Mr. Andrew Rees reports

WELLSTAR ANNOUNCES A NON-BROKERED PRIVATE PLACEMENT

Wellstar Energy Corp. intends to complete a non-brokered private placement in the aggregate amount up to $1.5-million consisting of 10 per cent convertible debenture units of the company in the aggregate principal amount of up to $500,000 and a concurrent placement of up to 12.5 million equity units at a price of eight cents per unit for gross proceeds of up to $1-million.

The company announced that it has completed the first tranche of the unit offering in the amount of $100,000 through the sale of 1.25 million units. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at an exercise price of eight cents for a period of three years following the closing of the offering.

The company concurrently completed the first tranche of a convertible debenture unit offering in the aggregate amount of $200,000, consisting of 10 per cent convertible debenture units of the company. Each convertible debenture unit will consist of $1,000 in principal amount of 10 per cent convertible debentures maturing in three years and that number of common share purchase warrants equal to one-quarter of the shares issuable upon conversion of $1,000 in principal amount of debentures. The principal and any accrued and unpaid interest under the debentures will be secured and will be convertible at the holder's option into fully paid non-assessable common shares of the company at a conversion price, with respect to the principal, equal to 11 cents per share and, with respect to accrued and unpaid interest, the market price of the shares on the TSX Venture Exchange, as defined in the policies of the TSX Venture Exchange, at the time of settlement. Each convertible debenture unit warrant will be exercisable for a period of three years following the closing at an exercise price of 11 cents per common share.

The company will pay eligible arm's-length finders' fees in accordance with TSX-V policy. All securities issued in connection with the first tranche of the offering will be subject to a hold period in accordance with applicable securities legislation that expires on June 28, 2016. Completion of the offering is subject to the final approval of the TSX-V.

Net proceeds from the offering will be applied toward payment of current liabilities, exploration and development of the company's oil and gas properties, and for general working capital purposes.

Further to the company's Jan. 31, 2017, news release, the company announces it has closed its flow-through unit offering.

We seek Safe Harbor.