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FOUNTAIN ASSET CORP. ANNOUNCES ITS FINANCIAL RESULTS FOR THE FIRST QUARTER 2018

May 29, 2018

Toronto, Canada – Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) is pleased to announce its financial results for the first quarter ended March 31, 2018.

Highlights from the Q1 ending March 31, 2018:
• Total revenue from investment activity decreased to losses of $1.4 million compared to revenue of $1.0 million in Q1/17;
• Net realized gains on the sale of portfolio investments of $4.4 million compared to $nil in Q1/17;
• Net unrealized losses on portfolio investments of $5.9 million compared to net unrealized gains of $0.7 million in Q1/17;
• Total expenses decreased to $0.2 million from $0.3 million in Q1/17;
• Net income decreased to a loss of $1.6 million ($0.03/share) compared to net income of $0.7 million ($0.01/share) in Q1/17; and
• Adjusted net asset value (“NAV”) was $25.3 million ($0.45/share) at March 31, 2018 compared to $25.5 million ($0.47/share) at December 31, 2017.

For the quarter ended March 31, 2018, the Company reported a net loss of $1.6 million compared to net income of $0.7 million in the quarter ended March 31, 2017. The current quarter net loss was primarily attributable to losses on investment activity of $1.4 million, which included net realized gains on the sale of portfolio investments $4.4 million offset by net unrealized losses on portfolio investments of $5.9 million.

As at March 31, 2018, the Company’s Adjusted NAV per share was $0.45 compared to $0.47 at the end of December 31, 2017. The decline was mainly due the unrealized losses in the quarter combined with the reduction in available tax losses.

“The first quarter was challenging as the market environment for small cap companies softened at the beginning of the year. However, we made several key investments in private companies that we expect to begin trading publicly within the next quarter or two” said Andrew Parks, CEO of Fountain.

A full set of the Q1 2018 unaudited financial statements and the related management’s discussion & analysis are available on SEDAR.

About Fountain Asset Corp.
Fountain Asset Corp. is a merchant bank which provides equity financing, bridge loan services (asset back/collateralized financing) and strategic financial consulting services to companies across many industries such as marijuana, oil & gas, mining, real estate, manufacturing, retail, financial services, blockchain technology and biotechnology.

Forward-Looking Statements
Certain information contained in this press release constitutes forward-looking information, which is information relating to possible events, conditions or results of operations of the Company, which are based on assumptions and courses of action and which are inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information in this press release includes, but is not limited to, expectations of private companies going public within the next quarter or two. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the level of bridge loans and equity investments completed, the nature and credit quality of the collateral security and the nature and quality of equity investments, and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated December 22, 2017 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Neither TSX Venture Exchange Inc. 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.

For further information: Andrew Parks at (647) 344-4429 or visit Fountain Asset Corp.'s website at www.fountainassetcorp.com.