Mr. Colin Watt reports

LYNDEN ENERGY REPORTS JUNE 30, 2015, YEAR-END FINANCIAL AND OPERATING RESULTS AND RESERVES

Lynden Energy Corp. has released financial and operating results and reserves for the year ended June 30, 2015. This press release should be read in conjunction with the company's annual report on Form 10-K for the year ended June 30, 2015, filed today with the Securities and Exchange Commission and Canadian securities regulators. (All monetary references in this press release are to U.S. dollars.)

Highlights

The company's financial and operating performance for the year ended June 30, 2015, included the following highlights:

• The total number of producing Wolfberry wells increased from 91 gross (37.18 net) to 109 gross (44.69 net).
• Primarily as a result of a significant drop in commodity prices, petroleum and natural gas sales decreased by 25 per cent as compared with the year ended June 30, 2014.
• Realized prices decreased 34 per cent per barrel of oil, 25 per cent per thousand cubic feet of gas and 31 per cent per bbl of natural gas liquids compared with the year ended June 30, 2014.
• Average daily production was 1,400 barrels of oil equivalent per day in the year ended June 30, 2015, compared with 1,231 boe per day in the year ended June 30, 2014, an increase of 20 per cent.

Results of operations

Net loss for the year ended June 30, 2015, was $565,153 and nil per share and diluted share, compared with net income of $15,403,651 and 12 cents per share and diluted share for the year ended June 30, 2014. The $15,968,804 decrease in net income is primarily due to declining oil and gas revenues, which were lower by $7,207,097 in 2015. In addition, there was no gain on disposition of property, plant and equipment in the year ended June 30, 2015, compared with a gain of $10,219,755 in the year ended June 30, 2014. Depletion, depreciation and accretion were higher by $2,315,502, and production and operating expenses were higher by $1,319,810, which was offset by lower income taxes of $8,933,421.

Petroleum and natural gas revenues

Oil revenues decreased 26 per cent from $23,570,733 for the year ended June 30, 2014, to $17,367,615 for the year ended June 30, 2015, as a result of a $32.35-per-barrel decrease in the company's average realized price of oil only partially offset by an increase in oil production volumes of 28,422 bbl. Natural gas revenues decreased 1 per cent from $2,212,065 for the year ended June 30, 2014, to $2,198,265 for the year ended June 30, 2015, as a result of a $1.07-per-thousand-cubic-foot decrease in the company's average realized natural gas price partially offset by an increase in natural gas production volumes of 170,857,000 cubic feet. NGL revenues decreased 28 per cent from $3,583,797 for the year ended June 30, 2014, to $2,593,618 for the year ended June 30, 2015, as a result of a $9.50-per-barrel decrease in the company's average realized NGL price partially offset by an increase in NGL production volumes of 5,026 bbl. The attached financial and production highlights table summarizes the company's petroleum and natural gas revenues and production for the years ended June 30, 2015, and 2014.

      FINANCIAL AND PRODUCTION HIGHLIGHTS

                                 Year ended
                                   June 30,
                             2015          2014
Revenues
Oil                  $ 17,367,615  $ 23,570,733
Natural gas             2,198,265     2,212,065
NGL                     2,593,618     3,583,797
Total revenues        $22,159,498   $29,366,595
Production
Oil (bbl)                 275,575       247,153
Natural gas (Mcf)         689,594       518,737
NGL (bbl)                 120,644       115,618
Total barrel of
oil equivalent
(boe/d)                   511,151       449,228
Daily production
averages
Oil (bbl/d)                   755           677
Natural gas
(Mcf/d)                     1,889         1,421
NGL (bbl/d)                   331           317
Total barrel of
oil equivalent
(boe/d)                     1,400         1,231
Average prices
Oil (per bbl)        $      63.02  $      95.37
Natural gas (per
Mcf)                 $       3.19  $       4.26
NGL (per bbl)        $      21.50  $      31.00
Total barrel of
oil equivalent
(per boe)            $      43.40  $      65.37

Capital requirements and sources of liquidity

The company's primary sources of liquidity have been available cash on hand, cash generated from operations, borrowings under the company's credit facility and proceeds from asset dispositions. To date, the company's primary use of capital has been for the acquisition, development and exploration of oil and natural gas properties.

The company's fiscal 2015 (July 1, 2014, to June 30, 2015) capital budget for drilling, completion, recompletion and infrastructure was established at approximately $34-million.

During the year ended June 30, 2015, the company spent approximately $29.1-million on capital expenditures on property, plant and equipment. Included in its fiscal 2015 capital budget were one gross horizontal Midland basin well and one gross vertical Midland basin well that were not spudded by June 30, 2015, and are now incorporated in the fiscal 2016 capital budget. One horizontal Wolcott lease well included in the fiscal 2015 capital budget was not drilled and has not been rescheduled.

The company's fiscal 2016 (July 1, 2015, to June 30, 2016) capital budget for drilling, completion, recompletion and infrastructure is approximately $18.9-million, for the following:

• $6.0-million, or 32 per cent, for the participation in the drilling and completion of eight gross (3.25) net Midland basin vertical Wolfberry wells. The company's fiscal 2016 budget contemplates a gross cost of a Wolfberry well of $1.6-million. Pursuant to the terms of its Midland basin participation agreement, its financing amount for the 3.25 net wells is equivalent to 3.71 wells.
• $11.2-million, or 59 per cent, for the participation in the drilling and completion of three gross horizontal Midland basin wells in Glasscock county. The first well has been budgeted at a gross cost of $8.3-million, with the balance of wells budgeted at a gross cost of $7.0-million. Well design, in particular well length and completion approach, will be significant variables in the cost of these wells. The first of these wells has now been drilled, and the remaining wells are not scheduled to be spudded until June, 2016. Pursuant to the terms of the company's Midland basin participation agreement, the company is financing 50 per cent of the cost of the wells.
• $1.7-million, or 9 per cent, for the participation in the drilling and completion of three gross (1.5 net) vertical Mitchell Ranch project wells. The gross cost of the first of the three wells is expected to be $1.4-million, with subsequent wells expected to be $1.0-million. The company is financing 50 per cent of the cost of the wells.

Based upon current oil and natural gas price expectations for fiscal 2016, the company believes that its cash and cash equivalents on hand, its cash flow from operations, and additional borrowings under its credit facility will provide the company with sufficient liquidity to execute its current capital program excluding the two horizontal wells scheduled to be spudded in June, 2016, and any acquisitions the company may enter into. The company is not contractually bound to drill any wells to which it has not first consented.

The company's credit facility is a reducing revolving line of credit of up to $100-million. The credit facility has a borrowing base of $37.5-million, of which $29.75-million was drawn down at June 30, 2015. As of Sept. 28, 2015, $37.0-million has been drawn down on the credit facility. The bank's next engineering valuation of the company's oil and gas reserves and redetermination of the borrowing base is anticipated to be completed in October, 2015. The company's cash balances totalled $8,748,008 at June 30, 2015.

Hedging

In April, 2015, the company entered into a Nymex-based oil price put contract for 9,000 bbl of oil per month from September, 2015, until August, 2016 (12 months), with a strike price of $50 per bbl as a hedge against some of the effects of commodity volatility during the period of the contract.

Current production levels

The company's wells are currently producing approximately 1,450 barrels of oil equivalent per day. Included in this production volume is production from the Mallard 23 No. 1H and McDaniel 2413 No. 1H wells, the company's first two horizontal wells on the Wind Farms lease block in Glasscock county. The Mallard 23 No. 1H well has a lateral length of approximately 6,900 feet, and was completed with 35 individual frack stages. Gross production at the wellhead has averaged 477 barrels of oil and 242,000 cubic foot of natural gas in the first 35 days of oil production. As part of the completion design of the well, production is currently being assisted with a gas lift. It is interpreted that the well may not have yet reached its peak 30-day production rate. The company advises that although the initial rates from the Mallard 23 No. 1H well are encouraging, early production results are not necessarily indicative of the long-term performance or of ultimate recovery from these wells, and longer-term data are needed to more fully evaluate the impact on ultimate recovery. The McDaniel 2413 No. 1H well has a lateral length of approximately 9,500 feet, was completed with 48 individual frack stages and is in the early stages of flowback. The company has an approximately 43.7-per-cent working interest in both wells.

Summary reserve information

The attached summary reserve information table details the company's summary reserve information as of June 30, 2015. The information is based on a reserve report prepared by the company's independent consulting petroleum engineers, Cawley, Gillespie and Associates Inc., and prepared in accordance with the rules and regulations of the SEC.

                       SUMMARY RESERVE INFORMATION

Twelve-month unweighted average pricing            Oil $71.68
                                           Natural gas $3.361

                                                                 Natural gas
                                                    Natural gas      liquids
                                         Oil (Mbbl)       (MMcf)       (Mbbl)

Proven developed producing                 1,893.0      6,254.8      1,117.0
Proven developed non-producing               333.8        468.3         83.6
Proven undeveloped                         4,402.5     12,848.2      2,284.5
Total proven                               6,629.3     19,571.3      3,485.1
Probable                                      34.8        123.0         21.9

Oil and natural gas reserves under Canadian law

As a reporting issuer under Alberta, British Columbia and Ontario securities laws, the company is required under Canadian law to comply with National Instrument 51-101 (standards of disclosure for oil and gas activities) implemented by the members of the Canadian Securities Administrators in all of the reserves-related disclosures. CGA evaluated the company's reserves as of June 30, 2015, in accordance with the reserves definitions of NI 51-101 and the Canadian oil and gas evaluators handbook. The company's annual oil and natural gas reserves disclosures prepared in accordance with NI 51-101 and COGEH were filed today in Canada and are available under Lynden's profile at SEDAR.

We seek Safe Harbor.