Virginia Hills Oil Corp. Announces the Receipt of Notice of Demand from Its Lenders and Consent to the Appointment of A Receiver

CALGARY, ALBERTA--(Marketwired - Feb. 13, 2017) - Virginia Hills Oil Corp. ("Virginia Hills" or the "Company") (TSX VENTURE:VHO) announces that it has received a demand notice and notice of intention to enforce security from its lenders and has agreed to consent to the early enforcement of the lenders' security and the appointment of a receiver over all of the current and future assets, undertakings and properties of Virginia Hills pursuant to section 243(1) of the Bankruptcy and Insolvency Act in order to allow, among other things, the Company's assets to be operated in a safe and responsible manner. The application for the appointment of the receiver is anticipated to be heard on February 13, 2017 at the Court of Queen's Bench in Calgary, Alberta. At such application, Alvarez & Marsal Canada Inc. is expected to be appointed the receiver and manager over the assets, undertakings and property of Virginia Hills.

About Virginia Hills

The Company is a Calgary based oil and gas company with operations in the Red Earth area of Alberta. Virginia Hills' shares are listed on the TSX Venture Exchange under the symbol "VHO".

Forward-Looking Statement Advisory

Certain information set forth in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expects", "believes", "will" and similar expressions and statements relating to matters that are not historical facts, contain forward‐looking statements, including but not limited to statements regarding: the appointment of the receiver over the assets, undertakings and properties of Virginia Hills and the timing thereof. These statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Undue reliance should not be placed on these forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.

Management has included forward-looking information in this press release in order to provide security holders with a more complete perspective on the Company's current status and such information may not be appropriate for other purposes. These forward-looking statements are based on certain assumptions and are subject to a number of risks and uncertainties including the granting of the lenders' application by the Court of Queen's Bench. Investors are cautioned that such information, although considered reasonable by the Company, may prove to be incorrect.

Virginia Hills' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.