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

August 28, 2018

Toronto, Canada – Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) is pleased to announce its financial results for the second quarter ended June 30, 2018.

Highlights from the Q2 ending June 30, 2018:
• Total revenue from investment activity increased to $4.6 million compared to losses of $0.4 million in Q2/17;
• Net realized gains on the sale of portfolio investments of $2.1 million compared to net realized gains of $0.1 in Q2/17;
• Net unrealized gains on portfolio investments of $2.3 million compared to net unrealized losses of $1.1 million in Q2/17;
• Total expenses decreased to $0.38 million from $0.42 million in Q2/17;
• Net income increased to $4.2 million ($0.07/share) compared to a net loss of $0.9 million ($0.02/share) in Q2/17; and
• Adjusted net asset value (“NAV”) was $30.6 million ($0.53/share) at June 30, 2018 compared to $25.5 million ($0.47/share) at December 31, 2017.

For the quarter ended June 30, 2018, the Company reported net income of $4.2 million compared to a net loss of $0.9 million in the quarter ended June 30, 2017. The current quarter net income was primarily attributable to gains on investment activity which included net realized gains on the sale of portfolio investments $2.1 million as well as net unrealized gains on portfolio investments of $2.3 million.

As at June 30, 2018, the Company’s Adjusted NAV per share was $0.53 compared to $0.47 at the end of December 31, 2017. This 12% increase was mainly due the gains on portfolio investments offset by a further reduction in available tax losses as we continued to realize gains on our portfolio.

“The second quarter was a success as a key investment in a private company began trading publicly as expected. We continue to believe that Fountain has a solid pipeline of private investments that will go public during the second half of the year.” said Andrew Parks, CEO of Fountain.

CFO Appointment
Fountain has appointed Mr. Michael Leskovec as Chief Financial Officer after concluding its search. Mr. Leskovec was appointed as Interim Chief Financial Officer of the Company on April 30, 2018.

“Mr. Leskovec brings valuable industry experience that will help guide the growth of our company going forward.” CEO Andrew Parks said.

A full set of the Q2 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 during the second half of the year. 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.