Traverse Energy Ltd. Announces Brokered Private Placement of CEE Flow-Through Common Shares and CDE Flow-Through Common Shares for Total Gross Proceeds of $3 Million

CALGARY, ALBERTA--(Marketwired - May 4, 2016) -

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Traverse Energy Ltd. ("Traverse") (TSX VENTURE:TVL) is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited ("Acumen" or the "Agent"), pursuant to which the Agent has agreed to offer for sale, on a "reasonable commercial efforts", agency basis, a treasury offering of up to 2,533,333 common shares of Traverse issued as "flow-through shares" under the Income Tax Act (Canada) (the "Tax Act") with respect to "Canadian exploration expense" (the "CEE FT Shares") at a price of $0.45 per CEE FT Share and up to 4,650,000 common shares of Traverse issued as "flow-through shares" under the Tax Act with respect to "Canadian development expenses" (the "CDE FT Shares") at a price of $0.40 per CDE FT Share for aggregate gross proceeds of $3,000,000 (the "Offering").

The closing of the Offering is expected to occur on or about May 27, 2016, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All CEE FT Shares and CDE FT Shares issued under the Offering will be subject to a statutory four month hold period.

Traverse intends to use the proceeds from the Offering to fund qualifying expenditures under the Tax Act on the company's oil and gas properties.

About the Corporation

Traverse is a junior oil and natural gas exploration and production company in Alberta. The common shares of the Corporation currently are listed on the TSX Venture Exchange under the trading symbol "TVL".

Forward-Looking Information

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to Traverse's intention to complete the Offering and the use of proceeds from the Offering. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information includes the performance of the Agent's and Traverse's obligations in relation to the Offering; the failure to obtain approval from the TSX Venture Exchange; and the ability of Traverse to incur qualifying expenditures as planned. Although Traverse believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Traverse disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of the content of this release.