Mr. Dan Halvorson reports

ONEROOF ENERGY GROUP INC. ANNOUNCES CLOSING OF FINAL TRANCHE OF NON-CONVERTIBLE NOTE FINANCING

OneRoof Energy Inc. and OneRoof Energy Group Inc. have issued a secured non-convertible note in the principal amount of $1.5-million (U.S.) to Black Coral Capital LLC, a current investor in OneRoof Energy, in the final tranche of a previously announced financing with Black Coral in the aggregate principal amount of $4.5-million (U.S.), financed in tranches. The note is issued on the same terms and is part of the same series as the notes previously announced in the press release dated Sept. 24, 2015. Certain of such terms are described in more detail herein.

The note is secured by the assets of the company that are not otherwise pledged under project financings. The available assets are already pledged as security under the company's senior credit agreement with North Sky Alliance Fund and NewWorld Environmental Infrastructure LP, as well as the company's subordinated convertible notes.

The note has an interest rate of 16 per cent per annum compounded monthly and computed on the actual number of days elapsed until all of the amounts due under the note have been paid in full and a year of 365 days. The company will pay interest on overdue principal and on overdue instalments of interest, from the date due until such time as actually paid at the applicable rate plus 2 per cent per annum. The note also has a $500,000 prepayment penalty. The note requires the repayment of principal and interest and does not require continuing servicing. Amounts outstanding at maturity will be repaid in cash generated from operations or through refinancing, depending on the terms available at the end of the term of the loan.

The proceeds from the note will be used for general working capital purposes, including general and administrative, IT development, and investment in solar projects.

We seek Safe Harbor.