Bayshore Petroleum Corp.
TSX VENTURE : BSH

January 13, 2015 20:25 ET

Bayshore Petroleum Corp. Pays Shares for Debt and Extends Warrants

CALGARY, ALBERTA--(Marketwired - Jan. 13, 2015) -

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Bayshore Petroleum Corp. ("Bayshore" or the "Company") (TSX VENTURE:BSH) announces that it has closed agreements with two arms-length parties to reduce Bayshore debt and payables. This shall conserve limited cash balances and lower financial risk.

Bayshore has reached agreement with two debt-holders totalling $330,000. They will be paid three million shares in exchange for cancelling the debt, at an average share price of $0.11/share. One of these debts is in the amount of $320,000, owed to International Ultrasonic Technologies Inc. ("IUT"), a company based out of Calgary, Alberta, and controlled by Jim Van Wert, as part of a previous agreement to acquire a master license technology that removes sulphur from liquids via oxidation and ultrasonic technology. IUT will be paid 2,909,090 Bayshore common shares, which shall constitute 12% of the issued and outstanding shares of the company after closing. IUT will therefore be an insider as defined by the TSX Venture Exchange policies, and all of the preceding is subject to TSX Venture Exchange approval.

In addition, the Company announces that it has made application to the TSX Venture Exchange to extend the exercise deadline of 2,328,616 outstanding common share purchase warrants. Each warrant entitles the holder to purchase 1 common share at the price of $0.20 per share and will presently expire on January 27, 2015. Bayshore is seeking to extend the warrants for a further period of 2 years, to expire on January 27, 2017. Insiders hold 74.7% of the warrants, and no repricing of the warrants is being sought.

About Bayshore Petroleum Corp.

Bayshore is a Calgary, Alberta-based corporation focused on the exploitation of technology that increases the productivity and profitability of heavy oil and bitumen. The Company's cold catalytic cracking process, and other technologies like desulphurization using the ultrasonic oxidation process, reduce upgrading and refining costs, reduce the need for diluent and other measures and costs in the transportation of oil, and expedite the end to end process of delivering fuels to the downstream user.

On behalf of the Board of Directors

BAYSHORE PETROLEUM CORP.

Peter Ho, President and CEO

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in the United States. The Company's securities 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 may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Statements

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

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