SOURCE: Kicking Horse Energy Inc.

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August 20, 2015 19:51 ET

Kicking Horse Energy Inc. Announces Non-Brokered Private Placement

CALGARY, AB--(Marketwired - August 20, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Kicking Horse Energy Inc. ("Kicking Horse" or the "Company") (TSX VENTURE: KCK) is pleased to announce that it intends to proceed with a non-brokered private placement (the "Private Placement") of up to: (i) 1,283,334 common shares of the Company to be issued on a "flow-through" basis respecting the expenditure of Canadian exploration expenses pursuant to the provisions of the Income Tax Act (Canada) (the "CEE Flow-Through Shares") at an issue price of $3.00 per CEE Flow-Through Share; and (ii) 55,000 common shares of the Company to be issued on a "flow-through" basis respecting the expenditure of Canadian development expenses pursuant to the provisions of the Income Tax Act (Canada) (the "CDE Flow-Through Shares") at an issue price of $2.75 per CDE Flow-Through Share, for aggregate gross proceeds of up to approximately $4 million.

Proceeds of the Private Placement will be used to fund the Company's exploration and development program, including funding expenditures that qualify as Canadian exploration expenses and Canadian development expenses, as applicable, which will be renounced in favour of the subscribers of the CEE Flow-Through Shares and CDE Flow-Through Shares, as applicable, effective on or before December 31, 2015.

All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the closing date. The Private Placement is subject to approval of the TSX Venture Exchange.

About Kicking Horse Energy Inc.

Kicking Horse Energy Inc. is a public oil and gas company which is primarily focused on the development of Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.kickinghorseenergy.com

ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "continue", "anticipate", "estimate", "may", "will", "should", "believe", "plans", "cautions" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated closing of the Private Placement and the anticipated use of the proceeds of the Private Placement.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Kicking Horse which have been used to develop such statements and information but which may prove to be incorrect. Although Kicking Horse believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Kicking Horse can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Private Placement could be delayed if Kicking Horse is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. The intended use of the proceeds of the Private Placement by Kicking Horse might change if the board of directors of the Company determines that it would be in the best interests of Kicking Horse to deploy the proceeds for some other Canadian Exploration Expense and/or Canadian Development Expense expenditures. In addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations; that additional drilling operations will be successful such that further development activities will be warranted; that Kicking Horse's efforts to raise additional capital will be successful; that Kicking Horse will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the accuracy of the estimates of Kicking Horse's reserve volumes; the general stability of the economic and political environment in which Kicking Horse operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Kicking Horse to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Kicking Horse operates; and the ability of Kicking Horse to successfully market its oil and natural gas products.

Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Kicking Horse or by third party operators of Kicking Horse's properties, increased debt levels or debt service requirements; inaccurate estimation of Kicking Horse's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Kicking Horse's public disclosure documents. Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's annual MD&A for the period ended December 31, 2014 and in the Company's Annual Information Form, both of which can be found at www.sedar.com. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and Kicking Horse undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Kicking Horse in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.

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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