Mini-bulk Sample Underway

January 25th, 2016

CRYSTAL EXPLORATION INC. (the “Company” and “Crystal”) (TSX-V: “CEI”) is pleased to announce samples for diamond processing have been submitted to the Saskatchewan Research Council (SRC) diamond laboratory. Previously drilled but unsampled and unreported diamond drill core (along with historic confidential and previously unreported data) from the Muskox kimberlite pipe, Nunavut, Canada, was acquired, logged and partially sampled during the fall-winter of 2015. The samples total approximately twelve (12) tonnes of whole core kimberlite representing five (5) previously unsampled drill holes from Muskox. The samples will be subject to Dense Media Separation (DMS) and Caustic Fusion analysis for diamond content.

Advanced Exploration
President and CEO, Jim Greig commented, “The pending results and the data acquired during 2015 will allow Crystal to re-evaluate the potential at the Muskox Project and focus efforts on new and existing kimberlite targets throughout the Projects areas. Crystal’s 100% owned tenements and advanced projects will position Crystal as a leading Canadian diamond explorer and project generator.” In addition, “The long-term fundamentals for rough diamonds remain strong and Crystal will continue to seek joint venture partners for participation in exploration spending.”

Muskox Kimberlite Pipe & Targets
Diamonds were first discovered at the Muskox kimberlite pipe in 1996 by De Beers Canada. Exploration at the Muskox kimberlite continued until 2007 through a joint venture with Tahera Diamond Corp. Work did not resume beyond 2008 due to capital constraints, low diamond prices and the 2008 Financial Crisis.

Drill core and float samples with respective locations and coordinates have been secured at Crystal’s storage facility located near Edmonton, Alberta, Canada. The sampled drill core from the Muskox kimberlite represents five (5) of twenty two (22) diamond drill holes that were not previously processed for diamond content. These drill holes were completed in 2006 as part of an infill drill program to better determine a diamond resource. A historical report completed by Mineral Services Canada in 2005 proposed diamond grades at the Muskox pipe for the MKU-A unit were between 0.82 and 1.65 carats per tonne. Since the reported grades were lower, Crystal is investigating a new geological understanding and process optimization techniques to confirm the Mineral Services work. The grade discrepancies were overlooked during previous bulk sampling programs.

At present within the Muskox prospecting permits there are a total of 136 airborne geophysical anomalies with approximately one hundred and thirteen (113) of the anomalies classified as unexplained. Of these, there are a total of fifteen (15) priority one (1) anomalies and thirty-one (31) priority two (2) anomalies that are all recommended for follow-up exploration.

Sample & Drill Hole Locations
Each drill hole was cataloged, logged, photographed and sampled during September and October and the data specific to the Muskox kimberlite was compiled. Whole core samples from five (5) holes were sent for processing at SRC’s processing plant in Saskatoon for macro-diamond recovery. Results are expected during the second (2nd) quarter of 2016.

Project Locations


Sample & Drill Hole Locations

Work Plans
Following the Q2, 2016 diamond results, the company will select additional material from the remaining thirteen (13) unsampled drill holes and begin a thorough evaluation of the Muskox kimberlite pipe. Future programs may include a Mineral Resource Estimate based on historical and new results and drill testing of priority kimberlite targets. This will include a detailed plan and budget with respect to further sampling/drilling at Muskox.

Crystal has commenced work to complete a 43-101 Technical Report with completion expected during Q1, 2016. The Technical Report will focus on the Muskox Project and include kimberlite targets located at the Contwoyto Project and Hood River Project (see Project Location map).

Contwoyto Project & Hood River Project
Numerous unsourced diamond (or kimberlite) indicator mineral (DIM) trains have been identified at the Contwoyto Project and the Hood River Project. These trains require further delineation and follow-up exploration, particularly those exhibiting high diamond potential mineral chemistry. The Company is isolating additional targets for drill testing derived from historical work across the entire 1,150km2 projects package.A comprehensive exploration program consisting of but not limited to: ground geophysical surveys; till sampling; ground truthing; prospecting and drilling will be designed, budgeted and completed for 2016 and beyond.

Granting of Share Options
The Board of Directors of the Company has approved a resolution to grant an aggregate of 1,900,000 incentive stock options (“Options”) to acquire common shares of the Company pursuant to the Company’s Stock Option Plan (the “Plan”) to officers, directors and advisors of the Company. The Options have an exercise price of $0.11 and vest according to the following schedule: one third immediately; one-third on January 15, 2017; and one-third January 15, 2018. The Options will expire in accordance with the Plan and not later than January 15, 2021.

About Crystal Exploration Inc.
Crystal is a Canadian diamond exploration company with Common shares listed for trading on the TSX Venture Exchange. Crystal is backed by proven and seasoned resource sector professionals who have a track record of advancing exploration projects from grassroots through to production scenarios. The technical content of this news release have been reviewed and approved by Dean Besserer, P.Geol., the Technical Advisor of the Company and a Qualified Person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

s/ “Jim Greig”

Jim Greig,

President and Chief Executive Officer

Cautionary Statement on Forward-Looking Statements

This press release contains “forward-looking information”, as such term is defined in applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “anticipates”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “plans” and variations of such words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would” or “might”, “be taken”, “occur” or “be achieved”. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Crystal operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Crystal cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Crystal’s actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to, factors discussed in each management discussion and analysis of the Company, available on SEDAR at www.sedar.com.

Although Crystal has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward looking statements may differ materially from actual results or events. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Crystal disclaims any intention or obligation to update or revise such information, except as required by applicable law.

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.