Mr. N. Desmond Smith reports

PENNINE TO ACQUIRE PETROLEUM AND NATURAL-GAS RIGHTS FOR 640-ACRE PROPERTY NEAR YOUNGSTOWN, ALTA.

Pennine Petroleum Corp. has signed a general conveyance agreement, effective March 1, 2015, and closing on March 31, 2015, for the acquisition of 256 hectares (640 acres) of petroleum and natural gas rights in the Youngstown area of east-central Alberta from a privately held company. The rights have been examined by an independent engineering firm that identifies 132,000 barrels of probable reserves on 160 acres of the acquired property. Two wells on the property may be re-entered to verify earlier oil tests from two zones in the Lower Mannville geological sequence. Consideration for the transaction is 10 million common shares, retaining a 5-per-cent non-convertible gross overriding royalty on the gross monthly production of petroleum substances derived from the lands. The distribution of shares will not result in a change of control or create an insider of the company. The consideration will result in there being a total of 85,786,527 shares issued and outstanding.

This transaction is subject to regulatory and TSX Venture Exchange approval.

The company has also issued two secured convertible promissory notes in the amount of $20,000 each to two directors of the company. The notes will reach maturity on June 29, 2015, and have a 10-per-cent-per-year interest coupon. The principal may be converted into units at the average 20-day trading price of the company, at a minimum of five cents per unit. Each unit will consist of one common share and a share purchase warrant exercisable for a share of the company at 10 cents for a period of two years from issue.

We seek Safe Harbor.