Mr. Jeff Chisholm reports

PAN ORIENT ENERGY CORP.: $0.40 PER SHARE SPECIAL DISTRIBUTION PLANNED

Pan Orient Energy Corp. plans to pay a 40-cent-per-share special distribution to shareholders, subject to shareholder and regulatory approval.

The distribution is intended to be a return of capital, which will require shareholder approval. Pan Orient anticipates that the required shareholder meeting will be held in mid-February, 2016. If approved by shareholders, the record date for the determination of shareholders entitled to receive the distribution would be set and the distribution paid in late February, 2016. The distribution by return of capital is expected to be generally more tax advantageous to shareholders than a dividend.

The distribution will be financed from Pan Orient's cash reserves, a significant portion of which resulted from the sale by Pan Orient in February, 2015, of a 49.99-per-cent equity interest in Pan Orient Energy (Siam) Ltd., which holds a 100-per-cent interest in concession L53/48 in Thailand. The remaining cash reserves are expected to be sufficient to finance the needs of Pan Orient's continuing business operations for the foreseeable future.

We seek Safe Harbor.