Mr. N. Desmond Smith reports

PENNINE PETROLEUM CORPORATION TO TIE IN CASTOR WELL

Further to the news release of Oct. 24, 2014, concerning Pennine Petroleum Corp.'s activities at the Castor 2-22 well site, the company is offering the following update on the evaluation and decision to tie in the well.

The Castor 2-22 well, located in east-central Alberta, has been re-entered. After drilling out the abandonment cement bridge plug, the corporation recorded pressure buildup in the wellbore and decided to reperforate at four shots per foot in the prospective zone. The corporation conducted pressure buildup tests, and has been able to confirm that the Castor 2-22 well is connected to an existing produced Colony formation reservoir.

The corporation has monitored the Castor 2-22 well pressure buildup for a period of time to confirm the Colony formation reservoir capability and to evaluate tie-in options. The corporation has received a report from an independent third party reservoir professional engineer. The corporation has decided that the well will be tied in to the sales pipeline installed in 2001, located approximately 270 metres north of the wellbore. The corporation will be undertaking a customary licensing, right-of-way leasing and installation process. The timing of these activities will be dependent on weather and accessibility.

We seek Safe Harbor.