Marquee Energy Ltd. Announces Closing of $2.8 Million Bought Deal Private Placement of Flow-Through Shares and Provides a Corporate Update

CALGARY, AB--(Marketwired - December 29, 2016) - Marquee Energy Ltd. ("Marquee" or the "Corporation") (TSX VENTURE: MQX)

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Marquee Energy Ltd. ("Marquee" or the "Corporation") (TSX VENTURE: MQX) is pleased to announce that it has closed its previously announced private placement of 14,705,883 common shares issued on a "flow through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.17 per Flow-Through Share for gross proceeds of $2.5 million (the "Offering"). The Offering was led by Acumen Capital Finance Partners Limited (the "Underwriter") who exercised its option to purchase an additional 1,847,617 Flow-Through Shares at a price of $0.17 per Flow-Through Share, for additional gross proceeds of approximately $314,095. In connection with the Offering, the Underwriter received a fee equal to 5% of the gross proceeds of the Offering.

The gross proceeds from the Offering will be used by Marquee to incur eligible Canadian exploration expenses ("Qualifying Expenditures") prior to December 31, 2017. Marquee will renounce the Qualifying Expenditures to subscribers of the Flow-Through Shares for the fiscal year ended December 31, 2016.

The Flow-Through Shares issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the closing of the Offering, in accordance with applicable securities legislation.

CORPORATE UPDATE

The Corporation is pleased to announce that the Corporation's Board of Directors has approved a capital program of approximately $7.0 million for the first half of 2017. Funding for these plans will be provided by cash on hand and free cashflow.

The program will include the drilling of three horizontal oil wells in addition to re-completing two horizontal wells at Michichi, further delineating an area of strong production results. Details on guidance for 2017 and further capital plans for the year will be forthcoming.

Marquee's priorities remain focused on maintaining financial flexibility while positioning the Corporation to achieve long-term growth in production, reserves and cash flow per share and overall returns to shareholders.

ABOUT MARQUEE

Marquee is a Calgary based, junior energy company focused on high rate of return light oil development and production. Marquee is committed to growing the company through exploitation of existing opportunities and continued consolidation within its core area at Michichi. Marquee's shares trade on the TSX Venture Exchange under the trading symbol "MQX". Additional information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

This press release does not constitute an offer of the Flow-Through Shares for sale in the United States. The Flow-Through Shares have not been registered under the United States Securities Act of 1933, (the "1933 Act") as amended, and may not be offered or sold within the United States or to U.S. Persons absent registration or an exemption from registration under the 1933 Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Neither the TSX Venture Exchange Inc. 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.

Forward-Looking Statements and Information and Cautionary Statements

This press release contains forward-looking statements. Such forward-looking statements typically contain statements with words such as "anticipate", "expect", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains statements concerning the expected use of proceeds and the timing thereof and the 2017 capital program initiation and activities and the 2017 guidance release. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Marquee, all or any of which may prove incorrect, including without limitation: (i) the ability of Marquee to incur and renounce Canadian exploration expenses; and (ii) with respect to the remaining forward-looking statements, expectations and assumptions concerning the success of future drilling and development activities.

Although Marquee believes 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 Marquee 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, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions and changes to existing laws and regulations. Certain of these risks are set out in more detail in Marquee's current Annual Information Form, which is available on Marquee's profile SEDAR at www.sedar.com.

Forward-looking information is based on estimates and opinions of management of Marquee at the time the information is presented. Marquee may, as considered necessary in the circumstances, update or revise such forward-looking information, whether as a result of new information, future events or otherwise, but Marquee undertakes no obligation to update or revise any forward-looking information, except as required by applicable securities laws.