Blacksteel Energy Inc. Closes Acquisition of 30% Working Interest in Girouville Assets

CALGARY, ALBERTA--(Marketwired - Nov. 29, 2016) -

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Blacksteel Energy Inc. (TSX VENTURE:BEY) ("Blacksteel") is pleased to announce that it has closed the acquisition (the "Acquisition") of a 30% working interest (the "Blacksteel Interest") in certain oil and gas assets around Girouxville in Northwest Alberta (the "Assets").

Blacksteel acquired the Blacksteel Interest (the "Acquisition") from Drakkar Energy Ltd. ("Drakkar"), for a purchase price of $600,000, concurrent with Drakkar's purchase of the Assets from the appointed receiver-manager of the owner of the Assets. The Acquisition closed on November 25, 2016. In connection with the Acquisition, Blacksteel also provided a $400,000 loan (the "Loan") to Drakkar. The Loan matures on May 25, 2017, accrues interest at a rate of 12% per annum and is secured by a 20% working interest in the Assets. Under the terms of the Loan, Blacksteel has the option, 60 days from the closing of the Acquisition, to convert any or all of the Loan into additional working interests in the Assets, at a cost of $100,000 for each additional 5% working interest.

The light oil Assets are comprised of 18 sections of contiguous land on which six horizontal wells have been drilled. Five of the wells had previously been on production and a sixth was completed but has not been equipped. All wells have been shut-in since the Vendor was placed in receivership in late January 2016. The operator plans to place up to four of the wells on production post-closing.

The TSX Venture Exchange has in no way passed upon the merits of the Acquisition and has neither approved nor disapproved the contents of this press release.

Blacksteel Energy Inc.

Blacksteel is a junior oil and gas company involved in the exploration, exploitation, development and production of petroleum and natural gas resources.

This news release may contain forward-looking statements relating to the Acquisition, including statements regarding future plans for the Assets. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: the state of the economy in general and capital markets in particular; investor interest in the business and future prospects of Blacksteel; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner, of regulatory and third-party approvals.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Blacksteel and Drakkar disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Blacksteel and Drakkar undertake no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.

Neither 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.

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