Toronto, Canada – April 4, 2016 – Fountain Asset Corp. (FA:TSXV) (“Fountain”) and Xylitol Canada Inc. (XYL:TSXV) (“Xylitol”) are pleased to announce the completion of a secured convertible debenture (the “Loan”) in the principal amount of $1,000,000. Fountain’s total participation was $710,000 of the total financing. The net proceeds of the Loan shall be used to as working capital for Xylitol to increase their product sales within the North American natural foods market.

Xylitol’s operations address the growing xylitol and coconut sugar markets which are natural sugar alternatives. With its consumer packaged goods division, based in Denver Colorado, Xylitol’s North American sales have grown from under $500,000 in revenue in 2010, to over $8,600,000 in 2014, and today its major retail customers include Costco, Whole Foods, Loblaws, Trader Joe’s, Sprouts and many others.

“Xylitol offers a product catalog of natural sweeteners as substitutes to refined, processed sugar and has built strong relationships with its major North American retailers.   Their growing portfolio of natural sweetener products are accepted globally and provide numerous health benefits.  We are pleased to be able to provide this financing and are looking forward to working with them.” said Fountain’s C.E.O., Jason Ewart.

The Loan matures four years from the effective closing date of April 4, 2016, and bears a fee that is the greater of (a) an annual interest rate of 15% payable per annum (b) a royalty equal to 3% of net sales per annum.  The debenture is convertible into common shares of Xylitol at a price of $0.10 per share. Xylitol may redeem the Loan at any time with the payment based on a scale of 1.4 times the face value during the calendar year 2016, 2 times during calendar year 2017 and 3 times during calendar year 2018.  Xylitol also issued 10,000,000 warrants, having a term of 2 years and an exercise price of $0.08 per share.  Xylitol will also enter into a one year fiscal advisory agreement with Fountain whereby Xylitol will receive strategic financial advisory services in exchange for a monthly fee of CAD $20,000 and 3,100,000 options with an exercise price of $0.08 per warrant, expiring 2 years from the date of issue.

Steven Haasz has been appointed interim CEO of Xylitol effective immediately.  Mr. Haasz is the Chief Financial Officer of Fountain.  Over a career spanning 20 years, Mr. Haasz has been working in the financial services sector and consumer retail across North America.  Previously, Mr. Haasz worked at KPMG Audit and KPMG Business Transformation Services.  In announcing the appointment, Mr. Haasz said “The priority at the onset will be to immediately work with the Xylitol team to restructure the operations of the business. Initially, we will focus on a plan to achieve profitability by targeting incremental revenue opportunities within its existing distribution channels, executing gross margin expansion through disciplined product reviews and implement strict cost rationalization programs. It will be important to emphasis the need to foster a culture that creates value for all stakeholders including Xylitol’s employees, customers, suppliers and investors. From there, we will then be able to utilize the operating platform to transform and grow the business to be a leading natural sweetener company in North America.. “

About Xylitol Canada Inc.

Xylitol Canada operates two business units that address the growing xylose and xylitol markets. Xylitol Canada’s consumer packaged goods division is based in Denver Colorado and has grown from under $500,000 in revenue in 2010, to over $8,600,000 in 2014. Xylitol Canada operates a 50,000 square foot xylitol facility where it produces and packages a full catalog of natural sugar free products, most notably its natural sugar alternatives. Through this Denver based facility, the Company services major retail customers such as Loblaws, Whole Foods, Costco, Sprouts, and many others.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada’s business strategy is to leverage novel proprietary technology and processes to become North America’s premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

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 oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Fountain Asset Corp.’s website at .

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