Mr. Tim de Freitas reports

IKKUMA RESOURCES PROVIDES ACTIVITY UPDATE

Ikkuma Resources Corp. is providing an update on its recent activity.

Ikkuma is pleased to announce that on Oct. 9, 2018, it closed a conveyance and sale agreement for the sale of a non-core dormant mid-stream facility in the Alberta Foothills to an undisclosed purchaser for a total consideration of $2-million, subject to customary adjustments.

As previously announced on July 5, 2018, Ikkuma entered into a purchase and sale agreement to sell certain mid-stream assets in the Alberta Foothills for a total consideration of $23-million. The infrastructure asset sale, which was expected to close on or before Sept. 30, 2018, is currently under review in conjunction with Ikkuma's proposed business combination with Pieridae Energy Ltd. as announced on Aug. 24, 2018. In addition, the corporation's previously announced non-core natural gas divestiture program through a public process with GMP FirstEnergy has been terminated.

Proceeds from the mid-stream facility sale were used to reduce bank debt. On Oct. 9, 2018, the corporation entered into an agreement to further amend its amended and restated syndicated credit agreement, whereby the borrowing base of the credit facility established thereunder was maintained at $25-million, of which $13-million is currently available at the full discretion of the corporation. As at Sept. 30, 2018, approximately $4-million was drawn on the facility. The facility is subject to a semi-annual review by Oct. 31, 2018.

The foregoing restriction on the facility prevents available bank debt from being used for the corporation's flow-through program of $12-million that is required to be spent by Dec. 31, 2018. Alternative sources of financing have been considered and are expected to be reviewed and announced on or about Nov. 1, 2018. The focus of the flow-through program will be on drilling locations associated with the corporation's central Alberta Foothills asset acquisition that was completed in the fourth quarter of 2017.

A management information circular and proxy statement with respect to the business combination is expected to be mailed to Ikkuma shareholders on or before Oct. 22, 2018, with a special meeting of shareholders scheduled to be held on Nov. 19, 2018.

About Ikkuma Resources Corp.

Ikkuma is a diversified growth-oriented public oil and gas company listed on the TSX Venture Exchange with holdings in both conventional and unconventional projects in Western Canada.

We seek Safe Harbor.