Atlas Engineered Products Closes First Tranche of Private Placement for $3,799,000

November 06, 2018

Gives Update on Tandelle-Pacer Acquisition

Nanaimo, British Columbia. ATLAS ENGINEERED PRODUCTS LTD. (“Atlas” or the “Company”) (TSX-V: AEP, OTC Markets: APEUF) is pleased to report that it has closed the first tranche of its non-brokered private placement offering (the “Offering”) previously announced on August 14, 2018 and October 18, 2018. The first tranche under the Offering raised gross proceeds of $3,799,000 through the sale of 9,497,000 units (each a “Unit”) at $0.40 per Unit.

Each Unit under the Offering consists of one Atlas common share and one-half of one warrant (each a “Warrant”). Each whole Warrant entitles the holder thereof to purchase one additional Atlas common share at a price of $0.60 per share for a period of two years from the date of issuance. Atlas has the right to accelerate the expiry date of the Warrants if its common shares trade at a volume weighted average price greater than $0.80 per share for 20 consecutive trading days. If exercised, the expiry date of the Warrants will be accelerated to the date that is 30 days after Atlas issues a news release announcing the exercise of the acceleration right. The securities issued in the first tranche under the Offering are subject to a four month and one day hold period expiring on March 1, 2019.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities to, or for the account or benefit of, persons in the United States. The securities offered in the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws, and accordingly may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom.

Proceeds of this first tranche are expected to be applied to the purchase of all of the issued and outstanding shares of Tandelle Specialty Inc. and Pacer Building Components Inc. (“Tandelle-Pacer”), and for general working capital purposes. Update on Tandelle-Pacer Acquisition Originally scheduled to close on or before October 31, 2018, Atlas continues to work towards closing of its planned acquisition of Tandelle Specialty Inc. and Pacer Building Components Inc. (“Tandelle-Pacer”) of Ilderton, Ontario, and expects the acquisition of Tandelle-Pacer to close shortly.

About Atlas Engineered Products Ltd.

Atlas Engineered Products is a leading supplier of trusses and engineered wood products. Atlas was formed over 18 years ago and operates manufacturing and distribution facilities in British Columbia and Ontario to meet the needs of residential and commercial builders. Atlas has expert design and engineering teams, multipleshift state-of-the-art truss manufacturing operations, and large inventories of engineered beam and flooring components. Atlas aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation and product diversification strategy. Atlas will bring its construction industry partners across Canada unparalleled excellence in service, product, and support and is committed to supplying them with the full array of components and assemblies they might require for their projects – from design to lockup.

For further information please contact:

Atlas Engineered Products Ltd. Atlas Engineered Products Ltd

Dirk Maritz, CEO and President Bill Woods, CFO
Phone: 1-250-754-1400
Email: info@atlasep.ca
Unit 102, 6551 Aulds Road Nanaimo, BC V9S 5X9

www.atlasengineeredproducts.co...

For investor relations please contact:

Rob Gamley
Phone: 1-604-689-7422
Email: rob@contactfinancial.com
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC V7Y 1G5

Forward Looking Information

Information set forth in this news release contains forward-looking statements. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company including those to be described in the Annual Information Form filed by the Company on June 1, 2018 and the Management’s Discussion and Analysis (“MD&A”) for the Company’s fiscal quarter ended August 31, 2018 filed by the Company on October 17, 2018, both on www.sedar.com. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information. Closing of the acquisition of South Central Building Systems Ltd. remains subject to a number of conditions, including, but not limited to, financing, satisfactory completion of the Company’s due diligence investigations and TSX Venture

Exchange approval.

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.