Mr. Peter Ho reports

BAYSHORE PETROLEUM CORP. CLOSES TRANCHE OF PRIVATE PLACEMENT FINANCING

Bayshore Petroleum Corp. has received the approval of the TSX Venture Exchange to close the first tranche of its private placement financing announced on June 11, 2015. This closed tranche consists of 2.16 million units for gross proceeds of $259,200. Each unit consists of one common share in the capital of Bayshore and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share of the company at an exercise price of 30 cents per share for a term of 18 months from closing. Therefore, 2.16 million common shares and 1.08 million whole warrants have been issued to accredited subscribers, including to an officer of the company and to a professional acting for one of the finders. Finder's fees of $20,736 and 74,700 broker's warrants were paid to Canaccord Genuity Corp. of Calgary and to a finder resident in Hong Kong. The broker's warrants carry the same terms as the subscriber warrants. There is a hold period of four months during which the units cannot be traded. Bayshore expects to close the remainder of the 10-million-unit financing in due course.

Bayshore will use the net proceeds to increase its working capital, contract to build a cold catalytic cracking (CCC) unit in Canada and construct associated CCC catalyst laboratory facilities. It will also finance contractual arrangements for a commercial ultrasonic desulphurization unit.

The CCC technology, in its current format, concentrates on liquid catalyst applications in converting bitumen and heavy oil directly into diesel fuel. Doing so avoids the need for high temperatures, pressures, hydrogen and other expensive processes in cracking the heavy hydrocarbons. Despite the current lower oil pricing environment and relatively stranded Alberta bitumen market, Alberta producers that employ such technologies will increase their revenues via a higher API product, and lower their costs via decreased use of diluent and transportation. Concurrently, more research is being conducted to partially upgrade crude feedstock to meet pipeline, rail and tank truck transportation requirements.

We seek Safe Harbor.