Mr. Brian Skanderbeg reports

GFG AND CREST COMPLETE REVERSE TAKE-OVER TRANSACTION

GFG Resources Inc. and Crest Petroleum Corp. have completed the previously announced reverse takeover transaction.

Reverse takeover

Pursuant to the RTO, Crest has acquired, on a one-for-one basis, all of the issued and outstanding shares of GFG in exchange for a total 38,503,483 common shares of Crest, of which 9,806,536 Crest shares are subject to escrow restrictions for a period of three years in accordance with the policies of the TSX Venture Exchange. The remaining 28,696,947 Crest shares are subject to a mandatory pooling restriction, of which 25 per cent is immediately free-trading and the remaining 75 per cent is subject to a six-month hold period expiring April 21, 2017. Certificates and/or letters of transmittal for Crest shares are being processed and will be mailed out to the shareholders of GFG early next week.

As a result of the RTO, there are now a total of 43,253,483 common shares and 300,000 stock options of Crest outstanding.

New board and management

Concurrent with closing of the RTO, all of the existing directors and officers of Crest have resigned, and the board of directors and management of Crest are now composed of the following individuals:

• Brian N. Skanderbeg, president, chief executive officer and director;
• Jonathan T. Awde, director;
• Patrick G. Downey, director;
• Stephen de Jong, director;
• Rick G. Johnson, chief financial officer and secretary;
• Timothy R. Brown, vice-president, exploration;
• Marc J. Lepage, vice-president, business development.

Full details concerning the RTO and descriptions of the new board of directors and management are included in the joint information circular of GFG and Crest dated Sept. 7, 2016, a copy of which is available for review on SEDAR.

Mr. Johnson, who is a new addition to the management team, has over 25 years experience in accounting, audit, tax and corporate governance. Most recently, Mr. Johnson was the CFO, vice-president of finance and corporate secretary of Claude Resources Inc., which was acquired by Silver Standard Resources Inc. earlier this year. Mr. Johnson holds a bachelor of commerce degree from the University of Saskatchewan and is a member of CPA Canada.

Name and symbol change

In conjunction with the completion of the RTO, Crest expects to change its name to GFG Resources Inc. and begin trading on the exchange as a Tier 2 mining issuer under the new symbol GFG on or about Oct. 27, 2016, following and subject to final exchange acceptance of the RTO.

We seek Safe Harbor.