corp. - October 13, 2016) - Redishred Capital Corp. (TSXV: KUT) ("Redishred" or "Company") has chosen not to proceed with the proposed private placement previously announced on September 23, 2016. The transaction and its terms were subject to shareholder and board approval, and consent to the proposed terms was not granted. The Company may consider additional financing in the future that would be determined by market conditions. The Company's management team will continue to focus its efforts on operational efficiencies and continue to expand its footprint by way of franchising and strategically located acquisitions.

For the six months ended June 30, 2016, the Company has grown its system sales by 19%; has added two new operating franchised locations and has integrated one acquisition in South Florida. All of these activities have driven operating income up by 16% when comparing the first half of 2016 versus the first half of 2015.

About Redishred Capital Corp.

Redishred Capital Corp. (TSXV: KUT) is the owner of the PROSHRED® trademarks and intellectual property in the United States. PROSHRED® shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. PROSHRED® is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001:2008 certification. It is PROSHRED®'s vision to be the 'system of choice' and provide shredding and recycling services on a global basis. Redishred Capital Corp. grants PROSHRED® franchise businesses in the United States and by way of license arrangement in the Middle East. Redishred Capital Corp. also operates six corporate shredding businesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of document destruction businesses that generate stable and recurring cash flow through a scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.

FOR FURTHER INFORMATION PLEASE CONTACT:

Redishred Capital Corp. (TSXV: KUT)
Jeffrey Hasham, MBA, CPA, CA
Chief Executive Officer
Jeffrey.hasham@redishred.com
www.redishred.com
Phone: (416) 849-3469 Fax: (905) 812-9448

or,

Redishred Capital Corp. (TSXV: KUT)
Jack Pulkinen, CPA, CA
Chief Financial Officer
jack.pulkinen@redishred.com
www.redishred.com
Phone: (416) 204-0076 Fax: (905) 812-9448

Note: 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 news release contains forward looking statements that reflect the current expectations of management of Redishred and Redishred's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "may", "will", "estimate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Redishred. Forward looking statements include those relating to future financing which may be impacted by market conditions and demand for the Company's securities, and the Company's ability to expand its footprint which may be impacted by the availability of accretive acquisition opportunities, finding new franchisees and financing availability. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2015 management discussion and analysis under "Risk Factors", could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Redishred will prove to be correct. Readers are cautioned that such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Redishred can give no assurance that actual results will be consistent with these forward-looking statements.

In particular, certain statements in this document discuss Redishred's anticipated outlook of future events. These statements include, but are not limited to the future financing, which is subject to market conditions, and regulatory approval, which may be delayed or may not be provided.

Readers are cautioned that such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Redishred can give no assurance that actual results will be consistent with these forward-looking statements.