Mr. Glen Valk reports

NIKO PROVIDES UPDATE ON INDIAN GAS PRICE

Niko Resources Ltd. has provided the following update on the price for natural gas sales from the D6 block in India.

Natural gas price for April 1, 2015, to Sept. 30, 2015

In accordance with the new domestic natural gas guidelines, 2014, issued in October, 2014, the government of India (GOI) has issued a notification that the price for the period of April 1, 2015, to Sept. 30, 2015, is $4.66 per million British thermal units (MMbtu) based on the gross calorific value of the sales gas (which equates to approximately $5.18 per MMbtu based on the net calorific value (NCV) of the sales gas), representing a decrease of approximately 8 per cent from the price for natural gas sales from Nov. 1, 2014, to March 31, 2015.

Under the guidelines, customers of the D6 block in India pay for natural gas at the price notified by the GOI. For gas sales from the Dhirubhai 1 and 3 (D1 and D3) fields, the difference between this price and the earlier price of $4.20 per MMbtu NCV prior to the adoption of the guidelines is credited to a gas pool account. The cash flow benefit of the revised price on the company's share of gas sales from the D1 and D3 fields is not expected to be available to the company unless and until the cost recovery dispute with the GOI is resolved in the favour of the contractors of the D6 block. For further information on the cost recovery dispute, please see Note 24(c) to the company's interim condensed consolidated financial statements for the three- and nine-month periods ended Dec. 31, 2014, filed on the company's SEDAR profile.

As per the guidelines, the announcement of the gas price for the period of Oct. 1, 2015, to March 31, 2016, is expected to occur in September, 2015.