Mr. Robert Hodgkinson reports

DXI CALLS AGM AND SPECIAL SHAREHOLDERS MEETING JUNE 2, 2017; PROPOSES FINANCIAL RESTRUCTURE TO ATTRACT 'TRANSFORMATIONAL' OPPORTUNITY

Tomorrow, DXI Energy Inc. will mail shareholders details for its annual general meeting (AGM) and special shareholder meeting to be held on June 2, 2017, already posted on SEDAR.

After extensive deliberation, the independent members of the board of DXI have approved a series of initiatives to create incremental real value for stockholders. Subject to shareholder approval, these steps include:

1. Restructuring equity and debt to provide annual interest savings of $390,000 per year:

• Insiders to equitize $1.3-million of secured debt;
• Insiders to amend long-term obligations by extending the term to five years, convertible to shares at 7.7 cents per share, reshaping the corporate balance sheet to attract a transformational event;
• Insiders to cancel 14 million share purchase warrants currently outstanding.

2. Raising $2.2-million in new equity at six cents per share:

• To eliminate the company's working capital deficiency;
• To support additional exploration at Woodrush;
• To provide sufficient working capital to preserve existing assets and finance costs for a transformational event.

Upon completion, DXI will emerge well positioned to move forward free of the financial encumbrances that have limited its endeavours to expand and develop during the past 30-month downturn in the commodity markets.

DXI's current energy portfolio features two highly regarded North American producing assets. In the Piceance basin, Colorado, more than $40-million (U.S.) has been expended to initiate development of the 2,250-acre Kokopelli project, resulting in 12 producing wells, including a new 13,000-foot Mancos gas discovery and the infrastructure to handle many more. A recent U.S. Geological Survey report states that the Mancos shale in this basin contains 40 times more natural gas than previously estimated, validating its rank as one of the top two largest containments of natural gas in the United States. In northeastern British Columbia, the 14,000-plus-acre Woodrush project hosts four oil wells and nine gas wells, which have been in production since 2009, and includes over $13-million in company-owned production facilities and pipelines.

"As chairman, the company's largest shareholder and its largest debtholder, I invite all stakeholders to support these strategic initiatives and participate with us to preserve and enhance our existing investments and create a productive transformational event," stated Robert L. Hodgkinson, chief executive officer.

Websites where meeting materials are posted:

The meeting materials can be viewed on-line under the company's profile on SEDAR or on the website of the U.S. Securities and Exchange Commission (SEC). They may also be downloaded from the company's website.

How to obtain paper copies of the meeting materials:

Beneficial shareholders may request that a paper copy of the meeting materials be sent to them by postal delivery at no cost to them. Shareholders may request copies of the information circular at no cost by calling toll-free at 1-866-888-8230.

Form 20-F filing:

The company further announces that it filed its annual Form 20-F report for the year ended Dec. 31, 2016, with the SEC on April 21, 2017. The Form 20-F includes the company's annual audited financial statements for the year ended Dec. 31, 2016, as well as the related management's discussion and analysis for the year then ended. Copies of the Form 20-F can be found on the company's website and on EDGAR. Shareholders wishing to obtain a hard copy of the complete audited financial statements for the year ended Dec. 31, 2016, free of charge can contact the company via the e-mail addresses on the company's website or by telephone at 604-638-5050.

About DXI Energy Inc.

DXI is an upstream oil and natural gas exploration and production company operating projects in Colorado's Piceance basin (25,684 net acres) and the Peace River Arch region of British Columbia (14,444 net acres).

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