Mr. Dieter Peter reports

MINERAL HILL NEGOTIATES THE TERMS TO ACQUIRE ABSOLUTE MAJORITY OF ITS OIL AND NATURAL GAS PROJECT

Mineral Hill Industries Ltd. has negotiated the terms of its future right of first refusal (ROFR) for the acquisition of an additional 8 per cent of the outstanding shares of CPS Energy Resources PLC to bring it majority and control in development in the OPL-236 project, as announced previously in the company's Aug. 18, 2016, and Dec. 5, 2016, news releases. The company had announced that it had received the right of first refusal from an additional two shareholders of CPS, representing 8 per cent of CPS's outstanding shares. As Mineral Hill had received conditional acceptance from the TSX Venture Exchange for its proposed acquisition of 45 per cent of CPS's issued shares, an exercise of the irrevocable right of first refusal will bring the company's shareholdings in CPS up to 53 per cent.

The additional acquisition under the terms of the ROFR will have the exact same terms and conditions as the previously announced and executed share purchase agreement for its substantial acquisition of 45 per cent of the outstanding shares of CPS and will be conditional upon the final approval of the submitted substantial acquisition by the exchange.

The Dec. 5, 2016, news release also stated that Mineral Hill had secured the second phase of financing for the development of the OPL-236 project through a significant eight-year U.S.-dollar zero-coupon bond issue, on the assumption that the company would eventually exercise its irrevocable ROFR to acquire the additional 8 per cent of CPS.

We seek Safe Harbor.