Mr. Anthony Potter reports

ANTRIM ENERGY INC. ANNOUNCES 2016 FIRST QUARTER RESULTS

Antrim Energy Inc. has released its financial results for the three-month period ended March 31, 2016.

All financial figures are unaudited and are in U.S. dollars unless otherwise noted.

Highlights

• Strong cash position, no debt, substantially lower general and administrative costs and limited financial commitments moving forward;
• Obtain 100-per-cent interest in the highly prospective Skellig block in Ireland (subject to finalization and government approval);
• Continue to evaluate merger and acquisition opportunities.

Corporate

Antrim, with its current cash resources, no debt and no decommissioning obligations, continues to maintain a strong financial position. Working capital at March 31, 2016, was $9.2-million, including cash and cash equivalents of $9.4-million.

Antrim continues to search for merger and acquisition opportunities, using a structured approach in its evaluation. Key criteria include strategic fit, focus on near-term appraisal/development, use of funds, transformative potential with upside potential for Antrim shareholders, and current or near-term cash flow. In a period of significant commodity price volatility, ensuring that the opportunity remains viable in a low oil and gas price environment is a key component in the evaluation.

In Ireland, the company has a 100-per-cent working interest in frontier exploration licence (FEL) 1/13, subject to finalization and government approval of the transfer of Kosmos Energy Ireland's interest to Antrim. Antrim was one of the first companies to realize the oil and gas potential in the southern Porcupine basin. The Porcupine basin is the conjugate basin to the eastern Canadian Orphan basin/Flemish Pass area, where several significant oil discoveries have recently been made. Studies of these conjugate margins have demonstrated many similarities in terms of source rock, maturation, hydrocarbon migration, reservoir characteristics and trap formation.

The company has identified two highly prospective Jurassic fault blocks and one Cretaceous submarine fan system in the FEL 1/13 licence, as well as numerous other leads. To move exploration of FEL 1/13 forward, Antrim is seeking to extend the first exploration phase of the licence, as well as farm out a portion of its interest in the licence to a new operator. In February, 2016, the first-round results of the Ireland 2015 Atlantic Margin licensing round were announced. In total, 14 new licensing options were awarded with successful participants including Eni, ExxonMobil, Statoil and BP, confirming very strong industry interest in this frontier exploration play. A second announcement of results from the licensing round is expected in May, 2016.

Ireland

FEL 1/13, Antrim 100 per cent

In 2013, Kosmos farmed in to Antrim's licencing option over the Skellig block and acquired a 75-per-cent interest in and operatorship of FEL 1/13 in exchange for carrying the full costs of a 3-D seismic program and reimbursement of a portion of Antrim's past exploration costs. Results from the subsequent 3-D seismic reinforced Antrim's interpretation based on 2-D seismic and strongly indicated the presence of Lower Cretaceous slope fan and channel deposits similar in geometry and seismic character to many of the recent Cretaceous oil discoveries offshore West Africa. The licence prospect inventory includes two tilted Jurassic fault blocks and a Cretaceous submarine fan, as well as several other leads.

In September, 2015, Antrim was advised by Kosmos of its intention to withdraw from all of its licence interests in Ireland to focus on other recent discoveries in its African portfolio. The company has applied for and anticipates obtaining, at no further cost, a 100-per-cent working interest in and operatorship of the licence, subject to finalization and government approval of the transfer of Kosmos interest in FEL 1/13 to Antrim.

FEL 1/13 has a 15-year term, with an initial three-year term followed by three four-year terms. The initial three-year term expires in early July, 2016, and Antrim has submitted a request to extend the first exploration term by an additional two years pending government approval and agreement on an additional technical work program. The company is also currently seeking a new farm-in partner and operator to complete any additional technical work necessary during the extension period, with the ultimate goal that a well commitment could be made at the end of the revised first exploration phase. In the current commodity price environment, the cost of drilling an exploration well on the licence has decreased considerably from when the licence was first awarded in 2013. As part of a farm-out transaction, Antrim would seek a carry on the first exploration well.

Fyne licence

P077 block 21/28a -- Fyne, Antrim 100 per cent

United Kingdom seaward licences require licensees to permanently abandon all suspended wells prior to licence expiry. In the third quarter of 2015, the company successfully permanently plugged and abandoned three suspended wells on the Fyne licence and one suspended well on the Erne licence in the United Kingdom Central North Sea. The well abandonment campaign was completed as part of a larger abandonment program, allowing Antrim to share certain common costs offering significant cost savings.

The company is in discussion with the United Kingdom Oil and Gas Authority (OGA), formerly DECC, with respect to relinquishment and possible reapplication for the licence. The carrying value of the Fyne licence at March 31, 2016, is nil (Dec. 31, 2015: nil).

Erne licence

P1875 block 21/29d -- Erne, Antrim 100 per cent

Previous discoveries on the Erne licence are not commercial on their own, but may be economic to develop as tiebacks to an adjacent production facility if such a facility were available. Antrim's interest in the Erne licence increased to 100 per cent after its partner withdrew from the licence following completion of the Erne well abandonment. The carrying value of the Erne licence at March 31, 2016, is nil (Dec. 31, 2015: nil).

Financial discussion of continuing operations

           
                             FINANCIAL RESULTS
                      (in thousands of U.S. dollars,  
                         except per-share amounts)
                          
                                               Three months ended March 31,
                                                         2016         2015                

Cash flow from (used in) operations (1)              $ (1,024)    $    469
Cash flow from (used in) operations per share (1)       (0.01)        0.00
Net income (loss)                                        (913)         461
Net income (loss) per share -- basic                     0.00         0.00
Total assets                                           11,130       15,784
Working capital                                         9,234       14,249
Capital expenditures                                      114           28
                
(1) Cash flow used in operations and cash flow used in operations per 
    share are non-IFRS (international financial reporting standards)
    measures. Refer to non-IFRS measures in the management discussion 
    and analysis.

Cash flow and net income (loss) from continuing operations

In the first quarter of 2016, cash flow used in operations was $1-million, compared with cash flow from operations of $500,000 for the corresponding period in 2015. Cash flow used in operations increased due to a $600,000 foreign exchange loss in the first quarter of 2016 as a result of a strengthening of in the value of the Canadian dollar relative to the U.S. dollar. Excluding foreign exchange gains and losses, cash flow used in operations in the first quarter of 2016 was $300,000, compared with $800,000 for the corresponding period in 2015.

In the first quarter of 2016, Antrim had a net loss of $900,000, compared with net income of $500,000 for the corresponding period in 2015. Net loss increased due to foreign exchange losses in 2016, compared with foreign exchange gains in 2015.

Financial resources and liquidity

Antrim had a working capital surplus at March 31, 2016, of $9.2-million, compared with a working capital surplus of $9.6-million as at Dec. 31, 2015. Working capital decreased due to general and administrative expenses incurred in the period.

Outlook

The company has been examining various strategic alternatives, including potential business combinations, to maximize shareholder value. The company has also been actively engaged in reviewing various options for its appraised, but undeveloped United Kingdom oil and gas assets. No assurance can be provided that from either of these initiatives a satisfactory opportunity will be identified and, if one is identified, that a transaction could be closed on terms acceptable to the company.

The company has submitted an application to extend the first exploration term of its Ireland licence by an additional two years, pending government approval and agreement on an additional technical work program. The company is also seeking a new farm-in partner and operator to complete any additional technical work necessary during the extension period to further derisk the identified leads and prospects on the licence. No assurance can be provided that an extension or farmout of the Ireland licence can be concluded in a timely manner on terms acceptable to the company.

The company continues to manage its general and administrative expenses, implementing where possible further cost reductions.

We seek Safe Harbor.