ST. JOHN'S, NEWFOUNDLAND--(Marketwired - Aug. 11, 2016) - Kraken Sonar Inc. (TSX VENTURE:PNG) ("Kraken" or the "Company") is pleased to announce that due to strong demand the Company has increased the size of its previously announced non-brokered private placement of units (the "Units") from aggregate gross proceeds of up to CDN$1,000,000 to up to CDN$1,200,000 (the "Offering").

Pursuant to the Offering, the Company will issue an aggregate of up to 8,000,000 units (the "Units") at a price of CDN$0.15 per Unit. Each Unit will consist of one common share of the Company (each, a "Share") and one-half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of CDN$0.30 for a period of two years from closing of the Offering. The securities issued in connection with the Offering will be subject to a statutory hold period in accordance with applicable securities legislation.

The closing of the Offering is expected to occur on or about August 12, 2016, and remains subject to certain closing conditions, including, but not limited to, the receipt of applicable regulatory approvals and the completion of required regulatory filings with the TSX Venture Exchange. The Company intends to use the net proceeds of the Offering for general corporate and working capital purposes.

About Kraken Sonar Inc.

Kraken Sonar Inc. is an industrial technology company, founded in 2012, that is dedicated to the production and sale of Synthetic Aperture Sonar, sensors and underwater robotics. The Company's products are sold to leading defence contractors, commercial survey companies and research institutions for producing real-time, ultra-high resolution imagery and bathymetry of the seabed. For more information, please visit www.krakensonar.com.

Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the 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.