Mr. Ernest Miller reports

ENERGULF ANNOUNCES $4,000,000 PRIVATE PLACEMENT

EnerGulf Resources Inc. has planned a non-brokered private placement of up to 80 million units of the company at the price of five cents per unit to raise gross proceeds of up to $4-million. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will be exercisable to purchase one additional share at the price of 10 cents for a period of 18 months after closing.

Proceeds from the offering will be used to finance the company's planned field operations, including its proposed participation in two shallow oil prospects in the Gulf of Mexico announced on June 9, 2016, to pay debts and for general working capital. The company is in discussions with Texas South regarding possible amendments to the terms of its participation in the Gulf of Mexico project.

The company proposes to pay finders' fees in cash and warrants in respect of the proposed financing in accordance with the policies of the exchange. All shares issued pursuant to the offering, and any shares issued pursuant to the exercise of warrants or any finder's warrants which may be issued, will be subject to a four-month hold period from the closing date. The offering and the Gulf of Mexico project are both subject to acceptance by the TSX Venture Exchange.

We seek Safe Harbor.