Mr. Garth Braun reports

BLACKBIRD ENERGY INC. PROVIDES MARKET ACTIVITY, AREA AND OPERATIONAL UPDATE

Blackbird Energy Inc. is providing an update regarding the company's recent increased market activity. Blackbird believes that the company's increased market activity is the result of the encouraging results of industry leaders in close proximity to Blackbird's lands and Blackbird's recent operational achievements.

EnCana May 17, 2016, and Oct. 5, 2016, investor days and presentations

On May 17, 2016, and Oct. 5, 2016, EnCana held investor days in New York, which included discussions regarding its Pipestone Montney asset, which is located within five miles of Blackbird's lands.

EnCana's May 17, 2016, and Oct. 5, 2016, presentations may be found on the EnCana website.

Based on EnCana's mapping illustrated in the presentations, Blackbird believes that it holds approximately 40 sections of Montney rights in what EnCana originally called the supercondensate area. The supercondensate area was defined as having greater than 100 barrels of condensate per million cubic feet of natural gas. EnCana now calls this area the volatile oil area, which it now defines as having greater than 250 barrels of condensate per million cubic feet of natural gas. The presentations reference up to four stacked horizontal horizons in the Montney at Pipestone.

In the EnCana Oct. 5, 2016, investor call, EnCana stated that two wells at its 11-13 pad tested at 2,800 barrels of oil equivalent per day, per well (including 1,900 barrels of condensate per day, per well). EnCana went on to state that these are some of the best results that it has ever seen in the area.

NuVista Oct. 11, 2016, news release

On Oct. 11, 2016, NuVista issued a news release which contains references to NuVista's Pipestone Montney asset, which is located within two to three miles of Blackbird's lands.

In the news release, NuVista made several statements regarding the Pipestone block. With respect to the status of NuVista's Pipestone block, NuVista stated, "Well results in the Gold Creek and Pipestone areas of Wapiti have continued to mature to the point that we now have the confidence to declare both areas as development blocks."

With respect to NuVista's new gas-processing agreement, NuVista stated: "With this agreement, NuVista and SemCAMS have moved past final investment decision. Both parties have received all board approvals needed to proceed with construction of the AER licensed gas plant. NuVista will supply gas to this contract from the Gold Creek, Pipestone, Elmworth and surrounding areas.

"NuVista now possesses the well location inventory and the processing capacity to provide profitable and predictable growth surpassing 60,000 boe/d by the year 2021. In conjunction with the opportunities described above, NuVista plans to accelerate the pace of spending and growth in our five-year plan including additional development and delineation wells across all four blocks. In addition we will be adding Gold Creek trunk pipelines and water handling, and Pipestone compression and gathering facilities in 2017 and 2018."

Infrastructure construction update

As announced on Sept. 29, 2016, Blackbird began the construction of its infrastructure facility and pipeline gathering system immediately upon receiving Alberta Energy Regulator approval on Sept. 28, 2016.

02/2-20 well update

Blackbird's 02/2-20 Upper Montney well, previously announced on Sept. 29, 2016, was spudded on Oct. 8, 2016.

Conclusion

Blackbird remains encouraged by the results of industry leaders in close proximity to the company's lands and by the company's achievements to date. It is Blackbird's belief that periods of increased market activity may arise as industry leaders disseminate information relating to their successful operations in the company's corridor and as Blackbird executes on its business plan.

We seek Safe Harbor.