Mr. Donald Currie reports

HILLCREST ANNOUNCES THE CLOSING OF ITS OVERSUBSCRIBED $0.05 UNIT NON-BROKERED PRIVATE PLACEMENT

Hillcrest Petroleum Ltd. has closed the second and final tranche of its non-brokered private placement (see original press release of Nov. 24, 2016) at a price of five cents per unit. Each unit consisted of one common share in the capital of the company plus one-half of one common share purchase warrant. Each whole warrant of this second tranche offering will entitle the holder to purchase one additional share at a price of eight cents until Jan. 18, 2019.

The securities issued in connection with the second tranche offering are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation expiring on May 19, 2017.

The company has raised gross proceeds of $445,000 to the second tranche closing, and together with the closing of the previous tranche (see press release of Dec. 15, 2016), an aggregate of 16.2 million shares have been issued for aggregate total proceeds of $810,000. The offering was oversubscribed and increased to a maximum of 16.2 million units, of which 7.3 million shares have been issued pursuant to the closing of the first tranche and 8.9 million shares have been issued pursuant to the closing of the second tranche.

The company has paid a finder's cash commission to the second tranche in the amount of $5,200 being 8 per cent of the aggregate proceeds from the sale of shares to purchasers introduced by the finder.

The net proceeds received from the offering will be used by the company to pay down secured debt, evaluate new projects and provide general working capital.

We seek Safe Harbor.