Lightstream Provides Update on Second Lien Note Interest Payment and Extension of Annual Meeting Date

CALGARY, ALBERTA--(Marketwired - June 14, 2016) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) announces that we have chosen to defer our US$32.1 million semi-annual interest payment due June 15, 2016 in respect to our outstanding 9.875% second lien notes ("Secured Notes"). Pursuant to the indenture governing the Secured Notes, we have until July 15, 2016 (30 days) to make the interest payment before an event of default occurs. In addition, we are postponing our Annual General Meeting and we now intend to hold the meeting on or before August 31, 2016.

As previously disclosed, we are focused on our liquidity situation and have been engaged in discussions with the holders of a majority of the aggregate principal amount of Secured Notes as well as certain holders of our 8.625% unsecured notes ("Unsecured Notes"), regarding a possible restructuring of the Secured Notes and Unsecured Notes, including a conversion of this debt to equity. We are also continuing to pursue asset sales to address our balance sheet and liquidity position. In addition, we remain in discussions with our syndicate of lenders under our secured term credit facility regarding the restructuring and other strategic efforts.

The Company has cash on hand, currently in excess of $20 million, and monthly oil and gas sales revenue which averaged $24 million per month for the previous two months. We are continuing to pay all service providers, suppliers and contractors in the normal course of business as we pursue our strategic balance sheet initiatives.

With a view to reducing the expense and inconvenience to shareholders associated with holding two separate meetings, Lightstream sought and received an extension from the TSX to postpone our Annual General Meeting to as late as August 31, 2016 in order to accommodate any shareholder vote required for a potential strategic transaction. We will issue a press release when the record date and meeting date have been determined.

Lightstream Resources Ltd. is an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays. We are committed to delivering industry leading operating netbacks, strong cash flows and consistent operating results through leading edge technology applied to a multi-year inventory of existing and emerging resource play opportunities. Our long-term strategy is to efficiently develop our assets and deliver an attractive dividend yield.

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of our annual general meeting, our pursuit of strategic initiatives, including restructuring of subordinated debt and asset sales, and sufficiency of cash to fund ongoing operations. The forward-looking statements are based on information currently available as well as certain expectations and assumptions concerning anticipated financial performance, business prospects and general market conditions. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, our inability to implement strategic initiatives in the near term or at all to mitigate liquidity risk and avoid default under our debt agreements, commodity price and exchange rate fluctuations, general conditions in the oil and gas industry and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, Lightstream assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.