Mr. Greg Busby reports

WESCAN ENERGY CANCELS ACQUISITION OF OIL AND GAS PROPERTIES IN CENTRAL ALBERTA

Wescan Energy Corp. has cancelled the transaction for the purchase of certain producing oil and gas assets in central Alberta as previously announced on Nov. 18, 2014, under the agreement of purchase and sale dated Nov. 6, 2014.

The company has decided that as a result of the recent decline in oil prices in addition to both a material change in the production profile attributable to the assets and the related environmental liabilities, present and future, that it was in the best interest of the company to terminate the agreement. The result of such declining oil prices has impacted the overall value of the related reserves, the net present values and all reserve price decks previously used in determining values of the assets. It was further realized that there would be a significant impact to sustaining positive field netbacks and cash flows as was initially anticipated in a much higher commodity price environment. The vendor has also recognized the challenges of lower oil prices and has accepted the company's notice of termination.

Management is of the opinion that over the next few months, commodity prices will begin to stabilize and provide more certainty to performance valuations and future expectations of growth in pursuit of achieving a reliable platform for advancing the company forward. The company is optimistic that future acquisition opportunities, in light of lower commodity prices combined with the expectation of lower costs of field-related services, is forthcoming and therefore, position the company to benefit from a depressed pricing regime. Meanwhile, the company is continuing to identify and evaluate other potential acquisition targets and will provide future updates as they become available.

We seek Safe Harbor.