Mr. Songning Shen reports

CAITERRA INTERNATIONAL ENERGY CORPORATION ANNOUNCES $5.0 MILLION NON-BROKERED PRIVATE PLACEMENT OF COMMON SHARES AND FLOW-THROUGH COMMON SHARES

Caiterra International Energy Corp. intends to complete a non-brokered private placement of: (i) up to 17.5 million common shares of the company at a price of 20 cents per common share; and (ii) up to six million common shares of the company issued on a flow-through basis pursuant to the Income Tax Act (Canada) with respect to Canadian exploration expenses at a price of 25 cents per flow-through share, for total gross proceeds of up to $5-million. The company may pay a cash finder's fee of up to $350,000, representing up to 7 per cent of the gross proceeds raised in the private placement.

The net proceeds from the sale of the flow-through shares will be used to finance the company's exploration program in Northern Alberta, qualifying as Canadian exploration expenses within the meaning of the Income Tax Act (Canada). The net proceeds from the sale of the common shares will be used to finance the company's other exploration expenses and for general corporate purposes.

The private placement is subject to customary conditions and the receipt of required regulatory approvals, including the approval of the TSX Venture Exchange. The common shares and the flow-through shares issuable pursuant to the private placement will be subject to a four-month hold period under applicable Canadian securities laws.

The private placement announced on Oct. 30, 2014, involving the issuance of up to 15 million common shares and five million flow-through shares at a price of 25 cents and 30 cents per share, respectively, will not proceed.

We seek Safe Harbor.