Railtown Completes Initial Public Offering and Non-Brokered Private Placement

Vancouver, British Columbia--(Newsfile Corp. - January 28, 2021) - Railtown Capital Corp. (TSXV: RLT.P) (the "Company") is pleased to announce that on January 28, 2021 it completed an initial public offering (the "Offering") in British Columbia and Alberta of 5,000,000 common shares ("Common Shares") in the capital of the Company at a price of $0.10 per Common Share for gross proceeds of $500,000 pursuant to a final prospectus dated January 8, 2021 (the "Prospectus").

Canaccord Genuity Corp. (the "Agent") acted as agent in the Offering, in connection with which it received a cash commission equal to 10% of the gross proceeds of the Offering and an administrative fee. In addition, an aggregate of 500,000 agent's warrants were issued to the Agent and its selling group, each such agent's warrant entitling the holder to acquire one Common Share at an exercise price of $0.10 expiring 60 months from the date that the Common Shares are listed on the TSX Venture Exchange (the "TSXV").

Upon closing of the Offering and as disclosed in the Prospectus, the Company completed a non-brokered private placement (the "Sidecar") pursuant to which it issued 3,000,000 Common Shares at a price of $0.10 per Common Share to raise aggregate gross proceeds of $300,000. All Common Shares issued in connection with the Sidecar are subject to a statutory hold period expiring on May 29, 2021. In connection with the Sidecar, the Company paid cash commissions in the aggregate of $6,570 to certain finders.

At the closing of the Offering, the Company also granted stock options (the "Options") to directors of the Company to acquire up to an aggregate of 1,300,000 Common Shares. Each Option is exercisable to acquire one Common Share at a price of $0.10 any time prior to January 28, 2031.

Following completion of the Offering and Sidecar, the Company has 13,000,000 Common Shares issued and outstanding, 5,560,000 of which are subject to escrow restrictions as disclosed in the Prospectus. The TSXV has accepted the Company's listing application and the Common Shares are anticipated to resume trading on the TSXV at the opening of business on Monday, February 1, 2021, under the symbol "RLT.P".

For further information please see the Prospectus, available under the Company's profile on SEDAR at www.sedar.com.

About the Company

The Company is a capital pool company ("CPC") within the meaning of the policies of the TSXV that has not commenced commercial operations and has no assets other than cash. The current directors and officers of the Company are: Cameron White (CEO, President, Corporate Secretary and Director), Claudia Tornquist (CFO and Director), Timothy Gamble (Director) and Graeme Barker (Director). Except as specifically contemplated in the CPC policies of the TSX-V, until the completion of its "Qualifying Transaction" (as defined therein), the Company will not carry on business, other than the identification and evaluation of companies, business or assets with a view to completing a proposed "Qualifying Transaction".

For more information please contact the Company at 604-765-2601 or railtowncapital@gmail.com.

On Behalf of the Board of Directors of Railtown Capital Corp.

Cameron White
CEO, President and Corporate Secretary

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 includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.

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