Exall Energy Corporation

Exall Energy Corporation
Viking Investments Group, Inc.

February 09, 2015 13:00 ET

Exall Energy Corporation Announces Letter of Intent With Viking Investments Group, Inc. Regarding Proposed Loan Transaction

CALGARY, ALBERTA--(Marketwired - Feb. 9, 2015) - Exall Energy Corporation ("Exall" or the "Company") (TSX:EE)(TSX:EE.DB) is pleased to announce that on February 8th, 2015, Exall signed a non-binding letter of intent (the "LOI") with Viking Investments Group, Inc. ("Viking") (OTCQB:VKIN), pursuant to which Viking expressed interest in loaning Exall up to CDN$35M to enable Exall to repay its indebtedness to the Alberta Treasury Branches, Exall's primary lender.

The LOI contemplates the following with respect to the proposed loan: (i) Term - five years; (ii) Interest Rate - 8%, computed annually in arrears; (iii) Payments - interest only, paid annually or on other negotiated terms; (iv) Security - first ranking security interest over all of Exall's assets and undertaking. The loan transaction is subject to the parties executing a definitive agreement on or before February 25th, 2015, and is conditional upon, among other things, Viking having secured financing sufficient to allow Viking to advance the loan proceeds.

About Viking

Viking aims to acquire, invest in and/or provide professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, significant change or ownership transition. Viking's primary focus is directed toward evaluating and completing investments in North America, mainly in the Oil & Gas and Real Estate sectors, with appropriate diversification and balance between each division. Viking targets under-valued investments with realistic appreciation potential and a defined exit strategy.

About Exall

Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta. Exall Energy is currently developing the new Mitsue area "Marten Mountain" discovery in north-central Alberta.

Exall Energy currently has 66,634,854 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE. The Company's convertible debentures are listed on the Toronto Stock Exchange under the trading symbol EE.DB.

Reader Advisory

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

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