Mr. Dieter Peter reports

MINERAL HILL EVALUATES FAVOURABLE REPORT ON POTENTIAL NIGERIAN OIL ACQUISITION

Mineral Hill Industries Ltd.'s proposed future exploration partner, CPS Energy Resources Ltd., has updated its shareholders on its to-be-developed OPL 236 project.

CPS is a United Kingdom-incorporated private company, of which Mineral Hill has executed share purchase agreement with existing shareholders of CPS to acquire 45 per cent of CPS's outstanding shares and Mineral Hill has also negotiated the irrevocable right of first refusal to acquire additional 8 per cent of the outstanding shares of CPS held by two CPS shareholders (see the company's announcement of Jan. 16, 2017).

CPS announced, in particular, certain findings of a major study undertaken by a qualified integrated energy services company as a competent person report to be updated to comply with National Instrument 51-101 and COGE (Canadian Oil and Gas Evaluation) Handbook standards.

The qualified integrated energy services company used data and reports which included the following: seismic database in an HIS Kingdom project, an asset evaluation report from 2010, a drilling report from 1988, a geological study of OML 48 and a petrophysical review of the block undertaken in 2007.

CPS Energy Resources entered into an option agreement to jointly develop the contract area covered by OPL 236. After commercial, technical and legal due diligence, CPS has exercised its option to acquire an 80.75-per-cent participating interest in the production-sharing agreement for OPL 236 subject to receipt of ministerial and corporate consent, including final regulatory approval, further to which full asset transfer shall take place.

The share purchase agreement necessitates that the above-mentioned qualified integrated energy services company report will be updated with a full NI-51-101 report before the final approval of the acquisition by the TSX-V.

We seek Safe Harbor.